The rise of the used car market

NS75

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I only wish I knew, but if I do buy one the price will fall like a rock in a swimming pool.
It happened before…? Tell me when you do!
Is it fair to believe that the price of a GT (S) will eventually be down in 5-7 years to the same price as a previous model of let’s say a 2002 3200 GT? Or car depreciation does not necessary follow the pattern of a previous model of a same brand, a least for luxury cars?
 

Contigo

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Well I've been onto WBAC for a valuation on the Wife's Vauxhall and they are offering £3k over what we paid a year again from a main dealer! It's booked in on Friday so will see what they actually offer. It's near mint. Taken the decision to act now whilst prices are crazy for two-three year old metal .My dad has just ordered a brand new petrol 3008 and they have him an unreal trade in for his current 18 month old 3008. The market has gone nuts. Brand new cars are now just getting slightly easier to source so I expect this to ease soon.

WRT to my 14 plate GTS, I ran that into WBAC and they are offering a great amount. If the Vauxhall goes then I will part company with the GTS at a profit after 2.5 years ownership. Now is the time to act imo.

I have enough cars to motor around in until the situation returns to normal and I can decide which way to go and if I will go through with my Lotus Emira order.
 
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safrane

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It happened before…? Tell me when you do!
Is it fair to believe that the price of a GT (S) will eventually be down in 5-7 years to the same price as a previous model of let’s say a 2002 3200 GT? Or car depreciation does not necessary follow the pattern of a previous model of a same brand, a least for luxury cars?
I doubt they will drop that far to be fair, it depends where you buy from. Dealers cars will of course hold a profit, so selling a car has to reflect that you will likely loose thier mark up...and then the age/miles loss as per all cars.

I suspect I will get similar money for my GS as I paid for it 7 1/2 years ago (time flies)... not likely to see the same in a GT over the same period, unless a very special car.
 

Contigo

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Also like to say I've been inundated with calls from dealers/traders asking if they can SOR my car and promised of £55k back and charging only 6% etc.. No thanks, Happy for you to take it at 47k and then make even more profit on it if you are so confident. Put your money where your mouth is!
 

NS75

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I doubt they will drop that far to be fair, it depends where you buy from. Dealers cars will of course hold a profit, so selling a car has to reflect that you will likely loose thier mark up...and then the age/miles loss as per all cars.

I suspect I will get similar money for my GS as I paid for it 7 1/2 years ago (time flies)... not likely to see the same in a GT over the same period, unless a very special car.
Too early to buy a GT then as you were saying previously…
 

dgmx5

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Also like to say I've been inundated with calls from dealers/traders asking if they can SOR my car and promised of £55k back and charging only 6% etc.. No thanks, Happy for you to take it at 47k and then make even more profit on it if you are so confident. Put your money where your mouth is!


Have you spoken with @dickygrace ?
 

Ewan

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Just for fun I checked the value of my Strad on WBAC. Came in at least £20k below current market value!

But on the other hand, my elderly Mother-in-Law is stopping driving, so we are selling her 2010 Ford Fiesta Titanium 1.4 auto (5 door version, with 45k miles and full history), and WBAC offered £4500. Quite a bit more than I expected.
On that point, if any on here wants it, they are most welcome at the WBAC valuation. PM me for more details.
 

Silvercat

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2nd hand market increases are being driven by chip availability ( or lack of them) for vehicle ECU'S. Supply shortages are really hammering the new car market. I even had the Mercedes main dealer in Newcastle contact me desperate to buy my 2.5 year old Merc. We're offering £4k more than I paid for it from the Merc Stourbridge main dealer, 18 months ago. Shame I didn't need it...fir now at least. Chip supply shortages likely to last well into next year so expect 2nd hand car values to start to soften around mid 2022.
 

NS75

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2nd hand market increases are being driven by chip availability ( or lack of them) for vehicle ECU'S. Supply shortages are really hammering the new car market. I even had the Mercedes main dealer in Newcastle contact me desperate to buy my 2.5 year old Merc. We're offering £4k more than I paid for it from the Merc Stourbridge main dealer, 18 months ago. Shame I didn't need it...fir now at least. Chip supply shortages likely to last well into next year so expect 2nd hand car values to start to soften around mid 2022.
I agree with you but this should impact more the main stream second hand car market than the "luxury / sport" market in my opinion. I have been looking at two cars that I really like, the 997 and Maserati GTS for the last 6-12 months, both have increased very strongly in price, especially the 997 from what I have seen. For me, it is either because these cars were undervalued before (it was a lot of car for app. £25k) or there is currently a small bubble for these cars due to summer and spare cash after lockdown. Which assumption is correct, I am not sure? I am very tempted to make a move to buy one although might be worth waiting for 6 months...
 

safrane

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Once Furlow ends the market will 'pop' pretty quickly as cold feet and intrest rates* rise.

*typical rates rather than BOE.
 

Sam McGoo

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I agree with you but this should impact more the main stream second hand car market than the "luxury / sport" market in my opinion. I have been looking at two cars that I really like, the 997 and Maserati GTS for the last 6-12 months, both have increased very strongly in price, especially the 997 from what I have seen. For me, it is either because these cars were undervalued before (it was a lot of car for app. £25k) or there is currently a small bubble for these cars due to summer and spare cash after lockdown. Which assumption is correct, I am not sure? I am very tempted to make a move to buy one although might be worth waiting for 6 months...

All prestige/sports cars are generally cheaper in winter no matter what the market as a whole is doing. So if you want to grab a potentially cheaper car, then winter might save you a little especially as the economy and average Joe are likely to struggle post covid.

However, there is also less to choose from, as a lot of owners sorn them and put them away over the winter months. And if they were planning on selling might wait for spring to get a better price.
I think a lot of owners are considering selling now, as due to this market rise, they can potentially have had a year or two free motoring, and it's not often that happens when talking about these sorts of cars.

To be honest though, if buying this sort of car, a few £K saved here or there at purchase can easily be eaten up by servicing or unexpected maintenance.

Decide what you want and go for it. Life is short, and if like me, having a car like this is was a dream move, then at least you've done it.

Who's to say what your personal circumstances, health or finances will be like in 6 months? Would you rather have experienced the joy of owning one and lost a a few £k, or look back and wished you'd have owned one while you could?
 

Nayf

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Once Furlow ends the market will 'pop' pretty quickly as cold feet and intrest rates* rise.

*typical rates rather than BOE.
The other thing is the massive stampede for overseas holidays. All that money that's currently being spent on cars while the wife isn't looking, will suddenly find a new home – three weeks in Barbados.

I'd say it'll be a deflation rather than a pop for the collectable stuff, mind you. I certainly wouldn't pay over the odds for a prestige diesel right now.
 

dgmx5

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We have all heard the SOR horror stories, usually involving air-cooled Porsches, but @dickygrace 's reputation is beyond repute.

Of course outright sales bring certainty on price, timing and ownership so what's best will always be dependent on each person's circumstances.

Just for future reference Dicky, are you able to sell a car that is on a PCP and how does that work?
 

Felonious Crud

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I will buy it, said that ages back, but if you want top money it’ll need to be SOR.
You and I had this discussion when I sold mine, Dicky. You paid me a fair price in cash or I could've got maybe a couple of k more if you had SoR'd it. I wanted the money faster to put down on the Vantage (which then got snowed in in Scotland for a month so I couldn't finalise the deal quickly anyway!) so I took the cash. We were both happy.
 

Sam McGoo

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To see what the fuss is about, I just put mine into WBAC.
They offered about £1500 less than I paid for it nearly 2 years and 8k miles ago. That's pretty cheap motoring for a hassle free sale!
Although looking at others for sale at the moment, I reckon I'd get a bit more than that if I was actually selling, due to spec and rarity.

Shows how things have changed though. I remember a couple of years ago, I put my last GT MC-Shift into WBAC and they offered about £10K less than I was offered by a dealer for Trade in !

Still, unless I was forced to, I can't see me getting rid anytime soon no matter how good the prices get. It's all relative, and I can't think of any other car I'd rather have that isn't significantly more expensive.