To sell the X5 and buy, or stay put?

ruddoug09

I'm currently fortunate enough to own a BMW X5 that has a current valuation of around £24k-£25k.  I'm getting a company car which is due next April and had planned on selling the X5 then.
But, with recent events, I'm considering selling the X5 now and buying a runaround to see me through the next 6 months because I'm worried about a big drop in the car market which will see the value of the X5 plummet.  Buying a runaround for about £10k will limit the risk (in my head anyway) and will still have a decent value come next April when the company car arrives.
Should I sell the BMW now, or just sit tight?  Would appreciate any opinions on what people think will happen to used car values.

Herzlos

It's definitely a decent time to downsize.

I think used stuff is all generally overpriced, so I *think* you'd do best going for something new or nearly new.

For example, if you sold the X5 and got something like this Kia Picanto for £11500 (https://www.autotrader.co.uk/car-details/202203163628077), then it's pretty risk free due to the warranty and you'll have no issues selling a 6 month old supermini in 6 months, whilst still pocketing about £13,500.

Or you can get a 10 year old Picanto for £2,500, then you're dealing with a 10 year old car which may have problems but will have £22,500 cash to make up for it.

So I guess it's just down to how you perceive risk. Will the market for used cars strengthen or weaken with this recession? Will everyone else be trying to downsize to cut costs?

Grumpy_chap

Whether or not to sell the X5 now is your decision - only you can take your own call on what will happen to used car prices over the next 6 months or so.  I could say what I think, but there are only three answers - stay the same - fall - rise - so whatever I said I'd have a 33% chance of being correct.

If you do decide to sell, rather than a £10k interim car, I'd be going for a £500 banger.

MX5huggy

Buy a MX-5 now people don’t want a soft top now then sell next summer when wanted. 

ruddoug09

Thanks everyone for your thoughts, much appreciated

motorguy

ruddoug09 said:

I'm currently fortunate enough to own a BMW X5 that has a current valuation of around £24k-£25k.  I'm getting a company car which is due next April and had planned on selling the X5 then.
But, with recent events, I'm considering selling the X5 now and buying a runaround to see me through the next 6 months because I'm worried about a big drop in the car market which will see the value of the X5 plummet.  Buying a runaround for about £10k will limit the risk (in my head anyway) and will still have a decent value come next April when the company car arrives.
Should I sell the BMW now, or just sit tight?  Would appreciate any opinions on what people think will happen to used car values.

The problem you will have is big SUVs are already dropping in value.  I've access to a trade auction site from my trading days and when a big SUV like an X5 comes up, they're bidding at around £3K below trade price on them.  

If you have a route out of it now via WBAC or a firm dealer offer to buy, then yes, but conversely, buying a £10K now could see a notable drop in its value between now and then too, particularly if you buy it from a dealer.

Definitely do split out the selling of your car and the buying of another car in to two separate transactions.  A dealer selling a £10K car will definitely low ball you if you try to trade in something like that.