Car Prices!! - DrS

Allegedly, there is a bit of a fiscal crisis on the go at the present time.

I would have thought that people might have been shying away, then, from making major purchases such as new cars and suchlike, and so, one might imagine, that garages would be having a hard time shifting metal, and might be correspondingly flexible in their approach to discounting, in order to clinch a sale?

So, I've been wondering around, trying to buy a car: Seems like nobody wants to do a deal.

Why's that, then?

Car Prices!! - unthrottled

A mass produced car isn't like a designer jacket where the marketing men just pull a price out of their backsides. The profit margins on cars are really tight. That's why they put long warranties on cars (to try to claw back profit from servicing). Quite simply there's no point selling a car to you at a loss.

Car Prices!! - gordonbennet

Remember a couple or three years ago when the backside dropped out of everything, cars stacked to the sky and still rolling off the lines, no one knew what to do with them or the thousands of nearly new defleets still pouring in from the rental companies, and management cars which are anything but.

Well they ended up selling them cheap just to shift them, and raise desperately needed cashflow, and made huge losses on them too...those who bought well during that period made a once in a lifetime killing and good luck to them..assuming they didn't sign up for some dodgy finance deal to pay for it then lose their own jobs in the yet to peak depression.

Manufacturers learned from that mess, and i doubt it will be repeated, production since cut back to just about enough to maintain that balance of supply and demand.

If you notice, the days of cheap tyre deals seem to be over too, unless you're buying ditchfinders...every time i look up my own sizes the prices have gone up.

Edited by gordonbennet on 13/05/2011 at 22:33

Car Prices!! - Sulphur Man

I'm not convinced by this argument.

If people arent buying cars right now, and all the indicators right now is that are that they're either

a) not buying them

b) trading in and downgrading to something more modest (and less profitable for dealers/manucturers)

.......then something has to give somewhere.

A huge multinational cant just shut down huge production lines and cut back on supplies without it really hurting after a while - cost of labour and operational costs chiefly.

They have to keep shifting a minimum amount of metal. Plus they make less money from shifting city cars and supermini 'downgrades' than the bigger luxury fare.

Car Prices!! - unthrottled

Plus they make less money from shifting city cars and supermini 'downgrades' than the bigger luxury fare.

I bet you could buy a new big petrol engine powered saloon for less than the production cost. But the same wouldn't be true for a small diesel powered car. BMW have long since proved that small car does not equate to econobox. I bet they make more money on each 320d they sell than every 740i which is probably a loss making line.

Car manufacturers can and do cut production when oversupply is a problem

Car Prices!! - Sulphur Man

I see what your saying, but there is no obvious oversupply right now, and hasnt been for maybe 12 months. Lead times on popular models are long.

This autumn could prove interesting. Maybe if one manufacturer blinks first, and lauches some major discounts, as Citroen did back in the noughties, that might stir things up a bit.

Car Prices!! - Armstrong Sid

So, I've been wondering around, trying to buy a car: Seems like nobody wants to do a deal.

What kind of a deal are you trying to get from them? Maybe you are asking or expecting too much

Car Prices!! - oldroverboy

you can still get an astra new shape for less than £10k, but tell us what you have been trying to buy.. then we can judge..

Edited by OldRoverboy on 13/05/2011 at 22:42

Car Prices!! - DrS

you can still get an astra new shape for less than £10k, but tell us what you have been trying to buy.. then we can judge..

Skoda Yeti, Nissan Juke......

Eventually agreed to buy a Vauxhall Zafira, earlier today, delivery miles at 9k under book, so I suppose that I just answered that myself?

New model, old model.....

Gotta love that lifetime warranty. But will I manage to live with it for longer than a couple of years, anyway?

Car Prices!! - AlleyCat`

Think you've answered a question here:-

Skoda yeti: 7 month waiting list for most models.

Nissan Juke: Brand new, nissan can't make them fast enough.

The delaers don't have to cut "deals" on cars that are selling themselves without them trying.

The same would have applied to vehicles like the IX35 not so long ago.

Skoda have deals on most of their other cars that they are not shifting as well.

I'm glad your happy with your purchase but the market for the zafira isn't the same as it is for the other vehicles you mentioned.

Car Prices!! - DrS

I mean that they just won't budge from list price, and their trade in values are worse than I'm getting offered by Motorpoint.

Car Prices!! - unthrottled
But that's the wrong way of looking at it. Picture the following scenarios:

Prospective buyer: How much is that car?
Salesman: £10,000
Prospective buyer: How much was it originally?
Salesman: £10,000
Prospective buyer: I'll leave it.

cf

Prospective buyer: How much is that (identical) car?
Salesman: £10,000
Prospective buyer: How much was it originally?
Salesman: £20,000
Prospective buyer: Bargain! Where do I sign?

The only measure that matters is whether you would rather have the money or have the car. If you're pleased with your purchase, you've won regardless. If you've bought something you didn't want but that the dealer was desperate to offload, you've lost regardless.
Car Prices!! - DrS
But that's the wrong way of looking at it. Picture the following scenarios: Prospective buyer: How much is that car? Salesman: £10,000 Prospective buyer: How much was it originally? Salesman: £10,000 Prospective buyer: I'll leave it. cf Prospective buyer: How much is that (identical) car? Salesman: £10,000 Prospective buyer: How much was it originally? Salesman: £20,000 Prospective buyer: Bargain! Where do I sign? The only measure that matters is whether you would rather have the money or have the car. If you're pleased with your purchase, you've won regardless. If you've bought something you didn't want but that the dealer was desperate to offload, you've lost regardless.

How I wish I lived in your world!

The final analysis went something like: I could get one of these cars which look quite nice, or I could get this car with immeasurably greater practicality, more room, more comfort, more seats, faster, better drive, better economy, and a lifetime warranty, which would normally cost 50% more than either of these cars, but all for the same price.

Car Prices!! - unthrottled

The final analysis went something like: I could get one of these cars which look quite nice, or I could get this car with immeasurably greater practicality, more room, more comfort, more seats, faster, better drive, better economy, and a lifetime warranty, which would normally cost 50% more than either of these cars, but all for the same price.

Keep drinking the salesman's Kool-Aid. If you take one midsize hatchback and compare it to a comparable offering from a rival you will find that practicality, room, comfort, number of seats, speed, drive quality, fuel economy have very little variance. Manufacturers share platforms, engines and buy in many of their components from external suppliers. eg the Toyota Aygo, Citroen C1 and Peugeot 107 are the same car!

But I bet you'll find a moron who claims that the Toyota has better handling and reliability than the rubbish French Citroen.

Warranties have a list of terms, conditions and exemptions as long as your arm. They are there to make money for the dealership, not save money for the buyer.

If one car was demonstably better than its rivals in every respect-including price-then the rivals would quickly disappear.

I'm glad you're happy with your purchase, but don't fall into the trap of thinking you've beaten the system; it leads to crushing disappointment.

Edited by unthrottled on 15/05/2011 at 22:23

Car Prices!! - Smileyman

With production of Japanese cars in trouble after the receent earthquake, perhaps the market is anticipating a shortfall in supply; and being confident all they produce will sell easily is reducing financial incentives, discounts. etc

Car Prices!! - NARU

Don't forget that with all the money we printed (quantitative easing) the pound has fallen, so imported cars are more expensive.

I'm reliably informed that there is a shortage of mica to go into mica paint finishes. Local fiat dealer has stopped taking orders with mica paint.

Car Prices!! - rosywills

The popular models like the Prius, Corolla and RAV4 will go up as supply falls in the coming weeks. Whether they will still be inflated by June will depend on whether the plants are operating at full capacity by that time. Worst case scenario - there may not even be a RAV4 available for you to buy. Sure the vehicles can be built in other plants, but a number of the parts ultimately come from Japan. If they aren't producing those parts, then the vehicles cannot be completed

Edited by BorisTheSpider on 16/05/2011 at 10:49

Car Prices!! - colinh

Why sell them at a low margin in a currency (sterling) which fluctuates +/- 5% in a week , when they can get a full price in China, and be paid in a currency which will probably appreciate

Car Prices!! - daveyK_UK

If you are prepared to shop around, walk away and be hard faced - there are plenty of deals to be had.

I know of 4 people who have purchased new or nearly new (60 plate) cars since the turn of the year and all got excellent prices.

Most noticably a brand new 11 plate panda 1.1 active for £5,400 (cash).

The deals are out there, you need to find them.

This site use to be great for dealerships, etc advertising excellent deals but the past year or so, most of the deals are nothing special.

I remember once Honest John posted JCT600 had some astra vans going for silly money after a contract broke down to supply a company, that is the kind of deal the website has been lacking. Advertising 5% of a Q5 is not a deal!

Car Prices!! - Roly93

I remember once Honest John posted JCT600 had some astra vans going for silly money after a contract broke down to supply a company, that is the kind of deal the website has been lacking. Advertising 5% of a Q5 is not a deal!

Agreed the Q5 is a hugely expensive car for what it is. However in these tough times my local Audi dealer is by far more busy than my large local Ford dealer. Whats going on here, are people just treating themselves with their redundancy money !!

I'm trying to sell a car privately at the moment, and I'm only seeing time-wasters however..

Edited by Roly93 on 17/05/2011 at 12:25

Car Prices!! - daveyK_UK

we attempted to sell our car via the autotrader in the past month.

total waste of time.

we ended up getting rid of it via part-ex.

Car Prices!! - gordonbennet

we attempted to sell our car via the autotrader in the past month.

total waste of time.

That's why people put no time wasters in their adverts, much to others annoyance, i didn't though i worded my ad to give the same message, but hopefully more politely...it worked, no time wasters turned up.

I cannot abide unreliable or dishonest people who can't even be bothered to turn up to view when arranged, then couple of weeks later in my case contacted via pm on make specific forum with cock and bull story why they didn't turn up...so glad my truck didn't go to such folk, far too good for them.

Fortunately for me an honest and fair dealer bought my pick up for the price i actually wanted, without seeing it and paid before collection via credit transfer, we had a long conversation on the phone and maybe recognied mutual principles.

Decent people, buyers and sellers are out there, what we need is some sort of a virtual Masons handshake to recognise one another.

Car Prices!! - Roly93
Decent people, buyers and sellers are out there, what we need is some sort of a virtual Masons handshake to recognise one another.

Youre not wrong there. Some of the stuff I have heard lately is staggering, people expecting a 50% reduction in the asking price, people saying they are dead keen on having a look at the car and then saying they just realised they cant afford the insurance, and people saying they we coming to look at the car, but just didn't make it and were never heard of again..

Car Prices!! - primeradriver

It's threads like this that remind me why I buy cars the way I do -- buy as cheap as possible then keep until it's only worth slightly more than scrap. This way I don't have to deal with either side of the complaints raised here.

Car Prices!! - Roly93

It's threads like this that remind me why I buy cars the way I do -- buy as cheap as possible then keep until it's only worth slightly more than scrap. This way I don't have to deal with either side of the complaints raised here.

This is good in theory, but if you need a reliable car for long distance driving it doesn't stack up really, unless you like beeing stuck on the M6 150 miles from home ! My job depends on the ability of my car to often do 400 miles in a day and I would,nt want to do this in a car that was close to being scrap value !