Used car price increase

Herzlos

JJ_Egan said:

Key here is as you say no residual value at the end .But you can roll on to another lease .

You're renting so there's no equity in the vehicle (though you may get to buy the car at the end). In exchange you get a fixed cost new car for the fixed term, and there are some pretty good deals out there if you're not too concerned about the car itself.

Depreciation is usually a fairly consistent downward curve, with a 3 year old car worth about 40-50% of the new price, depending on various factors like desirability, cost and so on. However leasing companies can get better discounts than retail customers so a lease *probably* works out cheaper than buying the same car new and trading it in after 3 years.

However, nothing makes sense at the moment in terms of car sales. Some dealers are offering to buy cars for more than they sold new for, prices across the board have launched up. My car is worth about 50% more than pre-covid. New factory order cars can take a year to turn up or have different specs due to parts shortages.

Leasing at least gives you some predictability for a while, though you're certainly best just holding on to your current car if you can (though obviously not in OP's position since it was written off).

sheslookinhot

Would it be fair to assume that in the current car price climate that leasing looks like poorer value than owning a car ?

Herzlos

sheslookinhot said:

Would it be fair to assume that in the current car price climate that leasing looks like poorer value than waning a car ?

It depends a lot on what used car prices would be like at the end of the lease. If the used car market collapsed then you'd be much better off, but if the used car market was still strong you'd be much worse off.

But there's the capital cost, and there's the monthlies. You can often get a lease (or a new car on HP/PCP) for lower monthlies than buying the same car used.

It's all a mess.

havingaball74

Thank you all. I really like owning a car outright but it looks like I need to investigate leases. 

havingaball74

I have seen a few second hand cars (one is selling for £6000). When I put the registration number into Cazoo, it's valued at £4000 so how would the depreciation work if I bought it?

Grumpy_chap

Always a gap between "sell" price and "buy" price.  Does the Cazoo site give the price for you to sell?  That will always be the lower than the price for you to buy.

Also, in normal seasonal variations, prices tend to be more robust in January than November / December.  Not sure whether current craziness has distorted the normal seasonal variations.

jimjames

rigolith said:

havingaball74 said:

I love Jazzes so I'm tempted by the more expensive one. Does £11k seem alot for a 2017 Honda Jazz with 16,000 miles on the clock?
If so, it's back to the drawing board with other makes and I'm assuming they'll be overpriced too in the current market

It's completely insane, but that's used car prices at the moment. Nothing is sensibly priced.

If you buy now it will deprecate like crazy as prices get back to normal. If you need a car though... The only alternative is check some PCP or lease deals, some are about the same as the depreciation will be so you might as well have a new car.

Doing some research for a video and some 20 year old bog standard cars are up for sale for £7k which is 50% of their price when new. That's incredibly low depreciation for a standard family hatchback, I can't see those prices being maintained when supply returns to normal.

motorguy

jimjames said:

rigolith said:

havingaball74 said:

I love Jazzes so I'm tempted by the more expensive one. Does £11k seem alot for a 2017 Honda Jazz with 16,000 miles on the clock?
If so, it's back to the drawing board with other makes and I'm assuming they'll be overpriced too in the current market

It's completely insane, but that's used car prices at the moment. Nothing is sensibly priced.

If you buy now it will deprecate like crazy as prices get back to normal. If you need a car though... The only alternative is check some PCP or lease deals, some are about the same as the depreciation will be so you might as well have a new car.

Doing some research for a video and some 20 year old bog standard cars are up for sale for £7k which is 50% of their price when new. That's incredibly low depreciation for a standard family hatchback, I can't see those prices being maintained when supply returns to normal.

I suspect those are well maintained, low miles ones that are "classics on the cusp" as it were.

I cant imagine your typical family car is going to make £7K at 20 years old.  There will be exceptions, but there will be specific reasons.

Grumpy_chap

motorguy said:

jimjames said:

rigolith said:

havingaball74 said:

I love Jazzes so I'm tempted by the more expensive one. Does £11k seem alot for a 2017 Honda Jazz with 16,000 miles on the clock?
If so, it's back to the drawing board with other makes and I'm assuming they'll be overpriced too in the current market

It's completely insane, but that's used car prices at the moment. Nothing is sensibly priced.

If you buy now it will deprecate like crazy as prices get back to normal. If you need a car though... The only alternative is check some PCP or lease deals, some are about the same as the depreciation will be so you might as well have a new car.

Doing some research for a video and some 20 year old bog standard cars are up for sale for £7k which is 50% of their price when new. That's incredibly low depreciation for a standard family hatchback, I can't see those prices being maintained when supply returns to normal.

I suspect those are well maintained, low miles ones that are "classics on the cusp" as it were.

I cant imagine your typical family car is going to make £7K at 20 years old.  There will be exceptions, but there will be specific reasons.

This^^

Although, I have a 25-year old Fiesta (which is in absolute "mint" condition and low mileage) and a 15 year old Focus (complete wreck high mileage).  I could be tempted by a £7k offer for either - feel free to send a PM   HAHA

I was pleasantly surprised, having started work for a new Client, when I did go in the Fiesta and was commented "I see you are into your classic cars then!"

motorguy

Grumpy_chap said:

motorguy said:

jimjames said:

rigolith said:

havingaball74 said:

I love Jazzes so I'm tempted by the more expensive one. Does £11k seem alot for a 2017 Honda Jazz with 16,000 miles on the clock?
If so, it's back to the drawing board with other makes and I'm assuming they'll be overpriced too in the current market

It's completely insane, but that's used car prices at the moment. Nothing is sensibly priced.

If you buy now it will deprecate like crazy as prices get back to normal. If you need a car though... The only alternative is check some PCP or lease deals, some are about the same as the depreciation will be so you might as well have a new car.

Doing some research for a video and some 20 year old bog standard cars are up for sale for £7k which is 50% of their price when new. That's incredibly low depreciation for a standard family hatchback, I can't see those prices being maintained when supply returns to normal.

I suspect those are well maintained, low miles ones that are "classics on the cusp" as it were.

I cant imagine your typical family car is going to make £7K at 20 years old.  There will be exceptions, but there will be specific reasons.

This^^

Although, I have a 25-year old Fiesta (which is in absolute "mint" condition and low mileage) and a 15 year old Focus (complete wreck high mileage).  I could be tempted by a £7k offer for either - feel free to send a PM   HAHA

I was pleasantly surprised, having started work for a new Client, when I did go in the Fiesta and was commented "I see you are into your classic cars then!"

Whats your Fiesta?  Something sporty?