Pendragon in trouble?
Discussion
p4cks said:
Ah yes, blaming Brexit for your business failing. Superb leadership.
They're not blaming Brexit, but the uncertainty around it. They're not the first business to say they're finding potential customers are holding off from making large purchases until they know what the future plans actually are.rscott said:
... they're finding potential customers are holding off from making large purchases until they know what the future plans actually are.
Which again I find a pretty weak argument from them. The people coming to the end of their lease deals are doing what, exactly? Buying a shed? Unlikely. Getting a new lease deal? Likely. They're just obviously not choosing to go to Pendragon for their lease deal. (I'm not aiming the question at you, I just think it's b
ks that companies and people are allowed to bandy this excuse around without thinking about the actual process for Joe Bloggs)We seem to hear 'Brexit uncertainty' and just accept it, without actually understanding the actual issue behind lower sales from a company. Retail is increasingly challenging but blaming 'Brexit uncertainty' is taking the absolute piss. If the press came to me to ask about my declining eBay sales am I allowed to tell them 'Brexit uncertainty' and then send them on their way? You can bet your arse that the sales people in the sales review meetings don't use 'Brexit uncertainty' and have their managers accept it.
People are holding off buying.
That is for a number of reasons.
The delays and uncertainty over the Brexit process are definitely a factor.
Worries over the our economy and the global economy are involved.
Wage stagnation combined with rising costs have had some effect on large purchases. Did council tax ever stop rising throughout the decade of wage stagnation, for example?
The advent of the electrification of cars is another factor, waiting to ensure that the right engine is chosen and trying not to buy the car that will end up pretty outdated very quickly. Waiting for an electric car with the right range is available, will it be next month, will it come in three years? Will the infrastructure be in place to support that car or will it prove impractical?
There's also the diesel fiasco and worries of further negative developments with that fuel.
That is for a number of reasons.
The delays and uncertainty over the Brexit process are definitely a factor.
Worries over the our economy and the global economy are involved.
Wage stagnation combined with rising costs have had some effect on large purchases. Did council tax ever stop rising throughout the decade of wage stagnation, for example?
The advent of the electrification of cars is another factor, waiting to ensure that the right engine is chosen and trying not to buy the car that will end up pretty outdated very quickly. Waiting for an electric car with the right range is available, will it be next month, will it come in three years? Will the infrastructure be in place to support that car or will it prove impractical?
There's also the diesel fiasco and worries of further negative developments with that fuel.
rscott said:
They're not blaming Brexit, but the uncertainty around it. They're not the first business to say they're finding potential customers are holding off from making large purchases until they know what the future plans actually are.
Indeed, which is why HoC need to see through the fog they have generated and work for aleave deal. The longer this debacle goes on the more damage they are creating.
anonymous said:
[redacted]
Do you have any stats to back this up?The stats from SMMT don't back up your theory regarding new car sales, or Pendragon's:
Are we spending more money on just cars then? Nope, here's retail spending:
OK but we're not taking as many holidays, are we? Erm, yes we are.
https://www.ons.gov.uk/peoplepopulationandcommunit...
https://www.statista.com/statistics/480184/average...
You can maybe understand why I'm hugely sceptical when ';Brexit uncertainty' is stated, as it's often hiding other more serious problems/
p4cks said:
Which again I find a pretty weak argument from them. The people coming to the end of their lease deals are doing what, exactly? Buying a shed? Unlikely. Getting a new lease deal? Likely. They're just obviously not choosing to go to Pendragon for their lease deal.
(I'm not aiming the question at you, I just think it's bks that companies and people are allowed to bandy this excuse around without thinking about the actual process for Joe Bloggs)
We seem to hear 'Brexit uncertainty' and just accept it, without actually understanding the actual issue behind lower sales from a company. Retail is increasingly challenging but blaming 'Brexit uncertainty' is taking the absolute piss. If the press came to me to ask about my declining eBay sales am I allowed to tell them 'Brexit uncertainty' and then send them on their way? You can bet your arse that the sales people in the sales review meetings don't use 'Brexit uncertainty' and have their managers accept it.
Most businesses don't like uncertainty, financial markets don't like uncertainty and the current impasse over Brexit leads to uncertainty. It's nothing to do with being a Remainer or a Leaver, it's just a fact and some sectors will be more exposed than others, just as some companies will fare better than others. I think the time for basket case companies blaming Brexit has long past, pretty much the whole motor sales sector is struggling at the moment and Brexit uncertainty is a key factor. I would hope that in a few weeks time we will know the score and people can start to make decisions and move on.(I'm not aiming the question at you, I just think it's b
ks that companies and people are allowed to bandy this excuse around without thinking about the actual process for Joe Bloggs)We seem to hear 'Brexit uncertainty' and just accept it, without actually understanding the actual issue behind lower sales from a company. Retail is increasingly challenging but blaming 'Brexit uncertainty' is taking the absolute piss. If the press came to me to ask about my declining eBay sales am I allowed to tell them 'Brexit uncertainty' and then send them on their way? You can bet your arse that the sales people in the sales review meetings don't use 'Brexit uncertainty' and have their managers accept it.
Sales volumes, turnover, do not equate either to units sold, or profits made.
I'd also guess the used market is less rosy and that many dealers have taken a good thumping on their used inventory. Certainly, I have a mate who works for a large, main franchise dealer who says things are far from cheerful.
I'd also guess the used market is less rosy and that many dealers have taken a good thumping on their used inventory. Certainly, I have a mate who works for a large, main franchise dealer who says things are far from cheerful.
p4cks said:
anonymous said:
[redacted]
Do you have any stats to back this up?The stats from SMMT don't back up your theory regarding new car sales, or Pendragon's:
Are we spending more money on just cars then? Nope, here's retail spending:
OK but we're not taking as many holidays, are we? Erm, yes we are.
https://www.ons.gov.uk/peoplepopulationandcommunit...
https://www.statista.com/statistics/480184/average...
You can maybe understand why I'm hugely sceptical when ';Brexit uncertainty' is stated, as it's often hiding other more serious problems/
New car sales figures you show don't cover used car sales, don't show any trends in which new cars are being sold (budget, premium) and don't show what kind of margins are being dealt with to achieve those sales.
I wouldn't pin anything on 'Brexit' but I am sure the uncertainty, or prolonged uncertainty which I blame squarely on remain plotters and a lack of resolve from previous leaders, will be a factor.
Edited by anonymous-user on Thursday 19th September 11:57
One used sales:
Last bit in bold is going to be causing a lot of write-downs on used inventory.
SMTT said:
- UK used car transactions down -2.8% in Q2 with 59,000 fewer vehicles traded in first three months.
- Market still at a high level with more than 2 million used cars changing hands.
- Strong uplift in demand for hybrid and plug-in hybrid cars, but growth fails to offset petrol and diesel declines
Digga said:
Sales volumes, turnover, do not equate either to units sold, or profits made.
I'd also guess the used market is less rosy and that many dealers have taken a good thumping on their used inventory. Certainly, I have a mate who works for a large, main franchise dealer who says things are far from cheerful.
To be fair, that's because they created a ponzi type scheme of artificially high GFVs reducing first owner monthlies, expecting a buoyant and captive supply of used cars to main dealers. As soon as any form of demand slowdown occurred (which would always hit actual buyers, not renters - so the second owner market for main dealers) they were always going to be left holding the can... I'd also guess the used market is less rosy and that many dealers have taken a good thumping on their used inventory. Certainly, I have a mate who works for a large, main franchise dealer who says things are far from cheerful.
Sway said:
Digga said:
Sales volumes, turnover, do not equate either to units sold, or profits made.
I'd also guess the used market is less rosy and that many dealers have taken a good thumping on their used inventory. Certainly, I have a mate who works for a large, main franchise dealer who says things are far from cheerful.
To be fair, that's because they created a ponzi type scheme of artificially high GFVs reducing first owner monthlies, expecting a buoyant and captive supply of used cars to main dealers. As soon as any form of demand slowdown occurred (which would always hit actual buyers, not renters - so the second owner market for main dealers) they were always going to be left holding the can... I'd also guess the used market is less rosy and that many dealers have taken a good thumping on their used inventory. Certainly, I have a mate who works for a large, main franchise dealer who says things are far from cheerful.
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