PX car in the credit crunch.

Discussion in 'Cars, Bikes 'n AFVs' started by FNUSNU, Mar 1, 2009.

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  1. The car companies are having a laugh and using the credit crunch as an excuse. A year ago you could PX a year old BFG'd car of the make and model I have, get a new one plus 2k. It's now 2k plus your car for a new one. Thing is, all the dealers and BFG type companies I have spoke too say their new and used car business is still doing well. The 2nd hand cars are selling for the same price as last year (same make and model with 6k more miles is selling for more the the cost of new tax free and forces saving on mine) and the new cars are also the same price so a change of 4k in the dealers favour seems a bit synical to me. I know they are running a business but on their own admition it's ore or less business as usual. Fcuking cnuts!
    Any one else having the same experience or can you recommend someone who will do a better deal?
    It might be too late for me, but no doubt there are others who will be changing some time soon.
     
  2. I can only comment on the situation in eastern Kentistan, but, here car dealers will tell you that they are doing well, sales up etc. The reality is that they have few newish second hand cars to sell as so few are buying new cars and trading in something around 2/3 years old. My local Citroen dealer last week only had five such cars in - last summer that part of their showroom had around 40. That has got to tell you something. I was offered, eventually, a deal on a new Citroen that would have meant them making less than £200 on a new car, and the salesman earning mess than £20. Their drop in income from commission means they'll try to get the price up as high as they can. What you end up paying will depend on your negotiating skills rather than finding a dealer willing to offer a good deal.

    Second hand cars in this area are worth more this year, even though the price of scrap steel has dropped. last August I was offered £1200 on a 7 year old Picasso, now with an extra 6 months on the age and another 5,000 miles on the clock, I can get £1500 on it. That reflects the shortage of second hand cars.

    I didn't buy a Citroen - I want an automatic these days, and their EGS gearbox is in my opinion a right bag of bolts. Now looking at buying a Nissan, so perhaps you should ignore anything I've written.

    .
     
  3. As stated above, when there is a drop in sales of new equipment the secondhand market for that equipment rises, it's basic supply and demand. New cars again are struggling to sell so i can't see why the garage aren't doing a decent deal, that way they get a sale and then get to add your car to their secondhand list.
     
  4. The problem for garages here is that new car prices are still too high to attract buyers in through the door.
    Thus sales low. Some are being a bit more customer friendly though. Citroen have cut their prices to dealers to support dealerships, and this is being passed on to customers under the guise of being sold free of VAT, another dealer in Ashford is paying people to take a test drive this weekend. Turn up, try a car, walk away with a crisp tenner in your sticky little hand.

    .
     
  5. I bought a new car and PX'd my old one. I got a stinking prices for my PX - probably 2 - 3k less than what the buyers guide said I should get but then I got a huge discount on my new car (around 9k off list price). Its still a buyers market and you have just got to be really cheeky. They need you more than you need them ! I also played a couple of dealerships off each other as well which worked out well.
     
  6. Just bought a new car, got offered a crap px so kept it for courses and to keep mileage down on new one. It was worth more than £800 to me so wasnt worth getting rid.
     
  7. In one way it's not too bad, Ford are putting up prices by 5% so it could have been worse. It should mean that the new car will have a higher value as a PX next time round as aparently one reason for the price rise was to bolster the used car market as it should mean higher prices for used models months down the line.
     
  8. Where a year ago could you PX a BFG car and get a new car plus £2k? What are you driving a Maybach or Ferrari?

    I got my car BFG last year for £14k, I was offered £8-9k PX against another make in the UK, putting the car in neg equity against the loan I got it with. the credit crunch thing was sort of wheeled out - nobody wants to buy, so used car market is depressed etc. I'll just keep the car.

    If you bought a new car in the uk, the second it leaves the forecourt it's worth 20% less (VAT plus a bit), unless you are driving something really desirable.

    So my thinking is that a poor punter who paid £22k tax paid for my car, when I paid £14k tax free, would now have a year old car worth about 40% of its value. to me it's worth 70% of what I paid, so I haven't lost as much.
     
  9. The S-Max was very popular and because you could buythem tax free plus ford forces deal for around £14 for a £23500 car, it didn't depreciate all that much. They could sell for over the original £14 no problem at all as hte used market was still good and 2nd hand S-Maxs were well sought after.
     
  10. I knew I should have got one then...frik!
     
  11. Bought a brand new Honda CRV Exec in Apr 07 for £18.5. Given a guaranteed buy back if I kept it under 12k miles. Went just over so 1 year later got another new Honda and paid £800 for the privilage. Asked about guaranteed buy back this year, no deal, market looking dodgy (this in Apr 08) Got a phone call 4 days ago, would I like to consider new car? Whats the deal? Your old plus £2k for a new one!! What, where did the £800 bit go. tales of markets. second hand deals etc etc.

    Naturally spoke to 'er indoors and for £2k I can pay for one of my daughters Uni fees for a term, so no deal.

    So the advice reading above would seem to be play the dealers off against each other and see what happens. Might just try it.
     
  12. Actually, the arrse has dropped out of the second hand market, and I am very well informed on this matter.

    This means that a car that is being PX'd (if it isn't good enough to be sold 2nd hand) will be put through the auction houses, therefore it isn't worth as much as you'd think.
     
  13. Very True Albert - but people PXing year old cars that were BFG registered will not fall into the "not good enough to sell" and go to auction.

    They will be high spec, low mileage (or at least average), year old cars. As I said, my PX offer was below book guide and I was told the only possible way I could get more was to trade it in for a car of the same marque. At that time, the marque didn't do what I needed. Circumstances have now changed, but I have moved 3 months down the line, so my car will again be worth less.

    It does seem that generally, the lucrative BFG deals aren't there. You would be better off buying a car tax free and keeping it, knowing that you wouldn't buy it in the UK new. Of course, if you're in germany forever (I wasn't - 3 year posting), then I am sure you can figure a way to change your car each year for minimum pain, but I think all the people I know that did that were beginning to struggle to get something for nothing.

    The really canny ones that had sunk a load of money into something expensive when first posted (BMWs etc), had managed to trade up most years until recently, but had still paid less for there cars each year than they would in the UK and when they return to the UK they have a swish motor for less money.
     
  14. A little inside info.

    The current car market in the UK is not too bad. There is a distint shortage of new cars available as most manufacturers have cut production in line, with what was, a falling market. Since the new year things have improved. It's still not back the what is was a year ago, but people are now starting to buy new cars again, tax free and tax paid in the UK.

    What we have seen over the past 4 weeks is a strenghtening of residuals of year old, and older, stock. For example, the £14000 S-Max mentioned earlier would have had a bid of £11500 before Christmas, but £13500 now for the same car. Because there was such a dramatic decrease in sales before Christmas the normal flow of good used car stock almost stopped. This restriction of stock has lead us to cars now being worth more than they were two months ago. Most cars in Glass's Guide for March actually went UP in value by a few hundred pounds. Where cars were being bid £1500 "behind book", most are now fetching more then book. This may not contniue as dealers start to fiind the stock they need, but as long as the market continues to improve in the UK, the BFG year old part exchanges will continue to look a very attractive alternative to new.

    What is not helping the BFG market at the moment is the constant price increases from manufacturers in the UK who are fighting with the weekness of the Pound, forcing them to raise prices almost on a monthly basis. And, once one does it, the rest follow !!

    We all hope that as base rates drop in the UK, and hopefully the banks start lending money again, the small increase in sales we have seen since Christmas will continue through the rest of the year. This way we may finally get some consistancy with residual values. When we get this consistancy the BFG market in particular will feel a lot more like normal with it costing nothing, or at least very little top own and run a car for 12 months.

    Hope this helps
     
  15. :D Things obviously aint changed then in BGF have they ...rip off Car dealers, cnuts.