Rav 4 Prices Anomally

[Twot]

So... Went over the weekend to the dealership, and they have a second hand
RAV4, that I want, only the price is too high (well, more then what I am
willing to pay).

After some talk, he came with an offer of a band new Rav4, with my
specification (the one on sale had 'style pack’, which I am not interested in),
which is LOWER than the one on show. Still to high to me, nevertheless, interesting (offer was not as low as Charlie said in another thread, but not far off). The car on show was only 3 month old.

Went home to think about it, and while browsing, saw another dealer offering a 9 month old car, exactly as I want, at a similar price as the 3 month old one (reminder, It does not have the 'style pack')... being me, I have sent through the website) a lower offer, which was refused (well, it was low, I thought a good starting point, but seem way to low to even start talking).

I thought that once a car is registered, it loses a substantial amount of its price, and this is not reflected in any of the prices I see around. Does this apply only to privet ownership and not dealerships?

I am personally not in a rush to change, but thought it will be a good timing now (December). The other option is March, after new number plate introduced.

This brings the following questions which I would like opinion on:

How can a new car with similar specifications can be cheaper then a used one?

How can a 9 month old car cost almost as a 3 month old one, which is more the a brand new?

It seem the MrT is not interested to sell those cars, as there is no attractive offers on Second hand ones.

Your opinions welcomed

TwoT

[CharlieFarlie]

In the case of the ones in my thread which are at Listers ..

Listers bought 100 cars from Toyota at an advantageous pruce.. Cars are the registered so become Pre reg cars... These cars are at a fantastic price because of the above..

You will struggle to get a discount on these cars and PX prices will be very low..

I have advertised my car now and will buy one of the pre reg cars if I get a sale. ... In the meantime I'm still looking for a late SR as PXing is not necessary if I buy one of those..

[FROSTYBALLS]

This was my reply to Charlie's topic on 'Invincibles for £24500' -

"The market has had this sort of anomaly for quite some time, where nearly new cars are more expensive than discounted new ones. Last year when I bought my second Auris, there were quite a few nearly new and pre-registered examples at Toyota dealerships advertised for the same or a higher price, than the price I paid for a new unregistered Auris of the same spec with delivery miles."

This isn't just Toyota - you can see similar examples at other volume manufacturer's dealers.

Usually dealers have a set time in which to keep cars in stock and unregistered - at the end of this period they either have to register the car and sell it -, or they've had a discount with the manufacturer on the basis that a certain number of cars are registered by a set date (as in Charlie's reply above).

One minor thing to watch for now with pre-registered cars, is whether they count as a new car in the eyes of your insurance company. Most insurance companies have a clause in their policies where, if a car is written off within either the first one or two years of ownership, the insurance company will replace the car with an equivalent new one. I noticed at my last renewal with LV, that they have changed this clause to read:

"If you are the first and only registered owner, within 12 months of buying the car from new ....."

This revised wording prevents pre-registered cars from satisfying the new car replacement clause.

[Twot]

The new car I was talking about is not a pre-registered - It would have been registered first to me (It was made clear).

It still does not explain the fact that a 9 month old car with a few thousends of miles, is at a higher price then the new one...

I am talking new, and used, not pre-registered, or nearly new. Even the 3 month old car had a few thousend miles on it.

[dwilson]

The new car I was talking about is not a pre-registered - It would have been registered first to me (It was made clear).

It still does not explain the fact that a 9 month old car with a few thousends of miles, is at a higher price then the new one...

I am talking new, and used, not pre-registered, or nearly new. Even the 3 month old car had a few thousend miles on it.

I have been aware of this happening for the last 30 years! It does seem strange but it is often possible to have a discount on a new car that makes it appear cheaper than a nearly new car. I say appear because I nearly always have a car that I trade in. With the new car with a big discount (that is often advertised as such to draw you in) the trade in figure in my experience has always been low but with the used car the trade in value may be more generous. It is not easy to compare deals without taking a lot of time going to different dealers. It is the price to change that is important - the sales staff will tell you that and on that point I agree with them.

I have known some dealers to be much more expensive to buy new cars from than others but unfortunately the dealers that are more expensive stay in business whereas those where I have had great deals have gone bust!

I try to get to know the going rate for the car I am looking for and hope to find it at a good price at a dealer which treats me well. I accept that they need to make a profit - that's fine, I just don't want them taking me for a ride! Sometimes I notice newer stock at a lower price than cars they have had for a while - perhaps because the book value has dropped or maybe the seller didn't haggle. Our RAV seemed a good price and so we bought it - in fact it was such a good price I was suspicious but two years later I have come to the conclusion that the previous owner just traded it in for too low a price!

[Twot]

I guess those 1year PX are not there yet, as what I see are mostley demostrators. I guess the dealers are trying to claw back what they can on those, and therefore price is not coming down. they are not interested to shift those cars at the moment.

I agree that what I look at when changing cars is the bottome line, it really does not matter how you do the divi between the window price and the value you get on old car.

Ho-ham. sit and wait.

[FROSTYBALLS]

The type of nearly new cars I was referring to were either cars less than 3 months old with up to 4000 miles on the clock, and cars less than one year with delivery mileage - and when I purchased my Auris there were a lot of both types for sale via the Toyota used car locator at the same price or higher.

I appreciate that the car you were offered was new and unregistered, and I didn't imply otherwise.

I included the point about the insurance as most people are unaware that some insurance companies are changing this clause

Aside from demonstrators, I would say most cars less than one year old for sale at franchised dealers, come from either hire or lease firms.

For example Ford have had an agreement with the AA driving school since 1998 - where Ford supply 3500 cars per year to the driving school, the cars are leased to the school for six months, returned to Ford, when any remedial work is done, and then sold through Ford Direct. Vauxhall have a similar arrangement with BSM. The lease firm is shown as the last owner on the V5. So any six month old Fiesta, Focus, Corsa or Astra for sale through either Ford Direct or Network Q could be an ex-driving school car.

[three5]

The type of nearly new cars I was referring to were either cars less than 3 months old with up to 4000 miles on the clock, and cars less than one year with delivery mileage - and when I purchased my Auris there were a lot of both types for sale via the Toyota used car locator at the same price or higher.

I appreciate that the car you were offered was new and unregistered, and I didn't imply otherwise.

I included the point about the insurance as most people are unaware that some insurance companies are changing this clause

Aside from demonstrators, I would say most cars less than one year old for sale at franchised dealers, come from either hire or lease firms.

For example Ford have had an agreement with the AA driving school since 1998 - where Ford supply 3500 cars per year to the driving school, the cars are leased to the school for six months, returned to Ford, when any remedial work is done, and then sold through Ford Direct. Vauxhall have a similar arrangement with BSM. The lease firm is shown as the last owner on the V5. So any six month old Fiesta, Focus, Corsa or Astra for sale through either Ford Direct or Network Q could be an ex-driving school car.

"One careful Dutch owner, Mr Hertz van Hire" - sorry I'll go now!

[Twot]

Thankyou of the warning on Ford and Vauxhall.

I got my current Avensis after a year lease, aparantely to a toyota dealer. It was a good deal then, and the car is very nice (even 160000 miles after).

I think the demonstartor appear on the 'for sale' just in case someon is willing to pay the price. As I am doing high milage, I do not see any advantage in getting a new car, as the 10000 miles is about 6 month for me... so I would at least like someone else to take the hit of the first year depritiation. I was willing to add a bit to have the new car, but it seem too much at the moment, so will probably wait for March, and hope I will not have an ex-learner car (does anyone teach driving on a Rav4? )

Thanks for all the inside info!

TwoT