Hello everyone, first time poster here.
Due to having the worst year on record (having had 12 years experience) when it comes to used car sales, I have been left wondering what on earth is going on. Searched the web to find answers and ended up discovering the cardealermagazine forum (well, the depressing 'who is doing well' threads anyway!).
A serious change in the trade as I see it was when...
I noticed in the last few years a massive lack of good cars to buy and having to go to auctions where every man and his dog is chasing the same cars at insanely over inflated prices
Dealers now selling there part exchanges rather than auction them off
More and more and more people selling to WeBuyAnyCar rather than sell privately (never thought it would have taken off - how wrong I was)
The plethora of new personal lease cars on the road, especially Audi's, BMW's and Merc's
How everyone (the regular buyer) became price experts and expected that everything should be priced the same as what Parkers says its worth or what WBAC say its worth
Elon Musk
Elon Musk - the man who single-handedly destroyed the internal combustion engine, gave the super elites the chance to enforce there agenda on 'climate change' while brain-washing millenials and now as his last party trick... he has killed the used car industry.
I have been trying to think this one out for a while and still keep coming up with the same conclusion. If electric cars are the future (which I detest with a passion) then think of the consequences for those who sell used cars. If you deal in cars eight years or older (which I do) in the sub £3000 to £8000 category, what is it going to be like when you have to sell an EV that effectively has a battery that is degrading before you?
Let me explain. Today I may look at buying a 2010 Golf with a 1.4 engine that has covered 30,000 miles. Lets say the Golf is valued at £5,000 and retails for £6,500. When you buy the Golf, you don't expect its fuel tank to shrink. Your more concerned that there is no lights on the dash, that the diamond cut wheels are in ok shape and that the timing belt (and the waterpump) has been changed.
OK, now, compare that to the future electric Leaf you will have to buy (seeing as the electric Golf on offer just now is never going to be wanted with a 120 mile range). The Leaf is horrible to look at no matter how much motivation you need to just simply try and sell the thing, but hey its what you have and its all you can buy because the Government says so (I digress). You are more concerned that above anything else, the Leaf's battery is still showing full strength and that it has not suffered serious battery degradation, after all your battery is your fuel tank now and with limited range on a EV at present, no one wants one that will travel shorter and shorter distances. The battery replacement cost is insane as well. If you are buying your Leaf to sell for say £5,000 when its eight years old, lets hope that 95%, 90% or 85% battery life left is acceptable to your future customers as replacement of a Leaf battery will set you back £5,000. Then there is another problem, how do you value a used electric car? A car with an engine can be valued based on its mileage as less miles on the engine usually determines the value due to ware and tare. However, an electric car does not have an engine so what difference does a 60k Leaf have over a 20k Leaf? Seriously, what are we appraising here?
This is the problem I have with this technology and this is why I think used electric cars are going to be worthless and in turn, the used car sellers out there might want to think about getting another trade.
If I am wrong in this, please please please let me know. I just can not see this working in the coming years ahead (and when I say that I mean literally the next year or so). Already cars are on the decline with these stupid ULEZ zones and anti-diesel cars. Its suicidal what is happening to the car industry and I just feel furious about it. Good on President Trump for standing up for fossil fuels. Europe is finished.