2nd hand prices

[leonlad]

Thinking about a mk4 fr sport 1.5 dsg.

Why are they so bloody expensive most i have seen are 2.5 years old and asking 21 to 24k ???

I did notice list price was 28.5k when this car was new, so looks like they are pricing up against the inflated 2023 new price.

Back in 2014 i bought a 1 year 8k mile 1.8 fr dsg with everthing for 15k !

 

[SRGTD]

A lot has changed since 2014. Factors that have influenced current used car values / prices and have done for the last 2-3 years or so;

1. Parts / components shortages and supply chain issues due to the war in Ukraine and limited semiconductor supplies.
2. Because of 1. above, fewer new cars being built and longer lead times than historically.
3. A shortage of good quality used cars. Many dealers have had limited stocks. My VW dealer told me last year that at that time they’d started parking cars diagonally on their forecourt to fill the gaps and give the impression they had more stock to sell than they actually had. They’ve also contacted me twice in the last year or so wanting to buy my car!

1.- 2. above has meant that many people who would’ve historically bought a new car but weren’t prepared to suffer an excessively long lead time (up to two years in some cases) either bought a nearly new car instead or kept their existing car. The result has been increased demand for good quality in-demand used cars and reduced supply of used vehicles. Increased demand + reduced supply = high prices.

Out of curiosity, I‘ve just checked to see what We Buy Any Car (WBAC) would offer me for my car; WBAC are renowned for making lowball offers, so their valuation would probably be at the lower end of what I could get for it if I sold to one of the car buying services. Currently, they are offering 10% less than I paid for it brand new three years ago and IMHO 10% depreciation over three years of ownership of a mass produced car would‘ve been unheard of a few years ago. If I were to sell to WBAC (I wouldn’t), by the time they’d sold my car on through the trade and the buying dealer had added their mark up / margin, it would be up for sale on a forecourt at a higher price than I bought it for; crazy!

New car supplies and lead times do seem to be gradually improving which should have a knock-on impact onto used prices, so with any luck, we’ll see used prices starting to fall. With that in mind, it might be worth waiting an keeping a watch on prices over the next 2-3 months.

 

[tracktoy]

A lot has changed since 2014. Factors that have influenced current used car values / prices and have done for the last 2-3 years or so;

1. Parts / components shortages and supply chain issues due to the war in Ukraine and limited semiconductor supplies.
2. Because of 1. above, fewer new cars being built and longer lead times than historically.
3. A shortage of good quality used cars. Many dealers have had limited stocks. My VW dealer told me last year that at that time they’d started parking cars diagonally on their forecourt to fill the gaps and give the impression they had more stock to sell than they actually had. They’ve also contacted me twice in the last year or so wanting to buy my car!

1.- 2. above has meant that many people who would’ve historically bought a new car but weren’t prepared to suffer an excessively long lead time (up to two years in some cases) either bought a nearly new car instead or kept their existing car. The result has been increased demand for good quality in-demand used cars and reduced supply of used vehicles. Increased demand + reduced supply = high prices.

Out of curiosity, I‘ve just checked to see what We Buy Any Car (WBAC) would offer me for my car; WBAC are renowned for making lowball offers, so their valuation would probably be at the lower end of what I could get for it if I sold to one of the car buying services. Currently, they are offering 10% less than I paid for it brand new three years ago and IMHO 10% depreciation over three years of ownership of a mass produced car would‘ve been unheard of a few years ago. If I were to sell to WBAC (I wouldn’t), by the time they’d sold my car on through the trade and the buying dealer had added their mark up / margin, it would be up for sale on a forecourt at a higher price than I bought it for; crazy!

New car supplies and lead times do seem to be gradually improving which should have a knock-on impact onto used prices, so with any luck, we’ll see used prices starting to fall. With that in mind, it might be worth waiting an keeping a watch on prices over the next 2-3 months.

I totally agree with the above but I would add in that the global supply chain is facing other issues https://www.reuters.com/business/en...t-seas-slow-panama-canal-shipping-2023-08-21/ and the fact the Rhine is suffering with lack of water meaning the barges cant carry the loads they used to.

 

[SRGTD]

I totally agree with the above but I would add in that the global supply chain is facing other issues https://www.reuters.com/business/en...t-seas-slow-panama-canal-shipping-2023-08-21/ and the fact the Rhine is suffering with lack of water meaning the barges cant carry the loads they used to.

That’s an interesting article.

On the subject of car prices - the video at the link below is worth a watch. As far as new cars are concerned, it’s in car manufacturers best interests to build fewer cars and to focus on more expensive, higher spec models as there’s more profit - per car and overall - to be made. Also, fewer cars + increased demand = less discount available off the price and that’s not good news for car buyers.

 

[leonlad]

A lot has changed since 2014. Factors that have influenced current used car values / prices and have done for the last 2-3 years or so;

1. Parts / components shortages and supply chain issues due to the war in Ukraine and limited semiconductor supplies.
2. Because of 1. above, fewer new cars being built and longer lead times than historically.
3. A shortage of good quality used cars. Many dealers have had limited stocks. My VW dealer told me last year that at that time they’d started parking cars diagonally on their forecourt to fill the gaps and give the impression they had more stock to sell than they actually had. They’ve also contacted me twice in the last year or so wanting to buy my car!

1.- 2. above has meant that many people who would’ve historically bought a new car but weren’t prepared to suffer an excessively long lead time (up to two years in some cases) either bought a nearly new car instead or kept their existing car. The result has been increased demand for good quality in-demand used cars and reduced supply of used vehicles. Increased demand + reduced supply = high prices.

Out of curiosity, I‘ve just checked to see what We Buy Any Car (WBAC) would offer me for my car; WBAC are renowned for making lowball offers, so their valuation would probably be at the lower end of what I could get for it if I sold to one of the car buying services. Currently, they are offering 10% less than I paid for it brand new three years ago and IMHO 10% depreciation over three years of ownership of a mass produced car would‘ve been unheard of a few years ago. If I were to sell to WBAC (I wouldn’t), by the time they’d sold my car on through the trade and the buying dealer had added their mark up / margin, it would be up for sale on a forecourt at a higher price than I bought it for; crazy!

New car supplies and lead times do seem to be gradually improving which should have a knock-on impact onto used prices, so with any luck, we’ll see used prices starting to fall. With that in mind, it might be worth waiting an keeping a watch on prices over the next 2-3 months.

i believe the component shortage is nearly resolved though, and basically any delays are due to back log of orders or so i have heard.

WBAC offered me £8350 but in may it was £10300 i was hoping i could get 12k private as it`s only done 32k. still great money for a car i paid 15k for 9 years ago but then again any retained value is priced out by the steep new car prices.

what`s the chance of picking up a fr sport dsg on a 21 plate for 18k ish ?

why the heck do 99% of used one`s do not have adaptive cruise when it was only £220 as an option

 

[leonlad]

prices are dropping like a brick, looks like we are going back to 60-70% off at 3 years

Cargiant - London's Largest Car Dealership

We have thousands of used cars in stock at unbeatably low prices. We also offer finance, part exchange all at our London Dealership reserve your car online for just £99.

www.cargiant.co.uk

Cargiant - London's Largest Car Dealership

We have thousands of used cars in stock at unbeatably low prices. We also offer finance, part exchange all at our London Dealership reserve your car online for just £99.

www.cargiant.co.uk

 

[SRGTD]

The artificially inflated used car prices of a while back were always going to come down to earth with a bump at some point. Many of the supply chain issues affecting new car production have been resolved or have substantially improved, lessening the high demand for late date, good quality, good spec used cars; less demand + increased dealership used car stock = lower used car values / prices.

Some car manufacturers might also get their fingers burnt if GFV’s (guaranteed future values) that were set under PCP‘s over the last few years are now artificially high relative to the actual reduced value of cars being handed back at the end of the PCP term, giving the potential for financial losses under PCP contracts. Manufacturers are likely to address that situation by offering lower GFV’s under future PCP’s, and maybe charging higher APR’s to recoup some of those losses, the result being PCP’s becoming more expensive as a method of buying a new car.

With new car pricing, there seems to be a move towards the car manufacturers taking more control of the prices, limiting or removing the availability of discounts, the result being the published list price is becoming a ‘take it or leave it‘ price. As an example, Drive the Deal (DtD) website used to list the popular VW models with good discounts (10% - 16% seemed to be the norm). The only new VW’s you can buy currently through DtD are the Amarok pick up, and a handful of people carriers.

So with the potential of more expensive PCP’s, the possible removal of new car discounts and falling used prices, anyone considering buying a brand new car that has an existing car to sell could be in for a shock!

 

[leonlad]

buying a car via PCP was never buying a car in the first place, just a pathetic excuse to mimic ownership while shifting lots of overpriced tin supported by zero percent interest rates for over a decade.
most car renters or PCP buyers just rolled over to another one at the end of the term as most could never afford to pay off the balance at the end anyway,

just be thankful this is not the land rover forum unsellable range rovers worth nothing not even selling in auctions with massive discounts and uninsurable.

 

[H Rafiq]

My cars depreciated about a third of the price I bought it for, in 2 years…

 

[tracktoy]

No Idea what mine is worth but I am not selling it, it will go to the scrap yard when it becomes far to expensive to repair.

Fully agree about the land rover and apparently they are going to start there own insurance company to help reduce the cost of insurance (which in the big cities is horrible if you can get it at all)

 

[leonlad]

No Idea what mine is worth but I am not selling it, it will go to the scrap yard when it becomes far to expensive to repair.

Fully agree about the land rover and apparently they are going to start there own insurance company to help reduce the cost of insurance (which in the big cities is horrible if you can get it at all)

They already had their own broker, they wont even insure their own cars

Land Rover insurance problems mount as owners are refused in-house cover | Auto Express

Land Rover’s insurance scheme has recently been relaunched, but some customers are being refused cover

www.autoexpress.co.uk

 

[SRGTD]

They already had their own broker, they wont even insure their own cars

Land Rover insurance problems mount as owners are refused in-house cover | Auto Express

Land Rover’s insurance scheme has recently been relaunched, but some customers are being refused cover

www.autoexpress.co.uk

In some instances, it could be it’s the owner that makes the risk uninsurable rather than the vehicle (e.g. an owner with a poor claims history, certain types of motoring conviction(s), multiple points on licence, an unacceptable occupation etc.).

This piece from the Auto Express article made me smile;

‘The car has a tracker and is kept behind a locked gate at night, always having a Krooklok fitted when parked.’

If it’s one of the old style Krookloks that hooks over the steering wheel and one of the pedals, I wonder what an insurance company’s reaction would be if / when told that was the additional security measure being taken by the owner to protect their pride and joy……. .

 

[leonlad]

In some instances, it could be it’s the owner that makes the risk uninsurable rather than the vehicle (e.g. an owner with a poor claims history, certain types of motoring conviction(s), multiple points on licence, an unacceptable occupation etc.).

This piece from the Auto Express article made me smile;

‘The car has a tracker and is kept behind a locked gate at night, always having a Krooklok fitted when parked.’

If it’s one of the old style Krookloks that hooks over the steering wheel and one of the pedals, I wonder what an insurance company’s reaction would be if / when told that was the additional security measure being taken by the owner to protect their pride and joy……. .

possible the driver but 100% the vehicle, i have heard of quotes that 10k or more have been offered to insure one, and most insurers won`t even offer insurance.

now they are cutting into the can bus directly to steal them,

 

[tracktoy]

If it’s one of the old style Krookloks that hooks over the steering wheel and one of the pedals, I wonder what an insurance company’s reaction would be if / when told that was the additional security measure being taken by the owner to protect their pride and joy……. .

I suspect no impact simply because its not automatic and if the vehicle is stolen then how does the insurance company know you put it on.

Tata motors are going to have to get the security issue sorted otherwise the brand will suffer badly.

 

[Jammers]

Prices are collapsing. My SE Dynamic on WBAC is now £11500, Car Wow say it's worth £12300. Finance owed including the interest rebate is £14000 so I am stuck with mine for a while. I want rid, it was always a big step down from my Astra Elite.

 

[leonlad]

Prices are collapsing. My SE Dynamic on WBAC is now £11500, Car Wow say it's worth £12300. Finance owed including the interest rebate is £14000 so I am stuck with mine for a while. I want rid, it was always a big step down from my Astra Elite.

Probably why i had a seat dealer email me yesterday asking if i still want to buy a new car from when i contacted them 6 months ago ! thinking a year old one for 24k is a good deal.

i sent them the listing to the phev for 14k, and they could not understand why i am not interested in their made up inflated prices

to start you need to knock of 10k then we can negotiate.