Hefty new car price increases supporting 2nd hand values?

[Jembo]

This rally in 2nd hand car prices - when I was sorting out my new toy priced up an equivalent 2014 spec A3 (abiet a saloon) & came out to almost £40k!!!!

I only paid a discounted 25k (list 30k) end 2010 for other car... 25% price hike?

Anyone seen anything similar?

 

[original guvnor]

Massive discounts from artificially inflated list prices seem the norm these days. You can apparently walk into any BMW dealer and get 30k off a brand new M6, 20k off a new M5, probably 10-15k of a new M3/4 once the initial newness has worn off and judging by people's experiences on here 10k off 35i/35iS (not to mention the big discounts that always seem to be available on the 4-pot Zeds). It's no surprise Audi are doing the same thing, I know Merc have been too. Even previously immune marques like Porsche are now discounting 991's, Panameras, Caynennes. A friend of mine also got a very nice deal trading his old Boxster in for the new 981 version too.

 

[Angie4m]

Supposedly towards the end of the year these types of deals will come to an end due to economies picking up pace. The markets been that way for some time and usually the big discounts can be had on already built cars waiting for an owner although there is some models being made to order.

Unfortunately down the line when people come to sell on these cars some 'forget' that although the price list said it was a £40k car, they only paid £25k for it and complain about how much 'value' it's lost. I've seen a lot of 1 and 3 series owners who happily bought at heavily discounted prices thinking 2/3 years down the line the car should be worth what they actually paid and it's not. Other issue with heavily discounted cars which makes them attractive is they tend to flood the market pushing down second hand prices in the future.

 

[Anonymous]

I bought a new 1 series 3 years ago, and recently we changed it for another new one.

The new one is basically the same car, just 3 years newer. Has the same toys, and a few more. Also has a lot more as standard equipment.

The new car was cheaper than the original one 3 years ago, so on that limited basis, the price of cars is coming down.