Jump to content
House Price Crash Forum
Sign in to follow this  
EmmaRoid

Carcraft = Car-Crashed?

Recommended Posts

Good news, should reduce the price of second hand cars a bit. Far too much loose credit sloshing around the car industry for my liking, its pushing up prices on what would be £1500 cars to £400 if people had to pay cash or take a regular bank loan.

Share this post


Link to post
Share on other sites

Previous owners did very well out of it - webuyanycar and warcraft both sold on at good prices with beneficial conditions to previous owners (rents / loans etc AIUI)

Buyer bought a pup at top dollar and hasn't been able to make a go of it

Hey ho

There is talk elsewhere that the brothers who sold out retained most of the sites and that - who knows - maybe there are options for gaining planning consent for residential on some of the sites... Another bite of the cherry!

Edited by pipllman

Share this post


Link to post
Share on other sites

Remember going to one branch quite a while ago to look for a car and got a very odd vibe off the place. Seemed to be packed to the rafters with cars I didnt/wouldn't want to buy.

Share this post


Link to post
Share on other sites

One year getting owners' rewards following the 2014 management buyout with outside backing might have made the buyout worthwhile.

Not so much for the employees though.

If the original owners still own the land there might even be Carcraft 2 with more Drive Happy Plans (The Sequel).

Edited by billybong

Share this post


Link to post
Share on other sites
Guest eight

Good news, should reduce the price of second hand cars a bit. Far too much loose credit sloshing around the car industry for my liking, its pushing up prices on what would be £1500 cars to £400 if people had to pay cash or take a regular bank loan.

Judging by the number of new cars coming on to the roads in recent years round here, used cars should be practically free - especially by the ten year old mark.

Share this post


Link to post
Share on other sites

Judging by the number of new cars coming on to the roads in recent years round here, used cars should be practically free - especially by the ten year old mark.

they are being leased not purchased outright, the younger generations are treating cars like smartphones , upgrade when a new one comes out

Share this post


Link to post
Share on other sites

Ive been digging around for an estate to replace our Hyundia Getx 1.1. Currently looking online at Mazda 6 2.2 diesel estates, seem like a fair price for 2010 models.

Prices for second hand vehicles seems to have gotten out of control over the last few years. Back in 2002 I can recall buying a 1997 Daewoo Nexia for £800 at a car auction - that was under 5 years old. In 2008 we bough a 04 place Suzuki liana for £4k which was just out of warranty.

Seems that a 5 year old car is now in excess of £5k/6k. If people had to pay cash, you would be looking at prices nearer the £1500.

And don't get me started on the prices driving those useless squashed landrovers, mini estates and sporty aldi's. Seems everyone these days is leasing them for £400/£500pm.

Share this post


Link to post
Share on other sites

Seems that a 5 year old car is now in excess of £5k/6k. If people had to pay cash, you would be looking at prices nearer the £1500.

if all you got for a 5 year old car is £1500 who would buy new ??

cars are more expensive now new than they where 10 years ago

Share this post


Link to post
Share on other sites
Guest eight

if all you got for a 5 year old car is £1500 who would buy new ??

cars are more expensive now new than they where 10 years ago

Only because it seems that, like with housing, financialisation has distorted the market. The laws of supply and demand still apply. I don't know where you are but round my way the number of current plate top end German motors on the roads over the past few years had to be seen to be believed. If everyone wants (and can seemingly afford) these then what is holding up secondhand prices?

I wouldn't be surprised if there is some backdoor hoarding/crushing/offshoring going on to keep prices inflated.

Share this post


Link to post
Share on other sites

Only because it seems that, like with housing, financialisation has distorted the market. The laws of supply and demand still apply. I don't know where you are but round my way the number of current plate top end German motors on the roads over the past few years had to be seen to be believed. If everyone wants (and can seemingly afford) these then what is holding up secondhand prices?

I wouldn't be surprised if there is some backdoor hoarding/crushing/offshoring going on to keep prices inflated.

The number of new cars has increased massively in the last couple of years. I suppose the logic is: house prices up -> confidence up -> more borrowing ok -> new car.

I notice also that new cars are also priced much higher but with extremely low rates available on credit (e.g. 2% over 5 years).

Share this post


Link to post
Share on other sites

I notice also that new cars are also priced much higher but with extremely low rates available on credit (e.g. 2% over 5 years).

same as houses then :lol:

i bought a nearly new car back in august , the previous owner lost 8k in 6 months just to upgrade to a bit more sporty model .

some people really do have more money than sense

Share this post


Link to post
Share on other sites

Only because it seems that, like with housing, financialisation has distorted the market. The laws of supply and demand still apply. I don't know where you are but round my way the number of current plate top end German motors on the roads over the past few years had to be seen to be believed. If everyone wants (and can seemingly afford) these then what is holding up secondhand prices?

I wouldn't be surprised if there is some backdoor hoarding/crushing/offshoring going on to keep prices inflated.

because they are leasing them , not buying them

Share this post


Link to post
Share on other sites

Only because it seems that, like with housing, financialisation has distorted the market. The laws of supply and demand still apply. I don't know where you are but round my way the number of current plate top end German motors on the roads over the past few years had to be seen to be believed. If everyone wants (and can seemingly afford) these then what is holding up secondhand prices?

I wouldn't be surprised if there is some backdoor hoarding/crushing/offshoring going on to keep prices inflated.

I am suspicious if manufacturers are under instructions to keep outright sale prices high to encourage lease and finance deals to get fresh newly minted bank credit sloshing about in the real economy.

On something bling like Range Rover Sports I could certainly buy an argument there is strong used demand - probably from black/drugs economy money where they want the bling and pay cash.

Everything else seems totally out of whack. Car supermarket model used to be flogging Vauxhall and Ford Mondeo type repmobiles, off lease, and Astras and Golfs from the hire sector at a big discount from new. Obviously demand is now for tiny cars that are fuel and tax economical. Even though the number of sales reps must have plummeted I still can't see where the hell they're disposing of all those company cars and who the hell wants them.

Then you've got the new shiny, shiny on some lease finance/balloon payment/getting worker bees into much smarter cars than you'd think they could afford schemes. The problem with them seems to be where the hell are they getting rid of all of those when they're handed back at a price that, with the low monthly payments, that makes any kind of serious profit on the whole deal.

I think there's definitely some funny money element and like with a lot of other zombie, unrestructured, businesses, whose heyday was in the 20th century, it's the only way their existence makes sense.

An example of where I believe funny money is at play is via private equity. In 2004-ish I was asked if I was interested in buying a company for £600k from its parent company. Not long ago the same company was sold for £22m, and if anything its brand and fortunes had declined further since I was asked. Of course the buyers were private equity.

So it seems like a massive missed opportunity but I suspect it wasn't and that what may have actually occurred is a £22m bailout of the parent company in a way that ensures staff involved in the financial side of the company then don't ask questions about where the money's come from.

Share this post


Link to post
Share on other sites

I don't get this either. Aren't there something like 2M new cars sold each year in the UK? That's got to be way beyond replacement levels. Where are they all going to and why are second hand cars so expensive?

I quite like Mondeos, I went to look at some a few months back. Salesman took me out for a drive, 4 years old, top spec diesel, 70k on the clock and pristine inside and out. I was thinking, yeah I'd take this for 5k. Got back to the showroom and they were talking about 12k. For a car with 70k miles on it. Its a frigging Mondeo, not a 5 Series.

Edited by frozen_out

Share this post


Link to post
Share on other sites

Yes, I saw this very morning an Aldi being driven down Huntingdon road in Cambridge at high speed. Shopping trollies and baskets were being scattered all over the place......it was absolute Carney.

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • The Prime Minister stated that there were three Brexit options available to the UK:   101 members have voted

    1. 1. Which of the Prime Minister's options would you choose?


      • Leave with the negotiated deal
      • Remain
      • Leave with no deal

    Please sign in or register to vote in this poll. View topic


×

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.