Used car prices increasing?

SoapMcTavish · 02-09-2021 6:58am #1

I've been watching this jag for a few months now. It's been €18900 for all that time. Was thinking I'd make an offer slightly below that figure. And today it's gone up to €20,900. What's going on with used car prices ?

https://www.donedeal.ie/cars-for-sale/jaguar-xj-3-0d-275bhp-v6-luxury-automatic/27008708?campaign=3

California Dreamer · 02-09-2021 7:09am

https://www.boards.ie/discussion/comment/117836379#Comment_117836379

Thats exactly what it is. Brexit and lack of supply from the UK. I am seeing some crazy prices in the last few months

SoapMcTavish · 02-09-2021 10:59am

https://www.boards.ie/discussion/comment/117836382#Comment_117836382

So this is the new norm ?

magicbastarder · 02-09-2021 11:01am

if it's been on sale for a few months without selling, there's no surer way of selling it than increasing the price. why not still offer at the price you'd been considering?

BobHopeless · 02-09-2021 11:10am

I ran a small business importing motorbikes from the UK before Brexit and Covid kicked in. I've seen several of the bikes i imported over the last 16 years up on Donedeal recently with asking prices higher than what i sold them for in the last few years including one KTM 990 i sold for 6250 in 2018 with an asking price of 7750 now with an extra 8000klms and 3 years on crap Irish roads.

Also have a friend who imports camper vans and he's seeing a 30% increase in second hand prices compared to 2 years ago. The market is gone mad and i can only see prices continue to increase over the next few years.

Sam Russell · 02-09-2021 11:25am

I think there has been a significant rise in new car prices as well, as well as a shortage of new stock.

goochy · 02-09-2021 1:43pm

i think vehicles should only be coming into the country when they are in short supply / not available here . Too many uk imports were distorting used prices. People who were buying new cars here were seeing main dealer who sold them new car selling nearly new imports for much lower price which were 6 months or a year old and also often higher spec. than irish cars.

rob316 · 02-09-2021 1:51pm

Just before Covid, I tried to sell my CC, really wasn't been offered much, about 7.5k cash, said I'd hang on. Same condition, spec, age is going for 10k now. Thats 2 years ago!

bazz26 · 02-09-2021 1:59pm

https://www.boards.ie/discussion/comment/117837810#Comment_117837810

What you are suggesting would distort prices too through trying to control them.

goochy · 02-09-2021 3:17pm

iI am not suggesting controlling them but NOX tax and vat from uk has meant that cars coming from uk nowadays tends to be to meet demand rather than in the past where cars were being brought in to undercut Irish used cars on the market. For instance someone buys a new Merc. for €50k and main dealer selling a nearly new higher spec. car for much less is bound to effect value of irish cars ?

bazz26 · 02-09-2021 4:21pm

Of course but doesn't that highlight the fact of higher taxes and prices we pay for new cars here compared to other countries and something that the government and car manufacturers need to address rather than taking away cheaper choices from the consumer? VRT is the real distortion here.

Sexual Chocolate · 04-09-2021 9:57am

Dealers are also holding firm on asking prices as found out yesterday. I walked away from a 20k plus car yesterday because of €240. It's more out of principal on my part that I walked away but he has my phone number so can get back to me if he wants.

I was actually shocked if I'm honest. I'd bought sub 5k cars before where more was knocked off.

Buddy Bubs · 05-09-2021 11:12am

I think its a good thing to be honest. Cars holding value is preferable to everyone losing their nuts every time they try move up a few years.

Sierra Oscar · 05-09-2021 11:19am

Chronic shortage of new cars in the US too, driving up the price of used ones. It's a global problem. There are manufacturing plants having to shutdown for weeks due to the semiconductor supply chain crisis.

omri · 05-09-2021 11:25am

It’s a great thing, I am getting such offers for mine that I’m only down 5-10% on the price I paid for it few years ago..

Widdensushi · 05-09-2021 11:32am

Which is fine if you are just selling a car, presumably most are buying also so caught there. The way ev, fuel prices etc there will be a big drop in price within a couple of years

Wildly Boaring · 05-09-2021 11:49am

https://www.boards.ie/discussion/comment/117849001#Comment_117849001

Unless your planning on cycling it's not much use.

If you're going to trade up the car you're buying will have increased too and probably by more as it's all proportional.

Prices are up due to brexit.

It only suits main dealers and those on PCP.

kirving · 05-09-2021 11:54am

https://www.boards.ie/discussion/comment/117848950#Comment_117848950

https://www.boards.ie/discussion/comment/117849001#Comment_117849001

But you have to buy another one, so all that has happened is that the stakes are now higher.

This also has the unintended consequence of making a potentially profitable private sale much plmore difficult to actually achieve. Looking at dealer prices, in theory I'd make a big profit if I sold my car tomorrow, but actually finding a buyer at such high prices is the hard part.

If the current prices hold, there are a set of people who bought say 2 years ago (and sell soon) who won't lose much money, but they still have to buy another car at a higher price than 2 years ago.

After this blip, I'll be back to normal economics of buying a €20-50k depreciating asset.

05-09-2021 11:56am

VRT was import duty under a different name, so we now have import duty and VRT. This is killing the import market as we could only, realistically, import from one EU country. With the UK now a 3rd country we are getting double taxed.

Couple this with a global chip shortage hampering new car production and it's a perfect storm for SIMI who never needed an excuse to gouge and can now go to town.

Don't expect any change to this as long as the Greens are in government, IMHO

bazz26 · 05-09-2021 12:40pm

https://www.boards.ie/discussion/comment/117849001#Comment_117849001

The car market is like the property market at present, prices are distorted. It's all good and well getting top money for your car but the car you replace it will cost top money also.

zg3409 · 05-09-2021 5:06pm

It's also people asking crazy prices and cars not actually selling. For example if there is 10 fiestas all for 10k and not selling then others put new cars up for around same price and they also don't sell. The opposite happens to reasonably priced or cheap cars, they are up for a few days and disappear leaving all the higher priced cars not selling. Renewals hide the first advertised date.

You can bring in cars from Northern Ireland with less taxes than mainland UK.

astrofool · 05-09-2021 10:50pm

https://www.boards.ie/discussion/comment/117849092#Comment_117849092

Which government would change this realistically?

Squeaksoutloud · 05-09-2021 11:18pm

https://www.boards.ie/discussion/comment/117851462#Comment_117851462

Sinn Fein...no other way they would get Nordies on board for a united Ireland!

06-09-2021 7:11am

https://www.boards.ie/discussion/comment/117851462#Comment_117851462

Probably none but there's zero chance, with Greens.

13-09-2021 2:29am

If you look around how people (don`t) service their cars, soon goes load of used cars to junkyard. It`s not realistic to keep driving and never servicing. I serviced recently the car where was only 0.5l oil including the oil inside the oil filter. Guess what, where that car goes? The streets is flooded barely driving cars, slick tires and all sort of dangerous cars. Thanks for limited supply the price must go up.

Del2005 · 13-09-2021 5:42am

https://www.boards.ie/discussion/comment/117849092#Comment_117849092

We don't have import duty we have VAT which is applied to all products imported into the EU. Some are zero rated for VAT, children's shoes and a lot of basic foods, and up to 23% on luxury goods. Every JDM vehicle has paid VAT and VRT when it was imported, the UK is now similarly treated. Lots more JDMs have been imported since the UK left the EU, JDM always had VAT/VRT, what's killing the JDM imports now is the shipping cost, was ~1k now ~10k.

You can still buy a vehicle in the EU and import with no VRT but since the wheel is on the wrong side, except Malta, it is mainly motorcycles that will be imported

Dealers in the US are charging more for 2nd vehicles than new because of demand. Its like any market, the product is worth what the buyer is willing to pay and if someone is willing to pay a premium then a business would be stupid to refuse. Even Coke was toying with the idea of demand based charging. Everyone says how great Uber is, they increase the price the more people book.

A businesses job is to make money for the owners not to be a charity for the customer.

User1998 · 13-09-2021 6:58am

https://www.boards.ie/discussion/comment/117883206#Comment_117883206

A lot of misinformation there.

We do have import duty. Its 10%

Shipping costs are not whats killing Japanese imports. Shipping costs are still €1k. Container shipping has increased but RoRo is still €1k

You can’t import a car from the EU and not pay VRT. It doesn’t matter where you buy the car from, VRT still has to be paid

13-09-2021 7:03am

https://www.boards.ie/discussion/comment/117883206#Comment_117883206

So so much of this is completely inaccurate

Del2005 · 13-09-2021 8:59am

https://www.boards.ie/discussion/comment/117883229#Comment_117883229

I never mentioned VRT!

User1998 · 13-09-2021 9:04am

https://www.boards.ie/discussion/comment/117883428#Comment_117883428

You said:

“You can still buy a vehicle in the EU and import with no VRT”

This is not true

wassie · 13-09-2021 9:21am

https://www.boards.ie/discussion/comment/117883206#Comment_117883206

Dealers in the US are charging more for 2nd vehicles than new because of demand. Its like any market, the product is worth what the buyer is willing to pay and if someone is willing to pay a premium then a business would be stupid to refuse.

Demand may be up with people who are cashed up with savings from the pandemic, but the bigger issue as mentioned on this thread is supply. Locally Brexit has had a massive impact, whilst globally, there is a shortage of new cars due to chip shortages which may take the best part of another 12-18 months to unwind itself.

Less new cars being manufactured leads to longer waits times, which in turn has had the effect of sending used car prices higher as people want car now rather than wait. This is not just happening in the US, its occurring globally. Simply google news articles for "[country] used car prices"

Manufacturers are acutely aware of this. BMW & Mercedes have already signaled they intend to try and increase their margins by maintaining higher new car prices once the chip issue is resolved.

https://www.irishtimes.com/business/manufacturing/luxury-car-brands-plan-to-profit-from-chip-crisis-1.4672430

Used car prices increasing?

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