Used car prices

[fundy]

Can anyone explain the fluctuations in used car prices and why some dealerships/garages constantly change the advertised price of a used car?

As an example a car I was watching was initially advertised at £8,500. Since then the price has gone to £8,250 then to £9,250, then to £9,450 and now to £9,100

I assumed price was driven by a combination of what they had paid for the car and what the "market price" they can expect to achieve is? Is the constantly changing price due to their monthly/quarterly targets etc? If you wanted to buy the above car would the change in price put you off (assuming you dont intend to pay above the lowest price its been advertised?) If not in a rush, is the best time to try an buy close to the end of a financial quarter (as it is with the house builders)?

 

[Smiffy]

Used car prices are all over the place at the moment. Many cars are way over "book" price to buy, and the market is very buoyant.
A dealer can charge what they want for the car obviously, if you are seriously interested in this particular one it may be worth contacting them, stating that you had seen it at the lower price and find out if they'd honour it??

 

[fundy]

Used car prices are all over the place at the moment. Many cars are way over "book" price to buy, and the market is very buoyant.
A dealer can charge what they want for the car obviously, if you are seriously interested in this particular one it may be worth contacting them, stating that you had seen it at the lower price and find out if they'd honour it??

Cheers Smiffy, thanks for your knowledge, will give them a call. Any benefit in waiting until end of a quarter or not worth it if the market is so buoyant?

 

[Lord Tyrion]

About 6 weeks ago I was quoted £9k by We Buy Any Cars for my car. I was only looking out of interest. Every so often they come back to me. It is now up to £9,750. (I know some will get knocked off when it goes to be checked but even so.....)

When I started looking at replacements after the initial quote the cars I was looking at were around £13-14k. That stock has now all gone and the equivalent replacement stock is all £1-2k more. As Smiffy has said, it is a bouyant time for the second hand market.

@Smiffy , what is your thinking behind this? My none expert thoughts are that companies and company car drivers are returning and not renewing company car leases as people are simply not travelling around in the same fashion. Those people who previously had company cars now need to buy a private one so inflating the prices. Any substance in this or do you have another theory?

 

[Beedee]

Thanks to covid, public transport is still unpopular so people wanted cheap 2nd cars. Also the chip shortage from the far east is hitting a number of manufacturers. It's pushing up lead times for new cars and lots of corporate fleets can't be replaced as quickly as expected. That's limiting the supply of nearly new cars, so any nearly new cars that are appearing on the market can command a premium.

 

[GB72]

On a more general note, not just applicable to cars, you often see a price increase so as the item that can be marketed at a sale price discount. By bumping up the price, you can effectively sell the product for the original price whilst still marketing at a discount. Remember a bit of a scandal that shops were selling artificial Xmas trees at 3 times the price in June so as could sell them at Xmas marked as 60% off

 

[fundy]

On a more general note, not just applicable to cars, you often see a price increase so as the item that can be marketed at a sale price discount. By bumping up the price, you can effectively sell the product for the original price whilst still marketing at a discount. Remember a bit of a scandal that shops were selling artificial Xmas trees at 3 times the price in June so as could sell them at Xmas marked as 60% off

that was what i thought was happening when they moved it up 1k, all the other changes confused me (not hard i know)

 

[williamalex1]

About 6 weeks ago I was quoted £9k by We Buy Any Cars for my car. I was only looking out of interest. Every so often they come back to me. It is now up to £9,750. (I know some will get knocked off when it goes to be checked but even so.....)

When I started looking at replacements after the initial quote the cars I was looking at were around £13-14k. That stock has now all gone and the equivalent replacement stock is all £1-2k more. As Smiffy has said, it is a bouyant time for the second hand market.

@Smiffy , what is your thinking behind this? My none expert thoughts are that companies and company car drivers are returning and not renewing company car leases as people are simply not travelling around in the same fashion. Those people who previously had company cars now need to buy a private one so inflating the prices. Any substance in this or do you have another theory?

Would you accept £5000, I'm a eBay user

 

[Lord Tyrion]

Would you accept £5000, I'm a eBay user

It's a tempting offer, I'll have a think

 

[Smiffy]

Cheers Smiffy, thanks for your knowledge, will give them a call. Any benefit in waiting until end of a quarter or not worth it if the market is so buoyant?

End of the quarter really only counts with new car targets fella

 

[GreiginFife]

Car garages are all at it, the numbers are just pulled from the air when it comes to selling. And making a profit? Jesus! Traded my 335d estate in last year, 12 months old in excellent nick. Gave me £28500 for it (which I thought was fair enough), week later on the forecourt selling for £35995. Shy of £7.5k profit for doing absolutely nowt.

They've probably priced it then looked at the market and upped it thinking they were lowballing and then had to mess about with it when it didn't sell.

 

[Smiffy]

About 6 weeks ago I was quoted £9k by We Buy Any Cars for my car. I was only looking out of interest. Every so often they come back to me. It is now up to £9,750. (I know some will get knocked off when it goes to be checked but even so.....)

When I started looking at replacements after the initial quote the cars I was looking at were around £13-14k. That stock has now all gone and the equivalent replacement stock is all £1-2k more. As Smiffy has said, it is a bouyant time for the second hand market.

@Smiffy , what is your thinking behind this? My none expert thoughts are that companies and company car drivers are returning and not renewing company car leases as people are simply not travelling around in the same fashion. Those people who previously had company cars now need to buy a private one so inflating the prices. Any substance in this or do you have another theory?

I think it's just a case that the average person has a bit of extra money to spend with covid knocking holidays on the head. A newer car is the next best thing.
We've been manic on used cars ourselves and are carrying about half the stock we normally do

 

[KenL]

Heard from someone on Fiesta ST forum that offer from webuyanycar increased by £2k for a 2.5 year old ST compared with 2 months ago.

 

[fundy]

Heard from someone on Fiesta ST forum that offer from webuyanycar increased by £2k for a 2.5 year old ST compared with 2 months ago.

Went to the Kia dealership yesterday, they openly admitted prices were way up from a few mths ago and that they were struggling to source as many cars as they were selling. Shame as really liked the Stonic we test drove

 

[KenL]

Stonic looks great. Silly name though..?

 

[bobmac]

Maybe the second hand market is so buoyant because people don't want to buy new any more due to the change in law in 2030 reference EVs

 

[Smiffy]

Maybe the second hand market is so buoyant because people don't want to buy new any more due to the change in law in 2030 reference EVs

Too far away to start affecting it yet Bob.
Most people who buy new will change every three years. Another two new ones to go before it starts biting.

 

[Doon frae Troon]

I discovered on my last purchase that the last Friday in November is a great day to buy a car.

 

[AmandaJR]

My MX5 has gone up £1800 according to We Buy and Motorway. Happy enough with what we got in p/ex for the BMW which I love, love, love

On another note. Bought a California Duster a few months back and never had the chance to use it as our cars have been wet and dirty, not dusty. Finally used it for the first time yesterday and it's brilliant - does a great job at lifting the dust off a dry, clean car.

 

[Bunkermagnet]

I used to have a used car dealer round the corner from me, he used to alter the display prices of his cars every now and then so it looked like stock was moving faster than it was. It also had the benefit he said of getting people to look because the visual was now different to their memory of it and the curiousity of that made them look.