View Full Version : "Shortage" the modern way to increase prices
Mod's feel free to move elsewhere - "shortages" are pissing me off so much, that I felt inclined to start a new thread :)
I run a 2013, 3 series BMW diesel (120,000) on the clock and love it.
Just recently started getting a "drive train fault" warning, so thought that I would look for a newer model second hand.
:eek:
What a con - current "shortage" of cars has pushed up second hand car prices to ridiculous levels, and I'm afraid that I just don't believe it.
"figures from the Society of Motor Manufacturers and Traders (SMMT) showed the UK's used car market contracted by 14.9% in 2020.
It said Covid-19 lockdown measures and "turbulent consumer and business confidence" had dented vehicle sales.
Sales of second-hand vehicles fell to 6,752,959 - down 1,182,146 on 2019."
https://www.bbc.co.uk/news/uk-england-northamptonshire-56104281
https://i.postimg.cc/XNz7Hqjt/39485110-9277951-Not-lining-up-on-the-grid-Thousands-of-used-cars-are-being-store-a-61-1613733571825.jpg (https://postimages.org/)
This was only six months ago and not the only site used this way in UK
This shortage is manufactured as a means to increase dealer profits imo
Anyway, I have decide to fork out around a thousand quid to have my BMW sorted - gives local garage some business, saves me a few thousand and I'll wait until sanity returns.
walpurgis
22-10-2021, 12:19
Yup. I keep an eye on new and used car prices and of course, you are right. The greedy buggers will just end up shooting themselves in the foot, as folk will keep their existing cars (at least for longer).
shortage of new cars has pushed newish used up by up to 50%, as folk need new wheels and struggle to get them. Motability vehicle availability is down a third and prices up by a fair bit. Delivery times in main are instead of 3 months ave are now 6 to 12
prestonchipfryer
22-10-2021, 14:43
I've received several emails from my local dealer asking to buy my car - Suzuki Swift Sport 2019 - which I bought new.
It seems they have a waiting list for this model as during lockdown the factory was closed for months. Being such a popular model, with plenty of ''go'' about it, I'm not surprised.
shortage of new cars has pushed newish used up by up to 50%, as folk need new wheels and struggle to get them. Motability vehicle availability is down a third and prices up by a fair bit. Delivery times in main are instead of 3 months ave are now 6 to 12
but according to the figures Guy quotes used car sales fell by 25% from 2019 to 2020. So there should be a glut of them, not a shortage. Unless all that glut got bought up earlier this year, which I suppose is possible.
Thing is if there isn't really a shortage then dealers could clean up by undercutting the artificially inflated prices of the others. Unless there's a cartel in operation.
but according to the figures Guy quotes used car sales fell by 25% from 2019 to 2020. So there should be a glut of them, not a shortage. Unless all that glut got bought up earlier this year, which I suppose is possible.
Thing is if there isn't really a shortage then dealers could clean up by undercutting the artificially inflated prices of the others. Unless there's a cartel in operation.
not really. folk have not sold many as they cant replace them. top models that are desireble like bmws etc are selling at huge mark ups tho. Many motability folk are having to take their 3 yr lease and extending it to 4 and 5 years as new cars are not available. some companies have kinda bucked trend, as, like kia/hyundai they had stockpiled chips, whereas most were still using the just in time method.
Ev's are getting made more than ice, as the chips are newer and more complex, thus more profitable for chip companies. Many ice cars now are having some of their features removed to keep going as they cant get chips. I think merc have been making cars then putting them in a field to await the final chips to arrive.
its a crazy world.
Lawrence001
22-10-2021, 16:16
The article only refers to sales, not supply and demand. Sales theoretically occur at the price where supply equals demand, so lower sales can mean a fall in either or both. If prices also fall it indicates a fall in demand while if they rise it indicates a fall in supply. Basic economics.
In the case of lockdown, dealers were closed for a while so of course people couldn't buy cars.
Factories also stopped production so they made less cars. This was the result of several things.
If the dealers are closed then they don't want cars building up as inventory costs money and also depreciates.
With the govt furlough scheme they could keep trained workers on their books at no cost so it made even more sense to halt production.
Additionally global supply issues of input materials meant they often couldn't make the cars if they wanted. It only takes one component missing to stop them completing the card and they don't want half finished cars building up. The chip shortage in particular meant they couldn't make the computers needed in a modern car, forgetting the other more obvious bits.
So I'm not sure what evidence there is for a conspiracy?
Lawrence001
22-10-2021, 16:17
but according to the figures Guy quotes used car sales fell by 25% from 2019 to 2020. So there should be a glut of them, not a shortage. Unless all that glut got bought up earlier this year, which I suppose is possible.
Thing is if there isn't really a shortage then dealers could clean up by undercutting the artificially inflated prices of the others. Unless there's a cartel in operation.But that assumes they just carried on making cars nobody wanted at the time. See above post.
But that assumes they just carried on making cars nobody wanted at the time. See above post.
I was only talking about the used car market, it's a given that a lot less new cars have been made in the last couple of years.
Guy quoted figures saying used car sales dropped 25 percent last year but I suppose that's due to more people keeping their existing car as they can't get a new one. You can't sell used cars if you have none to sell so number of sales drop even though demand is stable or increasing.
I agree that a conspiracy to raise prices is highly unlikely.
willbewill
22-10-2021, 17:15
not really. folk have not sold many as they cant replace them. top models that are desireble like bmws etc are selling at huge mark ups tho. Many motability folk are having to take their 3 yr lease and extending it to 4 and 5 years as new cars are not available. some companies have kinda bucked trend, as, like kia/hyundai they had stockpiled chips, whereas most were still using the just in time method.
Ev's are getting made more than ice, as the chips are newer and more complex, thus more profitable for chip companies. Many ice cars now are having some of their features removed to keep going as they cant get chips. I think merc have been making cars then putting them in a field to await the final chips to arrive.
its a crazy world.
Love the sound of that, maybe we're going to get, once again, reliable cars that are easy to fix - I hate cars being reliant on chips which when they go wrong, or find supposed faults in system, totally shut the vehicle down - yes it has happened to me far too many times - never did before chips
Lawrence001
22-10-2021, 17:23
I was only talking about the used car market, it's a given that a lot less new cars have been made in the last couple of years.
Guy quoted figures saying used car sales dropped 25 percent last year but I suppose that's due to more people keeping their existing car as they can't get a new one. You can't sell used cars if you have none to sell so number of sales drop even though demand is stable or increasing.
I agree that a conspiracy to raise prices is highly unlikely.Ah right yes the used car market is a bit like the housing market inasmuch as sellers hunker down and hold on to what they've got increasing prices as much as rising demand.
Ah right yes the used car market is a bit like the housing market inasmuch as sellers hunker down and hold on to what they've got increasing prices as much as rising demand.
House market has gone nuts too. Even round here. One just sold opposite me for a hundred grand. That's £10K more than the mint ones were going for at the last peak in 2008. You could have picked a minter up for £75K in February 2020. One that needed doing up was about £60K.
Friend of mine just sold, had six offers at the asking price the day it went on sale. Just a two bed terrace, nothing special.
motability will make a huge profit on mine when they sell it. its 3 years old, desirable, low mileage and minty. if they can get you into a new one they are real happy as 3 yr old nice cars are selling brilliantly.
House market has gone nuts too. Even round here. One just sold opposite me for a hundred grand. That's £10K more than the mint ones were going for at the last peak in 2008. You could have picked a minter up for £75K in February 2020. One that needed doing up was about £60K.
Friend of mine just sold, had six offers at the asking price the day it went on sale. Just a two bed terrace, nothing special.
yeah i read that house prices are up an ave of 25k in a month.. mad bassas
Fields and fields of 1000s of cars all over the country if you Google it.
House market has gone nuts too. Even round here. One just sold opposite me for a hundred grand. That's £10K more than the mint ones were going for at the last peak in 2008. You could have picked a minter up for £75K in February 2020. One that needed doing up was about £60K.
Friend of mine just sold, had six offers at the asking price the day it went on sale. Just a two bed terrace, nothing special.
Ah well, that should boost the value of my property portfolio nicely...;)
Marco.
Fields and fields of 1000s of cars all over the country if you Google it.
Absolutely right.
There is a conspiracy/"playing the market" going on.
Good friend, young lad. who runs a heating/plumbing business (just him and a couple of trainees) wants another van - local Ford dealership quotes 18 month waiting list.
Nearby car dealer - previously ONLY cars on forecourt: in the last week has gone to no cars (he didn't sell them :)) to "chock a block" full of Ford transits (recent models).
Given the "shortage"
1: where the fuck did all those cars go ? (certainly not sales)
2: where the fuck did all those transits come from ?
NOT a conspiracy theory, just bastards stirring up false shortages to make a fast buck, rather like eBay chancers selling bog rolls at extortionate prices a few months ago.
If the transits are second hand they'll have come from vehicle rental companies via auction. When I was in that game we used to send thousands of them to auction every year.
Maybe they have been hanging on to them while prices rose?
Pigmy Pony
22-10-2021, 20:53
If the transits are second hand they'll have come from vehicle rental companies via auction. When I was in that game we used to send thousands of them to auction every year.
Maybe they have been hanging on to them while prices rose?
Prices on vans rose quite some time ago. When I bought my Vito last Christmas I was aware that I was paying bout 40% more than I would have six months earlier. I was told much of it was due to folk buying nice ones to use as campervans for staycations, and was advised to leave it a year for prices to fall again. But the heart wants what the heart wants :)
Mikeandvan
22-10-2021, 21:26
Used vehicle sellers are the scummiest scum out there, fact. I mean where the fuck else can you spend £15K and have absolutely no guarantee? The law needs to change on this!
Mikeandvan
22-10-2021, 21:27
Ok, may'be they're just like the rest of us and it's the nature of the business? I remain sceptical.
Here we go - get down to Lidl quick :lol:
https://www.bbc.co.uk/news/business-59399754
Pigmy Pony
24-11-2021, 19:23
Here we go - get down to Lidl quick :lol:
https://www.bbc.co.uk/news/business-59399754
:steam: If we fall for that shite we really are a nation of morons and deserve to have our garages and outhouses full of unused booze.
Here we go - get down to Lidl quick :lol:
https://www.bbc.co.uk/news/business-59399754
''In September, Food and Drink Federation (FDF) boss Ian Wright warned that the UK was in for permanent food shortages.''
Not sure what a former footballer would know about it, but if he's correct it should go some way to solving this 'obesity crisis' we're always hearing about.
''In September, Food and Drink Federation (FDF) boss Ian Wright warned that the UK was in for permanent food shortages.''
Not sure what a former footballer would know about it, but if he's correct it should go some way to solving this 'obesity crisis' we're always hearing about.
Nice thought regarding obesity, only trouble is no shortage of sugar and fat
im still able to order my fav whisky so currently not worried. ordered on tuesday evening, and came wed afternoon.. crisis? what crisis;)
soon as we train enough drivers we will be s fat as ever:ner: tesco have reduced there crisps corner to a fraction... gotta be good for fatties. i had to go to asda;)
prestonchipfryer
24-11-2021, 20:13
soon as we train enough drivers we will be s fat as ever:ner: tesco have reduced there crisps corner to a fraction... gotta be good for fatties. i had to go to asda;)
Bought some crinkly crisps at Aldi this morning. Very nice too. As good, if not better than McCoys, and half the price. I think many manufacturers have been 'ripping' us off for many, many years.
Pigmy Pony
24-11-2021, 20:26
Bought some crinkly crisps at Aldi this morning. Very nice too. As good, if not better than McCoys, and half the price. I think many manufacturers have been 'ripping' us off for many, many years.
Why is prestonchipfryer going for crisps at Aldi? Is that like Genuinecornishpastyman going to Greggs? :D
prestonchipfryer
25-11-2021, 09:07
Why is prestonchipfryer going for crisps at Aldi? Is that like Genuinecornishpastyman going to Greggs? :D
https://i.ibb.co/Pgztfbs/chip.jpg (https://imgbb.com/)
:ner: Wrong type of chips.
Pigmy Pony
25-11-2021, 19:10
https://i.ibb.co/Pgztfbs/chip.jpg (https://imgbb.com/)
:ner: Wrong type of chips.
Ouch, I'd need plenty of gravy on that :)
Mikeandvan
25-11-2021, 22:47
not really. folk have not sold many as they cant replace them. top models that are desireble like bmws etc are selling at huge mark ups tho. Many motability folk are having to take their 3 yr lease and extending it to 4 and 5 years as new cars are not available. some companies have kinda bucked trend, as, like kia/hyundai they had stockpiled chips, whereas most were still using the just in time method.
Ev's are getting made more than ice, as the chips are newer and more complex, thus more profitable for chip companies. Many ice cars now are having some of their features removed to keep going as they cant get chips. I think merc have been making cars then putting them in a field to await the final chips to arrive.
its a crazy world.
Well said, for the same reason, used van sales have gone a bit mad, because folks can't wait for the new one's to arrive.
Pigmy Pony
26-11-2021, 07:39
Van prices in recent times have also been driven by demand for campervans/motorhomes as well though, as staycations have become more of a thing.
Powered by vBulletin® Version 4.2.3 Copyright © 2026 vBulletin Solutions, Inc. All rights reserved.