Used cars gaining in value

[reallyloud]

http://news.bbc.co.uk/1/hi/business/8251920.stm

 

I suspect that this mostly applies to cars less than 5 years old, and still won't make much difference to the remaining 1980's models.

[red5]

Old news really. The actual 'reverse' started about 18 months ago. Used residuals were steadily rising then - ie, we were paying nearly £1500 more the the same/equivalent vehicle off the closed auctions in the middle of the year (2008) than we were at the start.

[FredTransit]

It's all going to have a knock on effect though. As people's sights move 'down' the shite scale, everything will go up. If people can't afford that little 5 year old beauty from Car Giant, they will start to widen their circles. Not good news for us! Bet they never even considered this when the crappage scheme was thought of.

[brammy777]

I cant see this having an effect on any shite cars, lets face it, theres way too many car snobs out there who wouldnt be seen dead in anything pre 1998.

[brammy777]

But also, look at it this way, in a few years time, everyone will be complaining that the market is oversaturated with korean shit, and no one can afford a decent family car, as they all got scrapped. Prospective buyers of said cars will borrow money to afford the next availible thing (as its all about appearances, you just cant get an old car) and wind up with more debt, and this will all happen again.Ultimate doomsday scenario, but it could happen.

[Pete-M]

Last year a chap I know was buying ex-Royal Mail Vauxhall Combo vans on a 55 plate for £800-£1200 at auction, taking them back to his small pitch and flogging them for £1800+vat. He couldn't buy enough of them, 25 to 30 a week was the norm.In November they were costing him £1300 and he was getting £2100 for 'em, now they're fetching £2300 at auction but he can't get rid of the ones he's got even advertising them for £2000 inc. vat.It's gone properly weird in the trade at the moment. I'm getting offered all kinds of weird stuff through the trade for truly random prices. The T5 I sold recently to a trader has been sold on to another trader for more again but private punters were expecting to be able to buy it for a lot less. From what I'm seeing, traders are buying nice older cars to drive themselves instead of taking chances on new plate stuff, and they're paying more for good stuff than private buyers are willing to spend. Traders who've traditionally had 18 month old £20k cars are driving 10 year old luxury stuff and loving it. Private punters are too scared to go near anything that has an engine over a 1.6 so there are loads of FSH'd up lovely cars out there being enjoyed by the trade instead. Another mate in the trade who deals mainly in overpriced middle of the road tat like Y reg Astras and Corollas is flogging 30 cars a week, which he's never done before and he's been at the job 20 years. He's smoking round in a W reg XJ8 Sovereign which he does not want to sell. Three months ago he got it in p/x and thought "I'll use this for the weekend and then see if I can get any money back", now he's fighting traders off for the thing. Even I've put a couple of more than sensible offers in for it.It is truly mental out there. Stuff like V reg Fiesta 1.25s that were £1000 last year are impossible to price. Some people are picking them up for £150 and others are getting £1750 for 'em. Nobody knows what anything is worth.Classic and P38a Range Rovers are on the up again, but the new ones are losing money hand over fist (That'll be Gordons tax I should think). My A6, for example. Books at somewhere between £2000 and £2800, last month it was less. Next month who the hell knows? I've seen 'em on ebay for anywhere between £950 and £4000+.Interesting times.

[FredTransit]

As far as Jo Public goes, I call it 'price lag', it was the same with scrap prices. When it rocketed to over £100 a ton, people were first still giving cars to the the scrappy, then they got wise and started to sell them, or put stuff like 'I am starting this at scrap value' in ebay listings. Then the scrap value fell on it's arse, and still people thought utter sheds were worth £500 cos of 'scrap values'. Add to that the scrappage scheme ('worth £2000 in the government scrappage scheme' ) and prices were on the rise anyway. Now the full effect of the crappage deal is being felt, no wonder smaller dealers can't get the stock.

[Milford Cubicle]

Good call.The problem is thick people.

[peter9000uk]

I work part time for a motor trader and we were talking about this yesterday over lunch. We both reckoned that we will have to tread very carefully on what we buy for what price. The bubble will burst sooner or later and what will happen is traders will be stuck with a load of over priced stock.Mind took a nice 04 ST220 in part ex yesterday on a diesel astra van

[Pete-M]

I'd normally have 10 or 15 cars in stock at this time of year, not including a couple of toys for myself. This year I've got three old Rovers, the Audi, and an Escort which is being restored. Everything else is on commission. The Audi is the only one which is capable of biting me on the arse, but I bought that for sensible money and don't mind using it for a year or so, so the use'll offset anything I might end up losing on it. It's also ideal for Czech trips, just in case I need to go there over winter.Having said that, I've got a few grands worth of ageless plates for free from the old Rovers, so I'll keep hold of them.