Why are car prices so high?

Prudent

Just looking for your thoughts here.

I replace my car roughly every 3 -4 years. I bought my current car in December 2006. It is a Renault Clio and was 12 months old with 7,000 miles on the clock when I bought it. I paid £5,500.

Feeling it is time to replace the car, I have been looking for a similar deal (allowing for inflation of course), but feel prices have risen hugely. Is this a false impression?

harveybobbles

Depends how old the shape is that you're buying at the time.

anewman

New prices have risen to make the scrappage cost the cost a car was before scrappage. Therefore it is expected for cars a few years old to have gone up a little in value.

motorguy

Its not undoable....

http://www.autotrader.co.uk/classified/advert/201007352463604/sort/priceasc/usedcars/maximum-age/up_to_1_year_old/model/clio/make/renault/page/1/postcode/bt667gu/radius/1501?previous=/search/used/cars/renault/clio/postcode/bt667gu/radius/1501/maximum-age/up_to_1_year_old/sort/priceasc/page/1&logcode=p

http://www.autotrader.co.uk/classified/advert/201007352643844/sort/priceasc/usedcars/maximum-age/up_to_1_year_old/model/clio/make/renault/page/1/postcode/bt667gu/radius/1501?previous=/search/used/cars/renault/clio/postcode/bt667gu/radius/1501/maximum-age/up_to_1_year_old/sort/priceasc/page/1&logcode=p

http://www.autotrader.co.uk/classified/advert/201006352345033/sort/priceasc/usedcars/maximum-age/up_to_1_year_old/model/clio/make/renault/page/1/postcode/bt667gu/radius/1501?previous=/search/used/cars/renault/clio/postcode/bt667gu/radius/1501/maximum-age/up_to_1_year_old/sort/priceasc/page/1&logcode=p

Prudent

pgilc1 wrote: »

Its not undoable....

http://www.autotrader.co.uk/classified/advert/201007352463604/sort/priceasc/usedcars/maximum-age/up_to_1_year_old/model/clio/make/renault/page/1/postcode/bt667gu/radius/1501?previous=/search/used/cars/renault/clio/postcode/bt667gu/radius/1501/maximum-age/up_to_1_year_old/sort/priceasc/page/1&logcode=p

http://www.autotrader.co.uk/classified/advert/201007352643844/sort/priceasc/usedcars/maximum-age/up_to_1_year_old/model/clio/make/renault/page/1/postcode/bt667gu/radius/1501?previous=/search/used/cars/renault/clio/postcode/bt667gu/radius/1501/maximum-age/up_to_1_year_old/sort/priceasc/page/1&logcode=p

http://www.autotrader.co.uk/classified/advert/201006352345033/sort/priceasc/usedcars/maximum-age/up_to_1_year_old/model/clio/make/renault/page/1/postcode/bt667gu/radius/1501?previous=/search/used/cars/renault/clio/postcode/bt667gu/radius/1501/maximum-age/up_to_1_year_old/sort/priceasc/page/1&logcode=p

Thank you, that is given me a bit of inspiration, although these are all too far from me. I will try a local search.

Edit: tried a local search and there are no deals that are as good.

motorguy

Prudent wrote: »

Thank you, that is given me a bit of inspiration, although these are all too far from me. I will try a local search.

Edit: tried a local search and there are no deals that are as good.

I'd say just keep a good eye out for cars that are within travelling distance for you. Dont forget it'll still be under warranty so you can get is serviced locally anyway.

Also, check out the big car supermarkets, etc - motorpoint and people like that.

Finally, if you've a local dealer coming close ish to the price, see if they'll price match.

Mind you, if you're saving maybe £1000 - £1500 by having to travel......

Hintza

Factors:-

Scrappage (as mentioned)
Decrease in supply
Exchange rate

In my view this is just the start of some serious price increases in the coming years.

Prudent

Hintza wrote: »

Factors:-

Scrappage (as mentioned)
Decrease in supply
Exchange rate

In my view this is just the start of some serious price increases in the coming years.

Ah, I was hoping prices would fall a lot once the scrappage scheme ended. I test drove a Renault Twingo 1.2 Extreme today which is for sale at £6414 brand new (includes metallic paint which was not really optional as it was the only one availaible). I was hesitating because of the scrappage scheme and the fact its brand new. But if prices won't fall then maybe its more attractive.

goldspanners

Hintza wrote: »

In my view this is just the start of some serious price increases in the coming years.

it may be. we've scrapped a load of old cars so we need to buy newer ones. less old cars on the road means more new cars to be sold.
i didn't mean that to ryhme,honest.:)

Hintza

Prudent wrote: »

Ah, I was hoping prices would fall a lot once the scrappage scheme ended.

I think there will be a small window of opportunity once scrappage ceases purely from the fact some of the manufacturers are keeping production a little higher than is possibly sustainable (probably slightly contradicting myself). Cutting supply (production) is bit like trying to stop an oil tanker it takes a while.

If I were in your position OP I would be getting myself sorted out and noting trends in prices so you can spot the real bargains when they come round (they won't last long) try and have a few models on the short list (don't narrow it down too much at this stage)

One other thing keep an eye on HonestJohns best buys.

DaveMacD

pgilc1 wrote: »

Mind you, if you're saving maybe £1000 - £1500 by having to travel......

My little brother and I drove to Southampton to pick up a car once... from Glasgow... and it was well worth it