Jump to content
House Price Crash Forum
Saving For a Space Ship

Glut Drives Down Used Car Prices

Recommended Posts

Interesting that economical cars like fiestas have increased in value. And the value of gas guzzlers are falling. Same in 2008 when oil spiked at nearly $150, although when demand for oil crashed due to the economic disaster, and oil fell to under $50, then many people seem to have forgot that lesson very quickly, and bought gas guzzlers again in 2009! Many of these will be the ones the dealers will be having problems shifting in 2011/13 I predict.

Share this post


Link to post
Share on other sites

Interesting. No glut here in Canada. Used prices are crazy expensive compared to a few years ago.

High demand due to a non crashing petro economy?

Share this post


Link to post
Share on other sites

Interesting that economical cars like fiestas have increased in value. And the value of gas guzzlers are falling. Same in 2008 when oil spiked at nearly $150, although when demand for oil crashed due to the economic disaster, and oil fell to under $50, then many people seem to have forgot that lesson very quickly, and bought gas guzzlers again in 2009! Many of these will be the ones the dealers will be having problems shifting in 2011/13 I predict.

Gas guzzlers always a good second hand buy,you can get a last of the range old shape Jag xj with a twin turbo diesel and aluminium body giving great mpg for around 22k from a dealer two and half years old was 53k new.

In terms of average cars most of my car dealer mates are struggling getting stock and are looking forward to when the cars bought under the scrappage scheme work through - they say it's the opposite of a glut

Edited by Greg Bowman

Share this post


Link to post
Share on other sites

the scrappage scheme removed a lot of perfectly good second hand cars from the market and scarcity pushed up prices. Am currently looking to replace my 18 year old VW Golf Mk 3 with about 3K to spend. Lots of 'humungous' 4 by 4s in that price range (surprisingly so) - high insurance/petrol costs I suspect is the reason.

Share this post


Link to post
Share on other sites

Gas guzzlers always a good second hand buy,you can get a last of the range old shape Jag xj with a twin turbo diesel and aluminium body giving great mpg for around 22k from a dealer two and half years old was 53k new.

In terms of average cars most of my car dealer mates are struggling getting stock and are looking forward to when the cars bought under the scrappage scheme work through - they say it's the opposite of a glut

No,it's not a supply issue but a demand one.Last year I sold 150 cars and by the end of May I had done 75.It's been downhill ever since and today I am on 30 for 2011 to date.Sales for May have been just two.I have just made my two staff redundant and gone into hibernation mode.This isn't just me the Peugeot main dealer near me sold 5 this month.

Share this post


Link to post
Share on other sites

No,it's not a supply issue but a demand one.Last year I sold 150 cars and by the end of May I had done 75.It's been downhill ever since and today I am on 30 for 2011 to date.Sales for May have been just two.I have just made my two staff redundant and gone into hibernation mode.This isn't just me the Peugeot main dealer near me sold 5 this month.

Prof - does that mean that prices are actually falling again? I missed the boat last time around and would like another opportunity for a bargain!

Share this post


Link to post
Share on other sites

Interestingly some businesses seem to be doing pretty well. I think for example Audi are doing really well because of sales in China etc, but I can't imagine that they are doing so great in the UK (maybe I'm wrong).

Anyway, the amount of gumpf I'm getting through from Audi dealers re promotions/sales drives etc seems to indicate otherwise.

If the main manufacturers are doing well but the dealers are doing poorly in the UK this must cause some significant stress.

Share this post


Link to post
Share on other sites

I could buy 2006 SAAB 95 2.0t Vector Sport 46k 55 plate Demo then owner till the dealer selling to me for £3750

Good? Bad? Indifferent? Would appreciate thoughts from experts.

Share this post


Link to post
Share on other sites

I could buy 2006 SAAB 95 2.0t Vector Sport 46k 55 plate Demo then owner till the dealer selling to me for £3750

Good? Bad? Indifferent? Would appreciate thoughts from experts.

Avoid SAAB like the plague.

After-market and service rates are shocking. No wonder they went tits up.

Share this post


Link to post
Share on other sites

I looked at a used car at a main dealer in Surrey 2 months ago. About £12k. Car had already been on sale for about 3 months even then. As a side issue, the salesman was particularly arrogant and really put me off wanting to spend my cash with him, whereas a technician who I'd spoken to on a previous call had answered my questions much better. The salesman wouldn't accept my offer so I walked. Car is still for sale at just £200 more than I offered at the time!

Share this post


Link to post
Share on other sites

Avoid SAAB like the plague.

After-market and service rates are shocking. No wonder they went tits up.

thx

R U dealer, mechanic etc?

Did you take into account the price I mentioned?

Share this post


Link to post
Share on other sites

thx

R U dealer, mechanic etc?

Did you take into account the price I mentioned?

I don't have a car, I'm not a dealer, or a mechanic.

I am an engineer however and I drive motorcycles, bicycles, or use my feet.

But, I know of many folks who bought the 93 and 95's, and by proxy found out how crap their cars are (especially the diesels) and how much it costs in spares.

You're better off getting it's little brother, a Vauxhall Vectra, because its going to cost you less as it isn't some cockamamie synergy of GM/Opel.

Share this post


Link to post
Share on other sites

I could buy 2006 SAAB 95 2.0t Vector Sport 46k 55 plate Demo then owner till the dealer selling to me for £3750

Good? Bad? Indifferent? Would appreciate thoughts from experts.

Glass Trade Guide: Sal 4d (150bhp) CO2 204g/km 0555 Cost new £24573. Retail £6150 Trade £3925 57k

Sal 4d (150bhp):CO2 244g/km 0555 Cost new £25873. Retail £6400 Trade £4175 57k

Share this post


Link to post
Share on other sites

I don't have a car, I'm not a dealer, or a mechanic.

I am an engineer however and I drive motorcycles, bicycles, or use my feet.

But, I know of many folks who bought the 93 and 95's, and by proxy found out how crap their cars are (especially the diesels) and how much it costs in spares.

You're better off getting it's little brother, a Vauxhall Vectra, because its going to cost you less as it isn't some cockamamie synergy of GM/Opel.

Thx, understood. You didn't take into a/c the price. No worries.

Share this post


Link to post
Share on other sites

Glass Trade Guide: Sal 4d (150bhp) CO2 204g/km 0555 Cost new £24573. Retail £6150 Trade £3925 57k

Sal 4d (150bhp):CO2 244g/km 0555 Cost new £25873. Retail £6400 Trade £4175 57k

Much appreciated. Seems good in that case. If I bought it retail I'd be asked for c £6k. I'm getting it for 2/3rds. I'll put up with the service costs. Hopefully it'll be reliable.

Now, about house prices. 2/3rds by 2013 but still expensive re long term

Share this post


Link to post
Share on other sites

On the anecdotal front, I spoke to my 40 yr old small back street mechanic the other day.

He said he was worried that he would be finished in the trade within 10 yrs, due to the computers in cars, special tools required etc.

I wondered how many poorer folks would be excluded from car ownership as higher maintainance costs rise because of this point.

Share this post


Link to post
Share on other sites

On the anecdotal front, I spoke to my 40 yr old small back street mechanic the other day.

He said he was worried that he would be finished in the trade within 10 yrs, due to the computers in cars, special tools required etc.

I wondered how many poorer folks would be excluded from car ownership as higher maintainance costs rise because of this point.

Good way to rid the country of small private garages. The dealers tried to invalidate warranties if you did not use them and their outrageous hourly rates but that got shut down by the law. Now the manfucaturers are making it impossibloe to get servicing unless you own the diagnosic kit etc.

I tend to buy cars 3 or 4 years old (half price from new) and keep them 2 years and not do any servicing other than a £40 oil change. That way you avoid the £350 "service" (check the belts, top up washerflud and change the oil). Trading that often ends up costing about £1k a year which is not bad depreciation. Buy new and you lose 40% in 3 years.

Just bought a 57 plate Peugeot 207 with the BMW licensed 1.4VTI and I am getting close to 40mpg overall and the performance is actually quite excellent--can't see the advantage of Diesel TBH.

Share this post


Link to post
Share on other sites
On the anecdotal front, I spoke to my 40 yr old small back street mechanic the other day.

He said he was worried that he would be finished in the trade within 10 yrs, due to the computers in cars, special tools required etc.

I wondered how many poorer folks would be excluded from car ownership as higher maintainance costs rise because of this point.

You want a car that does 45mpg and still gets 5 stars in the safety tests, you're going to have to accept that it's run by computer and is put together in a strange way.

Welcome to the laws of physics.

Share this post


Link to post
Share on other sites

Good way to rid the country of small private garages. The dealers tried to invalidate warranties if you did not use them and their outrageous hourly rates but that got shut down by the law. Now the manfucaturers are making it impossibloe to get servicing unless you own the diagnosic kit etc.

I tend to buy cars 3 or 4 years old (half price from new) and keep them 2 years and not do any servicing other than a £40 oil change. That way you avoid the £350 "service" (check the belts, top up washerflud and change the oil). Trading that often ends up costing about £1k a year which is not bad depreciation. Buy new and you lose 40% in 3 years.

Just bought a 57 plate Peugeot 207 with the BMW licensed 1.4VTI and I am getting close to 40mpg overall and the performance is actually quite excellent--can't see the advantage of Diesel TBH.

Since when was that a BMW engine?

Share this post


Link to post
Share on other sites

Since when was that a BMW engine?

Both the 1.4 and 1.6 petrols are build under license by BMW who designed it. I am impressed with the performance and the smoothness of the engine. It is clearly no ordinary Pug unit.

http://www.peugeot.com/en/innovation/engines/petrol-engines/vti-engine.aspx

Both VTi engines, the 1.6l (120 bhp) and the 1.4l (95 bhp), are the result of the co-operation between the PSA Peugeot Citroën and BMW Group as well.
The 1.6l VTi 120 bhp (Variable Valve Lift and Timing injection), launched on the 207, is an indirect injection naturally aspirated engine developing a maximum power of 88 kW (≈ 120 bhp) at 6000 rpm and a maximum torque of 160 Nm at 4250 rpm. This torque is available very uniformly, since even at low engine speeds (2,000 rpm), it attains 140 Nm, or 88 % of its maximum capacity, thereby ensuring a wide operating range. This engine’s technology, very different from that of the 1.6 THP despite the large number of common components, is a genuine first at this level of engine capacity. In addition to its variable timing system for the inlet and exhaust camshafts, a variable lift system on the inlet valves allows their maximum stroke to be adjusted gradually according to the position of the accelerator pedal.

The 1.6 is the best and if I do it agian I will go for that engine. 0-62mph comes up in 8.9 seconds which is impressive for an "ordinary" family hatch/super mini. Best small engines I have experienced and streets ahead of the competition (except anything from the Holy Trinity that is).

Edited by Realistbear

Share this post


Link to post
Share on other sites

Avoid SAAB like the plague.

After-market and service rates are shocking. No wonder they went tits up.

A friend has just got rid of one for precisely that reason. It was a large estate he got in 2009 or so (one year old and about 30k miles on the clock), that broke down several times and required very expensive, main-dealer installed parts to get roadworthy again. And even though it was a diesel he only got abour 35mpg out of it. Said it was the worst car he ever owned, bar none.

Share this post


Link to post
Share on other sites

I could buy 2006 SAAB 95 2.0t Vector Sport 46k 55 plate Demo then owner till the dealer selling to me for £3750

Good? Bad? Indifferent? Would appreciate thoughts from experts.

Good car and a bargain price. Avoid the diesel and make sure that you get at least the seven speaker system you'll know if it has the green screen, if not and you like listening to music in the car avoid as it is very expensive to upgrade. Also watch out for peeling dash boards and other interior plastic trim.

Edited by Mr. Miyagi

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 285 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.