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So if I?ve read the press right, the prices of some cars are falling like a stone? Maybe larger petrol cars for example. If owners of these cars have purchased them on PCP?s 12-18 months ago when things were looking rosy, when the PCP ends and the dealer has to honour the future guaranteed value, what will this mean for us all? Are some car finance houses going to be stung? Just pondering.
Edited by Pugugly on 22/06/2008 at 18:22
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Higher monthly rates being quoted for new biz?
If the firm goes pop is the guarantee you are relying on gone, or are they insured for this eventuallity?
Sorry to help this debate, by asnwering one question with two!
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Most of the PCP biz is done buy the manufacturers own finance house with the rest being done buy very major players like Black Horse or GE.They are not Northern Wreck and probabley understand 'the market' far better than any of the idiots that were lending money for houses.
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Manufacturer owned finance houses make a fortune - for years & years Ford Credit has been the most (sometimes only) profitable part of Ford. They get the cars at *huge* discounts so that anything they get for the car after 3yrs is almost a bonus.
On more prestige cars, I'm sure the finance house will still get a hefty discount, but some cars are falling so much it could cause them issues - I read BMW M5's are losing £1K/mth, and some of the bigger 4x4's, especially those loaded with options, muct be pretty similar.
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Bargains galore - whoopee !
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I'll second that - haven't really seen any yet though.
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Mike, if you're looking in France, there are starting to be some good deals on bigger petrol engined cars, but we're a bit behind the UK - we don't have these big annual taxes for a start !!
I've recently spotted two Mazda 6's (2.3 petrol ) at 6,500 Euros and 8,000 Euros and an IS 200 automatic (year 2000) in Paris for 6,200 euros.
I reckon a year from now assuming petrol prices remain high, there'll be plenty of good deals.
Cheers
John
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I'm with Mike on this one.
Just about to change my lifestyle to one where 5,000 miles per annum will be the most I will do.
A luxobarge for naff all seems just the ticket but sellers in UK don't seem to have got the message yet.
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Strange times we are going through. For many years the paradox has been that the more you needed to use a car or the more miles you had to do, the less you could justify the nicest car to do it in.
Despite it having led to an overall, or across the board cost increase, the weirdest effect of all the recent economic dynamics has been a closing of the cost gap ( in percentage terms at least ) between running a mundane car and a delightful one.
You could, if pushed, find validity in the argument that it positively encourages the use of more powerful and less frugal cars. If the situation continues on its current path, all motoring will become elitist rather than primarily utilitarian again. In other words if we are going to have to fork out a fortune for any kind of transport then some will take the view that at least they will want to enjoy it at the best level they can even if it has to be less frequently.
My own little back of a fag packet version of all this is that I had previously calculated that the difference in total annual cost of running the 2.0 diesel version of my car versus the 3.0 petrol was about 30%. Now strangely, the figure is more like 20%. There are many factors to build in other than fuel consumption and you have to make some depreciation assumptions but there can be little doubt that the gap is closing.
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There's nothing entirely new under the sun.
People now have forgotten how little money the middle classes had in the fifties. When they got cars although petrol was relatively cheap sounding by today's standards they worried about the cost of running their cars. Bigger cars cost more to tax and repair too. And they looked flash.
Still, I used to get a bit tired of small respectable motors and even small sheds. I envied boys in the B stream at school whose louche, working-class, wheeler-dealing dads drove battered Vauxhall 25s and Ford Pilots and carried rolls of banknotes. I thought they had more style than the civil servants and professionals I tended to meet at home.
Guess I've always been a toerag at heart
:o}
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Buying a luxo-barge in the present climate is a bit like buying a luxo-house on a flood plain - you don't know what's going to happen next. Some will consider it worth a punt but, if things do go pear-shaped, don't come crying to me - or even Gordon Broon!
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"Guess I've always been a toerag at heart "
As the VW receptionist said to the prospective customer enquiring about a new 4x4, "Oh, you mean that one? No, no, that's not what you said, that's a Toerag".
I'll get me coat.
[P.S. Just found this on Car-by-Car Breakdown: "Unfortunate name in the UK: sounds like 'toe-rag'."]
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I wonder if the basic approach of this thread will prove to be accurate.
I can see dealers already holding luxo whatevers they've taken in p/ex maybe discounting to unload. But for private owners why not just re-evaluate the mileage you need to do, sit tight, and see what happens rather than taking a bath now?
On another thread someone pointed out that you can do an awful lot of repairs for what you'd spend on a new car if the old one's basically ok.
Same argument applies to fuel doesn't it?
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I'm monitoring Boxster prices with morbid trepedation and they are in freefall. My 1998 model bought last year for 12.5k is now worth no more than 9k, and the newer 05 S models are changing hands for as little as 20k as they are like organic food in that they are the first thing pople stop buying when the economy bites. Also 2001 E46 M3's are going for as little as £10k - a ridiculous drop compared to new cosst of £45k only 7 years ago
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Yes. My house is worth less than it was last year but I have to sell to crystallise that loss.
If you don't sell you don't actually lose.
If you think £12.5k was an ok price when you bought and you like the car, take it out for a blast and enjoy it!
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Stay the course Perleman, remember when those ved reminders come through the door next year, cars 3 years or so newer than yours will be paying twice the ved as yours.
Quite sure the vast majority of non car forumites still haven't got a clue whats happened, and will be having a shock, especially those buying very highly priced post 01 cars at the moment.
I wonder how many salesmen are explaining the facts of ved to their current buyers of post 01 high co2 cars?
I can see a time when your car will be worth probably the same as a 5 or 6 year newer version.
Enjoy it.
Better still, get a bigger engined model to really upset the greens..:)
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I'm monitoring Boxster prices with morbid trepedation and they are in freefall.
I'm just glad I paid auction prices, and wayyy below trade book too for mine last year. £13k for a 2001 Boxster S. Now if only it was 19 days older the tax would be so much cheaper.
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>>Buying a luxo-barge in the present climate is a bit like buying a luxo-house on a flood plain - you don't know what's going to happen next.<<
I don't think this entirely applies - you don't have to live in your luxo-barge (hate that expression...) so it's not such a huge commitment.
I've decided that even if the time comes when I can't afford to drive it any more, I will enjoy just having the sort of motor I have always wanted, looking at it's lovely style and craftsmanship and remembering the way things used to be.
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