Whilst new cars are becoming cheaper to purchase, in real terms, thier subsequent second hand values are really tumbling, and anyone prepared to take a risk on major mechanical problems, after expiry of warranty, can pick up a real bargain. A friend rang me yesterday to offer me his saalesmans 3 year old Mondeo estate TDci Ghia, with 89k, for £5000.This is what he had been offered in part ex.
Following the acquisition of a retail business, my own Legacy GLS estate, also with 89k,'97 on an R plate, is surplus to requirements. After 2 months,I cannot find a buyer at £2500, cheaper than anything else in the ads. It stands forlornly next to my commercial, unused but not unloved. Apart from sending it to an ignominious end at the auctions,and receiving a pittance, how on earth do I dispose of it? Answers on a postcard please.
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Sell it to a family member who will appreciate it's real value?
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Mattster
Boycott shoddy build and reliability.
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There must be a "wall" of used cars (both privately and in the trade) piled up, many of them great buys and apparently available at truly bargain prices. I can only think t'is a sign of how UK economy is apparently booming (as opposed to mainland Europe's) while people here splash out on new or nearly new vehicles.
In fact, many people must be trying to get rid of cars that are well worth keeping, just to change.
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A quick look in Auction View, shows just over 9500 cars available in auction, today - NOT a very high entry, as it happens, 11-12,000 more the norm!!
Add this number to Manheim & all the private auction houses.Then add all the ones on the forecourts, in compounds, on the transporters & peoples driveway, waiting for this weeks Autotrader &.... who'd be a car dealer?????
VB
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Legacylad wants too much. Try £1750 and he might get a nip, even if he has to take £1500. Better that than have the thing turn to scrap on his driveway. Alternatively, why not stick it in Brightwell's 4x4 auction at Leominster every Tuesday? At least then he'll be selling it to people who want 4x4s, and Brightwells often gets good money. www.brightwells.com
HJ
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Agreed with HJ, Brightwells is a country auction focussing on 4x4, does a lot of subaru, and the buyers there appreciate their tough rugged durability and credit them for it more than your big urban bca type places, i think you'd see £2-2.2k there maybe more, have alook on the web they show recent prices, friendly place bought a RR 4.6 there.
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If your friend was being offered £5000 in part exchange he would obviously get a better deal without it.
Wouldn't it be fair for him to split the difference with you or am I missing something.
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Alvin,
The only thing missing is that my friend didn't realise I have no need of a car!I use my commercial 6 days a week, and on my day off I can use it again.I'll advise him to take the £5 k part ex and do without the aggro. HJ's valuation of £1750 was a surprise, but its only worth what anyone will pay for it. Where's Brightwell? Never heard of the place so it must be 20+ miles south of Giggleswick where I reside.
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What is it with second hand values in the UK? Cars seem to be worth next to nothing as soon as they are few years old. Is this because of big fleets of company cars dumped on the market at three years old? For whatever reason that Subaru looks very cheap by Australian prices. Looking on redbook.com.au for a Subaru Liberty (Legacy to you guys) a 97 GLX Wagon with 5sp manual is worth GBP4760 to GBP5880 assuming average mileage and condition for age and converting at 40 pence to the AU$. Mind you that is academic to Legacylad.
How do second hand values in Europe compare with the UK?
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If legacys are worth a lot more in Aus I wonder if there is a business opportunity in buying up second hand ones here cheaply and shipping them over by the container full. NZ & Aus are full of imported Japanese cars so I wonder if they wouldn't mind a few UK ones too....
teabelly
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I think you can do that in NZ but not in Australia. They tightened up the laws on used imports and now you can only bring in types of cars which have never been sold new here. The rice burner brigade bring in Supras and Soarers because they have never been on the market here. It is a great pity. I would definitely like to get a secondhand car at UK prices and ship it out here.
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Most cars but especially Japanese keep their value in Oz, I sold my Outback for about 60% of its list value when it was 3 years old.
StarGazer
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Leominster's in Herefordshire, the most beautiful county in England, about 14 miles north of Hereford.
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UK used values are low because of the fleet market which dumps loads of cars into the private used market.
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The current state of the market is fantastic, isn't it!!!
At least, it's great for people like me whose strategy is to buy a good value second hand car and spend years using it until it won't go any more.
Not so good for those who like a new car every year or two! Cars are a bad investment, change cars as little as possible! Amazing what an education in economics teaches you.
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The problem is that there is no shortage of people trying to peddle over priced vehicles in the local papers etc.
I found this when looking for a van. It seemed that dealers, who knew the real value of their stock were undercutting private sellers. I decided to count myself out of the local second hand van market out of sheer fustration and buy new!
The price is higher but the interest free finance and warranty does sweeten the pill. I just wish it wouldn't bend so easily!
H
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Not so good for those who like a new car every year or two! Cars are a bad investment, change cars as little as possible! Amazing what an education in economics teaches you.
I agree. For me, the argument against buying a car like a Citroen, which is that the depreciation is crippling, falls apart when the car is kept for a long time, especially when it is bought second hand. Mind you, the discounts on Citroens make them a good new buy anyway.
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