Is the used car "bubble" about to pop?

[Eamo_vxr]

Is the bubble we're currently in about to pop?
Noticed cars sitting for sale for ages, auction prices are going down, people being offered money but not actually buying. Cost of living all round has rose, are people starting to realise they need to be smarter with money as savings begin you run out?

What's your thoughts?

 

[pablo]

Maybe, but the arse has been waiting to drop for 3 years now.

 

[Eamo_vxr]

Think also with mortgage rates high, weekly shopping etc. People definitely have less free cash than they would've had 3 years ago.

 

[Phil_EK9]

Don't know, I see where you're coming from but the new car market has been slow, so there isn't exactly a surplus.

Maybe a shift towards cheaper cars and an increase in their prices

 

[KevM]

I believe that New car Manufacturers have realised that flooding the market with product, just devalues it. Until production ramps up to silly levels again (which is highly unlikely due to increased production costs), I think things will remain pretty-much as they are for the foreseeable.

Any correction there might be, is likely to be minimal. People will still need cars. They might just need to set their standards lower than what they have been used to for a short while.

 

[Graham2]

I'm in the market for an F80 M3 at the minute and they are sitting at £40k or more for a 2018 with 30k miles, considering they were circa £65k new and used G80's are all now coming on to the market you can't help but think they have to drop a bit in the near future. I've another 3 months left on the Tesla so not in any hurry at least.

 

[Ian A]

If it happens, it won't be solely the car market. I'd imagine another financial crash would create a "pop" but while it may soften a bit, I can't see a pop happening.

Maybe the delayed affects of interest rates will create a wider economic pop, but wouldn't be so sure.

 

[Burt2000]

I think to a certain extent the market will be decided by supply and demand like it always has been, plus people are quite happy to take finance and whatever these days as it’s all about the monthly’s so the top line figure isn’t that big a deal to most, stretch the payments out over an extra 6 months for example.

High end, specialised or classic stuff I don’t think it makes any difference, people who can buy that kind of stuff aren’t usually penny pinching or they have the money saved to buy it as it’s usually something they have wanted to own for a long time, nostalgia, hero cars with character etc etc. I’ve heard people saying for years and years that the classic or modern classic bubble is going to burst…I still haven’t seen it happen.

 

[pablo]

Thankfully (for me) f80 prices seem to be holding better than the equivalent M4

 

[Burt2000]

Probably less of them about for sale compared to M4’s and they are a bit more practical being a 4dr saloon, the ultimate family wagon for a petrol head, personally I’d take an M3 over and M4.

 

[Coog]

They'll drop when production ramps up and from what I've been hearing the previous constraints are disappearing. You'll know for sure when you start to get bombarded with lease deals and deals on new motors.

 

[saxo_man]

I've noticed quite a few lease deal emails coming through over the past week or two. WBAC values seems to have dropped significantly too which is usually a sign they have enough for their needs. I'd say it's a combination of more sensible spending and a decrease in waiting time for a new car.

 

[pablo]

A nice leccy lease deal would be welcome alright

 

[Kerzo]

Surely any decrease in new car prices will be offset by higher financing costs?

 

[Burt2000]

That’s quite possible too. From what I’ve seen over the years when prices go up they tend to stay up, maybe a slight drop but nothing dramatic. World events, government policies and energy prices will be some of the main drivers, if manufacturing and part costs are still high the price of the cars will stay up too.

 

[Coog]

Financing is part and parcel of the whole package. Whether they knock a few quid off the price or offer 0% finance it’s the same thing in the end for most people. The difference is if it’s being offered or not. Deals were virtually non existent for a long time there.

Now I’m seeing a few trickle through. Not sure how long these one’s have been going, but I have noticed an increase of promo activity on the emails and phone recently so im guessing more new cars are becoming available.

 

[Chris100]

I've noticed quite a few lease deal emails coming through over the past week or two. WBAC values seems to have dropped significantly too which is usually a sign they have enough for their needs. I'd say it's a combination of more sensible spending and a decrease in waiting time for a new car.

WBAC offer for mine rose 2k in the past week

 

[Blackie]

I don’t think it is going to pop because the lead time for new vent at present is the longest I’ve ever seen or remember it to be.

We had to wait 6months for our people carrier back in 2019 and I’ve recently been told of people waiting for a year for certain models of cars.

We’re still feeling the effects of Brexit, Covid and the Ukraine war which is keeping the used car prices up.

 

[pizza85]

WBAC offer for mine rose 2k in the past week

I've seen this comment a few times from you, are you actually looking to sell?

 

[Coog]

Mine has is up from September last year but down since April 2023.

I don't care to check it weekly mind you.

 

[saxo_man]

WBAC offer for mine rose 2k in the past week

I was offered £10k more than i paid for my defender recently but with the way LR have changed their configurator, I’d need to spend £15k on extras to get the same stuff that was standard on mine.

 

[Nicky]

Not up on cars, but the prices of vans and pickups has gone to ridiculous levels. The new base model 2.0tdi Amarok for example is £12k more expensive than the top of the range 3.0 V6 4Motion automatic model this time 4 years ago. The same goes for vans; the Crafter starts at £43k now. How does anyone justify that for a box on wheels?

 

[Chris100]

I've seen this comment a few times from you, are you actually looking to sell?

Yes, I am. I just haven’t found a replacement yet.

I never know when a suitable replacement may turn up, so I like to keep up to date on current values.

Hope that’s ok with you.

I was offered £10k more than i paid for my defender recently but with the way LR have changed their configurator, I’d need to spend £15k on extras to get the same stuff that was standard on mine.

Similar problem I am having, Porsche increased their prices in July. So everything is about 15% more expensive.

 

[KevM]

I have never seen a Tyre Kicker actually kick their own tyres before.... Cool!! lol

 

[pizza85]

Yes, I am. I just haven’t found a replacement yet.

I never know when a suitable replacement may turn up, so I like to keep up to date on current values.

Hope that’s ok with you.

I just asked a question as I've seen you post that quite a bit. But yes, it's okay with me