Prices UP by 3% in a month, 30% in a year....

HAMISH_MCTAVISH

Bears, before you have a heart attack, it's car prices, not houses.:rotfl:

UK: Used car market sees ‘unprecedented’ rising prices
14 September 2009 | Source: just-auto.com editorial team

With a 3% month-on-month rise in used car values in August and a staggering 31% year-on-year increase, according to vehicle auction company British Car Auctions (BCA), average prices in this sector of the economy are showing unprecedented growth.

According to the BCA figures, August 2009 set a new record for average used car values, which rose to GBP6,223 - a GBP195 increase over July's figures.

Average used car prices have risen every month since last November. And year-on-year values are now GBP1,458 or 30.6% ahead of August 2008 - reflecting how far values fell last year and how significantly they have recovered in 2009.

"The fact of the matter is that the bounce-back by used cars from the economic downturn last year has been exceptional", confirmed Tim Naylor from BCA.

"Although there is a relative shortage of cars, there is still plenty of demand and as a result, prices have rallied. Prices in the last few months have been completely unprecedented, going up by between 25 and 30% and even more depending on the car. Nearly every vehicle we offer through our auctions and online sales is being sold at the moment, from older, higher mileage examples to nearly-new prestige models."

Naylor added: "With over 75% of homes having a used car as the main household vehicle, used car sales are a significant indicator. At the very least, it suggests there is plenty of confidence in this sector of the economy."

http://www.just-auto.com/article.aspx?id=101131

But there is a cautionary tale here about what happens to prices when you radically restrict supply. Don't forget most car purchasers also require finance through loans.;)

chucknorris

What are others on here buying habits with cars? I usually buy a one year old car at a car supermarket and keep it until it dies (or becomes unreliable), then repeat.

PasturesNew

chucknorris wrote: »

What are others on here buying habits with cars? I usually buy a one year old car at a car supermarket and keep it until it dies (or becomes unreliable), then repeat.

I've always bought an older car, the best I could afford (say £300-1500) then when that finally conked out get the next one. I bought a brand new car over 8 years ago and I've no reason to change it (it's worth about £650 now I think), once I do have to change it I'll do the maths and decide whether it's better to buy a 3 year old car, or go back to buying cars at about £1500 again.

HAMISH_MCTAVISH

chucknorris wrote: »

What are others on here buying habits with cars? I usually buy a one year old car at a car supermarket and keep it until it dies (or becomes unreliable), then repeat.

Nowadays, I run a company car which gets changed every 3 years or so, and for the wife we take a company car allowance and personally buy a 2 year old car, then run it for another 3 years.

It equates to the same thing as she does less miles but buys 2nd hand, but our cars end up getting changed at about 100,000 miles.

We usually buy German diesels, and haven't had any reliability problems or major repairs since we started doing so.

SingleSue

Well we were starting to get into the habit of changing car every 3 years (cast offs from hubbies bosses wife, she changed her car every 3 years so we bought her old one, first one was 6 years old and felt like a brand new one!).

The last one of those (and the one I had as part of my divorce) went bang 2 years ago and now I run around in one which cost £461 from Ebay......17 years old and now with a new, full MOT.

That one will be replaced when it finally gives up the ghost and becomes uneconomical to get through an MOT or repair....with another cheapie less than £500 car.

kabayiri

We are cash buyers here.
I tend to take 10K-12K out of an account, and just go and see what I can find that weekend. Too much choice can confuse you! There are plenty of decent cars about nowadays; very few lemons.

By the way, the resurgence in used car prices is good for residuals in the fleet industry, and in turn this forms a major part of the car purchases made in the UK.

chucknorris

SingleSue wrote: »

Well we were starting to get into the habit of changing car every 3 years (cast offs from hubbies bosses wife, she changed her car every 3 years so we bought her old one, first one was 6 years old and felt like a brand new one!).

The last one of those (and the one I had as part of my divorce) went bang 2 years ago and now I run around in one which cost £461 from Ebay......17 years old and now with a new, full MOT.

That one will be replaced when it finally gives up the ghost and becomes uneconomical to get through an MOT or repair....with another cheapie less than £500 car.

As far as I am concerned I don't care how old my car is or what it looks like as long as it's reliable, some people used to mock my cars when they got old, but my way of thinking was that's when I was getting the best value, they were reliable, I knew the history (as owned from virtually new) and they were no longer depreciating so as good as it gets, I was always dissapointed when they started to become unreliable and I got rid of them. The excpetion was my mondeo which although was 9 years old but still a 'good runner' I got rid of it because I wanted to get a zafira for the extra space and flexibity for our bikes and dog (so it was driven by functionality rather than value)

mbga9pgf

Yep, as long as it is cheap as chips I dont care. get hit with 190 pound road tax for an older car, but dont care, as the 60 to the gallon my car gives me more than makes up for it. Quite literally pays for itself over a year. (road tax is cheap but because it is knackered, 3rd party costs next to nothing, so evens out!)

SingleSue

I'm the same Chucknorris, it has never bothered me how old the car was, only that it is reliable.

Yes, I do dream of having a nice new car (or even one which is only a couple of years old, at the moment, my idea of newish is 10 years or under!) but reliability is the main factor.

My best car is a tie between my very first car (Renault 14TL, auction buy at £150) or the one I had to give up for the lemon of an Audi A4 (VW Passat TD, from bosses wife at £2400), both took me miles and miles, both felt solid although the Passat was solid enough to stand a lorry hitting me on the M25 and go through the MOT without any problems or fails for four years running. I really didn't want to give that one up but I managed to keep hold of it for a year after we got the Audi and hubby then got a company car, meaning we would have had 3 cars outside!

I have regretted that move ever since.

StevieJ

chucknorris wrote: »

What are others on here buying habits with cars? I usually buy a one year old car at a car supermarket and keep it until it dies (or becomes unreliable), then repeat.

A man after my own heart

lostinrates

chucknorris wrote: »

What are others on here buying habits with cars? I usually buy a one year old car at a car supermarket and keep it until it dies (or becomes unreliable), then repeat.

I had a few old bangers after just passing, and two inherited family cars. Most of them just got to the point wher replacing was cheaper than rpairing. I regret selling three/four of them (I didn't epect 2CVs would ever be worth so much, I didn't foresee a time when I'd need a LR again, and ....I was just silly to sell the ugly, old Nissan, it was such a ueful car.).

I bought one car nearly new. In retrospect, if I ever have daughters, and for my neices, encouraging them to opt for a safer, more reliable car over intersting/cheap banger would be key. DH recently bought an old LR defender, beautifully restored. Our hope is to have that for....life I guess, and replace my little car when we have to for something cheap/eco friendly/cheap and slightly smart, to keep dog hair free.