P/X value down by nearly 50% in 6 weeks !

Discussion in 'Motoring' started by V70SES, Jan 31, 2009.

  1. V70SES

    V70SES
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    6 weeks ago I asked for a P/X value on my Volvo V70 against a new car , I was quoted £3500 . Went back today to try to finalise some details , I was quoted £1800 !

    Needless to say I walked out after telling the salesman to call me when he was serious about doing a deal .

    Is the credit crunch that bad , or not , in cars sales !
     
  2. eric pisch

    eric pisch
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    its terrible

    getting car finance is very hard unless you have excellent credit scores, loads of people have been made redundant so thats dumped alot of extra cars on the market and those who can buy are worried about strapping themselves up with huge finance and that there p/x is worth a crap load less than it was 6 months ago

    p/x a car like yours will 99% of the time involve the dealer selling it to a second hand dealer who will under write a value, with alot of unsold stock at all levels p/x values will continue to crash. Hi end luxury cars have been dropping 50% + in 18 months, you can get 911 turbos for under 2 years old with 60k of list price.

    and then there's another problem, the car industry is making cars to well, most cars will last 10 years and if maintained properly will pretty much drive like they did when new, this makes it harder to justify replacing them.
     
    Last edited: Jan 31, 2009
  3. zAndy1

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    I checked Parkers the other day for a P/X value on my W reg nissan primera 2.0 Sport+ with 85000 miles on, £590! It drives fantastic, air con, electric this that and the other. Even a good private sale was only about £800, not worth selling it for that. Must say I haven't seen many real bargains in the car dealers around here, P/X values might be dropping like a stone but that doesn't seem to have been reflected in the price of used cars at dealerships. Gonna be after a car this year, mine's a W reg and the wife's is a T reg peugeot 206 (which I use for travelling to work as it's a lot more frugal than the nissan and it drives fantastic as well). I'd like to think we could pick up a couple of year old Vectra for about £5-6k, must admit I haven't looked that much as we don't have the money saved up yet (can't get finance) , I suppose these downturns do have their benefits, a nice cheap fairly new car would certainly be one of them!
     
  4. SteveTDCI

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    its bad, i've lost £7000 on my A3 in 1 year, if I keep it until march thats another £750 !
     
  5. Ian J

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    The credit crunch is bad for car dealers and what your dealer was telling you in a roundabout way was that as much as he would have liked to sell you a car he didn't want to take something unsaleable in part exchange unless at a price that he wouldn't lose money at.

    Try selling it privately and you will soon find out for yourself what the market for large cars is like.
     
  6. V70SES

    V70SES
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    I gathered as much due to the extremely low value he placed on it . I did point out too him though that his £17,000 car from 6 weeks ago is still £17,000 & still in his showroom ! His reply was " credit crunch for ya "

    What focuses the mind is that the V70 is a minter & it has made me realise that I should just keep it & use it as I do like it , sometimes you just feel like a change though .
     
  7. V70SES

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    :eek:
     
  8. gordon115

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    Some dealers are using the credit crunch though as an excuse to take the P when it comes to part exchange values. They assume everyone is stupid enough to fall for it.(some are)
    I had a similar experience at a Skoda dealer,made me decide to keep my car another couple of years and save my money.
     
  9. RB5 Paul

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    Unfortunatly it's not an excuse, most dealers would love to be able to give you what you wanted for your part ex as this would mean you will be buying a car, which strangely enough is what they want you to do.
    The reason part ex's value's change is because they are based on what people are prepared to pay for them.
     
  10. un1eash

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    We were looking at selling out C2 VTS for something different as we're had it from new, its a 2007 56 plate and on autotrader are fetching anything around £6-7k. We were offered part-ex values from £5k - 5,750 which isnt to bad really, bmw offered us £5.5 as part of a deal on a 1 series.

    My new Z4 was only 20 months old and i paid half what it was new.
     
  11. eric pisch

    eric pisch
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    Dealers are screwed, they cant sell new cars and second hand car prices are dropping daily. Dealers have to shift stock but they cant do deals that loose them money, when the manufacturers let them lower prices they do. One of the problems they have is the pricing structure for cars most franchises have, they actually make very little money on a new car (5-10%) but they get large cash bonus's for hitting sales targets, which of course is now impossible. Running a main franchise costs a fortune easily 50-100k a month

    If this continues like this for another 6 months expect 30-50% of the dealerships in the uk to go bust (or double service rates). Honda have not shut down production for 4 months for fun :(
     
  12. Drd

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    In the Telegraph motoring section at the weekend one of the car supermarkets was selling 08 1.8i Vectra estates for £5995!A bargain for a good family car with a warranty.Get a move on:)
     
  13. lmccauley

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    I've been offered over book (Glass) to p/x my car by two dealers - but that was against second hand cars that were over-priced. I decided I'd rather have the cash to either buy privately, or be in a better bargaining position with a dealer. After a couple of weeks trying to sell privately, I sold to a dealership miles away that specialise in cars of a similar type to mine, and have a good turnover at reasonable prices. Again, I got over book price and within a few hundred of what I had it up for privately. Their driver is due to pick it up Wednesday.

    The price of cars I'm looking at has dropped by about £1000 since Xmas (I've seen more than one dealer knock £2k off a car that hasn't shifted since before Xmas), and since I'm in France next week, I may wait a few more weeks before buying.
     
  14. eric pisch

    eric pisch
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    until bank confidence, bank reserves and bank lending go up and consumers feel they have job security I cant see the market doing anything other than nose dive for along time to come.
     
  15. lmccauley

    lmccauley
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    Yeah, I guess the sensible thing for me to do would be to run a very cheap car for several months.

    But, the devil on my other shoulder says "Buy a Porsche now!" :devil:
     
  16. andyrj1

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    We had a Freelander 2 It was bought it 9 months ago for £25,500.

    My wife did not like it so we thought we would get something smaller we went for a Skoda Fabia Estate our local dealer gave me £18,500 for the Landrover and the Skoda was £13,000 with a few options added so we got the new car and £5,500 in cash. I thought it was a good deal in the present climate.

    He said that there sales are actually up on last year so they seem to be bucking the trend. He told me his friend works for a honda garage and they had not sold a new car in 6 weeks and he was very worried for his job im not surprised mind they offered me £13,000 for the freelander.
     
  17. andykn

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    You can check Glass guide p/x values on the Servicing and Finance section of the Vauhall website:

    Servicing & Finance Home | Finance & Services | Vauxhall Motors UK

    I've been keeping an eye on the used 2.0T Sportback DSG A3 market recently and there are far fewer used ones at main dealers (less than 10 down from about 20 six months ago) and they seem to discount them much quicker and turn them over faster.

    Not sure if this is because they are getting fewer in p/ex against new ones or they can't get money to finance a large stock.
     
  18. V70SES

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    Thanks for the Glass' link , according to that my car is worth £2950 .
     
  19. lmccauley

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    Don't take it for gospel, though. The dealer I sold my car to gave me nearly £900 more than Glass quote for an excellent condition p/x.
     
  20. andykn

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    One dealer made a very good point when I asked for a rough p/ex valuation on mine. He said that it's not the price of the car you're buying or the amount you get for trade in that counts, its the amount of cash you have to bring to the deal.

    So a dealer may give you more than book but not discount the car you're buying as much.
     
  21. V70SES

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    In my case the amount of cash was the same from the visit 6 weeks earlier , just the P/X value was lower so he wanted more from me for the privilage of his car that should have dropped in price accordingly , but hadn't .
     
  22. andykn

    andykn
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    Well done for walking out, you may not have the car you want but it'll make things that bit better for the rest of us.
     
  23. lmccauley

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    Sorry, I didn't make myself clear - I sold the car to the dealer, I didn't part exchange it. I haven't bought a car from him. He gave me £900 more than Glass' said a dealer would give me p/x.

    But your point is correct - when I was offered even more as a p/x by another dealer, it was against a car that was very overpriced. He must have thought I would be tempted by the good trade-in value he'd given my car, whereas I was looking at the cost to change.

    Now that my car is sold, I can go to dealers with cash and barter for a good price, as they aren't having to worry about shifting a p/x car.

    Anyway, my point to the OP is that you won't automatically get the value in Glass' from a dealer. He may offer significantly less or more. You definitely did the right thing walking away. Try some other Volvo dealers, or stick it on Autotrader and see if anyone is willing to give you what you want (and then barter hard with the Volvo dealers because you won't have a trade-in).
     
    Last edited: Feb 2, 2009
  24. eric pisch

    eric pisch
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    you have no idea how hard it is to say no to that devil, especially as porker turbos are going for GTR money :rolleyes:
     
  25. nheather

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    I saw on the news last night that Ford US are forcing the Ford UK to raise its prices by an average of 4.7% across the whole range.

    GM (Vauxhall look set to do the same).

    They give the reason as the poor exchange rate with Euro but it seems absolutely ludicrous to me.

    Car sales are falling sharply and the reseponse is to increase prices - yeah that will stimulate sales!!!!! Sometimes I wonder just how thick the supposedly bright leaders of large companies can be.

    Perhaps it's just the US being out of touch and thinking it can continue to milk 'rip off Britain' - but all that has changed.

    Don't they realise that when in recession the company goal has to change from making a profit to survival. The aim needs to be to make enough money to pay the bills and keep the workforce so that you can survive to fight another day.

    If the government goes ahead and bails out the car industry if this is all the industry is prepared to do to help itself then it will be criminal.

    Cheers,

    Nigel
     
  26. HMHB

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    Hopefully people will start to realise what a rip off car prices are in this country. I especially think the German car companies are guilty of charging far too much for their cars.
    All IMHO of course !
     
  27. Bl4ckGryph0n

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    I think it is a self-fulfilling prophecy. We wanted to buy a new car, have the money for it, but since px prices have collapsed we won't give our car away out of principle. The things is that I don't mind a low trade-in price if I can get a good discount on a new car as I always look at the overall deal/package. But many dealers notably Audi/BMW don't seem to be discounting their new cars, so the cycle grinds to a hold. As my wife's car a petrol large 4x4 we get offered about £2k below the glasses guide, even at the original brand dealer!

    Nissan on the other hand is a total different story, I bought myself a very nice pickup truck with approximately 40% discount brand new....
     
  28. V70SES

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    Went to another dealer today , told him that I had been offered a derisory P/X value against what I wanted & if he was to do the same I'd just turn round & walk out . He asked me what I had been offered & said he'd see what he could do . I countered by saying that if he knew that he would beat it by £50 so it would be best to to start afresh . Well the Glasses guide had given me a rough estimate but I was ready to be offered maybe slightly less , maybe slightly more . He then came back after taking the car for a drive & giving it the once over , then the crucial moment arrived . Best I could do , he said , was £3600 , I had a disappointed look on my face but inside I was beaming . He then countered & said £3800 , take it or leave it . I said give me 24hrs to think it over but I will be straight with him , just waiting for the next call to see if he ups the anti any further .

    One fellah was there & he said , " what is the best cash price on this particular car ? " , screen price was £11450 , salesman said " to drive away today £10,000 cash ! "
     
    Last edited: Feb 3, 2009
  29. lmccauley

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    Good one :smashin:

    Music to my ears :)
     
  30. V70SES

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    I have finally settled on a new car because of the deal involved & "cost to change " . In the end I got £2950 against an 08 Mondeo 2.5 Titanium X , 2341 miles , 8 months old , Ford Direct with remainder of the 3yrs warranty for £11985 !

    It cost me £9035 to change for what was a reputed £24,000 new motor a short while ago , maybe a £21,000 motor in reality on the dealers forecourt .

    This car is incredible , quiet but toys galore , extremely stable due to the sport pack fitted , what really swayed it was that marvellous 5 cylinder 2.5 Turbo Volvo engine in it , 217 BHP & torquey enough to pull tree stumps up .

    Marvellous car , vastly underrated , who wants BMW's !

    Depreciation , what the hell , a large proportion of that has already passed in the last 8 months or so .
     
    Last edited: Feb 7, 2009

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