What is life like with your car? Let us know and win £500 in John Lewis vouchers | No thanks
Should I sell my car?
A couple of dealers are urging me to trade in my immaculate 39k 8 year old Skoda yeti now, saying all cars are dropping fast, except their stock of course.
Is the market dropping significantly and/ or is it likely to revive a little in the spring?
One dealer said that some dealers had bought in cars 2 months ago when trade in prices were higher and were struggling to sell them now at their expected 2 month old retail price.
My guess from these quick sale web sites is that a retail price of £2,500 to £3,000 more than trade in may now be normal.
Is that right?
In fairness dealers have to prep a car, service it, stock it for a bit, pay vat, supply a guarantee and hold it till it sells so clearly the price difference is not all profit.
As all that matters is the cost to change, is that cost really widening?
Is the market dropping significantly and/ or is it likely to revive a little in the spring?
One dealer said that some dealers had bought in cars 2 months ago when trade in prices were higher and were struggling to sell them now at their expected 2 month old retail price.
My guess from these quick sale web sites is that a retail price of £2,500 to £3,000 more than trade in may now be normal.
Is that right?
In fairness dealers have to prep a car, service it, stock it for a bit, pay vat, supply a guarantee and hold it till it sells so clearly the price difference is not all profit.
As all that matters is the cost to change, is that cost really widening?
Asked on 31 January 2024 by edward russell
Answered by
Andrew Brady
The market is pretty poor at the moment and prices are dropping - particularly for electric vehicles. The run up to Christmas is always a quiet time for dealers, but it seems to be especially bad this year - the cost of living crisis means few people are looking to change their car. We would expect the market to revive slightly in 2024, although it's not going to return to the inflated prices we saw coming out of the pandemic. The margin for each car will vary a lot depending on individual models, the type of dealer and the price of the car - as you say, it's not pure profit, though, with VAT, prep and warranty costs forming part of it. The cost to change won't be changing dramatically but it's worth looking at how you can maximise the sale price of your current car - consider selling it privately, for example, and consider putting a fresh MOT on it if necessary or sorting out any minor bodywork issues (an immaculate Yeti will always be able to command a strong price tag - they have quite a following). If you act quickly, you might find a dealer ready to offer an excellent deal before the end of the year.
Tags:
Similar questions
If I park on a wide pavement with double yellow lines painted on the road an I technically parking on double yellow lines?
My son parked his van on a wide pavement so wasn't blocking either the pavement...
Should I buy a 2017 Lexus which has five Lexus dealer services in the record although there's a gap of 3 years? The car is being sold by a Lexus dealer.
I am looking at a Toyota Yaris, the car will not be used in the winter months and garaged.
Will this affect the life of the lithium batteries if not used for four months each year?
.jpg)
