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Used car prices

Sue Pertwee-Tyr

Accuphase all the way down
I gather Covid has caused a bit of a boom in the used car market. I’ve been considering getting a Volvo V60 Cross Country, the last model, with the 2.4 diesel and 4x4. I’ve monitored prices and, since the new model came out, prices had been drifting down nicely, from early 20s last year to upper-mid teens of thousands earlier this year, for a 3-4 year old. The approved used models are all now back at £20k or well above, from about £16-18k literally last month. What’s going on?
 
A combination of:

Lack of new supply
Dealers controlling the used market via car buying websites (WBAC etc)
Lots of new printed money

Unless you really need to change now, bide your time and wait for the tide to turn.
 
Things are a bit mental to say the least. I bought an ex dem car 2 months ago, the company I bought it from have an on line px valuation and have honoured the price exactly both times I've used them. I p/xed my 5 year old BMW and the price I got was higher than I was being quoted 18 months ago. Out of interest, I just put the new car in to see what it's worth now and it's £5.5K more than I paid for it! Even WBAC are quoting £1k more than I paid for it.

The problem seems to be, no new cars due to component shortages, so used cars are increasing in value and the new car shortage keeps biting deeper.

The pain will come I guess if you have to pay too much now and values return to normal over the coming years.
 
Yeah it's annoying. We really need a larger car to shift my two daughters to Uni but haven't found any good deals near us. We're looking at the lower end of the market (cars of 8-12 years old up to 4.5k) but even there it's having a marked effect. Have spoken to a couple of dealers in the last fortnight who tell me that they're finding it difficult to source decent cars, and prices are soaring because of the competition for them. Private sales are few and far between.
 
It could be quite a wait. The chip shortage won’t be solved quickly.

I think we are seeing the worst of it right now. Most estimates I’ve seen show easing next quarter, with a return to normal production by middle-to-late 2022 (barring new COVID strains with mass breakouts).
 
I think we are seeing the worst of it right now. Most estimates I’ve seen show easing next quarter, with a return to normal production by middle-to-late 2022 (barring new COVID strains with mass breakouts).

Yes, I think we are at max pricing fear now...sit tight...
 
I hope so. Would be nice to see a bit of unloading of used cars when the new car market opens up a bit, with prices returning to something more like expected.
 
I think we are seeing the worst of it right now. Most estimates I’ve seen show easing next quarter, with a return to normal production by middle-to-late 2022 (barring new COVID strains with mass breakouts).
Yes, that's the sort of timescales I've seen from our suppliers and general info in the press. In terms of new cars hitting the market & shipped to the UK we're likely talking a year minimum - it'll then take some time to exhaust the pent-up demand. BTW normal production is one thing but another issue is that demand is also ramping up...more chips are required than previously. Just look at the tech that most new cars now have or would have if the chips were available.
 
Yes, I think we are at max pricing fear now...sit tight...

You should see the motorhome prices, off the scale. End of the summer too. Once planes start flying back at capacity, it will be interesting to watch. A wet week in the UK or a week of sunshine in Greece…

The issue with cars is the relentless demand. I don’t see this slowing down even once more supply starts coming through. Let’s face it, you only need a salary and a pulse to strap yourself into some very expensive new metal. The purchase price is almost irrelevant, exactly as manufacturers planned, which in turn pulls up used prices.
 
yes factorys have whole car parks sitting with high end cars waiting for chips , going to be a huge shortage so affecting used car prices
 
You should see the motorhome prices, off the scale. End of the summer too. Once planes start flying back at capacity, it will be interesting to watch. A wet week in the UK or a week of sunshine in Greece…

The issue with cars is the relentless demand. I don’t see this slowing down even once more supply starts coming through. Let’s face it, you only need a salary and a pulse to strap yourself into some very expensive new metal. The purchase price is almost irrelevant, exactly as manufacturers planned, which in turn pulls up used prices.

We're looking to replace our mobile home and I'm guessing 2025 will be a good time...lots of nice 3 to 5yo ones on the market by then...I'm actually glad there is such big demand now as this countries never seen so many on it's shores.

These cycles take years to play out. Last one we bought was 2010 when parks were emptying out, park owners were getting the keys thrown at them to offload...

I think the used ICE market could be very interesting in 3 or so years time...Buyers now chanting "She will only ever go up in value!!" will be tested
 
I ordered my first new car since '98 in March, (it will probably be my last as well) only to cancel it 6 weeks later, due to just about every single option I requested being removed on a near weekly basis. The final straw was no decent music system, being replaced to the most basic in their range, along with wireless charging being thrown out.
I am quite prepared to wait, as it is only a car, but if I am going to have one, it will have what I want in it.
This is entirely down to the 'chip shortage' brought upon the motor industry entirely by themselves.
Covid saw them totally cancel masses of chips, and all of that production went to the booming requirement for home entertainment setups and mobile communications.
They expected to just then re order when they needed - and nope - all that production is spoken for, and along with the couple of fires wiping out other producers, there is simply not enough headroom to allow for the shortfall, probably late '23 before it begins to return to normal levels.
Huge quantities of cars have simply not been built as retrofit is utterly silly on time, if at all feasable.
This is totally altering the way car producers can build, with the demand for JIT deliveries now out of the window.

This had the major knock of making high spec cars impossible to be found, increasing the value of any that could be purchased.
Some have seen the value of their lease car final paymnet being paid for by the purchase of a newer model.

I am told I may be able to start looking for what I wanted Q2 2022, but I am not holding my breath.

I think Renault have even resorted to going back to old analogue speedos/rev counters etc to try and rescue some production, at least in some ranges.
 
How's this going to affect the forecasts for EV manufacturing. The things must be riddled with them....!!

Honda E doesn't even have side mirrors...uses cameras and screens instead. Talk about trying to solve a problem that didn't exist in the first place (apparently it helps in bad weather though LOL)

honda-e-side-camera-mirror-system.jpg
 
Out of interest, I just got a quote from WBAC and it's got up £2K since last year.

Then I searched the Merc website for a similar new car, zilch! I know there the new C class is due in UK soon but I have never known that when checking previously. When the new E class was announced in 2020, their site was awash with offers.
 
How's this going to affect the forecasts for EV manufacturing. The things must be riddled with them....!!

Honda E doesn't even have side mirrors...uses cameras and screens instead. Talk about trying to solve a problem that didn't exist in the first place (apparently it helps in bad weather though LOL)

honda-e-side-camera-mirror-system.jpg
Hopefully they have a way to keep the cameras clean…eg squirt air or water. Certainly with reversing cameras this can be an issue though probably worse at the rear rather than the side. Too much tech…
 
I leased an Octavia for 2 years and at the end of it WBAC were offering me £500 more than the price I could have bought it off them for. I didn't want the hassle so gave the car back. Since then I've had several emails from WBAC saying the valuation has gone up. I daren't look!
 
I leased an Octavia for 2 years and at the end of it WBAC were offering me £500 more than the price I could have bought it off them for. I didn't want the hassle so gave the car back. Since then I've had several emails from WBAC saying the valuation has gone up. I daren't look!
Don’t feel too bad, WBAC would have knocked you down for really trivial paint damage eg stone chips…anything.
 


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