Car lease prices up to 30% higher this year

motorguy

Steve182 said:

I can only assume this is due to higher interest rates as car prices have not increased to this extent, but the cost of a new lease agreement on my own car is now 30% more than it was in December 2021.

Surely this will just kill the lease/PCH industry.

Anyone else had similar experience?

Where previously manufacturers / large dealer groups would happily have sold cars in bulk to leasing companies at heavily discounted prices to meet sales targets, they now dont have to as they have less cars to sell and can get retail customers for them at very low discounts instead.

Excess stock would also have previously have been sold off to leasing companies at heavy discounts too.

motorguy

Grumpy_chap said:

Herzlos said:

[Deleted User] said:

Herzlos said:

Everything is more expensive than a year ago, people will keep buying and moaning about it.

Really? Even when their mortgage repayments and energy bills have rocketed and there's a recession predicted?

They still need to get to work, and some people still want new cars.

Lots of people will be completely screwed in this recession, but lots of people will still have the money to buy cars.

Car prices are currently driven by high demand combining with low supply.

There is a real risk that the perfect storm is coming as manufacturers recover supply capacity at the same time as demand falls.

I also wonder how many of the cars being ordered today on a 12-month lead time will not be wanted when the vehicle is actually available?

Manufacturers are acutely aware of the global economic situation and will be loathe to ramp up to chase volume sales that simply arent going to be there.

I also think many manufacturers have got very comfortable selling less cars at a higher margin and may not be easily sucked in to the volume sales game again.

And yes, a percentage of people will likely cancel orders but that will just make the waiting lists shorter.  Say, 25% drop out, then that simply drops the waiting for people at the end of the queue from a year to 9 months.  They dont build the cars until maybe 3 weeks from expected delivery, so people dropping out can be facilitated.  

motorguy

sheramber said:

But it hasn't hit their pocket yet 

I am amazed at the loaded trolleys in the supermarket.  No sign of money shortage there.

Like COVID, the newspapers have got in to the doom mongering headlines again and daily wheel out someone badly impacted by all of this.  

The reality is, the poorest 20% of society will be hit but the bulk of people sitting in the middle ground will adjust and continue with their lives, pretty much close to normal.  That may mean going on a cheaper foreign holiday or skipping a holiday for a year or two, less days out / nights out, maybe holding on to their current car / going for a cheaper model next time, etc, etc.

motorguy

Herzlos said:

[Deleted User] said:

Herzlos said:

Everything is more expensive than a year ago, people will keep buying and moaning about it.

Really? Even when their mortgage repayments and energy bills have rocketed and there's a recession predicted?

They still need to get to work, and some people still want new cars.

Lots of people will be completely screwed in this recession, but lots of people will still have the money to buy cars.

Yes, exactly this.

And if they dont have the money to buy a shiny new white Audi TDI or whatever, they will still need a car, so it may be a lesser model they get next time.

Jenni_D

motorguy said:

Herzlos said:

[Deleted User] said:

Herzlos said:

Everything is more expensive than a year ago, people will keep buying and moaning about it.

Really? Even when their mortgage repayments and energy bills have rocketed and there's a recession predicted?

They still need to get to work, and some people still want new cars.

Lots of people will be completely screwed in this recession, but lots of people will still have the money to buy cars.

Yes, exactly this.

And if they dont have the money to buy a shiny new white Audi TDI or whatever, they will still need a car, so it may be a lesser model they get next time.

Exactly this - in fact I've just ordered a car this morning after a test drive ... a new MG4.

Grumpy_chap

Jenni_D said:

I've just ordered a car this morning after a test drive ... a new MG4.

That is an exciting car in so far as it could really shake the markets up by almost as much as TESLA shook the markets up.
What lead time will it be?

There is a real difference between the press reporting everyone has fallen into poverty and the reality of observation. 
I walked past a car dealer this afternoon - just a random, yet sunny, autumn afternoon as I see it - and the forecourt was really busy with customers seriously looking at cars. 
We also see card shops, coffee shops etc all very busy.
I don't in any way want to belittle the difficulties that many are experiencing, but it does not seem to be as bad by observed experience as the press are making out.

Jenni_D

Before the end of this month. They're expecting the car in their dealership on the 21st, and then they'll need to do the PDI. So I expect I'll collect somewhere around the 24th/25th of this month.  

I originally wanted it in white, but all the ones en-route had been reserved/sold so I opted for a Camden Grey version. Otherwise they were quoting 16 weeks - which isn't long in the grand scheme of things.

Grumpy_chap

That's very quick

How come MG have cars and no-one else does?
Do MG have a magic chip and battery cupboard?

Jenni_D

Grumpy_chap said:

That's very quick

How come MG have cars and no-one else does?
Do MG have a magic chip and battery cupboard?

They must do.

They have built a quantity of various models and colour options and shipped them to dealerships (some arrived, some still en-route) for dealers to sell. If you're lucky your preferred option is available/en-route, otherwise it is supposedly 16 weeks lead time (although I suspect that's a bit of "dealer speak" as all the cars ship from China).

Car_54

Jenni_D said:

Before the end of this month. They're expecting the car in their dealership on the 21st, and then they'll need to do the PDI. So I expect I'll collect somewhere around the 24th/25th of this month.  

I originally wanted it in white, but all the ones en-route had been reserved/sold so I opted for a Camden Grey version. Otherwise they were quoting 16 weeks - which isn't long in the grand scheme of things.

Good choice. Grey is more tasteful , and more importantly it doesn't show the dirt so much.