Used car bubble?

magicbastarder

used bubble car?

https://www.carandclassic.co.uk/car/C1378560

Pussyhands

Interest rates (cheap money) have completely inflated asset prices.

I saw someone on another site say, when talking about buying a new build, that the price had only gone up 10k from when they first started enquiring about the new build.

Like...10k was just penny's!

3% interest rate for 300k mortgage is 1250 per month. An extra 10k is just 50 euro extra per month.

Yet if the interest rate was 4% that extra 10k would amount to 250 euro more per month than that 300k at 3% interest.

Why not spend 20k on a car when the interest is basically 0. Nearly everything you pay, you get in the form of a car. Whereas if interest rates were higher, that interest repayment will be a chunk that would quickly add up and people wouldn't be as keen to pay it!

elperello

https://www.boards.ie/discussion/comment/118233322#Comment_118233322

No, there is no logic.

Extra money going out of your account into someone else's for an item is always bad news even if you are getting more for another item at a lower price point.

That's why so many are holding on.

https://www.boards.ie/discussion/comment/118230722#Comment_118230722

But there is massive value to be had, for the reasons I've just explained - care to give some thoughts as to why you would disagree with me in regards to the current market? I didn't say it was massive value compared to pre-brexit / pre-covid but there is value to be had in the current market.

HBC08

https://www.boards.ie/discussion/comment/118242285#Comment_118242285

I'm just not following your logic on this.

Also the pre brexit market was the one we were used to for a long time and it ran up to 2019/20 so obviously that's the only reference point most people can compare it to (I know it was different maybe 30 years before that)

In my opinion there is no value in the 2nd hand car market in ireland at the moment and I don't see that changing in the short to medium term or ever if I'm honest.

Lantus

https://www.boards.ie/discussion/comment/118242285#Comment_118242285

Your example was on a specific car or two. Can you still get some value for money in specific places? Yes with a lot of leg work based on your two accounts. Is this representative of the market as a whole? Not really at the minute.

elperello

https://www.boards.ie/discussion/comment/118242285#Comment_118242285

In every market there is value to be had.

You can get someone selling due to leaving the country or changed circumstances of one sort or another which can deliver value to someone with cash to move quickly.

However, having said that the current market overall offers less choice at higher prices and therefore is not good for the end user.

sk8board

All you need to track is the total cars listed on carzone, DoneDeal and autotrader.Co.uk

all of them are down about 30-40% since Jan. if the listings volumes don’t increase through December for Jan sales, you can assume the 2nd hand market will be even tighter through all of next year

Pussyhands

Value is relative. What is good value today is terrible value tomorrow.

Lantus

https://www.boards.ie/discussion/comment/118244974#Comment_118244974

Tomorrow a lot of people will be paying off loans on a product rapidly depreciating as prices correct downwards. You will need a lot more cash to change into a new car so any purchase needs careful consideration.

sk8board

Carzone look to have done a clear out (old or duplicate ad’s maybe), and listings have dropped to 25k (it’s 40-43k in a normal market).

clearly the garages aren’t able to find stock for January sales