Second Hand Avensis Prices

[sproutdreamer]

When the nation returns to work it is expected that more people will work from home but also many people will not want public transport for a good while. So second hand car prices may increase as many will be skint after the financial hardships and even those with good liquidity may be reluctant to Shell out for a new car in these uncertain times. On the other hand with so little money about will prices fall? So is now a good time to buy or better to wait.Alternatively will the lease/hire option that requires less cash up front become more attractive-who knows?

I hope someone in the trade  may have some informed views on this.

[Stivino]

5 minutes ago, sproutdreamer said:

second hand car prices may increase

Are you sure?

[FROSTYBALLS]

No one really knows. Recent article - https://cardealermagazine.co.uk/publish/used-car-prices-across-uk-stable-even-increasing-regions/191553

The industry are pushing for another official scrappage scheme. Germany will decide on whether to have one this month. 

[Stivino]

I'm not going to part with my car unless they are going to give me another one for peanuts.

In the past six week I've replaced just about every serviceable item on it that I'm quite sure I'd be no further forward with a newer car.

[sproutdreamer]

Thanks for the link -Frosty..

[FROSTYBALLS]

The last official scrappage scheme of 2009 (the recent schemes have been manufacturer schemes) had the effect of increasing prices of 3 year old cars, as owners were hanging onto them due to waiting lists for new cars caused by the scheme.

[FROSTYBALLS]

Suppose the one thing to consider is that dealer stocks of used cars have been largely static since lockdown - it isn't as though used stocks have increased markedly due to sales of new cars and part exchanges. So although some dealers may feel pressured to change stock, the amount of money they have invested in their used vehicles is still the same as before, and substantially reduced prices will probably mean losses for them, which will have a knock on effect on weakened balance sheets due to COVID-19 and reduced business. 

[mrfixer]

I have some connection to the used car industry (part owner but more or less retired now).

It is very very difficult to say how this will play out because there are so few sales. What IS clear is that a substantial number of used car dealers are likely to go bust. PCP and leasing companies are inundated with requests for payment holidays. Expect defaults on PCPs and leases and a glut of 1-3 year old cars.

Credit will become much tighter.

I would expect bread and butter cars up to £5k will be the ones in demand....

[sproutdreamer]

Thanks Mrfix... Perhaps a 3 year old ex PCP car is what I need to look out for.

[mrfixer]

9 hours ago, sproutdreamer said:

Thanks Mrfix... Perhaps a 3 year old ex PCP car is what I need to look out for.

If you are looking for a newish car you might find an ex-rental.  With virtually no travel the rental companies have large numbers of cars sitting idle and depreciating. They are desperate to offload them...