It is possible that we will now see a list price ‘vacuum’ between £35,000 and £40,000

1615 Views 8 Replies 4 Participants Last post by SoulGW, Mar 30, 2021

Alessandro Volta of Como

Discussion Starter · Mar 28, 2021

Quote from Global senior forecasting editor at AM, Dylan Setterfield

He added: “It is possible that we will now see a list price ‘vacuum’ between £35,000 and £40,000 in the same way that we saw one develop between £50,000 and £55,000 under the previous scheme, whilst at the other end of the price bracket we expect some list price inflation for those vehicles which were previously constrained by the £50,000 limit and this could benefit used values in a small number of cases.

“The biggest factor that is likely to influence used car supply and demand in the future is the availability of supply of new cars.

Read the full thing at this link,

Plug-in car grant car changes to have 'no overriding impact' on used EV values

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SoulGW

· #2 · Mar 28, 2021

I agree, often happens with any “cut off” threshold.

Looking at the structure of the grant, what’s likely to happen I think is rather than “levels” or “models” we will see a base car at £34995 and then you will add an “equipment pack” to upspec it - this means they aren’t models in their own right, but “options” which are allowed under the rules.....

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jimbobjoe

· #3 · Mar 29, 2021

Or keep things as they are, cut prices hugely, and then make metallic paint £10k

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SoulGW

· #4 · Mar 29, 2021

How would that help?

Everyone would have a solid colour, the manufacturer would lose money and have to re-do the prices all over again?

I realise you may be being ironic or something - but upping the spec with options has been mentioned in the thread a few times.

Very odd answer.....

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Silverage

· #5 · Mar 29, 2021

One to watch here is Skoda with their Enyaq. The new £35,000 grant ceiling has nicely bisected their range with the 60 models still getting the grant and the 80 models not. There was already a £5000 price difference between the two when they all qualified for the grant, now that difference is £7500 and looks ridiculous.

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jimbobjoe

· #6 · Mar 30, 2021

SoulGW said:
How would that help?

Everyone would have a solid colour, the manufacturer would lose money and have to re-do the prices all over again?

I realise you may be being ironic or something - but upping the spec with options has been mentioned in the thread a few times.

Very odd answer.....

Yes, I was being 'funny'.
But having seen the price some manufacturers charge for paint, maybe not (£2k for a red model 3).

I hope they come up with a better answer though. I hate when the 'build your own car' feels like you actually are.
I have an Eniro, and it had came in 3 flavours. Pick one, job done.
The endless list of options that bmw/mini/audi/mb/vw etc do feels like a money grabbing exercise.
I looked at the Enyaq. Car starts at under £32k, but with a few mouse clicks I'm looking at over £40k.
It doesn't feel honest to me.
And now to contradict myself, I do like a few choices (I don't like sunroofs, but that came as part of my trim level).
But they've gone too far with it.

I haven't run the numbers, but I do wonder whether this option game actually save you money anyway.
Sure, you miss out on the grant if the car trim level includes all the toys, but adding options to a car doesn't massively increase the 2nd hand value, and looks like options costs are loaded directly into leasing prices.
Anyone compared leasing prices of a loaded Enyaq vs basic?

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SoulGW

· #7 · Mar 30, 2021

Lease calculators can't factor in options, so fit 10 options to a car that are standard on the next model up and it will cost vastly more on a lease.....

For the best example of that, with the e-Corsa the Elite Nav (top of the range) is the cheapest to lease, due to discounts and higher residuals......

So - as a rule, its cheaper to buy the model just over the spec you want than buy a lower one and spec it up.

The issue is if you want one feature only on the top model you are buying a lot of other stuff you don't want....

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jimbobjoe

· #8 · Mar 30, 2021

Yes. My point being if you buy/lease the base model to qualify for the PiCG and then add options to get it back to the trim level you wanted, do you end up paying the same/more than foregoing the grant and getting the model you originally wanted?

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SoulGW

· #9 · Mar 30, 2021

Think you'd just have to try both....

I suspect the higher spec car would be cheaper than the one with lots of options.

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