Time to buy a car?

geraint83

I've currently got an 09 Focus with 60k on the clock. My plan is to change it over the next couple of montgs. However, the fall in the value of the pound and impending Brexit makes me question whether I should sell & buy another (used car) sooner rather than later.

If imports are to become more expensive due to exchange rates, won't the prices of used cars rise (since prices of new cars will be higher, fewer will be sold then leading to reduce supply of used cars)?

I know nobody has a crystal ball, but it doesn't look like things will get better anytime soon!

Any advice?

forgotmyname

Will the price of used cars rise. No.

jimjames

Why are you changing? What does the current car not do?

geraint83

forgotmyname wrote: »

Will the price of used cars rise. No.

Really? Based on supply and demand, if the cost of new cars increase resulting in fewer people buying them won't that mean that fewer used cars will eventually be available, thereby pushing up prices of used cars?

jimjames wrote: »

Why are you changing? What does the current car not do?

Nothing particular. I've no need to change the car at the moment, but expect that I will need to in the next 18 months or so. I'm just wondering whether I'd be better of exchanging now.

Herzlos

Price of used cars stayed high after the recession / scrappage scheme as there were less on the market. I expect the same will happen post Brexit if new cars become more expensive / people hold onto them longer.

It just depends on what you're looking at; I don't think sales will slow down for another year or so anyway, so you've probably got plenty of time.

forgotmyname

geraint83 wrote: »

Really? Based on supply and demand, if the cost of new cars increase resulting in fewer people buying them won't that mean that fewer used cars will eventually be available, thereby pushing up prices of used cars?

The cost of new cars is always increasing, but if people are looking at the price then they will choose lower spec cars instead of the upmarket ones.

When new my car was £4k more than the base model, but at 6 years old it was about £200 more than the base models.

As cars get older and people like me see it as transport where reliability is the key then the actual spec if 2nd to that.

There are not many poorly equipped cars around these days also. My last car was be base spec and it had aircon, electric windows, cruise control trip computer, cd radio etc etc..

My current one adds things that i didnt care about. Automatic lights (never used it) Climate control, Its usually on at 18 degrees or off. Never moves from that setting. A better stereo, but the old one was good enough.

I dont see a big change at all.

Herzlos

I think there's maybe some cross purposes going on.

For all trim levels, buying a 3 year old car requires someone having bought said car new 3 years prior. If the price of new cars shoots up, due to trade deals our currency fluctuations, such that less people buy new cars, then 3 years later there are going to be less 3 year old cars on the market, and the relative asking price will go up. Similar happens in a recession, where people hold onto cars longer, again meaning that there are less older cars up for sale.

That said, the best time to buy a new car is usually just when you need it. If you're buying brand new, then you might want to get in before the tax banding changes, but other than that it shouldn't make too much difference.

jase1

Any additional costs of buying the next car will be more than offset by the reduced depreciation resulting from keeping the current (older) one another year.