New Car Sales

lomb

New cars are ridiculously overpriced. FACT.
Im surprised sales are only down 50%..

Fact is if you take a typical family car say a mondeo or avensis at 25k with 1 or 2k of options=27 and the same car is worth 6 grand after 5 years thats over 4k a year or 8k a year before tax one has to earn to afford it and thats a 5 year ownership period!! Over 3 years its probably a 5 grand a year loss or 10 before tax.

How many people can afford to loose 10 grand a year for a recyclable skip?

Whats even more comical is the likes of an S Class at 7 years old is worth probably the same as a fiesta although one cost 6 times more that the other to begin with.

I doubt theres even the long term demand for the current level of sales, its just the scrappage, CO2 and road tax nonsense and keeping up with the Jones's thats keeping it going at all.

-Chris-

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lomb

lomb wrote: »

New cars are ridiculously overpriced. FACT.

No, they are priced at a point that the market is willing and able to pay.

If you can't afford a new car be happy that they depreciate so fast and enable you to buy one a few years old for thousands less.

-Chris-

lomb wrote: »

New cars are ridiculously overpriced. FACT.
Im surprised sales are only down 50%..

But they were even more overpriced 3/4 years ago, and the sales numbers were through the roof back then.
Car prices have dropped pretty hugely over the last 3 years, and if it was as simple as cheaper=more sold, then the dealers would be having bumper years now.

lomb wrote: »

Fact is if you take a typical family car say a mondeo or avensis at 25k with 1 or 2k of options=27 and the same car is worth 6 grand after 5 years thats over 4k a year or 8k a year before tax one has to earn to afford it and thats a 5 year ownership period!! Over 3 years its probably a 5 grand a year loss or 10 before tax.

How many people can afford to loose 10 grand a year for a recyclable skip?

For a start, I don't know anyone who's paying 50% tax on their entire earnings.
Secondly, you'll probably find the depreciation on a Mondeo is more like €6k pa over 3 years, but that's a price people have historically been willing to pay for the independence owning a car gives them (it's not an investment or an asset, it's a mode of transport).

lomb wrote: »

Whats even more comical is the likes of an S Class at 7 years old is worth probably the same as a fiesta although one cost 6 times more that the other to begin with.

Great news for second hand buyers, and the figures on these cars weren't as stark a few years ago before the second hand values of big engined cars collapsed.
They were never smart investments though...

lomb wrote: »

I doubt theres even the long term demand for the current level of sales, its just the scrappage, CO2 and road tax nonsense and keeping up with the Jones's thats keeping it going at all.

You'll probably see the figures drop when scrappage ends, but ultimately I think the received wisdom is that a level of around 100k new cars pa is what you'd expect for a population our size.

corktina

always treat a statement ending in FACT with extreme suspicion