2nd Hand Values

[Manse Runner]

If anyone has a good feel for the current market conditions, then any specific pointers for the model below, or the market in general would be apppreciated.

I'm looking for a 1 year old V2 190bhp 4DRIVE model, and I'm a bit confused by the Autotrader prices.

Found one I like the look of, a 23 plate, with less than 4000 miles, priced at £28.5k - Autotrader says it's below average price, giving it a "Great Price" sticker.
However when I put this car's reg number into Autotrader's "Value Your Car" for a trade-in value then it gives just £23.5k.

Surely one of these 2 numbers is wrong, dealers aren't making £5k on a £23k car are they ?? I mean I understand they need to make a profit, prep any scratches to bodywork, alloys, etc (which should be minimal on a car less than 1 year old), but that's a 21% markup which seems excessive.

I know the 2nd market has been all the over the place the last few years, I've not bought a car since 9 years ago, so I'm a bit lost as to what I should be aiming to pay.

Are Autotrader's "Value Your Car" valuations very pessimistic and in practice you'd get more for a trade-in ?

It's valuing my current car at just over £6k, so going by their prices that would be about £22k to change, if I could get that down to nearer £20k then that would be a lot better, but I don't know how realistic that would be.

 

[the_lorne_ranger]

The 2nd hand car market is crazy at the moment! Huge differences between trade in price and sale price.

When I changed cars in November last year, a dealer was offering me 18k for my 2018 F30 335d x-drive with 40k miles. They had a similar spec 335d in stock, 1 year older than mine, and 10k higher miles. They had it on the forecourt for 26k, 8k more than what they were offering for mine.

And a 2018 Golf R I traded in for 22.5k in 2022, went on the forecourt at 25k for a couple of months, didn't sell, then another garage further north bought it, painted wheels black, and put it on their forecourt at 29k, and it sold!

 

[SRGTD]

The 2nd hand car market is crazy at the moment! Huge differences between trade in price and sale price.

Agree; yes it is!

If anyone has a good feel for the current market conditions, then any specific pointers for the model below, or the market in general would be apppreciated.

I'm looking for a 1 year old V2 190bhp 4DRIVE model, and I'm a bit confused by the Autotrader prices.

Found one I like the look of, a 23 plate, with less than 4000 miles, priced at £28.5k - Autotrader says it's below average price, giving it a "Great Price" sticker.
However when I put this car's reg number into Autotrader's "Value Your Car" for a trade-in value then it gives just £23.5k.

Surely one of these 2 numbers is wrong, dealers aren't making £5k on a £23k car are they ?? I mean I understand they need to make a profit, prep any scratches to bodywork, alloys, etc (which should be minimal on a car less than 1 year old), but that's a 21% markup which seems excessive.

I don’t know how accurate Autotrader’s view of current selling prices or trade in valuation prices are. However, as @the_lorne_ranger has said, 2nd hand car prices are crazy just now. A quick look on the official Cupra website at used 2023 V2 190ps Formentors with a mileage of circa 4,000 or less (there are currently 4 vehicles fitting that criteria) gives a selling price range of £27,990 to £28,990, so I’d say the selling price of the car on Autotrader is in line with the market price rather than a ‘great price’.

Although Autotrader’s valuation tool gives a trade in value of £23.5k for the vehicle your interested in, if the dealer selling that car bought it before the recent over-inflated used car price bubble burst, they may have paid in excess of the current Autotrader trade in valuation and their profit could be quite a bit less than £5k. They might not be prepared to drop their selling price (yet) and potentially sell the car at a loss.

As for your own car’s value and what you might realistically get for it - I would use a range of sources to get a view of value rather than rely on just the Autotrader valuation;

• We Buy Any Car tend to have a reputation for low-ball valuations, so you could use their valuation as the bottom end of what you might get.
• Based on feedback on some forums, car buying services such as Motorway valuations are often more generous than dealer part exchange valuations. Carwow also offer a car valuation and car buying service.

With any car buying service, always be honest over your own car’s condition, and declare any imperfections/ damage to ensure any indicative valuation reflects the true condition of the vehicle, and it isn’t subsequently reduced when the vehicle is viewed by a potential buying dealer.

 

[Manse Runner]

Thanks both for your replies, I always hate buying cars, always feel I'm getting royally shafted

Thanks SRGTD for mentioning the official Cupra website, I just assumed all dealers also used Autotrader, but have found one that has a couple of cars that match my criteria that aren't on Autotrader, and are a bit cheaper than the one I was looking at .
Will also get a few different valuations of my own car before I contact them.

Hoping to become a "proper" member on here in the next few weeks

 

[dashnine]

We Buy Any Car is probably a better valuation source, as they would actually buy the car rather than just advertise it (where a lower value may generate a quicker sale and therefore more fees for AutoTrader...)

 

[the_lorne_ranger]

Thanks both for your replies, I always hate buying cars, always feel I'm getting royally shafted

Thanks SRGTD for mentioning the official Cupra website, I just assumed all dealers also used Autotrader, but have found one that has a couple of cars that match my criteria that aren't on Autotrader, and are a bit cheaper than the one I was looking at .
Will also get a few different valuations of my own car before I contact them.

Hoping to become a "proper" member on here in the next few weeks

I think the buyer always gets shafted at some point! Good luck in your search, and always haggle and be willing to walk away if price isnt right, they will more often than not come back to you, and if not, there will be other cars!

When looking for my Formentor, I was negotiating with a dealer (Non Cupra) and he was only willing to drop £500 off the ticket price, but was offering £250 more for my car on trade in value, said it was the lowest and best price he could do, was then off for a few days, and I didn't hear from him while he was off.

While he was off the dealership obvs weren't aware he'd been talking to me, and dropped the ticket price by £900!

So I ended up getting £900 off the ticket price, and then an additional £500 on trade in for my car.

Also saved some money arranging my own PCP, interest rate was 2% lower than dealers offer.

 

[Karbonfaiba]

...I always hate buying cars, always feel I'm getting royally shafted

It's because you always are lol. There is no way to avoid paying a massive penalty for changing your car. Traders obviously know what they are doing. The trading industry has also worked to build a taboo around private "high-risk" sales.

afaik, continue buying used cars from dealers, try to buy them outright (if you can save up) or take out a bank loan, unless you can get 0% APR. Average ownership length is 3 years (due to GAP).

 

[the_lorne_ranger]

Average ownership length is 3 years (due to GAP).

I have been driving 20 years and had 19 cars!

 

[Karbonfaiba]

I have been driving 20 years and had 19 cars!

Then I'm envious of your impressive history! With a different car every year, you wouldn't even worry about service or MOT surely?

 

[the_lorne_ranger]

service or MOT

What even are those?

 

[Seastormer]

I have been driving 20 years and had 19 cars!

I'm the opposite, had 12 cars in 41 years, two were used though, so had a lot of MOT's and services.

 

[SRGTD]

I'm the opposite, had 12 cars in 41 years, two were used though, so had a lot of MOT's and services.

17 cars in 46 years for me. In my youth I used to change cars fairly regularly, but not these days (priorities change). The last five cars I’ve kept each between 4 and 5 years, so lots of services and MOT’s for me too.

 

[LetsForment]

Hummm

I have three cars at the moment, one I have had for 21 years, another for 15 - both bought new and maintained. The third is this formentor which I got as second owner. Don't see it lasting 15 years but we shall see.

In 36 years I have had my full license, I have bought 8 (there were a few fords in the early years!)