Will Coronavirus hit used car prices?
Discussion
It there is a general shut down the economic impact will far outweighs the risk of death. Cars are not selling for a number of reasons, insecurity, not knowing if you should go for an EV or plod along in a diesel or petrol for the next few years, fear of job loss etc.
Manufacturers are closing showrooms and consolidating dealerships and cutting back on production to save money.
If the Government shuts down everything how do you pay your mortgage, lease, loan, rent, rates? There won't even be any pubs left.
Unless you are a Government employee you are at risk from job loss. Self Employed work on the assumption there is a market out there that will employ them, there is no safety net. If you work for anyone other than a multinational there is no safety buffer, the Government won't bail out the small firm you work for.
Councils will chase you for the rates and council tax no matter what.
So will this virus hit used car prices? People may sell their car cheaply to put food on the table if they own the car. However if businesses go bust the real winners will be the Banks and Loan companies. The virus will eventually dissipate and the banks will own a lot of property and motor vehicles that they will sell off. Don't think you will get them cheaply.
Personally, unless you a a civil servant don't take on any more debt.
On the bright side, all the coffee shops were full on the out of town shopping estate here and B&Q was packed out.
On the down side my local large Tesco was out of bread, milk, meat, flour, tins, pasta, eggs frozen foods except for peas, toilet paper, etc. Again on the bright side, plenty of chocolate, easter eggs, crisps, prunes and whiskey. So all is not lost.
Manufacturers are closing showrooms and consolidating dealerships and cutting back on production to save money.
If the Government shuts down everything how do you pay your mortgage, lease, loan, rent, rates? There won't even be any pubs left.
Unless you are a Government employee you are at risk from job loss. Self Employed work on the assumption there is a market out there that will employ them, there is no safety net. If you work for anyone other than a multinational there is no safety buffer, the Government won't bail out the small firm you work for.
Councils will chase you for the rates and council tax no matter what.
So will this virus hit used car prices? People may sell their car cheaply to put food on the table if they own the car. However if businesses go bust the real winners will be the Banks and Loan companies. The virus will eventually dissipate and the banks will own a lot of property and motor vehicles that they will sell off. Don't think you will get them cheaply.
Personally, unless you a a civil servant don't take on any more debt.
On the bright side, all the coffee shops were full on the out of town shopping estate here and B&Q was packed out.
On the down side my local large Tesco was out of bread, milk, meat, flour, tins, pasta, eggs frozen foods except for peas, toilet paper, etc. Again on the bright side, plenty of chocolate, easter eggs, crisps, prunes and whiskey. So all is not lost.
On the one hand my PCP Range Rover, that I would have bought a year ago as I did with my wife’s, will now definitely be handed back in November. It was already looking very dodgy with diesel prices (my GMFV is about £8k more than the trade in price, I.e. the same as buying a used approved one from the dealer, given their huge margin) and the recent stock market crash means I will be loathe to take money out of savings until things improve again. Pity, as I really like it, but I guess I’ve had a good deal out of the PCP which will have saved me money over just buying and selling it, unless there is a major upturn in prices before the end of the year.
On the other hand I will buy a cheaper used car for a while with the cash I have. Perhaps a Golf R coming off lease.
So there will be people trading down. Maybe expensive 2/3 year old cars will come down in price but older, cheaper cars will be somewhat protected.
On the other hand I will buy a cheaper used car for a while with the cash I have. Perhaps a Golf R coming off lease.
So there will be people trading down. Maybe expensive 2/3 year old cars will come down in price but older, cheaper cars will be somewhat protected.
Edited by syl on Tuesday 17th March 05:25
cjs racing. said:
Bought a car on Ebay 2 days ago.
We are rather keen to get it collected as the wife needs her own car, and just in case the country get locked down.
But full radio silence from the seller, you would think in this current climate that he would be keen to get the cash in his hands.
Probably thinking better to hold on to it than upgrade now. We are rather keen to get it collected as the wife needs her own car, and just in case the country get locked down.
But full radio silence from the seller, you would think in this current climate that he would be keen to get the cash in his hands.
LarsG said:
So will this virus hit used car prices? People may sell their car cheaply to put food on the table if they own the car. However if businesses go bust the real winners will be the Banks and Loan companies. The virus will eventually dissipate and the banks will own a lot of property and motor vehicles that they will sell off. Don't think you will get them cheaply
From experience when a finance company reposes a car it has to be sold at market value. Nearly all will just put the car in an auction and try and claim the difference between the amount owed including collection fees and the sale proceeds. The mentality is to just get it moved on as trying to achieve a set value is pointless if the market is falling.
anonymous said:
[redacted]
Indeed.In times of market uncertainty the only certain thing is that you're going to get your pants pulled down if you are a seller. If you can afford to wait it out, then you'll probably be ok. There will be a number of distressed sellers which will depress prices, but just because a load of people need to get out doesn't mean that's the new price.
It is probably fair to say though that trying to sell a high value car in the next 6 months is going to involve dealing with endless "I'm doing you a favour" types.
Weekendrebuild said:
Price won’t take a knock on classic stuff as no one's going to sell now . If anything I think there will be less availability on the market , as people will just store assets away .
Ps, I Liked the Honda jazz joke
People need to Lighten up it’s only a mild flu it’s just much more catchable .
Really! only a mild flu you say, forget the most eminent medical and scientific minds that beg to differ upon your judgement.Ps, I Liked the Honda jazz joke
People need to Lighten up it’s only a mild flu it’s just much more catchable .
crankedup said:
Weekendrebuild said:
Price won’t take a knock on classic stuff as no one's going to sell now . If anything I think there will be less availability on the market , as people will just store assets away .
Ps, I Liked the Honda jazz joke
People need to Lighten up it’s only a mild flu it’s just much more catchable .
Really! only a mild flu you say, forget the most eminent medical and scientific minds that beg to differ upon your judgement.Ps, I Liked the Honda jazz joke
People need to Lighten up it’s only a mild flu it’s just much more catchable .
It’s only a mild flu that threatens to spread amongst a population so quickly and cause so many intensive care cases it engulfs the national health service and brings it to its knees. Causes all routes operations to need to be cancelled in order to free up bed space. A mild flu which has brought countries to such drastic measure as shutting down the entire countries movement, closed their borders and asked manufacturers to start mass producing ventilators...
Whatever you’re drinking, I’ll have some too please matey.
Car rental companies are desperately trying to not take on fleet they already committed to, and where they can't they'll get shot of whatever they already have on fleet that can be taken out.
Given car rental companies make up the majority of your sub 12 month used cars, i would say yes, it definitely will impact used car prices. It could even bring down new car "in stock" prices where they do have the option to get out of those purchases.
Given car rental companies make up the majority of your sub 12 month used cars, i would say yes, it definitely will impact used car prices. It could even bring down new car "in stock" prices where they do have the option to get out of those purchases.
Even average condition 3 year old 1 owner ex lease and fleet stock still making very strong money approaching book price ££ at BCA Walsall today.
Lex Autolease.
Diesels and petrol.
All this talk of bids dropping substantially over the past week is as reported by a mate of a mate down the pub is the usual internet folklore/b
ks imo.
And if WBAC under bid they are trying it on and generally don't want your car so get a bid elsewhere.
Lex Autolease.
Diesels and petrol.
All this talk of bids dropping substantially over the past week is as reported by a mate of a mate down the pub is the usual internet folklore/b
ks imo.And if WBAC under bid they are trying it on and generally don't want your car so get a bid elsewhere.
CJ1 said:
WeBuyanyCar last week offered me £14000 for my 2016 Golf R.
This week, £11500.
Don’t know if they’re trying to take advantage of the situation. Or they just aren’t interested in buying cars at the moment...
Well there will be little or no footfall at BCA when they try to liquidate the cars so it's their risk you are paying forThis week, £11500.
Don’t know if they’re trying to take advantage of the situation. Or they just aren’t interested in buying cars at the moment...
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