Will the used car prices crash or is this the new Norm?

[BHM 994]

Not all, but the majority of the punters buying at the lower end are those whose car is knackered.

The inflated prices that have affected all levels can be more easily afforded higher up the food chain but are almost unaffordable by the lower end buyers. That is until their current car goes bang & then they have little choice if they don’t fancy taking the bus! However there is a limit, and plenty of these buyers simply can’t stretch themselves.

I’ve had £4K cars making easy sales at £5K but adding £500, or more, to the price of a banger is a much harder sell. Personally I find the bottom-end bangers-p/x cheapies etc. hard work at the moment.

[David Horgan 564]

6 hours ago, BHM said:

I’ve had £4K cars making easy sales at £5K but adding £500, or more, to the price of a banger is a much harder sell. Personally I find the bottom-end bangers-p/x cheapies etc. hard work at the moment.

Bang on there , The lower end has issues on a few levels though , I targeted the lower end for 1st time drivers , Gone dead on that score as no tests .

price rises have slowed the cheap family cars down as a 2k cheapie is nearer 4k now , big hole on part time wage i would think to fill .

then the cheapie owners who have scrap now are looking for 2k for a rust bucket , but prices are up I have been told , Not for your pile they aren't my friend .

[Anglo9 26]

On 9/24/2021 at 1:46 PM, David Horgan said:

What the public don't realise is they feeding the mkt with expensive cars , and the prices just climb . 

Guy next to us bought two Transporters , £30k each brand new , We buy gave him £33k and because its trade to trade they will by pass the 6 months owner ship 

Has something changed at WBAC then as they used to not deal with trade ?

[Frank Cannon 812]

17 minutes ago, Anglo9 said:

Has something changed at WBAC then as they used to not deal with trade ?

Webuyanyvan, most vans are owned by a business? 

[David Horgan 564]

9 hours ago, Anglo9 said:

Has something changed at WBAC then as they used to not deal with trade ?

Its because his business is called ""{camper conversions}"" so they don't class that as car or van trading even though he sells vans too as well as campers .

Play on words but it works for him , hes done four now 

[TRADE SURVIVOR 33]

On 9/24/2021 at 6:59 AM, metcars said:

Regardless, he is correct. Tough times are coming.

Clearly my warped sense of humour doesn't travel so far South 

[metcars 397]

1 hour ago, TRADE SURVIVOR said:

Clearly my warped sense of humour doesn't travel so far South 

To be fair, it doesn’t travel in any direction!

[TRADE SURVIVOR 33]

2 minutes ago, metcars said:

To be fair, it doesn’t travel in any direction!

Nice one touch'e 

[MrC 142]

Last batch of Transporters I ordered in June where £33000 inc VAT.. Same vans today £39500 with an 8-12 month wait!!!! I had three quote from dealers and all where the same within £100 All discounts and dealer contributions have gone.

[It's me 615]

what annoys me about the emperors new clothes is all my experiance of valuing cars is now worthless

 

[David Horgan 564]

14 hours ago, It's me said:

what annoys me about the emperors new clothes is all my experiance of valuing cars is now worthless

 

Like starting out again , isnt it , Find myself looking at we buy car like a new starter . Autotrader figures for retail and the like .

have to be armed now days with what px expectations will be in a customers head , wild numbers at present ive had , 

My cars worth this , haha would be if you had looked after it , its now £400 

I'm only selling my car because its worth more money , haha go try sell your A3 120 k shit box yourself then . 

We buy any car are offering 3k for my car what discount do i get off yours for cash then like they say , Haha buy it at this weeks price not next weeks is my deal 

[CRW 73]

2 hours ago, David Horgan said:

We buy any car are offering 3k for my car what discount do i get off yours for cash then like they say

The great British public being fed another lie.  Makes me laugh how WBAC are allowed to say they will get a discount without a px as if there is some law that guarantees it!

[HuwD 1]

Prices seem to have jumped overnight in the cap guides but not all have updated. 2019 mini we have jumped from £18900 to £20750. Bonkers

[BHM 994]

 

6 hours ago, HuwD said:

Prices seem to have jumped overnight in the cap guides but not all have updated. 2019 mini we have jumped from £18900 to £20750. Bonkers

Surely that’s a truer reflection. At the lower end of the market most of the cars that book trade at £3-5K are now making £4-6K. A much bigger rise percentage-wise & the CAP/Glasses aren’t keeping up at the moment - just like poor Joe Public who’ve now twigged there aren’t any cheap cars available & their pound now goes less further than it used too.

[Highlinev8 28]

8 hours ago, HuwD said:

Prices seem to have jumped overnight in the cap guides but not all have updated. 2019 mini we have jumped from £18900 to £20750. Bonkers

Cap updates on the 1st of the month. Most cars have been jumping 5-9% a month since around March- April. I think the overall average raise for the year to date is something like 22-24% 

On top of that you wont realistically buy a desirable car at Cap clean. At the top end of the market cars are making at least 10% over guide. 

Painful times. I'm hoping someone finds an abandoned warehouse full of semi conductors pretty soon.

[HuwD 1]

18 hours ago, BHM said:

 

Surely that’s a truer reflection. At the lower end of the market most of the cars that book trade at £3-5K are now making £4-6K. A much bigger rise percentage-wise & the CAP/Glasses aren’t keeping up at the moment - just like poor Joe Public who’ve now twigged there aren’t any cheap cars available & their pound now goes less further than it used too.

Yeah agreed I have only seen that big a jump once though and that was back in June or July. There have just been smaller incremental rises but suppose they've had to balance it at a different point.

It's all facetious anyway because CAP seem so far out and potentially just push the likes of the Mini to fetching potentially £22k at auction now instead of £20.5k as CAP clean seems the barrier for entry for many traders at present!

16 hours ago, Highlinev8 said:

Cap updates on the 1st of the month. Most cars have been jumping 5-9% a month since around March- April. I think the overall average raise for the year to date is something like 22-24% 

On top of that you wont realistically buy a desirable car at Cap clean. At the top end of the market cars are making at least 10% over guide. 

Painful times. I'm hoping someone finds an abandoned warehouse full of semi conductors pretty soon.

Yeah it's unbelievable. Valued a basic diesel Ford Kuga on a 70 reg this morning, 27k! At a year old!!

Bought the same reg in auto in January for £20k, CAP clean £21.5k and today it's £28.2k!

[Halfpenny 114]

Its not a 'new normal', its a 'blip' caused by a mismatch between supply and demand. Once the chip shortage is resolved (which WILL happen sometime next year) then things will start to settle. 

In the long term I think we will go back to oversupply of new cars. Europe still has too much production capacity (much of it on short time working now due to chip problem) and the Chinese have barely started to export cars yet..

[TRADE SURVIVOR 33]

On 10/4/2021 at 8:21 AM, Halfpenny said:

Its not a 'new normal', its a 'blip' caused by a mismatch between supply and demand. Once the chip shortage is resolved (which WILL happen sometime next year) then things will start to settle. 

In the long term I think we will go back to oversupply of new cars. Europe still has too much production capacity (much of it on short time working now due to chip problem) and the Chinese have barely started to export cars yet..

Agree. Although pinch point may not come anytime soon, there is apparently a shortage of other components other than chips. Can see a possible dip in demand come December as folks feel they lost Christmas last year therefore this year Christmas could be on steroids and focus on other things rather than used cars. We have no Tsunami of used stock due anytime soon and if March plate delivers my guess is that stock that filters through will be readily absorbed by the trade. We may also have the bonus early next year of those who have deferred changing due to not covering many miles through lockdowns. January through March I am optimistic that the job will be good, with prices stable, but once new car production ramps up who knows? We indeed are in unchartered territory.   

[MrC 142]

Interesting points 

 

 

Edited October 9, 2021 by MrC

[slademotors 3]

On 9/25/2021 at 5:31 PM, David Horgan said:

100k today alone on finance deals . 

Put two cars up 2k from 23k to 25 k and sold them in 48 hrs . 

Cheap stuff is slower though , we have a cheapy dept and its slower than it should be , first timers are not buying due to no tests , well mixed up mess out there 

No wonder my Micra isnt selling ..