[Closed] Is it a good time to buy a car?

Used cars? Probably not. Demand up as commuters switch from public transport to cars.

https://www.telegraph.co.uk/business/2020/05/23/public-transport-fears-drive-demand-cheap-used-cars/

New cars? Look at CarWow and Drivethedeal to see what discounts are there, or not.

What irc said.

My neighbour is trying to buy a cheap car after her engine gave up last week, she just wants something to run around in until September when she can get a deposit together for something newish and reliable (teacher so needs something for the new term). Tried Gumtree, Facebook etc and anything worth using is holding good values right now, even stuff with short MOT's. Guessing it's like the bicycle trade, people want anything so prices are up in the budget price range. She's getting to the point where getting a replacement engine fitted is going to be cheaper than finding a banger to replace it (Fiesta).

We had almost exactly this thread a week or so ago.   Usual ‘experts’ stating car prices were going tumble.  I work in the industry linked to wholesale vehicle supply. We are seeing demand ramp up significantly (as predicted) the industry valuations guides have stated they will not make sweeping judgements of used car values until period of trading reflects actual market sentiment.  Couple of important points to consider. New Car production has basically stopped for nearly 3 months now! This will have a significant impact both in short and long term used vehicle supply.   New car sales have also been significantly behind YOY position (prior to lockdown) again restricting future supply, but also has linked to a significant increase in used vehicle demand.  We have also seen daily rental businesses reducing fleet sizes as well as company car drivers extending leases.  This all points to a strengthening of the used car market and as such a firing of pricing.  Even in periods of recession used car sales have been pretty resilient.  I really would expect huge discounts on cars, but you could always try!

This is good ish news for me I think. We are planning on replacing our car before the ULEZ expands next year.

I had been anticipating a tumble in used car prices as two car families decide they only need one. Happy to hear that isn’t the case.

Still very early days yet.  But early signs are very promising...  new cars are going to be a real struggle, I would say you would be likely to get a decent deal on a new car.  But likelihood is the dealer won’t be able to supply it as there is going to be a massive gap in global supply now! So expect new sale campaigns to be weak for a while.   I’m really interested to understand the EU fining for car manufacturers based on the emissions targets...that could really challenge some businesses if they were planning on lower emission sales later this year to offset their higher emission sales earlier in the year...that’s big money too!

Typical of my luck - always buy at the wrong point in the cycle !!

Typical of my luck – always buy at the wrong point in the cycle !!

if it makes you feel better, I have worked in this industry for 20 years this year.  The differences between a good and bad time to buy a used car are pretty small.  The reality is always far removed from what someone down the pub ‘saved’ or what Mike Brewer makes out.

What about commercial vehicles ?
Looking to trade in T5 Kombi for a T6.1 . Would dealers be looking to shift pre-registered stock or more likely to increase prices due to the wait for new vehicles ?

So what you guys are saying is that this is a good time to sell my car I don't use any more?

It does seem that despite the economy supposedly being ****ed, a lot of people seem to be spending money like it's going out of fashion.

I am looking to switch soon. What are the thoughts on diesel Vs petrol. Do about 18k annually on mainly rural roads. Previously run diesels but not sure how things will go in the next 4-5 years.

What about commercial vehicles ?
Looking to trade in T5 Kombi for a T6.1 . Would dealers be looking to shift pre-registered stock or more likely to increase prices due to the wait for new vehicles ?

Pre-reg stock is not particularly a problem at present.  I have not seen any large scale self registrations this year.  Pre-reg tends to be a byproduct of chasing new vehicle registration targets!  The new market has been so hammered (pre-Covid) dealers were miles away from targets so self registering would be a pointless exercise (cost more in unit loss and write down than the associated registration bonus payments) you may get a deal in an ex demonstration vehicle or ex daily rental, but I believe the used LCV market has continued its upward trajectory.  Used vans have and continue to be in short supply.  I must profess to not being a VW van expert so can’t comment on specific models.  More a holistic view of the market.

It does seem that despite the economy supposedly being ****, a lot of people seem to be spending money like it’s going out of fashion.

My wife is an estate agent, they are having a decent time.  Had to adapt significantly, but have been selling houses!

i have been fairly frugal through my furlough period. But some of my friends have spent and spent properly!

So what you guys are saying is that this is a good time to sell my car I don’t use any more?

I’m not really saying that, just more of a market overview.  Too many variables to make a recommendation.  However over the next few weeks when dealers open their doors again we will see how some of this will pan out.  Early indications are yes it would be a reasonable time to sell a car.  As always you’ll get chances citing the lockdown as a reason to bid you in the nuts.  Personally I’d wait a few more weeks, just because I wouldn’t want too much 1-2-1 contact with strangers.

What are the thoughts on diesel Vs petrol. Do about 18k annually on mainly rural roads. Previously run diesels but not sure how things will go in the next 4-5 years.

I drive a diesel because I do about 18-20k a year and it makes sense, for high mileage users it will continue to do so. Again it’s a difficult question to answer.  My next car will be a hybrid as I’m taxed to a standstill in my current car.  Petrol will continue to retake market share from diesel and with govt and EU tariffs on diesel, plus the continued demonisation of diesel by press it will continue to do so.  But remember used car market is a reflection of what happens in the new car market between 6-48 months previously.  So currently diesel cars are in abundance.

It does seem that despite the economy supposedly being ****, a lot of people seem to be spending money like it’s going out of fashion.

Given the government support, I don't think moist people are feeling the pinch in the economy yet. That will come later.

That and a lot of people will be downgrading or shifting from public transport.

Yep, I would have thought the rise in personal insolvencies won't be till Q4, when I would expect a lot of people to be defaulting on Car finance plans etc and a glut of 2-3 year old cars to hit the auctions sites.

We’ll have nice Polo to sell soon once our new lease car gets delivered, apparently end of June.

I did a We Buy any Car quote from our local place a couple of days and it was still the same value as before all this kicked off. Which I found surprising, thought it would have dropped.

2-3 year old cars to hit the auctions sites.

we are not forecasting higher levels of repossessed vehicle entries particularly.  For a start it’s not particularly a quick thing to ‘reposes’ a car.  So Q4 would likely be too early! It’s also worth remembering if someone is having money problems they still need to be mobile, So they will be in the market for a cheaper car.  Which strengthens that end of the market.  Any VT stock will be swallowed by the dealer networks (there is always a shortage) genuine repossessions, of which very few historically hit the auction network...will find a home.

Obviously this Is if the economy crashes as you predict...the people forecasting this are the same people who completely missed the ‘credit crunch’ 10+ years ago.  Personally I think we are in for a tough time, but if consumer confidence remains strong it may not be the complete doom and gloom keyboard economists are predicting.

a glut of 2-3 year old cars to hit the auctions sites.

There will likely be a glut to start with, due to the backlog of cars from Motability and Enterprise that have either been sitting idle at sites like ours, or which haven’t been able to be picked up from our sites around the country, and those which people haven’t been able to exchange for a newer car, and which they’ll be eager to get sorted.
We had 500 Enterprise vehicles delivered to our site alone over a couple of days prior to being shut down, early last year we were getting over 200 vehicles a day from Enterprise and Motability, so once auctions open and cars start to move in and out of our sites, there’s going to be lots available, and it might run into the registration change in September as well, but until I go back to work, with all of the distancing implications, it’s impossible to say exactly how things will work out.
I can, however, foresee one issue - there will be a shitload of cars with flat batteries that we’re going to have to deal with! 🤬

Point is that those 500 enterprise defleet are not being replaced at the same level.  So their fleet size is reducing, which ultimately means fewer return cars.  Also if they are enterprise ‘owned’ vehicles there could be the slim chance they are called back on fleet, to reduce new vehicle risk?

There will be more pressure on defleet centre volumes later this year that’s for sure as the return of OEM own stock and rental defleet will be reduced!

Portbury dock looks packed, no space left there, Mitsubishi moving into extra space in Avonmouth. Masses of coaches parked up in Avonmouth Dock.

Here in Germany I have seen dealerships offering up to 40% discount on new motors.

Leasing prices are crazy low.

I phoned up a dealer about an unregistered van they had on Autotrader, asking if they still had it etc.
Guy said he would find out as they hadn’t updated autotrader since they shut down, and he get back to me ASAP .
No phone call, but just checked on there now, and the price has gone up a grand.
Bloody cheek

I`m not sure it is the best time for buying a car

Spoke to my local Van dealer about the one I had seen on autotrader to see if they could get in through the network. Sent him photos of the original advert with the lower price. Result, I’m getting it at the pre inflated price and not having to do a 500 mile round trip to get it. It’s the third new vehicle I have bought from them so they honoured the price. He said looking at 8 months min for a new build ( this one was cancelled order in early March, not yet registered)

They gave me a trade in value for T5 which was £500 less than we buy any car.
Was going to get them to match it to do the deal when I got an email from WBAC saying my van offer had gone up in value.... by £1500 !!!
Took it down there this morning, they knocked £600 off for the scrapes on the side , missing rear headrests and a couple of other faults ( which I was expecting). It was due an MOT ( it’s in the 6 month extended period at the moment)

To sell it privately , I would have had to spend around a grand on it , to sort out the bodywork , the top strut mounts and to service it and get it through the MOT. After that, I might have made £50-£1000 more than offered. Then have to deal with tyre kickers , test drives ( awkward with Covid) etc.

Was a long walk home ( having heard a few stories about WBAC I didn’t think I would get anywhere near what I wanted so didn’t think to put bike back).

catland
Member

I`m not sure it is the best time for buying a car

^This. In fact I'm not buying anything at the moment. There be a storm brewing and we haven't even felt the light breeze yet.