What does Brexit mean for prices???
Discussion
RamboLambo said:
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
I doubt anyone in the UK will be looking to buy LHD from Europe any more. The only reason for the rush two years ago was because the pound made it so cheap to buy. 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
The question now is whether all the lefties here will go back to Europe. I dont think they will unless massively cheaper than cars over there as I have experienced before.
My 2011 RHD 599 GTO (bought new by me in the UK) was 330K list. By the end of 2011, its value had slipped 10%. Then in late 2012 the market went nuts. Today it's worth a tad more than 330K. The market went nuts because a ton of free money was sloshing around, the world economy was still fragile and interest rates were on the floor.
Earlier this year the market began cooling off. Less so for the likes of a RHD GTO but still cooler than late 2014.
But now Brexit. Truthfully I woke this morning and I'm still in shock. Giving the keys of my GTO to a 17 year old who is obsessed with speed and has just passed their test is nothing to the risk we're taking with Brexit.
To the OP's question, the only consolation of our epic Brexit bungy jump is the value of value of my GTO has just considerably hardened.
Earlier this year the market began cooling off. Less so for the likes of a RHD GTO but still cooler than late 2014.
But now Brexit. Truthfully I woke this morning and I'm still in shock. Giving the keys of my GTO to a 17 year old who is obsessed with speed and has just passed their test is nothing to the risk we're taking with Brexit.
To the OP's question, the only consolation of our epic Brexit bungy jump is the value of value of my GTO has just considerably hardened.
I keep an eye on the market, but buying when not living in the UK I would want a significant discount. There are quite some costs registering a car here in the Netherlands incl some taxes to pay. Also the risk of buying a lemon is greater i feel as you have less time to inspect etc. And we all know there are some not so nice high end car salesmen in the game.
RamboLambo said:
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
I do love the logic of this argument. How can it ever be a negative to sit with LHD stock in the UK if the pound has just dived 10 pct ?. The UK dealer should consider himself lucky !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
If a dealer sits with LHD stock over here that is a better currency hedge than sitting with any RHD stock at the moment. He could just turn around and sell the car back to the Continent and make a 10 pct gain on the currency less his costs here and then !
hornbaek said:
I do love the logic of this argument. How can it ever be a negative to sit with LHD stock in the UK if the pound has just dived 10 pct ?. The UK dealer should consider himself lucky !
If a dealer sits with LHD stock over here that is a better currency hedge than sitting with any RHD stock at the moment. He could just turn around and sell the car back to the Continent and make a 10 pct gain on the currency less his costs here and then !
If you are right then we can expect Khan to have no stock left very soon rather than the stock he hasn't been able to sell for 2 years.......If a dealer sits with LHD stock over here that is a better currency hedge than sitting with any RHD stock at the moment. He could just turn around and sell the car back to the Continent and make a 10 pct gain on the currency less his costs here and then !
I've got 3 LHD cars, one of which is for sale.
uK market has been slowing down anyway (for everything), but before long the differential exchange rate will make UK cars, esp LHD, very attractive to foreign buyers. RHD cars just became worth less (not worthless), whereas LHD cars have become more sub-prime in UK, but more affordable abroad.
That's what's happened in the past,and will happen again. History repeats itself, as the bandwagon jumpers who said 'it's different this time' are about to find out,
uK market has been slowing down anyway (for everything), but before long the differential exchange rate will make UK cars, esp LHD, very attractive to foreign buyers. RHD cars just became worth less (not worthless), whereas LHD cars have become more sub-prime in UK, but more affordable abroad.
That's what's happened in the past,and will happen again. History repeats itself, as the bandwagon jumpers who said 'it's different this time' are about to find out,
All very amusing...
Sounds like many here are basing a whole (LHD) market segment off the (poor) performance of one dealer. LHD market has been alive and well in the UK for decades. If you know how to buy and import then the savings can but handsome whilst still enjoying 100% of the experience, especially if the car is used for many euro hoons - also avoid that notable pedal offset you get in RHD cars.
The inescapable fact is that once (if?
) Brexit happens the ability to simply fly in, buy and drive home without avoiding some kind of duties and or taxation will have ended. Net result of that is the supply of LHD cars could / will most certainly dry up as it becomes 'less' economically attractive / beneficial to do so over buying RHD. So with a net drop in units available (aka less being imported) both RHD and LHD prices should remain healthy.
Note I've not mentioned any CCY volatility and just assume long term Stirling / Euro remains acceptable.
Really see now issue, as someone else mentioned everything seems to be cooling now anyways - bout time too in my book as prices are a. Boring and b. crazy - much rather a slow down than a correction...
Sounds like many here are basing a whole (LHD) market segment off the (poor) performance of one dealer. LHD market has been alive and well in the UK for decades. If you know how to buy and import then the savings can but handsome whilst still enjoying 100% of the experience, especially if the car is used for many euro hoons - also avoid that notable pedal offset you get in RHD cars.
The inescapable fact is that once (if?
) Brexit happens the ability to simply fly in, buy and drive home without avoiding some kind of duties and or taxation will have ended. Net result of that is the supply of LHD cars could / will most certainly dry up as it becomes 'less' economically attractive / beneficial to do so over buying RHD. So with a net drop in units available (aka less being imported) both RHD and LHD prices should remain healthy.Note I've not mentioned any CCY volatility and just assume long term Stirling / Euro remains acceptable.
Really see now issue, as someone else mentioned everything seems to be cooling now anyways - bout time too in my book as prices are a. Boring and b. crazy - much rather a slow down than a correction...
Slickhillsy said:
All very amusing...
Sounds like many here are basing a whole (LHD) market segment off the (poor) performance of one dealer. LHD market has been alive and well in the UK for decades. If you know how to buy and import then the savings can but handsome whilst still enjoying 100% of the experience, especially if the car is used for many euro hoons - also avoid that notable pedal offset you get in RHD cars.
The inescapable fact is that once (if?) Brexit happens the ability to simply fly in, buy and drive home without avoiding some kind of duties and or taxation will have ended. Net result of that is the supply of LHD cars could / will most certainly dry up as it becomes 'less' economically attractive / beneficial to do so over buying RHD. So with a net drop in units available (aka less being imported) both RHD and LHD prices should remain healthy.
Note I've not mentioned any CCY volatility and just assume long term Stirling / Euro remains acceptable.
Really see now issue, as someone else mentioned everything seems to be cooling now anyways - bout time too in my book as prices are a. Boring and b. crazy - much rather a slow down than a correction...
just converted some euros to sterling in preparation of going car shopping at some point (once I am sure my business will not implode ....). Sounds like many here are basing a whole (LHD) market segment off the (poor) performance of one dealer. LHD market has been alive and well in the UK for decades. If you know how to buy and import then the savings can but handsome whilst still enjoying 100% of the experience, especially if the car is used for many euro hoons - also avoid that notable pedal offset you get in RHD cars.
The inescapable fact is that once (if?
) Brexit happens the ability to simply fly in, buy and drive home without avoiding some kind of duties and or taxation will have ended. Net result of that is the supply of LHD cars could / will most certainly dry up as it becomes 'less' economically attractive / beneficial to do so over buying RHD. So with a net drop in units available (aka less being imported) both RHD and LHD prices should remain healthy.Note I've not mentioned any CCY volatility and just assume long term Stirling / Euro remains acceptable.
Really see now issue, as someone else mentioned everything seems to be cooling now anyways - bout time too in my book as prices are a. Boring and b. crazy - much rather a slow down than a correction...
cgt2 said:
FrankAbagnale said:
Could you PM me or reply with the names? I am about to sell my LHD 430.
Presumably not a certain Mr Khan of Bradford? 
I'd love to know who they are too..I know they've sold a LHD red 430 Scud for strong money recently and after collection mine post service and congratulating them on the sale they said another was imminently inbound and couldn't get enough stock...
Sounds a healthy market to me...
Slickhillsy said:
cgt2 said:
FrankAbagnale said:
Could you PM me or reply with the names? I am about to sell my LHD 430.
Presumably not a certain Mr Khan of Bradford? I'd love to know who they are too..I know they've sold a LHD red 430 Scud for strong money recently and after collection mine post service and congratulating them on the sale they said another was imminently inbound and couldn't get enough stock...
Sounds a healthy market to me...
I agree that Kahn is something of an anomaly but all the evidence from recent auctions suggests many cars are sticking. And it's not just rubbish (though there is a lot of that), some very nice cars too.
Witness the very tidy white ex-Swiss 328 that was punted around from auctions to dealers over the past six months as well as many other LHD cars that have littered the adverts for months. The 328 I saw myself and it is probably in better condition than any other on the market. Last time it went to auction it failed to raise bids at even £55k. This was the first sign for me that things have changed as a year ago that car would most likely have sold immediately somewhere north of £80k.
Likewise another ex-Swiss 360 that has now been on the market for nearly 18 months. Another very clean car (easily identifiable as the same car, it has plastic on the carpets). This car was definitely for sale in Feb 2015 at £49,995.
http://www.knowlhill.com/showroom/detail/167-ferra...
Witness the very tidy white ex-Swiss 328 that was punted around from auctions to dealers over the past six months as well as many other LHD cars that have littered the adverts for months. The 328 I saw myself and it is probably in better condition than any other on the market. Last time it went to auction it failed to raise bids at even £55k. This was the first sign for me that things have changed as a year ago that car would most likely have sold immediately somewhere north of £80k.
Likewise another ex-Swiss 360 that has now been on the market for nearly 18 months. Another very clean car (easily identifiable as the same car, it has plastic on the carpets). This car was definitely for sale in Feb 2015 at £49,995.
http://www.knowlhill.com/showroom/detail/167-ferra...
Edited by cgt2 on Tuesday 28th June 14:44
Surely the weakening £ will mean LHD cars will now go abroad rather than being imported.
Interest rates have already started to drop, not base rate but actual rate payable for long-term money in the market.
For those investing in the multiple £M+ investment cars money has got cheaper and hence may well mean prices continue to rise.
20 year fixed rate money was about 2.7% a year ago and is now around 1.6% and that's FIXED RATE money not variable!
Interest rates have already started to drop, not base rate but actual rate payable for long-term money in the market.
For those investing in the multiple £M+ investment cars money has got cheaper and hence may well mean prices continue to rise.
20 year fixed rate money was about 2.7% a year ago and is now around 1.6% and that's FIXED RATE money not variable!
I agree with 100IAN. The price of borrowing has come down and allegedly so will interest rates. House prices are less stable which means people may not move house but if they have access to funds they will either extend their homes or possibly buy that car they always promised themselves.
I think car prices will not go down as there is no-where left to invest without high risks. The rental market / BTL is now too heavily taxed and stamp duty has increased, therefore property investment will slow down. Combine this with lower interest rates for savings and what do you do if you have a few hundred thousand to invest and do not want to play the markets or extend your home? Buy a car of course! Therefore prices may go up? However I am not an expert and this is not my field so I am sure others will have a different opinion.
I think car prices will not go down as there is no-where left to invest without high risks. The rental market / BTL is now too heavily taxed and stamp duty has increased, therefore property investment will slow down. Combine this with lower interest rates for savings and what do you do if you have a few hundred thousand to invest and do not want to play the markets or extend your home? Buy a car of course! Therefore prices may go up? However I am not an expert and this is not my field so I am sure others will have a different opinion.
IMO, the RHD market has been mispriced for a long time, because enough people in UK had free cash and no debt or low interest costs. Also, a culture of 'flash' and no CGTax.
However, the free cash pile (and associated optimistic outlook) soon gets smaller or less disposable when the economy and property etc go backwards, and certainty of future earnings decreases.
The pendulum wil swing away from the RHD market IMO, and given where the pendulum has been, that will mean a crash in UK prices. It had already begun, and Brexit will speed it up. I'd add that prices are coming down worldwide (pre-Brexit), but RHD has further to fall as even more illogically high.
Having said all that, who knows how much more helicopter money will get thrown at us now, so maybe I'm completely wrong,and the asset bubbles will inflate further, just can't see it though, as the effect of intervention is becoming less each time.
However, the free cash pile (and associated optimistic outlook) soon gets smaller or less disposable when the economy and property etc go backwards, and certainty of future earnings decreases.
The pendulum wil swing away from the RHD market IMO, and given where the pendulum has been, that will mean a crash in UK prices. It had already begun, and Brexit will speed it up. I'd add that prices are coming down worldwide (pre-Brexit), but RHD has further to fall as even more illogically high.
Having said all that, who knows how much more helicopter money will get thrown at us now, so maybe I'm completely wrong,and the asset bubbles will inflate further, just can't see it though, as the effect of intervention is becoming less each time.
Edited by footsoldier on Tuesday 5th July 16:58
simonr100 said:
hornbaek said:
I do love the logic of this argument. How can it ever be a negative to sit with LHD stock in the UK if the pound has just dived 10 pct ?. The UK dealer should consider himself lucky !
If a dealer sits with LHD stock over here that is a better currency hedge than sitting with any RHD stock at the moment. He could just turn around and sell the car back to the Continent and make a 10 pct gain on the currency less his costs here and then !
If you are right then we can expect Khan to have no stock left very soon rather than the stock he hasn't been able to sell for 2 years.......If a dealer sits with LHD stock over here that is a better currency hedge than sitting with any RHD stock at the moment. He could just turn around and sell the car back to the Continent and make a 10 pct gain on the currency less his costs here and then !
100 IAN said:
Surely the weakening £ will mean LHD cars will now go abroad rather than being imported.
Interest rates have already started to drop, not base rate but actual rate payable for long-term money in the market.
For those investing in the multiple £M+ investment cars money has got cheaper and hence may well mean prices continue to rise.
20 year fixed rate money was about 2.7% a year ago and is now around 1.6% and that's FIXED RATE money not variable!
^^this^^Interest rates have already started to drop, not base rate but actual rate payable for long-term money in the market.
For those investing in the multiple £M+ investment cars money has got cheaper and hence may well mean prices continue to rise.
20 year fixed rate money was about 2.7% a year ago and is now around 1.6% and that's FIXED RATE money not variable!
Even more foreigners are buying up UK housing stock
Having sold my 430 the week before brexit .............. I'm delighted , as the market was overheated , and forget all this nonesense over a slight dip - lol
If we go into a recession and the housing market tanks , I will be able to buy my car back for a lot less .
But in all seriousness - rare cars are collectable and should be ok .... Long term .
However , not all ferraris are rare and many were made in their thousands 👀
Cars normally deprecate and a Ferrari is no different !
If we go into a recession and the housing market tanks , I will be able to buy my car back for a lot less .
But in all seriousness - rare cars are collectable and should be ok .... Long term .
However , not all ferraris are rare and many were made in their thousands 👀
Cars normally deprecate and a Ferrari is no different !
cgt2 said:
Interesting, I have direct knowledge of three cancellations before completion in the past two weeks. I know at least two of those were foreign buyers who got the jitters post Brexit.
seems to be area specific. Some of the hotspots have become even hotter, much to my amazement Gassing Station | Supercar General | Top of Page | What's New | My Stuff