Tesla cuts new car prices in UK by as much as £9K

[FROSTYBALLS]

Tesla slashes price of its electric cars by up to £9,100 with immediate effect | This is Money

Which may have a further detrimental effect on used prices for existing owners .......

Will other manufacturers ease new car prices due to 'normalisation' of inflation, parts supplies, etc, leaving existing owners with similar issues?

 

[Roy124]

How would that affect someone with a guaranteed future value?  They could sell high, buy low in theory.

[Bper]

Elon musk has lost a lot of money and his excuse for dropping the price is the spare parts are now more widely available. It seems that the luxury end of the market have actually increased sales . Rolls Royce apparently sold all there cars.

The global economy's are suffering but the rich always seem to increase there wealth. it is often a great time for them to make even more. Nothing proved this more then the recent pandemic.

It saw there wealth increase beyond what most of us can ever imagine. 

As far as used car prices go as long as the chip issue remains used prices will probably come down slowly as new cars start coming on to the market. But this will no doubt be reflected on how the cost of living pans out.

Elon Musk share price is low but no doubt will bounce back as global economies improve.

[FROSTYBALLS]

8 minutes ago, Roy124 said:

How would that affect someone with a guaranteed future value? 

Presumably the car could be worth less than the GFV, so your choice would be to a) hand the car back, b) pay the balloon payment set at the start of the contract, or c) re-finance. However with b) and c) you may well be over-paying as the market value has fallen.

[Cyker]

I saw an interesting video by Harry Metcalfe which seems tangentially relevant...

 

[Roy124]

2 hours ago, FROSTYBALLS said:

Presumably the car could be worth less than the GFV, so your choice would be to a) hand the car back, b) pay the balloon payment set at the start of the contract, or c) re-finance. However with b) and c) you may well be over-paying as the market value has fallen.

Can they pay you less than the GFV? Apart from condition and mileage can they pay less? 

Certainly the would not be able to resell my Corolla at 25% mark up

 

[FROSTYBALLS]

1 hour ago, Roy124 said:

Can they pay you less than the GFV? Apart from condition and mileage can they pay less? 

If the car has no faults to rectify, the GFW will be as per the contract. 

They don't actually pay you.

At the end of the PCP, if the car is worth more than the GFV the difference between the GFV and the true market value, can be used as part of the deposit towards a new PCP.

If worth less, and you enter into a new PCP, you have to pay the full deposit as there is no equity in your previous contract to use as part deposit.

If you want to buy the car outright (ie. pay the balloon payment), the balloon payment is the GFV. The problem is if the car has a true market value lower than the GFV, you, in effect, are overpaying for the car.