how to reduce the cost of used cars

cypher007

having had my previous posts deleted about used car prices ive now re written it.

the price of used cars is due to the lack of new cars which is creating a vicious circle.

therefore why dont people just keep there current car until prices return to normal? its predicted prices will drop by 20% over the coming months. so by this time next year they will likely be back to normal.

Grumpy_chap

You may find this thread interesting:
https://forums.moneysavingexpert.com/discussion/6287638/car-prices-what-the/p1

Not everyone can just keep the current car and wait until prices return to normal.

There are many factors creating a perfect storm and causing the current spike in prices.  It is hard to predict when (or if) all those factors will subside.

400ixl

Not sure why you believe this is going to go any differently than the previous two threads. You seem to be on a mission, are you having issues affording the car you want?

There are lots of reasons people are buying used cars. New are hard to come by, leases are ending and can't be replaced, cars become uneconomical to repair or are in accidents. The list goes on.

Demand vs supply drives the price, simple economics.

Given many of the chip suppliers are already saying that 2022 component capacity is already sold out for the year, your 20% drop in the next 3 months is unlikely to be what happens.

Are people supposed to have put off buying a car for the last 18 months with no end date in sight as to when they should buy at "normal" prices?

Herzlos

Not that we need another thread, but things aren't going to be back to normal by next year - we'll be 3 years into a new car shortage and lots of new cars aren't going to be available this year.

Prices seem to have softened a bit in the last month or so - my cars trade in value seemed to peak at about £7k and has dropped back down to about £6k.

If you can afford to wait a year then go for it, but don't bet on things being any better next year.

cymruchris

Life changes - people's circumstances may require them to obtain a different kind of vehicle.

My dad passed away - and we'd been using a 4x4 allowing him easy access - but this isn't a car I enjoy driving, it was something that was needed, and isn't anymore. It's been sold, and I've now gotten a car that suits my own requirements. 

A friend who has owned a saloon car for 5 years has recently started a dog-walking business, and now needs a big estate. He can't wait. 

Another friend has gotten a job that involves travelling, he finds his tiny VW Lupo isn't the most conducive environment to be in for a couple of hours motorway driving a day, and has changed to more of a motorway cruising car.

The examples could go on and on.

I don't think prices will be dropping 20 percent in the coming months, and 'normal' won't exist probably for a few years yet. 

photome

Who has predicted that prices will fall by 20% over the coming months ?

Goudy

I'm not sure we're going to see anything as dramatic as 20% reduction in prices or anything like the bubble bursting but the likes of Blue Book, Cap and other industry analysts think the market will soften towards the back end of 2022 as there are already small signs auction stock since Christmas isn't quite as hot as before.

Plus, they've not sold many new cars in the last two years or so, so there will be less used cars expected on the market when new car production does return to something like normal.

It's margin over volume for used dealers for a good while yet.

caprikid1

My partners car scheme dictates no car over 6 years old private or leased, current car 7 years old, new car already six months late

motorguy

cypher007 said:

having had my previous posts deleted about used car prices ive now re written it.

the price of used cars is due to the lack of new cars which is creating a vicious circle.

therefore why dont people just keep there current car until prices return to normal? its predicted prices will drop by 20% over the coming months. so by this time next year they will likely be back to normal.

You just keep banging this drum when clearly you're not reading and acknowledging the insights and responses that people are giving.

But i'll try again (third time lucky)

• Many people need a car right now for various reasons - new job, end of lease, first car, new requirement, etc, etc, etc.
• Many people need to change their car - need something bigger, need something smaller, need something more economical, current car has become unreliable, etc, etc, etc.

Prices may not go "back to normal".  Quite possible this is the new normal as prices of used cars were very cheap previously here in the UK.

And heres a thought, instead of trying to influence an entire country, why not simply practice what you preach - dont change your car right now.  Your "problem" seems to be whats annoying / affecting you, not for any particular desire to help others be MSE.

motorguy

cypher007 said:

having had my previous posts deleted about used car prices ive now re written it.

the price of used cars is due to the lack of new cars which is creating a vicious circle.

therefore why dont people just keep there current car until prices return to normal? its predicted prices will drop by 20% over the coming months. so by this time next year they will likely be back to normal.

Who - of any credibility - is predicting that?

If you're going to throw stats like that about willy nilly, please back it up with actual links, otherwise its just hearsay to support your view.

Quite possible prices wont come down again, or if they do, they will almost certainly come down slowly.

motorguy

Goudy said:

I'm not sure we're going to see anything as dramatic as 20% reduction in prices or anything like the bubble bursting but the likes of Blue Book, Cap and other industry analysts think the market will soften towards the back end of 2022 as there are already small signs auction stock since Christmas isn't quite as hot as before.

Plus, they've not sold many new cars in the last two years or so, so there will be less used cars expected on the market when new car production does return to something like normal.

It's margin over volume for used dealers for a good while yet.

Totally agree.

Even IF the supply issues are FULLY resolved in the next year (doubtful) that leaves a 3 year gap in supply of the usual volume of new cars in to the used car supply chain.  That may never fully correct.

We saw a similar phenomenon with diesel cars - new car buyers were actively stopping buying diesels for various reasons, but instead of those reasonings being shared by the used car market, used car prices for good diesel cars actually went UP as there was less of them coming on to the used market.