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As a (generally) new car buyer, that sounds like good news.
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It will increase inflation though as people will be required to borrow more so that they can drive themselves to the bus depot to take the buses out to take nurses to work on the early morning shift
So short term yes you will benefit but in the longer term when the council workers who empty your bins are striking for more money to buy that titanium mondeo they so desire ,you will be left with stinking bins..........:-)
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The reason i'm perturbed over it is because the cars involved are not tat, but the types of cars expected to be reliable, tough and durable vehicles...the sort many of us here like to find...some perceived quality makes notably absent, no fools those fellers.
I agree with you BB, there'll be a shortage of larger and better cars...the vast majority of new regs of the last 2/3 years must have been small cars.
Glad i've got my cars rustproofed/long termed as much as possible.
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So they can drive themselves to the bus depot to take the buses out to take nurses to work ...
Then they can use a pushbike, like lots of workers used to - shouldn't live so far away ... :-)
Easier to park, too ...
Edited by Andrew-T on 05/12/2009 at 15:29
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Sensible sort of 100k mile estates and saloons on and around an 02 plate which last year were 3000 in the trade are now 5000. It is these sorts of cars which have seen the biggest increases. Even older stuff like diesel 406's which last year were 500 quid are now 1500 with plenty of demand.
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Large second hand cars plumet in value on the UK market.
This is an asset if they're being exported to third world countries were prices are lower and the 'latest plate' isn't an issue.
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I sold my old mk2 Mondeo diesel (2000, 145k, a bit tired but basically sound and with plenty of life left in it) to a Polish trader who, along with a mate buys a couple a week to drive home and sell on. Over coffee in my front room while we were doing the paperwork, he told me there are lots of people doing it, and the number he and his mate are doing is earning each of them about four times the average Polish income.
If the reduced demand pushes up prices, it will come to a point where the export market is less attractive because the profit margins won't be there.
I would love to know where my old Mondy is and what it's doing. X48YCN - where are you now?
Edited by DP on 07/12/2009 at 13:17
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...X48YCN - where are you now?...
Cabbing in Kracow?
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I would love to know where my old Mondy is and what it's doing. X48YCN - where are you now?
Well the tax expired on:
01 07 2008
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Sterling is still on the rocks.
Compare prices of used cars in the UK to just about anywhere else in the world using current Sterling rates and you can see the opportunity for used car exporters.
This is now seriously affecting the supply of new cars to the UK. As the World economy picks up, and demand starts to equal or exceed supply again, obviously the factories are going to supply the markets that give them the greatest return.
Unless we in the UK start paying the same (pre-tax) prices for new cars as other Europeans, we are going to have to wait at the back of the queue, and constantly get queue jumped.
Ford has been criticised for its total 15% price increase over 2009, but at least it has been relatively honest. (Not that anyone actually pays Ford list prices, but actual transaction prices are now on average 15% higher than they were this time last year.)
HJ
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...Ford has been criticised for its total 15% price increase over 2009, but at least it has been relatively honest...
Just to illustrate HJ's point:
My CC3 had a list price of £21,531 in March of this year.
This month, the same car lists at £25,345.
A hike in nine months of just under £4,000 or 18 per cent.
Some increase, that.
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Demand will not equal or exceed supply again (I don't think it ever did). The heady heights of the 'good times' are over, the reckless issuing of credit to anyone with a pulse is over and will not return to anything approaching pre-crunch levels, despite the BoE's attempts to stimulate the economy with funny money.
Strange though that when Sterling was relatively strong we didn't hear any complaints from the manufacturers and certainly I don't recall any talk along the lines "the strong Pound has increased our returns so we're going to cut the prices for our customers". Maybe somebody can find a link to an article that did - although I'm not holding my breath as I'm quite looking forward to Christmas.
The problem for the manufacturers is that if they increase prices to offset the weak currency, it will reduce demand. It doesn't matter if Ford were first to increase and the rest follow (the market leader often sets the pace). A car which is 15% more today is 15% more that a lot of people don't have. Unemployment will continue to rise for at least another 12 months and many employed people are seeing pay cuts whilst simultaneously household bills are rising.
There is an opportunity arising from the weak pound: shift production back to the UK. Now there's a controversial policy. If there's one good thing to come out of this recession it is that relying on the Banking sector for our wealth was daft and we need to re-balance our economy towards production rather than credit-financed consumption. I suppose we could write the last 25 years off as an experiment, "nothing ventured nothing gained" or whatever the old adage is. The only thing we can do really, rather than write it off as crass stupidity.
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Thoughtful post TMS, not so sure that many of us will be so easy to forgive those responsible for this ''experiment'' though as well as other doomed schemes, i won't and will register my disapproval accordingly for many years.
Judging by the noises the current crew (of all 3) make i don't expect such common sense to be rearing it's head in the forseeable either.
What has surprised me is just how quickly the vast overstocks of 6 to 12 month old cars have vanished from compounds in the last 12 months....mainly medium to large cars to be fair, there never were overstocks of small cars anyway.
I'll be keeping my beadies open around the export term's to see if the current trend continues.
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Well the tax expired on: 01 07 2008
I got a reminder for that, despite selling it in the April. I sent a letter back to DVLA with the seller's address and the date I sold it, and heard no more.
I note it now has an export marker on it, so it obviously did go overseas.
Probably minicabbing, as above. If it does its new owner half the service it did me, he/she got a bargain.
Edited by DP on 07/12/2009 at 18:08
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>> So they can drive themselves to the bus depot to take the buses out to take nurses to work ... Then they can use a pushbike like lots of workers used to - shouldn't live so far away ... :-) Easier to park too ...
Practice what you preach..............................
We're heading for cars for the use of the rich and privileged, ie stepping back a 100 years
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