Used car prices rocket as demand spirals

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Sun 23 May 2021 19:42
Used car prices rocket as demand spirals - Steveieb

According to Car Dealer demand for used cars has reached unheard of levels as motorists fail to secure new cars because of chip shortages. And commuters reject public transport because of the risk of infection.

Well this is a first and one less excuse for the salesman who offer a poor trade in!

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Sun 23 May 2021 22:16
Used car prices rocket as demand spirals - SLO76
Prices have gone mad and now isn’t the best time to be car hunting.

Here’s a fine example and not far off comparable cars elsewhere but I bought mine which is a 10 plate two and a half years ago for £4150 and at the time similar cars were £5,500-£5995 at dealers yet today that car is around 3yrs older yet it’s being advertised at the same money it was back then.

I just found a great car on Auto Trader:

www.autotrader.co.uk/car-details/202105072326478

Edited by SLO76 on 23/05/2021 at 22:25

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Sun 23 May 2021 22:35
Used car prices rocket as demand spirals - Rerepo

I think this is temporary. Almost everybody I know is covering less miles and the mechanic I regularly use told me he's much less busy these days. People will be changing cars less often.

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Mon 24 May 2021 06:50
Used car prices rocket as demand spirals - Xileno

Not only that but I know several people or households who due to the new working from home arrangements are either going down from two cars to one; or from one to none. I could easily manage without a car now I work from home permanently, I may return to the office one day a week but it won't be more than that and there is good public transport where I live.

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Mon 24 May 2021 07:55
Used car prices rocket as demand spirals - SLO76
I expected prices to drop (shows what I know) as demand dropped and dealers offloaded stock to bring much needed money in. I thought they’d be throwing money at punters to lure them into buying but it’s not so.
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Mon 24 May 2021 09:59
Used car prices rocket as demand spirals - RGCRob

Strange, as I've just seen the SMMT post about fewer vehicles in use. But second-hand car demand is high? So more people must want vehicles. Maybe it's me but I can't see how both can be true.

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Mon 24 May 2021 10:09
Used car prices rocket as demand spirals - Xileno

Not necessarily a contradiction but without the absolute figures it's difficult to tell. New car registrations are presumably down so fewer cars entering the pool. Old cars continuing to be scrapped for various reasons, so more people chasing what's left, hence prices firmer.

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Mon 24 May 2021 11:38
Used car prices rocket as demand spirals - SLO76
I think more than anything else the huge rise in new car prices has pulled used value upwards rapidly and the reduced supply caused in part due to Covid and the now unrealistic and unpalatable new stock screen prices are serving to reduce supply of new vehicles and thus used stock will remain firm for the foreseeable.

New prices have soared in part thanks to Brexit, the cost of meeting new emissions regulations and the amalgamation between the car firms themselves as they seek to share costs and thus there’s a reduction in real competition. This will be further evident as some smaller firms leave the UK and European market altogether rather than paying the huge cost of complying. Basically, we’re going to have to accept that cars are going to be much more expensive going forward.
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Mon 24 May 2021 11:57
Used car prices rocket as demand spirals - pd

The UK has always been one of the cheapest places in the world to buy a used car. I wonder if to a certain extent there is an alignment going on.

For years, for some reason, the UK new car market has been a place where manufacturers regularly dumped a load of excess cars often at a loss. All those "pre-reg" and ex-rentals every week. I wonder if they'll return to this or manufacturers have decided that unless they make some money on it they won't make or sell it.

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Mon 24 May 2021 12:21
Used car prices rocket as demand spirals - brum

New car prices have risen to obscene levels in the last 2 years, as a result of COVID shutting down production and demand so profits are sharply down, Brexit probably with extra costs and bureaucracy, importers losing their easy income streams. WLTP and RDE have become an expensive millstone, and EU emission penalties now kicking in aggressively.

autovistagroup.com/news-and-insights/carmakers-fac...2

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Mon 24 May 2021 13:00
Used car prices rocket as demand spirals - sammy1

Just an observation, I visit Autotrader frequently and about 2monthe ago they were lisiting over 500k cars today there are only 400k Looking at garage forecourts they appear to be as crowded with stock as usual. Prices of ICE have rocketed for the only reason I can see is market forces generated by the EV largely talked up demand. Companies are buying new EVs and hybrids because of the benefit in kind tax allowance and if it is believable largely running on diesel/petrol so the ordinary folk are in effect subsidising this "progress" Cars are the fastest way to lose money other than dropping it in the street so the longer you hold onto your purchase the slower rate you loose money so people driving the 8year old cars are either very wise or getting priced out of cars which is where I think we are heading unless prices get more sensible. Public transport outside of big cities is very poor and nothing seems to being done about it The present GOV say that the others have no policies well I see nothing in the present lot either other than spending as though it had just been invented, borrowing like it expects everybody else to do to survive.

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Mon 24 May 2021 13:38
Used car prices rocket as demand spirals - Terry W

Car sales since March 2020 are lower than in previous years. Manufacturers will have reduced production - partly forced by Covid logistics and supply constraints, but also not wanting to build potentially unsaleable stock.

In the UK demand is now beginning to bounce back with the vaccine rollout. However:

  • demand for new cars is likely to be lower than previously due to (a) lower mileage covered over the last year, (b) work from home, (c) job uncertainty for many
  • prices of new cars are not falling as would normally occur where demand falls due to supply constraints (components, chips, supply chain complexities etc)
  • supply of 2/3/4 year old vehicles relies upon trade ins for new car sales. If new car sales fall this will directly impact the s/h market.

This may not be a long term market change, although it may be 6-12 months until a return to normal. By then supply chains should be sorted, covid no longer an issue in major markets as vaccines rolled out, uncertainties diminished.

The bigger issue is the transition from ICE to EV - speed of transition, price impact on ICE vehicles, demand for EV depending on charging infrastructure and pricing.

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Mon 24 May 2021 13:47
Used car prices rocket as demand spirals - mcb100
There are fewer dealerships than there were 12 months ago, by a sizeable margin.
That 20% reduction in AT can be partly reflected in there being fewer places from which to sell them.
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Mon 24 May 2021 17:31
Used car prices rocket as demand spirals - Ted66

Definitely less stock about which is forcing auction prices up and subsequently passed on to the consumer. Always looking on Autotrader, prices are high and the selection is low. As others have said new car prices are crazy. Daciashould clean up!

Edited by Ted66 on 24/05/2021 at 17:32

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Mon 24 May 2021 20:24
Used car prices rocket as demand spirals - Xileno

"Dacia should clean up!"

I think they might do so - the new Sandero looks quite a nice little car. The Fiesta is a lot more money and I'm not sure what advantages it really has over the Dacia.

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Mon 24 May 2021 22:41
Used car prices rocket as demand spirals - SLO76

Definitely less stock about which is forcing auction prices up and subsequently passed on to the consumer. Always looking on Autotrader, prices are high and the selection is low. As others have said new car prices are crazy. Daciashould clean up!

Even they’ve went up by around 30% in the last few years. A Sandero with a reasonable amount of spec is around £10k while the same thing with the admittedly less powerful engine was under £7k not long ago. I do like them but I think the higher spec cars make little sense and there’s little to no room for negotiation. A good used Mazda 2 or Toyota Yaris would make a better and ultimately cheaper option in my opinion.
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Tue 25 May 2021 15:35
Used car prices rocket as demand spirals - Warning

I agree with prices going up. In March 2021, prices were stable. Dealerships were closed, so people could n't see cars.

Those who bought during lockdown period, or when it was lifted got a good deal. A car, which was on for £8k, could now fetch £9.5k

I had my eye on a Honda CR-V 2017 2.0SE, which was due to come at £11,999, but the dealership jacked the price up to £12,500 whilst awaiting photos, and they sold it in 5 days. They have another coming in with lower spec at £13,500 2.0S.

I don't particularly want a CR-V, but it ticks a lot of boxes.

I will stick to my 16 year old car, until I see a good deal. It is still in mint condition with 40k.

I wanted a new car, to tour Britain, but is it worth it?. I can't even get in to see places listed on the National Trust. Most have been shut. Their gardens are open, but it is a 2 week waiting list! You pay in advance and turn up on day with thunderstorms.....

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Tue 25 May 2021 15:39
Used car prices rocket as demand spirals - Xileno

I am sure things will be very different in 12 to 18 months, once the pent-up demand has filtered through, taxes and inflation start rising.

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Tue 25 May 2021 15:41
Used car prices rocket as demand spirals - Warning

Some of the demand may come from those who travel into London in diesel cars. The ULEZ (Ultra Low Emmission Zone) is coming into London.

I suspect there will be good deals on older diesels, as people rush to buy petrol cars.

I phoned a guy who had a car for sale, told me he was selling his diesel as he drives into London. He intended to buy an electric car.

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