New car prices getting silly (?)

[bigbob]

I know that there was lots of comment on the price of the MC20 and how high it was. Ditto I was reading Car magazine over my cheerybangs and they tested a Alfa Giulia which only had 200bhp but it was £40k before options. Topped it off today when I found that the new BMW M3/M4 Comp costs £75/76k. They were banging old shape M4 Comps out at £45k recently and sure there are lots of other discounts with many new cars these days but list prices seem to be going through the roof. Even pre Covid I was not sure that the market could take it but surely things are getting out of hand?

More interesting for us how much will the new GranTurismo cost. When it went out of production it started at about £90k and came with a great standard specification but what will the new one be, £130-150k?

 

[Andyk]

Was looking at the V6 718 Boxster GTS in the classifieds yesterday...80K...…..!!!!!!…..80k for a Boxster...…….Limited edition Spyder I get but not this one.

 

[FIFTY]

In 2003 the E46 M3 was £40,000 RRP now that will just get you in a bog standard 340i

I blame inflation and the cost of raw materials doubling/trippling in the last 12 years.

 

[Wack61]

PCP

Look I'm driving an 80k car but it's only XXX a month

They don't even want to sell you a car if it's not on finance these days , a mate tried to buy a Skoda Kodiaq , the only discount on the car was via PCP , nothing off for cash so he took the finance out then paid it off in the 14 day cooling off period

 

[Swedish Paul]

In 2003 the E46 M3 was £40,000 RRP now that will just get you in a bog standard 340i

I blame inflation and the cost of raw materials doubling/trippling in the last 12 years.

You can’t blame inflation. It’s been so low these past 20 years. Prices have hardly gone up at all. This is why interest rates are so low and wages have not increased so much.

Ahem....

 

[bigbob]

You can’t blame inflation. It’s been so low these past 20 years. Prices have hardly gone up at all. This is why interest rates are so low and wages have not increased so much.

Ahem....

Agree but list prices of cars keep shooting up. Discounts have risen to compensate and PCP terms have gone out from three years to four years but it can't last. Car company margins have been strong but will weaken going forward as the market readjusts.

 

[Chrisb2015]

I don't really get the list price thing. Speaking to another Dad from school yesterday his soon to arrive Audi Q7 was £63K at list, but after short negotiation ended up at £52K. So was it artificially priced high or are they desperate to shift cars and reducing margins? It makes the monthlies cheaper but also has the effect of making the depreciation high, knocking the used market. Another example is the new M5, £100k apparently. Which I think is nuts for a fast german saloon car, but as Richard Grace pointed out the other day the discount is massive, something like £70K in the real world, which is probably more like it. So again, why are the list prices so high?

 

[Ewan]

PCP

Look I'm driving an 80k car but it's only XXX a month

They don't even want to sell you a car if it's not on finance these days , a mate tried to buy a Skoda Kodiaq , the only discount on the car was via PCP , nothing off for cash so he took the finance out then paid it off in the 14 day cooling off period

I had a similar thing buying a Volvo estate last year. The deal was all but agreed and I was paying cash. Then suddenly, the dealer announced he could provide a further £5k off if I took out the Volvo finance, at 0% APR. How mad is that!? So, I get the same car, for less money, and get to keep some of my money in the bank a little longer and earn a some extra interest.

 

[dickygrace]

I don't really get the list price thing. Speaking to another Dad from school yesterday his soon to arrive Audi Q7 was £63K at list, but after short negotiation ended up at £52K. So was it artificially priced high or are they desperate to shift cars and reducing margins? It makes the monthlies cheaper but also has the effect of making the depreciation high, knocking the used market. Another example is the new M5, £100k apparently. Which I think is nuts for a fast german saloon car, but as Richard Grace pointed out the other day the discount is massive, something like £70K in the real world, which is probably more like it. So again, why are the list prices so high?

£60k, that’s £40k off. Mental.

 

[Wack61]

I had a similar thing buying a Volvo estate last year. The deal was all but agreed and I was paying cash. Then suddenly, the dealer announced he could provide a further £5k off if I took out the Volvo finance, at 0% APR. How mad is that!? So, I get the same car, for less money, and get to keep some of my money in the bank a little longer and earn a some extra interest.

I bought a fridge from currys, at the till the manager asked if I wanted a 5 year warranty for £199

No thanks

Just as they were processing it , how about £99

No thanks

OK £49

£49 for a 5 year warranty sounded OK so I agreed

They rang it up and the total was £648, £599 for the fridge £49 for the warranty, only when I got home I noticed the warranty charge was £199 but he'd discounted the fridge by £150, probably wrote damaged on their receipt, he was getting that commission whatever happened

Even though the car is on 0% finance the salesman would've received commission on the sale of the finance

Crazy

 

[Chrisb2015]

£60k, that’s £40k off. Mental.

Which is where I would sort of imagine an M5 to be. £30K for a standard poverty spec 520d rising to £60K for the M5.

 

[MrJoshua]

My brother works for a Vauxhall dealer - when I bought my 4200, I asked him what you could get new from Vauxhall for the same price...

"Nothing - The range starts at over £16k"



He said no one pays cash though - They're only interested in the monthly payment.

 

[mjheathcote]

Monthly payment is all tied to list price, less discounts, duration and interest rate. So list price is still valid for the start of the calculation.
Problem is all the monthly payment is depreciation payment in reality with a new car.
My problem is that I just can't stomach paying say £500 a month for a car with no return at the end.

 

[Wack61]

Monthly payment is all tied to list price, less discounts, duration and interest rate. So list price is still valid for the start of the calculation.
Problem is all the monthly payment is depreciation payment in reality with a new car.
My problem is that I just can't stomach paying say £500 a month for a car with no return at the end.

Depends on the deal being offered , my 2 years of 5.0 mustang ownership cost me about the same as somebody smoking 20 cigarettes a day, buying a used car makes much more financial sense but when did owning performance cars ever make any sense.

Nobody could've predicted a global pandemic in 2018 so I don't regret it, it fulfilled 2 things I'd never done, drive a new car from a dealer forecourt and an own american muscle car, I had intended to keep it but the world turning to **** wasn't in my plan

 

[safrane]

I would never rent... house, car, phone etc. I buy for cash and have no worries. If I need to release cash I can sell, but have 3 years of wages squirreld away and no mortgage, yes I'm lucky.

When I hear younger people complaining they can't get on the housing ladder, I roll my eyes as they retort their gap years, holidays abroad and ther PCP cars, phones etc... do they not realise how much is going down the drain?

 

[rockits]

Depends on the deal being offered , my 2 years of 5.0 mustang ownership cost me about the same as somebody smoking 20 cigarettes a day, buying a used car makes much more financial sense but when did owning performance cars ever make any sense.

Nobody could've predicted a global pandemic in 2018 so I don't regret it, it fulfilled 2 things I'd never done, drive a new car from a dealer forecourt and an own american muscle car, I had intended to keep it but the world turning to **** wasn't in my plan

You not got the Mustang any more?

 

[philw696]

I would never rent... house, car, phone etc. I buy for cash and have no worries. If I need to release cash I can sell, but have 3 years of wages squirreld away and no mortgage, yes I'm lucky.

When I hear younger people complaining they can't get on the housing ladder, I roll my eyes as they retort their gap years, holidays abroad and ther PCP cars, phones etc... do they not realise how much is going down the drain?

Totally agree Peter.
Different generations and I have always been prepared for a rainy day like this year and not working.
Goods can always be for sale and generate cash if needed.

 

[Wack61]

You not got the Mustang any more?

No , sold it a month or so ago , covid killed it for me , holiday cancelled, barely used it spring and summer , looked at September to go to France and that all turned to **** , we're now on extended rules for the foreseeable future in warrington

I was offered an ok deal which meant I walked away with cash in my pocket so I don't regret it

 

[rockits]

Fair enough.....better to have loved and lost rather than never lived at all.

What did you think of the Mustang overall?

Sent from my HTC Desire 20 Pro using Tapatalk

 

[rivarama]

List price is meaningless. My wife’s leased Tiguan had an advertised OTR price of £37k and the invoice to the leasing company was £23k (VW Financial services). Funny enough, the same car on autotrader is now advertised for around £18-22k 12months later...

Showing a big saving to a customer is an old sales technique that works every time. This is what list price is for. Makes you feel like you’re getting a great bargain from the dealer and that you should jump on it. Let’s face it, no one really buys new cars cash anymore.

As someone who pointed out the Q7 above, have a look how much a brand new (<100miles and <6months) pre registered Q7 S line sell on AT at the moment? £45k - while the list price is over £65k+