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Palmdale - 0845 430 1289
Palmdale - 0845 430 1289


Is Now a Good Time to Buy a Car?

The UK car market has been behaving very very strangely during the past year. Some experts say that used car prices are going to rise, others say they are going to fall.

Actually, they are both right.


THE NEW CAR SUPPLY PROBLEM

In 2009 the UK car industry had fields full of new cars that no-one was buying. The credit crunch had hit and people weren't splashing out on a new car.

This had two results:

1) Manufacturers reduced production levels of new cars.

2) Demand for used cars went through the roof because people saw them as better value (more on this below).

This production reduction (I like the way that sounds; 'production reduction') meant demand eventually caught up with supply. But worried the same thing might happen again, many manufacturers have STILL not increased their output.

Because of this, the situation is now reversed and many new cars have huge waiting lists and no discounts available. Some Audis can be a 6-month wait, and we have one client who has been waiting patiently for their Nissan Qashqai since October!


WHAT ALL THIS MEANS FOR USED CARS

People are often unwilling to wait 6 months for a car, so they pay over the odds for a nearly new one.

Our 'Bargain of the week' is a good example (although quite an extreme one!).

Ferrari has a 2-year waiting list for new 458 Italias. The car we bought was 204,000 when new, 10 months ago. Such is the demand that 205,000 last week was an absolute steal as most are changing hands for 15,000-20,000 ABOVE the original purchase price.

And the situation is the same with a lot of more mainstream cars. Worse, if the price of a nearly new car is the same as a new one, this pushes up the prices of 1-year-old cars... and then 2-year-old cars... etc., etc.

Some used cars have actually been appreciating over the last few months!


NOT ALL CARS, THOUGH

There are, however, still plenty of cars not affected by these circumstances.

Fords, Vauxhalls, most French cars, lots of Japanese cars and many others can still be bought at good prices. We had a quote for a brand-new Volvo yesterday with a 23% discount!

So, if the car you wish to buy is currently very sought after, you will do well to wait until the prices adjust again; however, be warned that this could be up to another year.

And how do you tell if a car is sought after?:

1) Find out from your local dealer what the waiting time is for a new car. Anything over 3 months and you're in trouble.

2) Look at the prices of nearly new cars compared to the list price of a new car. If they are similar, that's not good.

Or you could always bend the ear of a friendly Car Finder you might know...

Palmdale - 0845 430 1289


Buy buy(?)

ASHLEY

Ashley Winston
(Founder & Owner)

Palmdale - 0845 430 1289

PALMDALE'S BARGAIN
OF THE WEEK

Ferrari 458 Italia
Ferrari 458 Italia

The brief:
"I would like a car that is very fast, but will depreciate very little over the next 12 months."

How much it should have cost:
Market value = 220,000-225,000

We bought it for = 205,000!

Palmdale - 0845 430 1289

WHY I LOVE THE...

Honda FR-V FRV
Honda FR-V

Dull to look at. Sterile to drive. Just awful in every respect... except one. The 3-in-the-front seating means that you can choose to have a good-looking passenger sitting very very close. It's like cuddling while driving!

Palmdale - 0845 430 1289


At Palmdale we specialise in taking all the hassle out of the car buying process:

Palmdale - 0845 430 1289

  • YOU tell us exactly what car you want
  • WE search for every available car in the UK that meets your description
  • WE negotiate with the seller
  • WE make sure that the car is perfect
  • WE collect the car and bring it to your door
  • YOU enjoy your new wheels for many years to come

These newsletters are our attempt to teach you everything we know about car buying; however, if you would like us to find and buy your next car for you, all you have to do is ask!

Palmdale - 0845 430 1289