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Used Car Prices Going Up

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Bbc news this morning saying used car prices up due to lack of supply in the market. I think I am going to buy 2 and lease one out as a pension...what could go wrong?!

Better get in now before you miss the boat!

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Bbc news this morning saying used car prices up due to lack of supply in the market. I think I am going to buy 2 and lease one out as a pension...what could go wrong?!

Better get in now before you miss the boat!

I heard this on th bbc news, are they having a laugh...?

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I heard this on th bbc news, are they having a laugh...?

Just more ramping by the bbc pushing the green shoots of recovery. Its strange that the housing market is going up for the same reasons but the bbc don't mention that..wonder why(!)

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This story is absolute rubbish; there are tons and tons of second hand cars that people can't sell.

No, boo is right. This is the new BTL, get in now before price rise further.

I have often thought that for the price of a new car I could buy twenty old ones, well now I can make that my pension!

Edited by Frank Hovis

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Or buy a new Renault Logan:

http://www.renault-dacia-logan.com/

renault-logan-front-lh-static.jpg

People stuck between a rock and a tough spot in the car market may just be saved by Renault’s new heavily revised company, the Romanian firm, Dacia. For the small sum of Eur 5000 (USD 6105), the reliability and peace of mind of a new car can be had: this is the Renault Dacia Logan car.

Targets for the Renault Logan car include Rover’s CityRover, Kia Picanto, Seat Arosa, Daihatsu Cuore, Daewoo Matiz and the Volkswagen Fox.

The purpose of Renault Logan car is to allow Renault to reach a new customer range with a product that packs the bare essentials without resorting to using a car that’s been out of production for several years.

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This story is absolute rubbish; there are tons and tons of second hand cars that people can't sell.

Very true.

But you try wrenching a mint low mileage, low emission german or jap diesel from the owner's cold dead hands.

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http://news.bbc.co.uk/1/hi/business/8251920.stm

Second-hand cars are gaining rather than depreciating in value due to a shortage in supply, an industry-wide research company has found.

CAP Motor Research Ltd, which provides valuation data to the car industry, said the usual 15%-a-year depreciation of used car prices has been reversed.

Companies delaying replacing their fleets and the government scrappage scheme has led to a shortage in supply.

This year the average family car has increased in value by about £600.

Mike Hind from CAP Motor Research Ltd told the BBC: "What usually happens in the second-hand car market is a steady depreciation. "But this year we have seen the complete reversal of that, with used-car prices rising on a month-by-month basis by about 3.5% which is translating into really big rises in the values of used cars."

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Or buy a new Renault Logan:

The purpose of Renault Logan car is to allow Renault to reach a new customer range with a product that packs the bare essentials without resorting to using a car that’s been out of production for several years.[/i]

mend it with a hammer not an expensive computer driven insane system.

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So, rather than assume that demand has increased for 2nd hand cars due to people having less money (and therefore not buying new cars), you all assume some weird conspiracy between the bbc and - err, who exactly? hmm...

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The headline quote is a rise of 'up to' 30% for the average family car.

It's based on values of 3 year old cars. These are NOT average. 75% of the cars on the road are over 3 years old. The 'up to' figure is already being bandied around as THE figure. Garbage.

It's also based on trade in values. The margin in buying and selling means the average car will NOT make you a profit, Big 4x4 cars did undershoot in value, after all, you could live in them, like house prices will undershoot.... maybe.

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and therefore not buying new cars

You're not kidding:

Figures for SAAB from SMMT

Aug 09 35

Aug 08 411

-91.48%

YTD -51.00%

Nice illustration of where car sales are when scrappage is stripped out.

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Guest theboltonfury
The headline quote is a rise of 'up to' 30% for the average family car.

It's based on values of 3 year old cars. These are NOT average. 75% of the cars on the road are over 3 years old. The 'up to' figure is already being bandied around as THE figure. Garbage.

It's also based on trade in values. The margin in buying and selling means the average car will NOT make you a profit, Big 4x4 cars did undershoot in value, after all, you could live in them, like house prices will undershoot.... maybe.

Big VI spin in struggling market.

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Bbc news this morning saying used car prices up due to lack of supply in the market. I think I am going to buy 2 and lease one out as a pension...what could go wrong?!

Better get in now before you miss the boat!

Upto 25% increase in price. One definition of hyperinflation is 20%+

So the headline should be:

Government giving away money results in UK hyperinflation

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This is misleading people: "This car is worth £600 more than in January "

NO - WRONG. A three year old car now is worth £600 more than a three year old one was in Jan.

THAT car is now 8 months older than it was in January.

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I have a distinctly average car, 1.6 petrol, books at 40mpg, 3 yrs old and I got pityful trade-in values on it recently.

Garages taking a play out of the Bankers playbook? Increase your margins at all costs? I hope the BTLers don't catch on.

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http://news.bbc.co.uk/1/hi/business/8251920.stm

Second-hand cars are gaining rather than depreciating in value due to a shortage in supply, an industry-wide research company has found.

CAP Motor Research Ltd, which provides valuation data to the car industry, said the usual 15%-a-year depreciation of used car prices has been reversed.

Companies delaying replacing their fleets and the government scrappage scheme has led to a shortage in supply.

This year the average family car has increased in value by about £600.

Mike Hind from CAP Motor Research Ltd told the BBC: "What usually happens in the second-hand car market is a steady depreciation. "But this year we have seen the complete reversal of that, with used-car prices rising on a month-by-month basis by about 3.5% which is translating into really big rises in the values of used cars."

What is it with this effing govt. and the irrational fear of things getting cheaper. Not content with a decade of HPI they have now somehow managed to conjure UCPI [that's used car price inflation :lol: ] from their cash for clunkers scheme.

you couldn't make this $h1t up really. Wonder if the new meme will be used cars only ever go up in price :blink: not that the old meme of houses only ever go up in price has been extinguished to any degree.

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Perrhaps people are betting on the scrappage scheme continuing for a couple of years more and are stockpiling old cars to trade in future.

You could even market a derivative based on scrappage cars so that people dont physically have to take delivery.

eg I have a 10 year old car in Glasgow. You want a new car in Birminham. I sell you a car scrappage option for £1500. When you want to buy a car I buy it on your behalf with £2000 discount, scrap the old one and register it and have it delivered to you. Your option saves you £500, I make £1500 and I don't have to buy a new car I dont want

Might need smoothing at the edges but it would be easy for a nationwide dealer to organise.

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Can't be done at present. Bothe the 'scrapped' car and the new one have to be registered in the same name at the same address. Plus, who'd do this to save £500? You only have to cough at a salesman and pull a face to get £500 off 99% of new cars on the market.

There may be some loopholes but they tried hard to close most of them.

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shortage of cars, shortage of houses, shortage of energy, shortage of food.... sounds like we are in a war already.

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Well, we all said used cars would make a great trade the minute they announced scrappage, and here we are, right again. We also said you would only benefit from scrappage if you had the funds to buy a new car.

So, this site predicted that:

relatively rich folks would gain;

relatively poor folks would lose.

And we all saw it would be inflationary.

So, if there is some dyed-in-the-wool, numb-skull out there from the working classes, on min wage, who still thinks Labour is the party for them, take heed.

And voting Labour "jus' coz me dad alwiz did" doesn't change the logic.

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Can't be done at present. Bothe the 'scrapped' car and the new one have to be registered in the same name at the same address. Plus, who'd do this to save £500? You only have to cough at a salesman and pull a face to get £500 off 99% of new cars on the market.

There may be some loopholes but they tried hard to close most of them.

Yes they do seem to have been more careful than usual and I haven't heard of any scams yet.

I also expected the "scrapped" cars to appear back on the market, at least in bits, but not heard this happening either.

Have they employed a team of inspectors to oversee the destruction of the cars as they did for terrorist weapon decommisioning?

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