Rising car prices?

[Mottie]

When I sold our Evoque in February, it had a few little dinks and scratches, I’d kerbed every wheel rim and a couple of the cameras weren’t working so to save sodding about, I sold it for the WBAC valuation. I've just renewed the insurance on the A3 and the valuation they gave was a lot more than we paid. I’ve just checked the WBAC valuation on the Evoque again and that’s increased by £2k. We bought the Audi off of the sister in law also in February and she said just give us the WBAC valuation which we did. I’ve just checked that valuation again and that has gone up by £3.2K. What’s going on?

 

[sxturbo]

Cos of covid people have had extra money to burn from not going out and not going on holiday (though I don't appear to have benefitted from this lol)

And so to cheer themselves up a lot of people have purchased used cars.

Also there is a shortage of new vehicles because of the electronic chip shortages meaning that most manufacturers have actually stopped production for a few weeks and some are advising lead time of at least 6 months.

This all has a knock on effect to the used car markets with not enough new vehicles being introduced into the system, pushing up the prices of used cars. (Don't believe used car dealers who tell you covid has affected them, in reality they've done rather well out of it)

Auction prices of cars have rocketed and in turn used prices.

I've recently been looking at getting a new car to replace our 15 year old Audi, and I really fancy a jaguar xf V6 s, but in the 2 months I've been looking the prices have gone up £5k.

They reckon it's going to be about 2 years until the chip manufacturers have caught up with demand.

 

[Mottie]

Cos of covid people have had extra money to burn from not going out and not going on holiday (though I don't appear to have benefitted from this lol)

Probably why almost every street I go down had a skip or two in it - people have money to spare. On Sunday morning when I was walking my mums dog round near her, I counted 18 skips in 30 minutes, saw two brickies at different addresses building front walls and another builder/stonemason making and fitting some marble/granite steps. On a Sunday morning!

Our daughter told us she has saved about £6k since lockdown 1 by working from home, no holidays, no pub/meals out, no Gym etc etc.

 

[sxturbo]

Lucky daughter,

I don't seem to be any better off, but for us life has been pretty normal, we've not had holidays abroad for years as been spending money on the house and meals out etc have always been a rarity.

Though I've put my foot down now and said no more major jobs on the house or garden next year, it's getting a bit boring now.

Though weve now decided to save up for a 3 week holiday to Orlando..

 

[johnny2007]

Buy a diesel from someone who lives within the north circular in London.
They're flogging them for peanuts.

 

[Mottie]

Buy a diesel from someone who lives within the north circular in London.
They're flogging them for peanuts.

Part of the reason I sold the diesel Evoque - I live just outside the N.Circular but work inside it. The bloke that bought it lives just outside the S.Circular. Surprisingly though, I gave my work address as the location for the valuation and the valuation was from a WBAC dealer in Beckton which is inside the N.Circular!

 

[johnny2007]

Part of the reason I sold the diesel Evoque - I live just outside the N.Circular but work inside it. The bloke that bought it lives just outside the S.Circular. Surprisingly though, I gave my work address as the location for the valuation and the valuation was from a WBAC dealer in Beckton which is inside the N.Circular!

Weird.
I would've thought that people were in a rush to get rid of diesels before the khant tax.

 

[Diver Fred]

Just sold my deisel golf to a dealership - same value as from WBAC after WBAC had seen it.

 

[johnny2007]

Just sold my deisel golf to a dealership - same value as from WBAC after WBAC had seen it.

So about a third of its value...

 

[Mottie]

So about a third of its value...

A cars true value is what others are prepared to pay for it, not what the owner/seller values it at.

 

[Burnerman]

I'm sure the PCP system has something to do with it.....a new purchase always seems to be driven that way these days and perhaps that's why manufacturers can charge ridiculous prices for the vehicle.
BMW GS 1200? That's over 18 grand sir, but really only £300 per month over four years or whatever and you'll never own it of course. Yeah, right.
John

 

[johnny2007]

A cars true value is what others are prepared to pay for it, not what the owner/seller values it at.

Exactly.
I sold many cars privately for a lot more than these wbac offered.
They're ok if you're in a rush to get some cash, but they really offer low prices compared to what people would pay.

 

[sxturbo]

Exactly.
I sold many cars privately for a lot more than these wbac offered.
They're ok if you're in a rush to get some cash, but they really offer low prices compared to what people would pay.

I've always sold cars privately, but I do hate doing so.

It's such a faff, and dealing with the time wasters, and being in Essex there's a lot of cocky ****s who roll up with about 10 of there mates...

I've said to the missus I ain't selling private anymore, we'll part ex or scrap.

 

[sxturbo]

I'm sure the PCP system has something to do with it.....a new purchase always seems to be driven that way these days and perhaps that's why manufacturers can charge ridiculous prices for the vehicle.
BMW GS 1200? That's over 18 grand sir, but really only £300 per month over four years or whatever and you'll never own it of course. Yeah, right.
John

Yes PCP is like the early 90's equity mortgage....

At some point it's going to come crashing down.

Since the government decided that company cars were income taxable the new car market fell off a cliff, this prompted manufacturers to look at new ways of keeping profits up.

So they decided to make cars "look" affordable on paper, and with the ability to just swap the car for a newer more expensive version in 3 years time meant they lock on a garunteed monthly payment from thousands of customers keeping the business floating.

Then with them offering garunteed values when you hand it back in, they have monopolised the used car market and kept the prices at an inflated rate artificially.

Meaning they don't actually have to sell.as many cars as the profits are much larger.

Whereas in the days of company cars, they had very fine profit margins and they relied on selling volume for profit.

 

[Captain Nemesis]

Part of the reason I sold the diesel Evoque - I live just outside the N.Circular but work inside it. The bloke that bought it lives just outside the S.Circular. Surprisingly though, I gave my work address as the location for the valuation and the valuation was from a WBAC dealer in Beckton which is inside the N.Circular!

Im not affected by the ULEZ expansion, but I did wonder what counts as "inside" the NC - whether theres a time or distance grace period. If youre driving anti-clockwise on the NC and want to "turn right" to head out of London on the M1, does taking the slip road mean that youve gone "inside"?

Does the route that you have to take from Ikea Wembley to get onto the NC to go anti-clockwise take you "inside" the NC?