Stocks A to Z / Stocks B / Berkshire Hathaway (BRK.A) ❤
No. of Recommendations: 3
As BRK has dealerships..... I'm confused by what's going on in the market... in the UK
We recently purchased a new car and it's the economics of second hand car prices I'm interested in....
I sold the used car we purchased 7 years ago back to the garage for 10% less than what we paid for it new and they're listing it for sale now 20% above the new price we paid 7 years ago, how does that work!?
Purely inflation and supply and demand? Seems crazy to me on a depreciating asset. It's just a Ford, nothing special.
No. of Recommendations: 1
Same situation in Germany. Yes, purely supply and demand as a car dealer friend (Skoda) can attest to. Supply chain chaos. No chips etc. for building nearly enough new cars, resulting in endless wait times. Customers for new cars therefore instead settling for near new used cars, pushing up their prices. This in turn results in Customers originally wanting to buy near new cars not able to afford them anymore, so settling for older cars, pushing up their prices. Etc. etc.
No. of Recommendations: 1
I've read of a lead in time of 13 months for a Volkswagen petrol and 18 months for an EV?
We ended up buying a stock car about 10% below RRP. Perhaps on average more expensive new cars are relatively well priced as they still need to sell them and second hand cars below £25k are more expensive as there is a lot more demand now below that price point. Interesting.
No. of Recommendations: 1
I sold the used car we purchased 7 years ago back to the garage for 10% less than what we paid for it new and they're listing it for sale now 20% above the new price we paid 7 years ago, how does that work!?
It's certainly unusual but does happen from time to time. My dad bought a tractor for his farm in the mid 1990s, used it for close to 15 years putting over 7500hrs on it (many of those by young me 5mph at a time), and traded it in for $5000 more than he originally paid for it. However, the price of the machine he traded for was nearly double what he paid for the previous one. And, as any good farmer would do, he complained about how much he lost out on tax depreciation. It never rains just enough'
Jeff
