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Thread: "Shortage" the modern way to increase prices

  1. #1
    Join Date: Feb 2013

    Location: Suffolk

    Posts: 1,641
    I'm guy.

    Default "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.



    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-englan...shire-56104281


    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.
    LP12, Ittok (black), DV10X5, NVA Phono 2 (twin supply), NVAP50, Art Audio Quintet 15w power amp, NVA LS5 cable, Rega Ela mk1's.
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  2. #2
    Join Date: Apr 2012

    Location: Southall, West London

    Posts: 48,025
    I'm Geoff.

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    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).
    Conspiracy theories are only perpetuated because people go looking for them!

  3. #3
    Join Date: Feb 2013

    Location: W Lothian

    Posts: 84,992
    I'm Grant.

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    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
    Regards,
    Grant .... ؠ ......Don't be such a big girl's blouse

    I've said it before and I'll say it again: democracy simply-doesn't-work
    .... ..... ...... ...... ................... ..... ..... ..... ..... .....
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    **Ive studied deeply in the philosophies and religions, but cheerfulness kept breaking through**

    "An old man sleeps with his conscience at night, while young kids sleep with their dreams"

    "Justice is sinking to the bottom of the sea, And it feels like I'm living in the wasteland of the free"

    It was the weakest practical joke since Cardinal Wolsey got his nob out at Hampton Court and stood at the end of the passage pretending to be a door!

    I like my whisky old and my women young. "Happiness is having a rare steak, a bottle of whisky, and a dog to eat the rare steak!"

    ***SMILE, BE HAPPY***

  4. #4
    Join Date: May 2010

    Location: Weymouth

    Posts: 3,352
    I'm John.

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    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.
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  5. #5
    Join Date: Aug 2009

    Location: Staffordshire, England

    Posts: 32,598
    I'm Martin.

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    Quote Originally Posted by struth View Post
    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.
    Current Lash Up:

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  6. #6
    Join Date: Feb 2013

    Location: W Lothian

    Posts: 84,992
    I'm Grant.

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    Quote Originally Posted by Macca View Post
    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.
    Regards,
    Grant .... ؠ ......Don't be such a big girl's blouse

    I've said it before and I'll say it again: democracy simply-doesn't-work
    .... ..... ...... ...... ................... ..... ..... ..... ..... .....
    OPPO BDP-103D - PANASONIC UB450 - LEAF HD BLUETOOTH - NURAPHONE' HEADPHONES - 2*ZBOOK'- ROON - MULTI HDD'S -

    **Ive studied deeply in the philosophies and religions, but cheerfulness kept breaking through**

    "An old man sleeps with his conscience at night, while young kids sleep with their dreams"

    "Justice is sinking to the bottom of the sea, And it feels like I'm living in the wasteland of the free"

    It was the weakest practical joke since Cardinal Wolsey got his nob out at Hampton Court and stood at the end of the passage pretending to be a door!

    I like my whisky old and my women young. "Happiness is having a rare steak, a bottle of whisky, and a dog to eat the rare steak!"

    ***SMILE, BE HAPPY***

  7. #7
    Join Date: Jun 2015

    Location: London/Durham

    Posts: 5,226
    I'm Lawrence.

    Default

    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?

  8. #8
    Join Date: Jun 2015

    Location: London/Durham

    Posts: 5,226
    I'm Lawrence.

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    Quote Originally Posted by Macca View Post
    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.

  9. #9
    Join Date: Aug 2009

    Location: Staffordshire, England

    Posts: 32,598
    I'm Martin.

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    Quote Originally Posted by Lawrence001 View 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.
    Current Lash Up:

    *Audiolab 6000CDT* Soncoz SGD-1 * Nelson Pass DCB1 * Krell KSA50s * JM Lab Electra 926 *

  10. #10
    Join Date: Mar 2014

    Location: West Wales

    Posts: 734
    I'm malcolm.

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    Quote Originally Posted by struth View Post
    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
    Audiophile Tosher

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