Showroom Tax and Used Car prices

Honest John Back Room » Motoring discussion
View Threaded
Fri 28 Mar 2008 05:49
Showroom Tax and Used Car prices - car junky
If the price of new cars is to rise thanks to the new Showroom tax, why do I constantly hear reports of why the price of used car prices will go down?

Surely if the demand of used cars will go up and thus prices will hold better?

Can anyone explain please?

Edited by Dynamic Dave on 28/03/2008 at 10:14

Reply | Report as offensive | Link
Fri 28 Mar 2008 06:49
Showroom Tax and Used Car prices - rjr
Car manufacturers will discount the price of their cars to offset the showroom tax so it won't really impact new car sales. However, the increase in VED on older cars may push owners to dispose of their car for a newer, more efficient model.

Therefore, increased demand for new cars means less demand for used cars so used car prices will drop.
Reply | Report as offensive | Link
Fri 28 Mar 2008 07:30
Showroom Tax and Used Car prices - NARU
Therefore increased demand for new cars means less demand for used cars so used car prices will drop.


... meaning they get scrapped earlier, even if there's nothing wrong with them!

[though this will mainly be the highest polluting cars]
Reply | Report as offensive | Link
Fri 28 Mar 2008 08:00
Showroom Tax and Used Car prices - ijws15
In reality those who do not tax or insure their cars will all soon be driving around in better cars because these will be cheaper to buy and no more expensive to run for those who do not pay the taxes!

The law of unintended consequences!
Reply | Report as offensive | Link