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Why are used cars so expensive?

With banks and finance houses repossesing up to 6000 cars a month, there is a glut of used cars on the market. Just drive on any road where 2nd hand dealerships are, and see the amount of used cars for sale. And they are all extremely expensive. Where is the supply / demand factor? One would have thought that bargains would be the order of the day...Comments? 64 mths ago

Best Answer

Agree with you on this one,it seems as if the prices are being jacked up.In the UK the same cars are sold for about half the price,in the USA even less.I ask why should a 10yr BMW 5 series sell for R150k its nonsense.Owners put emotional values to cars and we just kak and betaal.When a car gets traded in the dealer sells the car at twice the price he paid for it.Its up to us the public to force the prices down.

64 mths ago

Answers -

Greed Proffie, Greed. Second hand dealers of any product buy low, very low and sell at between 100-300% profit. That I think is why many of these Chinese brands are now available on the market, mainly to compete with rising second hand costs. You'd think that you may even benefit from auctioneers, this is not the case any more. They have this booklet that determines a models resale , trade in prices, but never take into account other factors as well. It simply comes down to greed.

64 mths ago

Grat Q - even new cars are v expensive in SA. And with the drop in sales I would have though that even they would be having really great specials going. Cant wait for the car guys to answer.

64 mths ago

Very good question.

64 mths ago

You said it the demand is there for the cars!! So as long as there is demand they can do what they want because they will still be able to sell it for that price!!! TYE IS TAAI!!! As soon as demand goes down, prices go down!!

64 mths ago

Agree 100%. We are being ripped off !

64 mths ago

Good Question. Car prices are guided by a booklet, giving guidelines to second hand prices of vehicles over 1 year old. Cars are then put up for sale at book prices. If a car is sold for more than the book price, there needs to be a very good reason for this (little km's on the clock, extra's etc.) But remember, the advertised price is only asking price, you can always negotiate. The current economic crisis mainly effects the sales of new vehicles. Second hand cars are now in demand so you will not see second hand cars' prices drop too much.

64 mths ago

Good question. It can only be greed. The second-hand car dealers are a little slow and are following policies they have used for many years. They have not realised that people really will not buy, because they can't afford to. They will eventually wake up, and put prices down one would think. What would be the point in having no sales at all. It is the same with the real estate market -- agent companies were in denial for a long time but eventually were forced to face reality. I think about 45% of real estate agents closed shop. Eventually, surely the second-hand motorcar business will come to their senses -- or go out of business.

64 mths ago

Folks can't afford new cars anymore and the second hand sharks know this. Say you can afford to spend R80,000 on a car but you need (want) an air con, power steering and abs. What do end up doing - buying a 2002 Toyota Corolla with 90,000km on the clock for R79,000 and you somehow feel like it was a great deal. Same logic with renting vs. buying a house.

64 mths ago

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