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Low low low bargain prices ….

We all like a bargain, we all like a bit of discount, money off this, money off that – constantly driving prices down etc. But…. are we all being hoodwinked? I bought a new Audi a few years ago and got myself a ‘sweet deal’ – ten grand off list price.

Hmmm I thought, too good to miss and I bought it on the spot.

Trouble is – this wasn’t a ‘sweet deal’ just for Mike Clough – this was basically a reduced price.

Nobody was buying that Audi at full list price – everyone was getting ten grand off. So really the car wasn’t actually for sale for the price advertised… it should have been shown at the price they were actually selling it for.

What’s the problem you’re thinking?

Well the problem is that when you come to try and sell your car…. it’s not actually worth what you think its worth… because second hand values of these vehicles have plummeted …. because everybody got a discount.

Not only did everybody get a discount but new cars are so heavily discounted that WHY would anybody want your second hand one …when they can have a new one?

So, car dealers are actually just selling more and more new cars and forgetting the second hand market altogether.

A couple of things spring to mind.

  1. From an environmental point of view – building more and more new cars cannot be a good thing.
  2. Are people being encouraged to cars that they can’t really afford? Credit crash anybody…??

I don’t have any answers I’m afraid…. I just see trouble ahead.

 

Mike C