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Post by jeoff82 on Mar 3, 2021 20:09:29 GMT 1
Anyone else noticed that used car prices seem to be silly at the moment? I would of thought prices would of gone the other way considering the current situation but everything seems to have gone really expensive.
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Post by studabear on Mar 3, 2021 20:38:23 GMT 1
Yeah I was talking to a mate the other night and he buys and sells the odd one and he said everything half decent is dear now.
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Post by remmington on Mar 3, 2021 20:41:31 GMT 1
There are a few factors which have affected used car prices.
Less new cars sold - so less good trade ins - supply and demand affects prices of all comodities.
New car prices have gone thru the roof and are going to rise for sure.
Less range of new cars - several models/choices dropped.
Some lease car defleeting has been frozen.
Vans are even worse - there is huge trend of converting good vans to day/camper vans (stay vacation?) - which has inflated van prices.
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Post by jeoff82 on Mar 3, 2021 20:59:29 GMT 1
£800 plus for old Ka's 😳
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Post by Karl on Mar 3, 2021 22:28:57 GMT 1
Talking of van conversions
Had a transit custom in for non start around Christmas time
Father and son . Tilers or bathroom fitters by trade
Now buy vans and do into campers
Said struggling to find good examples now For the money
Same condition vans are now £1000/£1500 more than what they where 12 months ago
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Post by valhalla on Mar 4, 2021 1:16:09 GMT 1
Anyone else noticed that used car prices seem to be silly at the moment? I would of thought prices would of gone the other way considering the current situation but everything seems to have gone really expensive. As I predicted 10months ago. I cannae remember where I posted it, but this is entirely logical.
Values of secondhand will increase as PCP's are reneged-upon and punters need to have a set of wheels. Distress purchases, in times of material hardship.
I was banging-on at the time about why it was likely that the value seen in repair of older cars would go up, and therefore the Indi trade (like myself) would find ourselves busy.
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Post by remmington on Mar 4, 2021 8:22:34 GMT 1
Anyone else noticed that used car prices seem to be silly at the moment? I would of thought prices would of gone the other way considering the current situation but everything seems to have gone really expensive. As I predicted 10months ago. I cannae remember where I posted it, but this is entirely logical. Values of secondhand will increase as PCP's are reneged-upon and punters need to have a set of wheels. Distress purchases, in times of material hardship. I was banging-on at the time about why it was likely that the value seen in repair of older cars would go up, and therefore the Indi trade (like myself) would find ourselves busy.
I was talking about this the other day. So I did some research. In 1985 the average yearly wage was £8890 - in 2020 it was £38600 In 1985 a brand new VW Golf Gti was £7897 In 2020 a new VW Golf Gti was £33460 Average house price in 1985 were £30463 in 2020 they are now £302624 But in 1985 average weekly council house rent was £13.59 - In 2020 it was £84.87 What did make me smile was the average wage in 2020 of £38600 - this seemed high to me! But the last wage packet my Dad gave me in 1985 aged 18 ish - before I went to work for myself was £80 - about £4000 a year! But lets say we moved everything on a bit 35yrs and he gave me £10 an hour aged 18 - this is £20k a year which is slightly more than half the national average wage in 2020. I conclude: Give or take a few % - cars are about the same price. Wages are about the same. It is your house purchase that is keeping you poor and council house rent has never been cheaper compared to weekly wages. The problem I can see with it all is: The North/South devide. Low wages or the minimum wages are the same North or South. But housing costs even social housing rents increase the further South you go. So if you are poor - move North.
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huffo
Tea Maker
Posts: 240
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Post by huffo on Mar 4, 2021 10:28:44 GMT 1
Father and son . Tilers or bathroom fitters by trade Now buy vans and do into campers I’ve never seen a camper van with a tiled bathroom. I’m surprised there’s much demand for those. 😂 😂
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Post by Karl on Mar 4, 2021 20:43:01 GMT 1
I figure the national average
Comes in quite high at £38k
Once you take in the top 10 % who are on tens of millions
This gives a distorted view of reality
Always thought the national avg was around £30k
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oli
Apprentice
Posts: 1,065
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Post by oli on Mar 4, 2021 23:56:34 GMT 1
I figure the national average Comes in quite high at £38k Once you take in the top 10 % who are on tens of millions This gives a distorted view of reality Always thought the national avg was around £30k As you say, there is quite a difference between mean and median salary. It isn’t the nice bell shaped distribution curve that many assume it would be. The conclusion is correct though, it is house prices that have really changed the most in real terms and what make much more of a dent than they ever used to. It also has a double whammy effect as it means most people rent a lot longer before they buy, which is then money that goes to somebody else, rather than paying their mortgage back. On the flip side, interest rates are a lot lower than they used to be. Oli
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Post by valhalla on Mar 5, 2021 0:28:00 GMT 1
As you say, there is quite a difference between mean and median salary. It isn’t the nice bell shaped distribution curve that many assume it would be. The conclusion is correct though, it is house prices that have really changed the most in real terms and what make much more of a dent than they ever used to. It also has a double whammy effect as it means most people rent a lot longer before they buy, which is then money that goes to somebody else, rather than paying their mortgage back. On the flip side, interest rates are a lot lower than they used to be.
Oli But for how much longer? There must come a time when the rates go up, and that is going to make a few government ministers sweat with a swelling national debt as well.....
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oli
Apprentice
Posts: 1,065
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Post by oli on Mar 8, 2021 23:55:02 GMT 1
As you say, there is quite a difference between mean and median salary. It isn’t the nice bell shaped distribution curve that many assume it would be. The conclusion is correct though, it is house prices that have really changed the most in real terms and what make much more of a dent than they ever used to. It also has a double whammy effect as it means most people rent a lot longer before they buy, which is then money that goes to somebody else, rather than paying their mortgage back. On the flip side, interest rates are a lot lower than they used to be.
Oli But for how much longer? There must come a time when the rates go up, and that is going to make a few government ministers sweat with a swelling national debt as well..... I can’t see it happening any time soon, but it would be a disaster for many people if it did. I think the Bank of England would rather let inflation run wild than stick the rates up.
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Post by remmington on Mar 10, 2021 20:40:36 GMT 1
But for how much longer? There must come a time when the rates go up, and that is going to make a few government ministers sweat with a swelling national debt as well..... I can’t see it happening any time soon, but it would be a disaster for many people if it did. I think the Bank of England would rather let inflation run wild than stick the rates up.I get a feeling inflation is not the rate they bandy about Quote ex Google "Consumer price inflation, UK: January 2021 The Consumer Prices Index including owner occupiers' housing costs (CPIH) rose 0.9% in the 12 months to January 2021, up from 0.8% to December 2020." Bank of England are not going to let interest rates increase with the level of borrowing going on at the moment. I have paid mortgages at 13% in my time. High inflation does make the workings mans biggest debt - his mortgage look cheap after a few years (as long as you are getting wage rises to match?)
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Post by Noberator on Mar 11, 2021 23:48:15 GMT 1
I can’t see it happening any time soon, but it would be a disaster for many people if it did. I think the Bank of England would rather let inflation run wild than stick the rates up. I get a feeling inflation is not the rate they bandy about Quote ex Google "Consumer price inflation, UK: January 2021 The Consumer Prices Index including owner occupiers' housing costs (CPIH) rose 0.9% in the 12 months to January 2021, up from 0.8% to December 2020." Bank of England are not going to let interest rates increase with the level of borrowing going on at the moment. High inflation does make the workings mans biggest debt - his mortgage look cheap after a few years (as long as you are getting wage rises to match?) So have me and the Mrs. I seem to remember they where high in the late 70's early 80's when we got wed so saved and saved whilst (living in my rented flat). We moved in 1982-83 when interst rates IIRC came down to 9 or 10% ish. We then moved again in 1986 (present house) when interest rates where a bit unstable and took the risk. I seem to remember they where up and down during the mid 80's until they came down in the early/mid 90's to well below 10%.
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Post by valhalla on Mar 12, 2021 0:05:36 GMT 1
I bought my first house in 1991, right at the tail-end of the worst interest rates. Like Remmington, when I negotiated the mortgage, it was just a shade under 13%, and that is what Mrs. Valhalla and myself agree we could afford.
We got the house for a good price (nothing was moving at that time) and the vendor even brought the price down from the one we had already agreed, as she had offered it on the market lower - out of desperation.
Of course, we did alright out of that deal, but it takes a bit of guts to kick a mortgage off at that rate......
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