Advice on how to deal with windfall please

By chance was driving past a dealer today:

04 Mondeo LX 1.8 - 7,995 04 Mondeo Zetec - 8,995 04 Mondeo 2.0 TD Ghia 10,995

All were metallic - one blue, the LX, and two silvers. All seemed to be immaculate inside and out. Looked like brand new cars to me.

I strongly advise reading Whatcar's monthly round up of what the second hand car market is doing.

Manufacturers are churning out vast numbers of cars now not just into fleets, which change their cars more frequently nowadays, (It is a 'pub' myth that ex-fleet cars are no good - most do motorway mileage, are serviced at correct intervals and are often changed before they get anywhere near the high mileage that fleet cars of yesterday used to get to.), but also via pre-registering cars in vast numbers. They do this to maintain their position in the sales league and to turn over volume.

You also have online brokers who buy in bulk and hence the secondhand car market has seen prices plummeting. No need to believe me - go and read Whatcar's own articles on the subject.

Bottom line being that too many cars are being produced.

This should have our Cantabrian statistician down on you like a ton of bricks.

Your statistics will tell you the expected value of a given type of car, but you cannot expect to know the value of a given actual car, much less convince someone else that you do, least of all a car salesman.

"Nebulous" wrote

Whether it's moderns or classics, I find the magazines always understate what the real values are. Frex, I have a Triumph Stag which the magazines insist would go for 8,000 in immaculate condition. I must have examined a hundred of these looking to buy one ove rthe last few years and frankly that number is about 100% off, i.e. you would pay double that. I think it is a combination of seeing too many cars at auction, cynicism about their true condition, and bravado ("You paid what? I woulda got it for half that...").

There is probably a certain amount of animosity towards things like Mondeos anyway because they are Fords. There are IIRC more 3-series BMWs made than Mondeos, making the BM a volume car, but journalists buy the hype like any mug punter.

Of course there is overcapacity in all manufacturing industries. I can only think of one offhand where there's a shortage of capacity (oil refining). Everyone else is producing too much of everything.

"Ronald Raygun" wrote

:-)

No need - you got there first (thanks) !

mathematical pedants...don't you just love 'em?! ;)

RM

"Reestit Mutton" wrote

Well, if you try to teach your grandmother to suck eggs, then expect her to give you the full extent of her much vaster experience on the subject!

Just to say a great big thank you to the group, for the info about car buying as well as what to do with the remaining money. The ensuing conversations were also very interesting and opened my eyes. It's all been really helpful. Thanks again to all who contributed.

Liz