More than what you think, two people at work have just done that. Point is there are several groups of people all winning big from these price rises atm.
WBAC Values
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More than what you think, two people at work have just done that. Point is there are several groups of people all winning big from these price rises atm.
Being able to leverage an opportunity that arises despite any initial planning thoughts is also "sensible car purchasing".
Annoyingly I cleared my balloon payment in November 2020 and if I had hindsight of COVID, I could have handed my car back as per the terms of the PCP and saved a fortune. Instead it sat on the drive unused.
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PCP only balances out towards the final year. You're in negative equity the second you leave the forecourt.
I don't dispute that. I'm sure my views on low deposit PCP deals are well known on here and my point here is entirely consistent with that.
I don't have an issue with car finance at all, I am not one of those, but I also have no interest in any sort of deal whereby you owe more the value of the car at any point in it.
Always ensuring your car is worth more than you owe seems sensible and prudent and increases flexibility if your circumstances change. This can be achieved fairly easily through a larger deposit, which is something someone buying brand new cars probably ought to be in a position to do.
Everyone part-exchanging a used car against a new car has benefited. That's a lot of people.
I think it makes a difference if you want to move to a new car that isn't typically discounted. New cars are sold at list price (or below) so they don't suffer as much upward pressure on prices as there is this artificial ceiling on how high they can go in a short time period (longer term, manufacturers can increase prices). Obviously cars that were previously heavily discounted may not be as much these days. An example might be a Tesla, they are rarely sold at discount so if you buy one today you are probably better off if your existing car is worth more as the cost to change is reduced.
If you are downsizing then you should be slightly better off.
If you are just looking to trade up within the used market then you are probably worse off.
If you don't need your own vehicle (public transport / company car / whatever) then it potentially is a good thing on the assumption that prices subside by the time you want to own a car again; conversely if you end up in a situation where you need to buy again and prices have risen further, you would be worse off.
If you are downsizing then you should be slightly better off.
If you are just looking to trade up within the used market then you are probably worse off.
If you don't need your own vehicle (public transport / company car / whatever) then it potentially is a good thing on the assumption that prices subside by the time you want to own a car again; conversely if you end up in a situation where you need to buy again and prices have risen further, you would be worse off.
If you want a new car next year with half the spec missing for nothing like the discount on list you'd usually get then sure, that's a benefit I suppose.
Plenty of people taking new cars in September!
I'm going to be conscious of the used car market in 3-4 years when I'm looking that anything around 21-22 will be poorly specc'd.
difficulty might be that the spec looks fully loaded and will still perhaps say that on the order sheet but the actual car has have the stuff missing esp things you cant see.
Take my GLE. if you order one now you dont get any on board communication. Thats standard on the car, not even an optional extra. so you will have to get used to certain models may have certain bits missing from x date to y date.
Going to be a nightmare.
People taking delivery of new cars in September will mainly have ordered them back in February/March so should come without any bits missing. Perhaps the last new cars to do so for some time?
ANd more than likely to have still negotiated good discounts back then as well.
My M5 has gone up again but only by a tiny amount relative to the other increases recently. Decided that the time is now to get out of the M5 while making a small profit. Keep the cash in the bank until the inevitable correction happens and then pick up the car I want. I can certainly live with running the Range Rover for a few months while I wait...
The value increases can't be sustained IMO, the longer it goes on the bigger the correction is going to be. After a lot of careful thought I'd rather get out on the high side (even if it goes higher, that's likely a smaller loss than when the correction happens). Next car is looking like it'll be an FF, happy to wait it out and buy when the time is right, certainly not in a rush right now given the market conditions.
I am releasing my MX5 from its position in my line-up.
After owning it for 2 years from new and near 6000 miles, I am selling it through Motorway and only down £3300 from original purchase price. A few months ago it was valued down at £22k and now its at £26.7k. It makes the most sense to sell now and minimise the overall hit from depreciation. Which has basically cost me £138 a month, that's something I can live with while freeing up the money for a future purchase when the bubble bursts.
After owning it for 2 years from new and near 6000 miles, I am selling it through Motorway and only down £3300 from original purchase price. A few months ago it was valued down at £22k and now its at £26.7k. It makes the most sense to sell now and minimise the overall hit from depreciation. Which has basically cost me £138 a month, that's something I can live with while freeing up the money for a future purchase when the bubble bursts.
New car and van supply issues getting worse. Just heard from my broker
And he also mentioned another client who ordered an Audi q5 with panoramic sunroof earlier in the year for delivery end of September and Audi has just told him that they cant get the parts for the sunroof and his new expected delivery date is now October 2022 but if he wants to change his car to one without the sunroof that will have to be new order and it will be delivered in March 2022 now.
And he also mentioned another client who ordered an Audi q5 with panoramic sunroof earlier in the year for delivery end of September and Audi has just told him that they cant get the parts for the sunroof and his new expected delivery date is now October 2022 but if he wants to change his car to one without the sunroof that will have to be new order and it will be delivered in March 2022 now.
Higher prices here to stay? Manufacturers love the chip shortage so much they are goign to artificially reduce supply to keep margins high which would keep used prices strong.
Will be interesting to se if they really can hold the line as an industry though. It's a cut throat market and someone will cave first I reckon, then the rest will follow.
https://www.irishtimes.com/business...nds-plan-to-profit-from-chip-crisis-1.4672430
Will be interesting to se if they really can hold the line as an industry though. It's a cut throat market and someone will cave first I reckon, then the rest will follow.
https://www.irishtimes.com/business...nds-plan-to-profit-from-chip-crisis-1.4672430
Soldato
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No manufacturer is loving it.
You would have thought not but the article literally has representatives from BMW and Daimler saying they like the way the market is at the moment.
Dealers maybe less so?
Soldato
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Guess they are talking deviation from RRP cos the prices for new haven't gone up! Just huge amount of customers delayed, features removed, specification deviation, revenue stalling and even build slots cancelled is nothing to celebrate.
Any individual manufacturer is free to deliberately undersupply to be fair, as you say the market will always be cut throat. Cutting supply may have been something that BMW and Mercedes had been planning for a while anyway, perhaps a good time to move away from the volumes which they had been chasing at the detriment to their marques?