What does Brexit mean for prices???
Discussion
and to complete the question: or are they going up, as cars are a safe haven investment / more QE in the UK ....
I suspect the direction will be down, but not sure how quickly / if materially in the short term. In the long run the UK could end up being poorer depending on trade restrictions etc and prices might go down as a result
I suspect the direction will be down, but not sure how quickly / if materially in the short term. In the long run the UK could end up being poorer depending on trade restrictions etc and prices might go down as a result
I think for the dozens of overpriced LHD cars sat in the UK it will be interesting to watch as they were hard enough to sell back into Europe before all this. Auctions have been showing a real lack of activity already for the past few months.
Its noticable that whenever there is a strong pound tons of LHD cars come into the UK but not that many seem to go back when the pound weakens. I have sold 2 LHD Ferraris into Europe during previous weak pound cycles and each time I had to price significantly cheaper than stock in Europe to generate any interest. There were no UK buyers at all.
And as we see from Mr Khan's LHD stock there have been a lot of LHD Ferraris sat round for sale anyway over the past 18 months not moving.
Its noticable that whenever there is a strong pound tons of LHD cars come into the UK but not that many seem to go back when the pound weakens. I have sold 2 LHD Ferraris into Europe during previous weak pound cycles and each time I had to price significantly cheaper than stock in Europe to generate any interest. There were no UK buyers at all.
And as we see from Mr Khan's LHD stock there have been a lot of LHD Ferraris sat round for sale anyway over the past 18 months not moving.
cgt2 said:
I think for the dozens of overpriced LHD cars sat in the UK it will be interesting to watch as they were hard enough to sell back into Europe before all this. Auctions have been showing a real lack of activity already for the past few months.
Its noticable that whenever there is a strong pound tons of LHD cars come into the UK but not that many seem to go back when the pound weakens. I have sold 2 LHD Ferraris into Europe during previous weak pound cycles and each time I had to price significantly cheaper than stock in Europe to generate any interest. There were no UK buyers at all.
And as we see from Mr Khan's LHD stock there have been a lot of LHD Ferraris sat round for sale anyway over the past 18 months not moving.
But they're 10% cheaper for Europeans now so should sell much easier I would have thought?Its noticable that whenever there is a strong pound tons of LHD cars come into the UK but not that many seem to go back when the pound weakens. I have sold 2 LHD Ferraris into Europe during previous weak pound cycles and each time I had to price significantly cheaper than stock in Europe to generate any interest. There were no UK buyers at all.
And as we see from Mr Khan's LHD stock there have been a lot of LHD Ferraris sat round for sale anyway over the past 18 months not moving.
cgt2 said:
I think for the dozens of overpriced LHD cars sat in the UK it will be interesting to watch as they were hard enough to sell back into Europe before all this. Auctions have been showing a real lack of activity already for the past few months.
Its noticable that whenever there is a strong pound tons of LHD cars come into the UK but not that many seem to go back when the pound weakens. I have sold 2 LHD Ferraris into Europe during previous weak pound cycles and each time I had to price significantly cheaper than stock in Europe to generate any interest. There were no UK buyers at all.
And as we see from Mr Khan's LHD stock there have been a lot of LHD Ferraris sat round for sale anyway over the past 18 months not moving.
for me personally like for like a UK car would have to be at least 15% cheaper than a German one for me to contemplate it. And I think I am more willing to buy in the UK than an "average" German as I lived in the UK / have a flat / know specialists who could do PPI and help with export plates etc.Its noticable that whenever there is a strong pound tons of LHD cars come into the UK but not that many seem to go back when the pound weakens. I have sold 2 LHD Ferraris into Europe during previous weak pound cycles and each time I had to price significantly cheaper than stock in Europe to generate any interest. There were no UK buyers at all.
And as we see from Mr Khan's LHD stock there have been a lot of LHD Ferraris sat round for sale anyway over the past 18 months not moving.
I would not consider buying from any other European market - pretty much regardless of price - as I do not know anybody there / not comfortable spending this much money in a country where i don't even speak the language
So in summary - yeah I can see how it is difficult to shift LHD cars in the UK if you do not have enough UK based buyers
Edit: And I would still want a discount on a car for sale in Germany which has been outside Germany at some point during its life. Germans - just like the English - don't like to buy cars which are not in and have always been in their homecountry.
I am not as fussed about "perfect" service history as the Brits are though
Edited by MDL111 on Friday 24th June 13:07
bryn_p said:
But they're 10% cheaper for Europeans now so should sell much easier I would have thought?
Which was what I thought too but in practice as mentioned in the subsequent post, they seem to be very reluctant to buy from the UK even at a greater saving. It will be interesting to see what happens now. cgt2 said:
Which was what I thought too but in practice as mentioned in the subsequent post, they seem to be very reluctant to buy from the UK even at a greater saving. It will be interesting to see what happens now.
My experience is the opposite, although the cars do have to be priced correctly, i.e.. significantly less than in Europesimonr100 said:
I think LHD will take a large hit.
Err care to substantiate this? Taking out Brexit, LHD are priced accordingly. The ratio of LHD to RHD is tiny and so the market place is I would say healthy / sustainable (I know of two dealers that cant find good LHD Ferrari's quick enough for clients). Bring Brexit back in and over the long term you could argue that LHD & RHD prices could firm up / rise, as follows:a. The ability to easily raid Europe for cars and lean on CCY fluctuations is over. Simple supply and demand rules apply and when the tap is turned down and the number of units available steadies then that would support prices.
b. If buyers still wanted to head to Europe for a LHD car then it's suddenly become much more expensive for like for like purchases. Now it's price of car + import duty + VAT + paperwork. This again would throttle back numbers coming / supply and demand of UK registered cars apply = overall better supported prices.
Personally I think you could do worse than wait for Stirling to recover (and it will) and then (while you still can) pick up something rare and sporty in LHD and play the long game...
Slickhillsy said:
Err care to substantiate this? Taking out Brexit, LHD are priced accordingly. The ratio of LHD to RHD is tiny and so the market place is I would say healthy / sustainable (I know of two dealers that cant find good LHD Ferrari's quick enough for clients). Bring Brexit back in and over the long term you could argue that LHD & RHD prices could firm up / rise, as follows:
a. The ability to easily raid Europe for cars and lean on CCY fluctuations is over. Simple supply and demand rules apply and when the tap is turned down and the number of units available steadies then that would support prices.
b. If buyers still wanted to head to Europe for a LHD car then it's suddenly become much more expensive for like for like purchases. Now it's price of car + import duty + VAT + paperwork. This again would throttle back numbers coming / supply and demand of UK registered cars apply = overall better supported prices.
Personally I think you could do worse than wait for Stirling to recover (and it will) and then (while you still can) pick up something rare and sporty in LHD and play the long game...
LHD have been brought into this country to try to make money as RHD are in lower supply and more expensive.a. The ability to easily raid Europe for cars and lean on CCY fluctuations is over. Simple supply and demand rules apply and when the tap is turned down and the number of units available steadies then that would support prices.
b. If buyers still wanted to head to Europe for a LHD car then it's suddenly become much more expensive for like for like purchases. Now it's price of car + import duty + VAT + paperwork. This again would throttle back numbers coming / supply and demand of UK registered cars apply = overall better supported prices.
Personally I think you could do worse than wait for Stirling to recover (and it will) and then (while you still can) pick up something rare and sporty in LHD and play the long game...
Look at Khan who can't sell LHD for years with massive stock.
With Sterling falling sure they are cheaper in say Euros but those buying will want to buy at lower prices than people like Kahn bought for let alone their profit. Then there is the hastle of viewing and exporting from another country etc. If I were to buy a foreign RHD car from sayJapan I would want to purchase it far cheaper than a RHD here to take account of viewing/ export/delays/registration etc.
Of course long term it will all sort itself out but LHD in the UK for all but the rarest of cars has always been a poor mans game- people buy as they are cheaper. Very different to buying a LHD to use in your holiday home abroad etc.
simonr100 said:
Of course long term it will all sort itself out but LHD in the UK for all but the rarest of cars has always been a poor mans game- people buy as they are cheaper. Very different to buying a LHD to use in your holiday home abroad etc.
Or in the case of LHD modern classics from Japan for example, because they're in better condition. Or in the case of classic Ferraris, because the driving position is better. etc etc. Lots of reasons people buy LHD besides the price
I'd love to know who they are too..Hollowpockets said:
LHD cars will drop but can't see any reason why a RHD car should drop if it's being bought/sold in the UK.
It depends on the economy - if interest rates go up and some people struggle they might. If we go into a big recession they will take a huge hit. If people panic and see shares falling they might panic sell thinking cars might fall too or they might panic buy seeing cars as a safe haven.Time will tell but I see a decent fall by October or so - 20%
This went for £35,000 yesterday before today's news.
http://classiccars.brightwells.com/viewdetails.php...
http://classiccars.brightwells.com/viewdetails.php...
cgt2 said:
This went for £35,000 yesterday before today's news.
http://classiccars.brightwells.com/viewdetails.php...
+fees etc I assumehttp://classiccars.brightwells.com/viewdetails.php...
LHD cars have just become more expensive to purchase in Europe with the pound weakening.
A car bought in Euro's and imported last week for £80k would cost closer to £90k now so there are some expensive looking LHD cars at dealers now. These will have to come down in price with the dealer potentially making a loss to offload.
Going forward who knows what will happen but LHD versus RHD wont look so appealing for sure
A car bought in Euro's and imported last week for £80k would cost closer to £90k now so there are some expensive looking LHD cars at dealers now. These will have to come down in price with the dealer potentially making a loss to offload.
Going forward who knows what will happen but LHD versus RHD wont look so appealing for sure
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