Lunatic used car valuations

[monkeyhanger]

So it is true that used car prices are crazy at present because everyone wants decent secondhand rather than buying new as the bubble is about to burst as everyone goes electric over the next few years.
Saying that, who would buy a car right now. ID3 lease prices 200 to 250 a month with decent mileage allowance a year. Just a case of grazing the deals which change every week it seems. So on the basis of saving £2500 fuel costs a year it is free motoring then you just hand it back having the advantage of a new car with all the gadgets....oh and saving a few polar bears from global warming at the same time.
Love the car

That's not quite right. Decent recent cars are in huge demand right now because tge semiconductor chips shortage has seriously stifled new car production and lead times are huge as a result. Once new car production gets back to normality with semiconductor availability back to normal, those nearly new car prices will take a tumble as people revert back to buying new rather than paying virtually new prices for a 1 year old car.

People without the means to charge at home aren't generally that eager to get into an EV. Big fuel savings are if you can get on the likes of Octopus GO. If you're fully reliant on fast chargers and paying 30-45p.per kWh away from home, your fuelling costs are the same as diesel, with the added disadvantage of waiting around 30 mins at your nearest fast charger every time you want to fill up.

[JonS]

Agree it's a good time to sell a good used car....if you can source something to replace it with, that is.

Sadly I've abandoned waiting for the ID.3 I ordered at the start of June as the build date was still not confirmed 10 weeks later, and VW could not give an indication of when I might receive it. I'm at the end of a PCP on my current car (Mini Convertible) and was shocked to find that its trade in value with another brand was now over £6K more than the price I'd been offered by VW in June (which I thought was about right at that time). So I've bought an alternative car which is in stock as it is somebody else's cancelled order, and which was out of my price range a few weeks ago - all made easier because the used car prices have gone berserk.

In effect, my Mini has depreciated at a rate of about £1k per year which is, as the original poster said, "lunatic"! And whoever buys it at what will presumably be an inflated retail price may not be too happy at the hit I think they might take in a year or two's time.

[Daveion]

More on used car prices.
I tested the water with my ID3 and found 8 months into my PCP contract I have £3,050 equity in the car. Long story short. I have ordered another life pro performance this time in white, 19" andoya alloys with a £100 deposit paid. Cost on a 36 month contract reduced by £30/month.
The vehicle px valuation is guaranteed despite an anticipated January/Feb delivery. If the valuation versus settlement at the time of completion of the contract increases the monthly cost can reduce but gauranteed not to increase.
Too good to be true?
If I cancel I get my £100 back!

[monkeyhanger]

My Life bought in May is apparently worth £1500 more than the new DTD price right now (according to Motorway.co.uk.

[MotMot]

Wow - my lowly life pro is worth £4500 more than I paid for it 10 weeks ago! Not that I could get a replacement for it straight away though…..

[tomstring]

I got an amazing equity value on my May 2019 SEAT Ateca xcellence Lux when ordering my Pro Performance Family last month.

[Utumno]

Wow - my lowly life pro is worth £4500 more than I paid for it 10 weeks ago! Not that I could get a replacement for it straight away though…..

The world’s gone mad…

[RS6484]

In 40years I've not seen anything like it. I sold a 2016 Discovery Sport when I took on a lease for my ID3 and accepted just £500 less than I paid for it a year before. The private dealer managed to sell it for £3k more that I paid originally - I was very happy for us and them.

[monkeyhanger]

Worst thing about this bubble is that when it bursts (new car production can ramp up again), people having bought nearly new at new prices will lose a bundle. Also, I see the new car companies using the current situation to justify inflation busting hikes in new car prices.

[Daveion]

I think thats about right although I see the new car market staberlising quickly when it comes followed by the bottom falling out of used car market.
Its one of the reasons Im changing my ID3 after only 8-9 months. I change around 20-24 months on a 36 month PCP plan so should avoid that period of the market stabilising.

[monkeyhanger]

I think thats about right although I see the new car market staberlising quickly when it comes followed by the bottom falling out of used car market.
Its one of the reasons Im changing my ID3 after only 8-9 months. I change around 20-24 months on a 36 month PCP plan so should avoid that period of the market stabilising.

I suspect that chopping in for me wouldn't work. I can get £1500 more than DTD price for my Life Pro Performance through Motorway. However, I wouldn't get Motorway prices in guaranteed p/x from my supplying dealer and a DTD matching/beating price on the new one.

Cost to change wouldn't work unless I got rid of my current car and waited for the new one.

When you're buying a discounted car you don't also get a great p/x value, so have to get rid of yours elsewhere to score both ends of the deal.