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UK: Used car market sees ‘unprecedented’ rising prices

14 September 2009 | Source: just-auto.com editorial team

With a 3% month-on-month rise in used car values in August and a staggering 31% year-on-year increase, according to vehicle auction company British Car Auctions (BCA), average prices in this sector of the economy are showing unprecedented growth.

According to the BCA figures, August 2009 set a new record for average used car values, which rose to GBP6,223 - a GBP195 increase over July's figures.

Average used car prices have risen every month since last November. And year-on-year values are now GBP1,458 or 30.6% ahead of August 2008 - reflecting how far values fell last year and how significantly they have recovered in 2009.

"The fact of the matter is that the bounce-back by used cars from the economic downturn last year has been exceptional", confirmed Tim Naylor from BCA.

"Although there is a relative shortage of cars, there is still plenty of demand and as a result, prices have rallied. Prices in the last few months have been completely unprecedented, going up by between 25 and 30% and even more depending on the car. Nearly every vehicle we offer through our auctions and online sales is being sold at the moment, from older, higher mileage examples to nearly-new prestige models."

Naylor added: "With over 75% of homes having a used car as the main household vehicle, used car sales are a significant indicator. At the very least, it suggests there is plenty of confidence in this sector of the economy."

http://www.just-auto.com/article.aspx?id=101131

Up 31% in a year!! Surely there will be a rush of TV programs to show people how to make money out of this?

"Secondhand car ladder", "Engine, Engine, Engine", "Cars under the hammer"

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Up 31% in a year!! Surely there will be a rush of TV programs to show people how to make money out of this?

"Secondhand car ladder", "Engine, Engine, Engine", "Cars under the hammer"

Second hand car dealers the new celebrity 'experts'. Marvellous.

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Guest Daddy Bear
Second hand car dealers the new celebrity 'experts'. Marvellous.

more evidence of a "dash to assets"

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There is some truth to this albeit anedotal , in that European folks (often polish) are turning up in large vans hoovering up motorbikes as the second hand market here is so much cheaper than anywhere else , they dont haggle at all, the fall vs the euro means its viable to come here and buy our still (which was imported in the first place so doesnt count as an export).

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Don't be daft.

In your "hyperinflation" scenario a car would be a useless asset as you wouldn't be able to afford to buy any petrol.

Bicycles please.

More like a 'cash for trash' economic model...

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Don't be daft.

In your "hyperinflation" scenario a car would be a useless asset as you wouldn't be able to afford to buy any petrol.

Bicycles please.

Bought one in April 2008, something under £800 from a local bike shop (which was significantly more than the online discounters).

Look at the prices today.

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well, what a strange post.

OK...prices or individual years may be higher than they were last year, but I find it difficult to beleive that your car goes UP in value every year.

you may get a better price for your banger this year in comparison to one the same age last year, but, no....MORE.

that would means you buy a new car this year and it would be worth more next year...which would indicate serious inflation, which we dont have.

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When this story came out I checked out the value of my Fiesta on Parker's and a couple of other sites. If their figures are to be believed, it's only depreciated around 10% (from £2,300 to about £2k on the nail) since I bought it in August 2007. I have maintained it totally and thoroughly, the mileage is low for the car's age and the body is virtually rust free, but even so I usually factor on buying cars at around £2-3k, running them for 3-4 years and them being worthless at the end of that time. Not with this one, though, it seems.

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When this story came out I checked out the value of my Fiesta on Parker's and a couple of other sites. If their figures are to be believed, it's only depreciated around 10% (from £2,300 to about £2k on the nail) since I bought it in August 2007. I have maintained it totally and thoroughly, the mileage is low for the car's age and the body is virtually rust free, but even so I usually factor on buying cars at around £2-3k, running them for 3-4 years and them being worthless at the end of that time. Not with this one, though, it seems.

but, the value is DOWN...not up....for an aging car.

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well, what a strange post.

OK...prices or individual years may be higher than they were last year, but I find it difficult to beleive that your car goes UP in value every year.

you may get a better price for your banger this year in comparison to one the same age last year, but, no....MORE.

that would means you buy a new car this year and it would be worth more next year...which would indicate serious inflation, which we dont have.

But isn't the car industry now funded by taxpayers so they can charge what they want?

The scrappage scheme is the biggest con going. Manufacturers have inflated their prices more than their share of the scheme (e.g. Vauxhall on average +£1,700 a car according to my local dealer). The governments share is covered by the VAT if the car is more than £7k. However the sheeple think it is a bargain so are buying instead of allowing prices to fall naturally. Meanwhile car resellers have realised they can charge more for secondhand cars because new cars are so much more expensive.

It's just another example of corporate greed. Car company executives may now think they are "too big to fail". They can up their prices, up their pay and bonuses, if sales drop they can ask for another taxpayer handout. They are already campaigning for the scheme to be extended as the £300m we have contributed, is going to run out before the scheme is due to end next February.

Don't forget a lot of the car industry problems are self inflicted by corporate greed. They decided to try have 2 pay days a year with a second registration. This probably devalued the status symbol of having a new reg car and reduced new car demand.

Edited by Redhat Sly

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But isn't the car industry now funded by taxpayers so they can charge what they want?

The scrappage scheme is the biggest con going. Manufacturers have inflated their prices more than their share of the scheme (e.g. Vauxhall on average +£1,700 a car according to my local dealer). The governments share is covered by the VAT if the car is more than £7k. However the sheeple think it is a bargain so are buying instead of allowing prices to fall naturally. Meanwhile car resellers have realised they can charge more for secondhand cars because new cars are so much more expensive.

It's just another example of corporate greed. Car company executives may now think they are "too big to fail". They can up their prices, up their pay and bonuses, if sales drop they can ask for another taxpayer handout. They are already campaigning for the scheme to be extended as the £300m we have contributed, is going to run out before the scheme is due to end next February.

silly scheme....reducing prices might have had the same effect...and indeed, why wouldnt it?

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silly scheme....reducing prices might have had the same effect...and indeed, why wouldnt it?

You beat me for pace there I added a bit about 2 registrations between you quoting it.

It isn't a silly scheme. From the car industries point of view it is a masterstroke. It has enabled them to inflate their prices and therefore their profits, pay and bonuses. Only 20% of the cars bought in this country under the scheme were made in the UK. So as usual it is UK taxpayer money bleeding abroad and inflated prices pouring into executive pockets.

It's the people who are buying that are silly. They don't seem to realise they aren't getting a bargain they are only keeping prices artificially inflated for everyone else. When if they had waited, prices would have dropped for everybody due to a lack of demand.

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I bought my 2nd hand car at the end of last year, after looking on autotrader at the same car complete with the additional mileage I have put on, assuming those asking prices are being achieved, Im up a couple of grand if I sell today.

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You beat me for pace there I added a bit about 2 registrations between you quoting it.

It isn't a silly scheme. From the car industries point of view it is a masterstroke. It has enabled them to inflate their prices and therefore their profits, pay and bonuses. Only 20% of the cars bought in this country under the scheme were made in the UK. So as usual it is UK taxpayer money bleeding abroad and inflated prices pouring into executive pockets.

It's the people who are buying that are silly. They don't seem to realise they aren't getting a bargain they are only keeping prices artificially inflated for everyone else. When if they had waited, prices would have dropped for everybody due to a lack of demand.

no, it has allowed the car industry to sell cars into a market that was waiting for price drops, which, as you say, has helped car manufacturers at the cost of consumers AND the taxpayers.

when it ends, the demand from next year will have to come from? the ones who bought early to get the scheme?, or new customers?

even before the scheme, order books for small cars were full....you had to wait 12 weeks for a Fiesta I beleive.

Its the big executive and gas guzzlers that were not selling...course, it doesnt cost much more to build a big car than it does to build a small one, so, as you say, the profits were made up by the taxpayer...

silly scheme.

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I bought my 2nd hand car at the end of last year, after looking on autotrader at the same car complete with the additional mileage I have put on, assuming those asking prices are being achieved, Im up a couple of grand if I sell today.

is it a mass produced car? is it small and in demand? just curious.

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Guest P-Diddly
I'm starting off Second hand car price crash website.

It will be full of twisted T reg Rover owners slagging BMW owners off and praying prices drop. :lol:

What happened to you HPC then?

Nobody seems to want to talk about it now.

There's already been a massive house price crash.

1. Prices fell from, what £220k to £160k.

2. But more importantly house prices will continue to fall . . . only if they are priced in anything other than Sterling/Pound/GBP/Quids.

I don't believe they will go down in price when priced in the native currency.

Edited by P-Diddly

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Guest P-Diddly
My neighbour sold his house last month.

In 2007 it was valued at £220,000. He actually got £200,000 for it.

Are you saying every house in UK is down by your figures?

You know the answer.

Oh by the way. House prices are rising and UK is coming out of recession.

Read it silly.

But more importantly house prices will continue to fall . . . only if they are priced in anything other than Sterling/Pound/GBP/Quids.

Keep pumping QE cash and the only thing falling is the value of Sterling.

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Of course the average second hand car price has gone up;

A great number of cars more than 10 years old that might have been sold 2nd hand have now been taken out the market. So the new average price is calculated as the average price of a car that's on average newer.

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I'm starting off Second hand car price crash website.

It will be full of twisted T reg Rover owners slagging BMW owners off and praying prices drop. :lol:

What happened to you HPC then?

Nobody seems to want to talk about it now.

You go for it Sibs, you are obviously bored and need a hobby, good luck

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more evidence of a "dash to assets"

Then explain this to me, I carefully follow the price of Jaguar E-types, one because I adore them, two as I intend buying one again. Yesterday two very sought after roadsters were on e-bay, one failed to get bids higher than 23.2k which for a totally restored example in the right colour and spec is a joke, it did not reach it's reserve. it is or was worth double that and probably a bit more. The other even more desirable, a very early outside bonnet catch model which is simply ultra rare. You can call it as rare as hens teeth. I have only ever seen two for sale in ten years, it also failed to sell. It also was worth at least double the highest bid it achieved. I can tell you it's the same as houses, the spring bounce came and went and now classic cars are struggling to sell again.

Edited by Tim Miller

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Nice try. :lol:

How about changing the record to make yourself sound a little more interesting?

how about...dash to crashets

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Then explain this to me, I carefully follow the price of Jaguar E-types, one because I adore them, two as I intend buying one again. Yesterday two very sought after roadsters were on e-bay, one failed to get bids higher than 23.2k which for a totally restored example in the right colour and spec is a joke, it did not reach it's reserve. it is or was worth double that and probably a bit more. The other even more desirable, a very early outside bonnet catch model which is simply ultra rare. You can call it as rare as hens teeth. I have only ever seen two for sale in ten years, it also failed to sell. It also was worth at least double the highest bid it achieved. I can tell you it's the same as houses, the spring bounce came and went and now classic cars are struggling to sell again.

You should have snapped up those cars. 50% below a price that is increasing 30% a year is a lot of money. If you want to buy one but saw two at 1/2 the price why didn't you buy at least one?

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Guest P-Diddly
You should have snapped up those cars. 50% below a price that is increasing 30% a year is a lot of money. If you want to buy one but saw two at 1/2 the price why didn't you buy at least one?

They don't float. ;)

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