Coronavirus effect on car prices?

strawb_shortcake

forgotmyname said:

£3k - £4k for a 10 year old car?  I paid £3k for a 5 year old car late 2018 from a smallish dealer.
Usual checks been trading for a good while and no name/owner changes so worth the 30 mile trip
to go and see the car. That was late 2018, 2 oil changes and 1 battery change later its still good.

That's what a lot of the local prices are at the moment, I paid £2k for my 55 plate 2 years and it had been fine. If I could go for a smaller car I'd pick something newer up cheaper, but having a family I need focus size or similar. 

eamon

I think that 2nd hand prices are rising. For example I've just renewed my insurance and the valuation is coming in around the £3k mark. IMHO that is astonishing for an 11yo Citroen Berlingo Multispace. I was expecting much less than that.

Shimrod

darkwarrior said:

I know this is a small-minded question in these dire times, and I don't mean it in an offensive way but as I was already in the process of looking at cars, it has left me curious. Do people think that the ongoing situation will make it a buyers market or drive prices up?

If it's inappropriate to ask, please delete this post.

You may find that the prices drop, but the choice of cars is much reduced as well. I had to replace a car in 2009 (around the financial crisis). I got a good price on the (2nd hand) car, but it took quite a bit of time to find a car with a spec close to what I wanted.

brianfall

Feels like we are heading into uncharted territory. Ideally the drop in supply could equal the drop in demand and things end up pretty much the same as they were. I'm just about to sign a PCP agreement for a new car and am feeling very nervous about it, although thankfully my job seems secure currently.

born_again

There will be a glut of 2nd hand cars as people try to sell theirs to keep their heads above water.
Just look at how the car buying groups are slashing quotes.

Herzlos

Same with any recession; sales of new cars will dry up and everyone will hold on to cars a bit longer to save some money. There will be some great deals on new / nearly new dealer stock soon, and then the price of used cars will go up. In 3 years it'll be hard to find a 3 year old car.

DD265

I was surprised by how many new cars I saw on the backs of transporters on the motorway yesterday; wasn't expecting to see many at all as thought sales would've already dropped off. I suppose with the 20 plate only recently being released, these cars are probably fulfilling those orders.

Mercdriver

DD265 said:

I was surprised by how many new cars I saw on the backs of transporters on the motorway yesterday; wasn't expecting to see many at all as thought sales would've already dropped off. I suppose with the 20 plate only recently being released, these cars are probably fulfilling those orders.

People place orders well in advance.  A month ago many thought we were untouchable.  Two months ago, it was just another Asian based disease.

Mercdriver

brianfall said:

Feels like we are heading into uncharted territory. Ideally the drop in supply could equal the drop in demand and things end up pretty much the same as they were. I'm just about to sign a PCP agreement for a new car and am feeling very nervous about it, although thankfully my job seems secure currently.

Supply and demand means that prices rise as supply falls... not the other way around.

Ectophile

Mercdriver said:

brianfall said:

Feels like we are heading into uncharted territory. Ideally the drop in supply could equal the drop in demand and things end up pretty much the same as they were. I'm just about to sign a PCP agreement for a new car and am feeling very nervous about it, although thankfully my job seems secure currently.

Supply and demand means that prices rise as supply falls... not the other way around.

Not if demand is falling even faster than the supply.