Used Car Values !!

legionare64

Just thought I would share this as I was shocked at value drop.
So story is June 21 I bought a new Fiat panda 4x4 for £12500 decided I would like to change to EV so in Jan22 I traded it in for a pre reg (3 weeks old) Nissan Leaf + the one with 62kwh battery and 230 mile range cost £30500, got £14k for panda so more than I paid. I enjoyed driving Leaf but always had a bit of range anxiety so decided to sell it back to dealer in October for ££29500 which was also what We buy anycar were offering. So it cost me £100 a month for 10 months motoring.
Thought I would see value today with we buy anycar and it is worth £18175, that is over £11k less than I sold it for 3 months ago. Is the market now dropping ??

DullGreyGuy

legionare64 said:

Is the market now dropping ??

As widely reported... yes

Supply chain issues that caused the surge in demand are being resolved and we have a cost of living crisis meaning people are pushing back big purchases... drop in demand results in a drop in pricing. 

molerat

Used prices are certainly starting to go back to normal but that does seem to be a rather large drop in value - my car is now valued at around £3K less than it was a year ago which was more than I paid for it in 2019. Several of the same model with around same mileage, some even 19 against my 69, are showing for sale on Arnold Clark for the same as I paid in Dec 19 as a 2 week old pre reg with 10 miles on the clock.

Stubod

My car was valued (WBAC) 6 months ago at £14.5k and checking today it has dropped £2k, but still seems overpriced to me?

Petriix

WBAC offers aren't the official measure of vehicle depreciation, they more reflect that particular company's appetite for buying certain types of vehicle. There are only 12 62kWh Leafs on Autotrader for under £24,500 with the going price for a 2020 model typically around £25k.

I paid £23k new for my MG5 SR Exclusive in December 2020. There is one very low priced (higher milage) 2021 Exclusive for £18,430 which is an absolute steal, otherwise there are a handful at around £20k but they more typically go for £21k+.

JKenH

I bought a 40kWh Nissan Leaf for £23.5k new in March 2020. In October 2022 WBAC put a value on it of £20,685. This week WBAC valued it at £13,585. EVs seem to have been particularly badly hit these last 3 months as their values had got a bit ahead of themselves. The adjustment is though quite severe and quite sudden. A Tesla Model 3 performance I looked at in May 2022 was valued by WBAC at the time at £43,000. This week the same car, with same mileage is down to £26,295. The retail prices are taking a little longer to adjust downwards as I suspect dealers are reluctant to book a loss and are sitting on a lot of used EVs when the demand just isn’t there at the moment. 

https://www.am-online.com/news/market-insight/2023/01/16/used-ev-nerves-intensify-as-values-decline-four-times-faster-than-diesel

On the other hand, I bought a 2020 petrol Golf estate in October and WBAC put a value on it then of £14,500. I had a text last week from WBAC to say the value had gone up and on checking on Friday it was £14,800.

Grumpy_chap

JKenH said:

On the other hand, I bought a 2020 petrol Golf estate in October and WBAC put a value on it then of £14,500. I had a text last week from WBAC to say the value had gone up and on checking on Friday it was £14,800.

How much can really be put on the small movements in value?
I always thought WBAC gave an initial offer and, if you did not take it, will send a little bit more to sweeten the deal.  And then a little bit less, with an "urgency" note to act before the price falls again...

Ganga

Hope the price of used cars is falling as we need to replace ours this year.Our 19 year old Astra is starting to look its age with rust on the wings.

jimjames

I wonder if the drop in EV prices is related to the £7k reduction in Tesla new values which then cascades onto other used EV prices too.

JKenH

Grumpy_chap said:

JKenH said:

On the other hand, I bought a 2020 petrol Golf estate in October and WBAC put a value on it then of £14,500. I had a text last week from WBAC to say the value had gone up and on checking on Friday it was £14,800.

How much can really be put on the small movements in value?
I always thought WBAC gave an initial offer and, if you did not take it, will send a little bit more to sweeten the deal.  And then a little bit less, with an "urgency" note to act before the price falls again...

I was just demonstrating that not all cars are deprecating as fast as EVs. See this article.
https://www.am-online.com/news/used-cars/2023/01/06/used-car-prices-rose-for-33rd-consecutive-month-in-december

It’s all part of a cycle. Not long ago EVs were the fastest selling used cars on the market. Their day will come again.

I am not aware WBAC operate the way you suggest. They didn’t offer any more to sweeten the deal on my Leaf.

JKenH

Petriix said:

WBAC offers aren't the official measure of vehicle depreciation, they more reflect that particular company's appetite for buying certain types of vehicle. There are only 12 62kWh Leafs on Autotrader for under £24,500 with the going price for a 2020 model typically around £25k.

I paid £23k new for my MG5 SR Exclusive in December 2020. There is one very low priced (higher milage) 2021 Exclusive for £18,430 which is an absolute steal, otherwise there are a handful at around £20k but they more typically go for £21k+.

MG5 prices are holding up quite well. This 5k miles 70 plate Exclusive is for sale at £22,494.

https://www.autotrader.co.uk/car-details/202211302159009

There is still, though, quite a divergence between retail and trade prices as WBAC value it at £17,500. It’s still, though, worth more than my 2020 petrol Golf estate on 27k miles and both would have cost about the same to buy new.