Car Prices... what the...

aoleks

I got my brand new car in December 2020, just before covid. Managed to negotiate a 30% off list, which means it's cheaper than a travel card. If I sell now, I'll pocket about £4k...

oldagetraveller1

Sorry, but do you mean 2019?

The stuff really hit the fan in March 2020.

gord115

Did anyone see Dispatches on Channel 4 last night about car prices?
Surely the bubble will soon burst.

caprikid1

gord115 said:

Did anyone see Dispatches on Channel 4 last night about car prices?
Surely the bubble will soon burst.

Not until the supply of new cars is fixed, waiting over 12 months for a VW ID4

Grumpy_chap

gord115 said:

Did anyone see Dispatches on Channel 4 last night about car prices?
Surely the bubble will soon burst.

There are no signs of the supply-chain shortages easing for the time being.

Plus there are further Government actions planned to stimulate further demand for new cars - I just walk around my local area and see the massive number of cars that won't be viable once ULEZ expands.  This will be a year-on-year creep until the whole country is ULEZ.

The bubble will burst when supply outstrips demand.  The risk is that manufacturing capacity is restored and aligns with massive tightening of expenditure as inflation and interest rates really pinch.  That will be the "perfect storm" flipping from constrained supply to over-supply in an instant.

Herzlos

Used prices went down *a bit* lately as supply seems to be slowly starting up again, but they are still going to be elevated for a few years until the new supply trickles through the market.

Car_54

Whatever happens to supply, it's a safe bet that demand will decline, with the cost-of-living 'emergency', interest rate rises and a coming recessionrecession.

[Deleted User]

gord115 said:

Did anyone see Dispatches on Channel 4 last night about car prices?
Surely the bubble will soon burst.

It's the UK. The dealers won't let prices go back to normal, they will keep them permanent elevated. Any "discounts" will be the usual fake sale stuff.

motorguy

[Deleted User] said:

gord115 said:

Did anyone see Dispatches on Channel 4 last night about car prices?
Surely the bubble will soon burst.

It's the UK. The dealers won't let prices go back to normal, they will keep them permanent elevated. Any "discounts" will be the usual fake sale stuff.

Dealers dont control the market.  Its a balance between supply and demand.

RE: Used cars - Prices are softening a little, but i expect them to drop slowly from where they are now rather than a sudden crash back to where they were pre COVID.

RE: new cars, manufacturers ultimately need volume and market share, so once supply is resolved - which may take several years to fully resolve - i'd expect discounts and palatable deals to become more readily available.  

[Deleted User]

motorguy said:

[Deleted User] said:

gord115 said:

Did anyone see Dispatches on Channel 4 last night about car prices?
Surely the bubble will soon burst.

It's the UK. The dealers won't let prices go back to normal, they will keep them permanent elevated. Any "discounts" will be the usual fake sale stuff.

Dealers dont control the market.  Its a balance between supply and demand.

RE: Used cars - Prices are softening a little, but i expect them to drop slowly from where they are now rather than a sudden crash back to where they were pre COVID.

RE: new cars, manufacturers ultimately need volume and market share, so once supply is resolved - which may take several years to fully resolve - i'd expect discounts and palatable deals to become more readily available.  

This would be true if consumers had all the information. Most of us can only shop around, we don't have access to supply data or what the dealer is paying and what discounts they have access to.