Where are used car prices with the MK8 launch and other worldly troubles?

[monkeyhanger]

PCP is designed for people to get into a brand new car every 3 years that they never own, but gives the option to buy it at the end of term.

It's expensive for what you get. Over the 36/48 month term, your typical Golf GTI is depreciating at an average of £300 a month. The car will be worth around 50% RRP at trade-in, at 36 months. So over the course of your PCP you're always paying interest on most of the car's value. Taking into account any deposit + monthlies, you're averaging closer to £500 a month. At least a third of what you are paying out is interest.

[Tallpaul]

Except if you bought your GTI on 0% APR 

[monkeyhanger]

Except if you bought your GTI on 0% APR 

Yes and no. 0% finance offered was a good thing, but the prices have been jacked right up recently and dropped the GFVs. They give with one hand and take with the other.

It's like going to DFS and finding out the sofa you shortlisted has doubled in price but there's a 40% off sale.

[Rich 3]

Prices are not unexpectedly all over the place at the moment. I find that WBAC is usually a good barometer of what to expect as a starting point p/ex price. Around 3 weeks ago I was offered £18,050 by WBAC for my low mileage/ good spec 2018 GTI pp - a week later they upped this £19,525! I'm not thinking of selling - just wanted an idea of the current value in a likely volatile market. Needless to say I was disappointed with the first offer, but the revised offer seemed more reasonable. This is perhaps a reflection of a potential shortage of good low miles in demand cars in the system due to recent events.

[Guzzle]

There seems to be quite a bit of pent up demand at the moment. The big question is though how long it will last as furlough and other state backed stimuli are scaled back.

[Exonian]

Ramrod,pick mine up today (6 hr train journey to Exeter)-they wouldn’t give me a penny off.
I asked if they would throw in rear mudflaps,which I would fit (I’d got the fronts off eBay)-told me no,because they would have to show it as a discount.
I would have waited,but the right car came along so I jumped.

VW Exeter is my local dealer (clue in username!) and they are not the best for deals normally. They’re a big dealership serving a geographically large area and don’t have to fight for business. They have a rapid turnover of stock.
Newton Abbot VW just down the road are generally much better to deal with being a family owned independent.
Cars are never cheap down this way due to being stuck out on a peninsula meaning people have to travel a long way to visit the competition.

[Yusee]

There seems to be quite a bit of pent up demand at the moment. The big question is though how long it will last as furlough and other state backed stimuli are scaled back.

^^ this. You’ll have to wait until furlough scheme comes to an end in October before seeing a buyers market.

[P6GTD]

A trawl through VW used 5 door GTI 245s using a 200 mile radius of Perth seems to produce mainly high spec, low mileage cars in black, white, red and blue. No Indium Grey!
Leaves me with the impression there are many ex VW and ex dealer demo cars in the 30-odd being offered and not much else if my deduction based on the above is correct.
I don’t think this adds to the debate but thought I would connect with you all in my idle moments ....

[Guzzle]

There seems to be quite a bit of pent up demand at the moment. The big question is though how long it will last as furlough and other state backed stimuli are scaled back.

^^ this. You’ll have to wait until furlough scheme comes to an end in October before seeing a buyers market.

Yes, quite. It will be interesting to see how many people are made redundant over the next few months. While there was outcry at the lack of social distancing on Bournemouth beach this week, I couldn't help but notice just how many people weren't at work on a Thursday.

[monkeyhanger]

There seems to be quite a bit of pent up demand at the moment. The big question is though how long it will last as furlough and other state backed stimuli are scaled back.

^^ this. You’ll have to wait until furlough scheme comes to an end in October before seeing a buyers market.

Some people seem to be wanting to get out and spend now lockdown is easing after being deprived of retail avenues for 12 weeks apart from Internet orders.

Getting your freedom back with a new motor is appealing to a lot of people in the short term.

I think I mentioned before about the price of many things shooting up during lockdown - including the price of Dogs.

Anyone who's in a situation where they're furloughed by a company where redundancy is coming would be nuts to splash out on a financed car.

If you've got something to trade in then that p/x value is on the up too. The likes of Chris (mcmaddy) might want to find out if the part ex against their imminent new car has appreciated beyond the p/x price offered. Might be worth dropping a line to WBAC and Motorway.co.uk to see if selling separately can bag you some more money.

I don't think it will last, when some of those still on furlough find out there won't be a job at the end of it, they might look to cut back. You'll find that some people who've been working from home during lockdown may continue to do so as it's beneficial to the company if productivity hasn't suffered. Those kinds of people might be looking to offload one of the household cars, not get a newer one.

The hospitality sector is about to reopen, but customer numbers allowed to sit in pubs and restaurants will be greatly reduced. They'll have to put their prices up to compensate. If they put them up to the point that people decide to stay away (at least during the Summer when a barbecue and cool bottles from the fridge with some mates is far more enticing than paying £15 for a pub meal that used to cost a tenner and a £5 pint that used to be £3.50), there'll be a lot of people losing their jobs.