20i Domains

Secondhand Car Market Collapse?

Discussion in 'The Bar' started by JMI, Dec 1, 2020.

  1. JMI

    JMI Active Member Acorn Supporter

    Joined:
    Oct 2015
    Posts:
    475
    Likes Received:
    81
    This is very sad I know but I've been monitoring prices for about 6 months (only because I need a new car and I want an M5 for my midlife crisis). So I've noticed some shift down in prices a few wobbles perhaps 1-2% but nothing that significant. What I really want is a good 10% slash.

    Given all the money tied up by car dealers in stock, sat on forecourts devaluing every day, with less liquidity, people holding on cash due to uncertainty, people driving less due to working from home and then compounded by the fact gov announced new cars and vans powered wholly by petrol and diesel will not be sold in the UK from 2030. I would have thought it a bloodbath by now - whats propping it up?
     
    • Like Like x 1
  2. Domain Forum

    Acorn Domains Elite Member

    Joined:
    1999
    Messages:
    Many
    Likes Received:
    Lots
    articles.co.uk
     
  3. Trauiner United Kingdom

    Trauiner Active Member

    Joined:
    Feb 2016
    Posts:
    608
    Likes Received:
    65
    Cars are just one of those things that people will always need, so I wouldn't see the market being massively impacted? The local car dealerships near me don't seem to be massively impacted from people looking to buy cars.

    Most people will not be working from home permanently. Even if they're not driving to work, most people still want one sitting outside on the drive to go shopping, get out and about etc. They may save 30 minutes of driving to work each, but that gives them 30 minutes of extra time to fill, by going for a drive etc.

    Regardless of that, actual usage of the car going down, doesn't remove the need for it, I guess?
     
  4. dazc United Kingdom

    dazc Active Member

    Joined:
    Dec 2008
    Posts:
    299
    Likes Received:
    19
    People not wanting to use public transport has led to a surge in demand for second hand cars. There is also a lot of free money sloshing around, hence demand for M5s and such going up, not down.

    Re your midlife crisis. People who care what car you drive are generally not worth bothering with.
     
  5. ian

    ian Well-Known Member

    Joined:
    Jan 2008
    Posts:
    4,038
    Likes Received:
    294
    There has been a seismic shift in buying patterns from new to used, a reverse of what we've experienced in the past decade. This is down to limited production of new vehicles and an overwhelming desire for consumers to swap out their cars, perhaps with the view to buying now, whilst they still have a wage (or can get finance), at a comparable discount on new etc. My pursuit of a new family wagon has been a challenge to say the least; so little in terms of stock, base models only, and even less interested dealers for whom a bizarre 'click and collect' service is working for them!!!
     
  6. bensd United Kingdom

    bensd Well-Known Member

    Joined:
    Jan 2007
    Posts:
    5,110
    Likes Received:
    69
    A friend of mine runs a car dealership and this year they haven’t been able to get enough used cars to sell, he’s been manic with sales.
     
    • Informative Informative x 1
  7. rob

    rob Founding Member

    Joined:
    Jan 2005
    Posts:
    5,961
    Likes Received:
    83
    "with less liquidity, people holding on cash due to uncertainty"

    Go look at the price of second hand vans if you want a shock...! Was helping a friend roll out a digital op with a delivery element and that was an eye opener.

    Most recently some in hospitality have more cash in the bank than ever before, other sectors are sloshing about in cash too. Add on cbils etc on top, there are elements of UK that have done very well, and have more liquidity than ever before.

    Houses flying off rightmove in last few months, people have cash and nowhere to put it and banks giving you sod all.

    The youtube algo world is not the real world ;)
     
    • Like Like x 1
  8. diablo

    diablo Well-Known Member

    Joined:
    Nov 2005
    Posts:
    1,973
    Likes Received:
    119
    Thread title got me all excited there as I'm looking to buy a Mini Clubvan. Then Rob chips in with price of secondhand vans (presumably rising). Maybe not the time to buy :)
     
  9. JMI

    JMI Active Member Acorn Supporter

    Joined:
    Oct 2015
    Posts:
    475
    Likes Received:
    81
    Garages and forecourts around here look dead, I also see the same motors on Auto Trader 9 months later still rotting on forecourts around the country, but interesting replies, I'm a bit surprised how optimistic you all are :) I guess its nearly Christmas, but we will see real impact next year when dust settled.
     
  10. donton United Kingdom

    donton Active Member

    Joined:
    Jul 2012
    Posts:
    262
    Likes Received:
    22
    I can’t help with predictions about when the arse will fall out of the market, but I can assure you that you’ll have a cracking time in an M5.

    Best car I’ve ever had and insanely fast. Sounded like an earthquake every time I put my foot down. What a car.
     
  11. martin-s United Kingdom

    martin-s Well-Known Member

    Joined:
    Jul 2012
    Posts:
    3,408
    Likes Received:
    239
    Prices might crash a little harder when redundancies really start kicking in. There must be huge numbers of HP car agreements at risk of default at that point.
     
  12. ian

    ian Well-Known Member

    Joined:
    Jan 2008
    Posts:
    4,038
    Likes Received:
    294
    All M5's have been under appreciated. I've had the fortune to drive the latest M5 and despite it lacking 'emotion' of current emission rules, it is outstanding. Whilst BMW have caught up with other manufacturers in the last couple of years, most of their models still look ugly as sin; the M5 is an exception because it doesn't have the huge nostrils o_O
     
  13. mrh United Kingdom

    mrh Active Member

    Joined:
    May 2010
    Posts:
    532
    Likes Received:
    8
    There is also the lack of new cars been produced = higher rates for second hand.

    It means they will not be sending a million+ cars into the rental market next year so again this will help keep second hand prices high for some time.
     
    • Disagree Disagree x 1
    Last edited: Dec 18, 2020