What's going to happen to the car market?

[Terminal_Boy]

People will continue to run the cars they already own unless they become uneconomical to keep on the road. Secondhand car values will remain high as they offer better VFM in our current turbulent times.

 

[Greebo]

July figures were what they are because of all the semiconductor shortages and manufacturers having to pare back their production. Hence the abnormal rise in the prices of pre-owned.

and already several manufacturers have announced their production of new cars is massively reduced next year. I think Toyota said they will be making 40% fewer cars, Mercedes won’t be selling any car with a v8 engine into America and have cancelled anybody’s orders for delivery next year.

 

[Banzai_Joe]

I’ve noticed a certain amount of “desperation” with certain brands trying to sell new cars. I looked into getting my wife a corsa-e but was offered a top spec mokka-e for only a little bit more and both were almost £100 pcm (on PCP) less than when I looked a few months prior. But to my surprise she declined replacing her current corsa as she’s not quite ready yet.
For me I’m waiting to see what comes out in 2022, but I am looking at either a PHEV or full EV to replace my 3008 GT SUV (which I still love after 4 years of ownership).
But EV’s still need to be cheaper if the average person/family is expected to buy into it.

 

[Greebo]

I’ve noticed a certain amount of “desperation” with certain brands trying to sell new cars. I looked into getting my wife a corsa-e but was offered a top spec mokka-e for only a little bit more and both were almost £100 pcm (on PCP) less than when I looked a few months prior. But to my surprise she declined replacing her current corsa as she’s not quite ready yet.
For me I’m waiting to see what comes out in 2022, but I am looking at either a PHEV or full EV to replace my 3008 GT SUV (which I still love after 4 years of ownership).
But EV’s still need to be cheaper if the average person/family is expected to buy into it.

That's maybe more that they have finally increased the residual value they are using? I know when I first looked at the Porsche Taycan it only had a residual value of £30k after 3 years which meant the monthly pcm payments on a £85k car was horrendous coming out at £1275 a month even with a decent deposit. Its now £150 per month less, still not great but an improvement!

In reality current EV used cars were holding their prices really well before the current madness of used car prices skyrocketing.

Bizarrely I checked the Merc GLE 350de hybrid I ordered earlier in the year and its now £200 per month more money!