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Today's Times reports some second-hand cars cost more than new


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Cars are rapidly increasing in value when they leave forecourts because of an unprecedented demand for second-hand vehicles and a chronic shortage of supply, in what experts are describing as a freak development.

The Times has found that the price of second-hand cars is going through the roof this year, with the price of some vehicles rising by almost £10,000 in the space of five months and continuing to go up.

Used cars are gathering an average of 20 per cent in value in the first six months of their lives rather than depreciating by 5 per cent as soon as they leave the forecourt, as they were previously always guaranteed to do.

Top ten price risers

Prices for a six-month-old vehicle with 5,000 miles on the clock compared with the same model bought new

Model New Used Difference
Porsche 718 Spyder £74,850 £90,500
+£15,650
+£15,650
Porsche 911 Turbo £149,764 £165,275
+£15,511
+£15,511
Porsche Cayman Gt £76,780 £91,900
+£15,120
+£15,120
Porsche Macan £56,083 £66,850
+£10,768
+£10,768
Tesla Model X £98,358 £108,833
+£10,475
+£10,475
Toyota Yaris Gr £30,963 £35,967
+£5,004
+£5,004
Ford Mustang £45,253 £50,167
+£4,914
+£4,914
Ford Mustang Convertible £46,819 £51,560
+£4,742
+£4,742
Lotus Elise S2 £46,090 £50,420
+£4,330
+£4,330
Dacia Sandero £10,173 £12,398
+£2,225
+£2,225

“What we are seeing here is absolutely unprecedented — a once-in-a-generation development that is turning the rules of car valuations on its head,” Derren Martin, head of valuations for Cap Hpi, a vehicle valuation service, said. “Second-hand cars are appreciating, rather than depreciating, in value.”

The price boom has been caused by factors including acute manufacturing problems caused by the pandemic and sudden changes to people’s wealth and lifestyles.

On the one hand, new car production has sharply declined because of a global shortage of semiconductor microchips, which are essential for the operating systems of all vehicles, but which have been in short supply because of successive pandemic shutdowns in factories ranging from Turkey to China.

Cheers,

John W

http://jonwatkins.co.uk

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  • Gold FFM

Supply and demand. This effect has been seen for some exotics for years, because some people don't want to wait for a new one and risk not having the latest version (specifically true for a certain German brand).

I thought it was similar in the US, were recent (or new) cars in stock fetch a premium over customer built new ones like we're used to over here, just because they're immediately available.

I expected it to affect mainly very recent and higher end cars, but a mate in the business told me that even the smaller, cheaper cars 5 to 10 years old are selling well and he's almost out of stock.

I have made many mistakes in my life. Buying a multiple Lotus is not one of them.

 

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The report goes on to say:

Prices would keep going up until people either balked at the values as being unsustainable, or the supply of semiconductors increased and production levels rose. Most believe there will be no correction until at least 2022.

“Cars of all ages are rising in value — six months, three years, even ten years,” he said.

“If you’re working from home and you’ve got a spare old car to sell that you don’t need, sell it now — don’t worry about the age.” :hrhr:

Cheers,

John W

http://jonwatkins.co.uk

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Sounds like you guys are about 6-12 months behind Australia. Supply issues, high demand with no one wanting to take trains and buses, and economic stimulus have pushed prices up. Dealers sell new cars above sticker price. I advertised a 15 year old Mazda 6 at what i thought was 25% above market value (and 50% above what i paid five years prior), because I needed to hang onto it for a few weeks. It was under deposit within the week.

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This doesn’t surprise me at all. I recon second had car prices have gone up 25% in the last year alone. I bought a car 3 months ago from a main dealer (car was 4 months old when I purchased it) We buy any car are already offering me 10% more than I paid (even they couldn’t knock me down as there is not a stone chip wrong with it)

The down side was I replacing the car I bought 4 years ago with virtually the identical car. 4 years ago I spent £15K on it and now I’ve just spent £22k on the same car.

Even main dealer forecourts down my way are looking a bit sparse as they are not getting the trade ins as they can’t get new cars.

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Always do sober what you said you'd do drunk - that will teach us to keep mouth shut!

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Hang on. The top 9 are premium and high value sports cars. I bought a brand new stock VW Passat Estate hybrid last week from a VW dealer with a £5000 discount off the list price. I don’t expect to land a £13k profit by putting it back up for sale…

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3 hours ago, LotusLeftLotusRight said:

Hang on. The top 9 are premium and high value sports cars. I bought a brand new stock VW Passat Estate hybrid last week from a VW dealer with a £5000 discount off the list price. I don’t expect to land a £13k profit by putting it back up for sale…

In australia, old Landcruisers are up 50%, old Corollas are up 30%…

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I suppose it depends how much camping and offroading are part of the local culture!

i should mention, those aren't made up numbers on anecdotal evidence… they're stats released by one of the motoring bodies!

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  • 2 weeks later...

I am currently selling Boxer Vans at £22000 trade at 6 mos and with around 12k miles. If you order one brand new you can get it for £20500.

I am selling certain cars such as Peugeot 5008/3008, Kia Sportage around new price or up to £1000 more than new car price at 6 mos/10k miles.

The difference is you order a new Van now and you'll get it July next year. You order one of those 3 cars mentioned and you won't get a date at all. It will be built but they don't know when. I have some Kia Sorento coming in in January......possibly (this may go back), I ordered them in March this year. This is all due to Semi Conductor issues.

This is why used prices are so high. if you NEED a car now you have to buy used....if you can find one, you see the other issue is that due to lock down in 2020 cars weren't built. Then the majority of nearly new cars (6 mos to 2 years old) are sold by companies like us. Rental, Leasing, short term contractual vehicles. Only we have a double whammy. Because all our sites were locked down we didn't buy as many cars as normal and now............? We can't get new cars so we are holding on to most of what we did buy or else our rental sites won't have a business! 

So there is a huge shortage of good used cars as well! I have dealers who have over 100 spots on their forecourt with less than 30 in stock, One dealer has 120 sports and 12 cars!

Believe me, prices are going up and will continue to be high well into next year possibly this time next year!

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Possibly save your life. Check out this website.
http://everyman-campaign.org/

 

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  • 2 weeks later...

So the Industry has now virtually ground to a halt. the last bastion of supply, the South Korean car makers have announced they have nothing coming through until March next year.

All the other Manufacturers are putting on a brave face but secretly behind the scenes we are being told buying a new car will soon be virtually impossible. Don't get me wrong! You will be able to order a new car, but there will be no "production date" applied to it.

Examples are blaringly obvious for those of us in the industry. Kia Sorento's ordered 6 months ago for January 2022 supply are now back in May 2022, but this can't be guaranteed. Peugeots ordered in July for November still don't even have a build date. Allocations of build dates on cars ordered in May are for January but they aren't guaranteed. VW has no build dates till June next year. The list could go on and on.

What this means is today we have been told by CAP and Autotrader that they see absolutely no change in the hugely inflated used prices as people are forced to buy used instead of new. HOWEVER!!! There has been virtually no supply of New since June in most brands meaning there won't be many if any nearly new or up to one year old cars available from now until 6 months after new production starts again. As a result any new cars that will be built will also be much more expensive as most brands take supply and demand into account. For example, a Kia Niro had a price increase in March, May, June, September AND October (all of around £200) AND as a whole Kia have increased their Delivery charge AND paint cost on top! This is happening across the board

Soon I think you will find 2 year old cars at nearly new prices. This is all really good news for you if you want to sell your used car, however do take into account you will be paying up to £6000 more for its replacement!

The final result of this will also be a massive exodus of experienced Sales and Management staff from the industry. All of whom are paid between 50 and 80% of their wages in commission.

This also explains the sale of my Evora, to cut costs for myself.  

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Possibly save your life. Check out this website.
http://everyman-campaign.org/

 

Distributor for 'Every Male' grooming products. (Discounts for any TLF members hairier than I am!)

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  • Gold FFM

It's all down to Brexit and the UK isolating itself from the rest of the world! It's that simple. the cause of every problem we face in the UK today.

 

However, on a more sensible note, I'm wondering, outside of the premium brands (where people obviously have more money to play with), if you needed your car, and where not in need to sell it, why would you sell your 1, 2 or 3 year old car right now?  I get you will get more for it, but, at the same time the car you buy to replace it will also cost you more to buy it. So what's the benefit?

@Kimbers - obviously a great time to sell your Evora as you'll not be looking to replace so will benefit from the sale price.  Absolute wrong time for me, as just given my daughter a large chunk of cash for a deposit on her first house, otherwise, honestly mate, I'd be throwing an envelope at you with the cash in it as I still miss that car, hugely.

 

 

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Alcohol. Sex. Tobacco. Drugs. Chocolate.  Meh! NOTHING in this world is as addictive as an Evora +0. It's not for babies!    

The first guy to ride a bull for fun, was a true hero. The second man to follow him was truly nuts!   

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  • Gold FFM

Driving past the VW dealership in worcester - it’s massively noticeable they forecourt is sparse. All other dealers in Worcester also have half empty forecourts. 
 

All in all - maybe folks should keep cars longer and be weaned off this PCP pishe which fuels demand.

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Only here once

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My Wife wants me to buy a Mustang GT V8 as a family car.  They were £32k new in 2016.  The same 6 year old car with 40,000 miles on the clock are going for £35k at the moment.  Bonkers.  I'm not getting one.

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Sadly this will continue for at least another year. And with such a huge lack of cars out there the price is now being driven more by "Essential" purchases. Cars written off, broken down permanently and even Companies who need cars for employees etc. These have historically bought new on Contract Hire/Lease but can't get a new car so are having to buy used. Creating new demand for used at a time when supply of used is down 70%.

Possibly save your life. Check out this website.
http://everyman-campaign.org/

 

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  • Gold FFM

Kind of relevant to this topic:

We are going to have to sell the MIL's Renault Twingo soon. About 4-6 weeks ago I looked at Webuyanycar.com for an idea what it was worth. They quoted £4,160.

Today I had an email asking if it was still for sale, so I looked again. Now they quote £5,000.

Not a bad investment at the moment!

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I extended the lease on my Mazda 6 as there was nothing to replace it at the moment.

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  • Gold FFM
On 07/10/2021 at 19:24, Barrykearley said:

Driving past the VW dealership in worcester - it’s massively noticeable they forecourt is sparse. All other dealers in Worcester also have half empty forecourts. 
 

All in all - maybe folks should keep cars longer and be weaned off this PCP pishe which fuels demand.

When we passed the VAG importer last Saturday the main parking lot seemed pretty well stocked. Much to my surprise. The loading area was pretty empty, just a few rows of Macans. Definitely less crowded than usual, but not really indicating a shortage either.  

I have made many mistakes in my life. Buying a multiple Lotus is not one of them.

 

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