A faltering financial market and a growing pressure on car manufacturers to produce smaller, more efficient vehicles means that people are significantly downgrading their cars. Where the roads were full of 3 litre BMW's, they are now humming to the tune of the electrically driven Prius and the diesel chug of the Polo BlueMotion.
So what does this mean for the budding petrolhead with an empty driveway? Certainly not a new economic super-mini, whose value is now holding up quite nicely, but a big engined, fat tyred, bhp machine. The market is being swamped with high spec machinery and here is the chance to get a piece of it.
The following examples of types of performance vehicles available gives an idea of the depreciation they are currently suffering, and therefore the saving in your pocket, starting with the old favorite, the hot hatch. What with shopping car usability and scruff-of-the-neck fun factor, coupled with reasonable fuel economy and running costs, the hot hatch fits the bill nicely, and the second hand market is overloaded with them.
Hot Hatches
Remember, for someone to buy a high spec car brand new they must be earning a reasonable salary, which probably means they need their car as part of their job, and may travel a large number of miles. Now that belts are being tightened, owning a fast car is no longer a sensible option to them and so it must be sold and replaced. Multiply this scenario by several hundred times and what ensues is a market flooded with hot hatches. This is good for second hand buyers.
A quick glance across the web sees prices of a few months old well-specced hot hatch toppled by around 15-20% compared to the 5-10% that would have been seen a year or so ago. This makes a hot hatch a very tempting buy for someone who wants a nearly-new, warrantied car with enough pace to keep them entertained.
Hot hatches are all very well for someone young and outgoing, but if four doors, luxury interior, all the toys, and supercar pace are required, performance saloons can offer some serious thrills for a vastly reduced sum.
Performance Saloons
Older vehicles have been devalued by their younger siblings, and the credit crunch has further reduced these prices. A car that cost over £50,000 can now be picked up for £14,000. Be aware that, as an older vehicle, care and attention will be required in picking a car. High-powered cars need high tolerance parts, and years of heavy acceleration can prematurely wear them out.
Higher mileage will also mean that the car is closer to more expensive services, which will be dearer in comparison to an average car of the same age. Nonetheless, if the research is done, a good car can be bought for a bargain price.
Newer models are also suffering. Current models that command a price tag of over £60,000 can be found for almost a third of that price for a model a few years old with reasonable mileage. High spec, high power vehicle values are severely suffering at the hands of the recession.
Sportsters
Unfortunately for the more focused petrolhead, sporty two seaters do not seem to be taking as much of a hit as the other vehicles mentioned. Because of the low manufacturing numbers, the rarity can help stabalise their value, making them less of a bargain.
Overall, for someone in the right position, this financial pickle can be a fantastic opportunity to pick up a car that a few years ago was quite out of reach. Every cloud has a silver lining!
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