Used Car Values !!

diystarter7

Herzlos said:

rigolith said:

legionare64 said:

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 ??

WBAC are having a laugh there, that car would easily go for thousands more than that if you threw it on AT.

They promise to buy any car, not give a good price on any car. They must just be wary about how well it'll sell, or have too many in stock already.

Hi

Like any good business, WBAC etc buy cars to make a profit. When we sold them the last car about 3 years ago, I think they send them to their auction, Even if they get the what the aid the seller and it is often more than that. The buyers at the auction pay a few hudred in auction costs, so all in all they rarely make a loss.

WBAC etc are good if you want a sell and car and buy a new, or neraly new car and get a better, more cost effect purchase. I'd rate sell a car to WBAC than get a little more and be at risk of getting a chancer knocking on my door claiming z/y & x.
thanks

baser999

Ganga said:

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.

If you’re in the proposed expanded ULEZ it might pay to take the scrappage payment for your car? 

ontheroad1970

Herzlos said:

fred990 said:

Flight3287462 said:

An interesting article on the deterioration of the US Car Loans market, which I suspect is being mirrored over here to a greater or lesser extent.

https://oilprice.com/Energy/Energy-General/Americans-Are-Struggling-To-Pay-Car-Loans.html

I wondered recently if PCP would be our version of sub-prime mortgages/loans etc.

It could well be; people are buying a car for a reasonable monthly payment but regular posts on here a lot of people have no real plans to fund the balloon payment so will just continue in the PCP cycle because they can't really afford to get out.

It's also made it easier for people to buy cars far more valuable than they would otherwise, on much longer contracts, so there's a fairly real risk that should affordability problems happen like huge increases in mortgages, fuel bills, food, or even unemployment, will mean that a car that was perfectly affordable when the finance was signed now isn't.

That doesn't just apply to PCP of course, HP and leases will have the same issues, but it's only PCPs that let the customer VT at 50%.

Of course, the crazy car prices likely propped things up for a while, because less people than usual would be VT'ing or reposessing cars with negative equity.

Don't HP have the same right to VT at 50%?

facade

ontheroad1970 said:

Don't HP have the same right to VT at 50%?

Yes, and it is slightly easier to do as the 50% point is close to half way with HP, but near the end with PCP because of the GFV/balloon.

(You can VT at any time, but you have to top up what you have repaid already to the 50% mark)

VT'ing HP is less common, because if you are past the 50% mark it is often better to sell the car- any positive equity is yours to keep

Indout96

I bought my Civic 1.5T Prestige in Feb 2021 for £15,700 at the time it was 1 of only 2 on sale in UK 12 months ago Honda Bradford contacted me offering £20,000 for it (not as a trade in) Just done WBAC quote and they are now saying £14,250 that is with 60,000 miles 

Car before that was a Volvo C30 SE Lux which I bought in June 2016 for £6,750, we gave it to my daughter when I bought the Civic, just put that through WBAC and they are saying £5,000 so a £1,750  loss in 6 1/2 years.  

JKenH

It does seem petrol cars are holding up well. I just checked the valuation on my 2020 1.0 Golf Estate and it has gone up marginally to £14855. That’s higher than it was in October when I bought it. 

It’s a different story with EVs though, at least with WBAC. My old 40kWh Leaf has dropped another to £11565. That’s a drop of £2000 in 7 days and is down over £9000 since 8 October when it was £20,685.

Edit: now is a good time to buy an EV if you are prepared to go to an auction. The dealers who have them in are being very slow to adjust their prices to true values as they will take a big hit if they bought in stock 3 months ago. 

Ganga

baser999 said:

Ganga said:

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.

If you’re in the proposed expanded ULEZ it might pay to take the scrappage payment for your car? 

No i am in the NE of England but thanks anyway.

JKenH

Retailers impose used EV stocking ban as values slump

But EV depreciation accelerated as the month progressed, with many retailers had imposing “buying bans” to reduce further exposure to faltering stock.

Cap HPI said: “Whilst petrol and diesel vehicles have both experienced small increases at the three-year age point, electric vehicles have seen a dramatic decline, dropping by an average of 6.6% (c.£2,050) in the month.

Tesla’s grabbed the headlines, with Model 3 trade values down 10.5% or c.£3,800 in January’s at 12 months old, resulting in an average decline of over 33% (around £13,275) in the past four months.

Model Y values decreased by an average 11.1% (around £5,500) in January, completing a 27% decline (around £14,000) since October.

https://www.am-online.com/news/used-cars/2023/01/31/festive-rush-to-stock-ice-used-cars-saw-25-uplift-in-auction-sales

Johnmcl7

Given the recent price drops on the Model 3 and the Model Y and better availability it makes sense those cars would have bigger drops in their used value.

I had a look at a two year old petrol car in February 2020 with 10K miles on the clock for £17,500, at the moment the cheapest one for sale is £16K and is three years old with 80K while one in similar age and condition to the one I looked at is £25,000.  There also seems to be very few 2020/2021 cars which I assume is due to a drop in production during the covid pandemic and I suspect it will help keep prices higher for a while.

JKenH

Used electric car prices caught in vicious downward cycle as experts warn of trouble ahead

https://cardealermagazine.co.uk/publish/used-electric-car-prices-caught-in-vicious-downward-cycle-as-experts-warn-of-more-trouble-ahead/279724