Will Coronavirus hit used car prices?
Discussion
gizlaroc said:
I think most will just buy a bit older version of what they want.
Buy a new BMW 520d for £4000 down and £350 a month, or buy a 5 year old one for £9k. There may be some finance, but it will be more like £5000 loan over 60 months at £89 a month.
I use that as an example as that is what I have just done.
Thats effectively what used to happen - people bought 3-5 year old BMWs etc if they wanted something nice. A friend of mine made a fortune over the years by buying up main dealer trade ins of BMWs, Mercs, Audis, valeting them, servicing them, sticking a nice set of new replica rims on them and putting them on the forecourt. Sold like hotcakes. Buy a new BMW 520d for £4000 down and £350 a month, or buy a 5 year old one for £9k. There may be some finance, but it will be more like £5000 loan over 60 months at £89 a month.
I use that as an example as that is what I have just done.
Were a fraction of the cost of a new car but still looked the part.
I think the market could revert towards that - given theres an awful lot of that sort of metal out there on PCP and leases currently.
vikingaero said:
Deep Thought said:
vikingaero said:
Deep Thought said:
Pommy said:
You can't see a shed load of repos and lease give back coming?
I cant either.I dont think it will happen TBH.
(b) i would say most are looking at options to VT now as they're not getting use out of it.
A VT is merely the customer exercising their rights and handing the car back.
I dont think we'll see many repos, however we will see a lot of people VTing - which then becomes the finance companys problem.
Deep Thought said:
Thats effectively what used to happen - people bought 3-5 year old BMWs etc if they wanted something nice. A friend of mine made a fortune over the years by buying up main dealer trade ins of BMWs, Mercs, Audis, valeting them, servicing them, sticking a nice set of new replica rims on them and putting them on the forecourt. Sold like hotcakes.
Were a fraction of the cost of a new car but still looked the part.
I think the market could revert towards that - given theres an awful lot of that sort of metal out there on PCP and leases currently.
This virus stopped me swapping my F11 5 series for a G31 540i. Were a fraction of the cost of a new car but still looked the part.
I think the market could revert towards that - given theres an awful lot of that sort of metal out there on PCP and leases currently.
It is such a nice all round car, there is no need to swap it, if I was in France or somewhere else I wouldn't feel the need to change every 2-3 years, this still genuinely drives like new. It was worth around £11k two months back, now around £9000. For £9k I would rather just keep it, I'm sure many will feel the same.
Welshbeef said:
Allowing much longer leading by existing customers payment holidays - maybe reduced monthly too.
Look at the Northern Rock mortgage book in 2008 - load of worthless s
t. However they kept it going working with customers and in time they kept the wheels going. Eventually selling it at £1billion to Richard Branson. From worthless and countless home owners at risk of repo to saving to being a valuable and thriving business.
All the junk rated mortgages on their books were nationalised. Branson didn't buy the sLook at the Northern Rock mortgage book in 2008 - load of worthless s
t. However they kept it going working with customers and in time they kept the wheels going. Eventually selling it at £1billion to Richard Branson. From worthless and countless home owners at risk of repo to saving to being a valuable and thriving business. t, we did.jsf said:
Mexman said:
So nobody ever changes there car, because they have to?
Mechanical failure, MOT failure, broken, unreliable, or just plain knackered?
Stupid retort.
And these are the type of people that want and will buy the cheapest retail car they can do, to get them mobile again, ie..the sub 5k end of the market.
MOT failure got a 6 month extension. Mechanical failure, MOT failure, broken, unreliable, or just plain knackered?
Stupid retort.
And these are the type of people that want and will buy the cheapest retail car they can do, to get them mobile again, ie..the sub 5k end of the market.
Edited by Mexman on Tuesday 21st April 12:29
gizlaroc said:
This virus stopped me swapping my F11 5 series for a G31 540i.
It is such a nice all round car, there is no need to swap it, if I was in France or somewhere else I wouldn't feel the need to change every 2-3 years, this still genuinely drives like new. It was worth around £11k two months back, now around £9000. For £9k I would rather just keep it, I'm sure many will feel the same.
Very very nice. It is such a nice all round car, there is no need to swap it, if I was in France or somewhere else I wouldn't feel the need to change every 2-3 years, this still genuinely drives like new. It was worth around £11k two months back, now around £9000. For £9k I would rather just keep it, I'm sure many will feel the same.
Feeling the same about my 2006 330i. Would love to change it when the restrictions are lifted but hard to justify when its going so well and looking so well.
gizlaroc said:
It was worth around £11k two months back, now around £9000. For £9k I would rather just keep it, I'm sure many will feel the same.
Completely agree. But the issue will be the number of people who desperately need the £9k when whatever safety net is there (if any) is pulled from under them.If it's the car or the house and they can only get £9k for the car it's still going to go, isn't it.
Auto810graphy said:
jsf said:
Mexman said:
So nobody ever changes there car, because they have to?
Mechanical failure, MOT failure, broken, unreliable, or just plain knackered?
Stupid retort.
And these are the type of people that want and will buy the cheapest retail car they can do, to get them mobile again, ie..the sub 5k end of the market.
MOT failure got a 6 month extension. Mechanical failure, MOT failure, broken, unreliable, or just plain knackered?
Stupid retort.
And these are the type of people that want and will buy the cheapest retail car they can do, to get them mobile again, ie..the sub 5k end of the market.
Edited by Mexman on Tuesday 21st April 12:29
Maybe i have to walk you through this.
You own a car that would fail an MOT at it's next test but is currently within the valid MOT period so is being used by the car owner, the MOT test is due next week, you get a letter from the government to say your MOT period has been extended for 6 months, therefor you don't need to MOT the car until another 6 months from the original date, no MOT failure occurs because it is not tested, you continue to use the car, you don't need to buy something else.
That gives the car owner an extra 6 months before they have to either scrap the car or repair it, that means less demand for another car purchase for 6 months in the market where those lower value car owners live, your low cost car sales guy just lost a chunk of his customers from the market.
PorkInsider said:
Completely agree. But the issue will be the number of people who desperately need the £9k when whatever safety net is there (if any) is pulled from under them.
If it's the car or the house and they can only get £9k for the car it's still going to go, isn't it.
It's going to be distorted by the rules around universal credit. If you have over £6K in savings your UC payments start to drop proportionately. If you have over £16K in savings you get nothing.If it's the car or the house and they can only get £9k for the car it's still going to go, isn't it.
I've been saving a house deposit so have a decent chunk saved, if i lose my job, i currently will get nothing, it might be the prudent thing to buy something in the crashed market at a knockdown price and get my savings down low enough so UC pays my bills, rather than watching my savings go down rapidly with no asset to liquidate when i find another job.
Complicated times ahead.
jack_86 said:
I love how Sytner now have a buy online feature on some of their site. I’m sure they would love some fool to sign up to a pcp deal on a used car at 10.9% APR!!
They can’t be really expecting any one to actually be buying at those rates
The BMW dealer local to me got dogs abuse when they posted that you could reserve any of their stock online, and they would process it when they were open again and at a special APR of 9.9%. They can’t be really expecting any one to actually be buying at those rates
jsf said:
You know what i mean i would hope.
Maybe i have to walk you through this.
You own a car that would fail an MOT at it's next test but is currently within the valid MOT period so is being used by the car owner, the MOT test is due next week, you get a letter from the government to say your MOT period has been extended for 6 months, therefor you don't need to MOT the car until another 6 months from the original date, no MOT failure occurs because it is not tested, you continue to use the car, you don't need to buy something else.
That gives the car owner an extra 6 months before they have to either scrap the car or repair it, that means less demand for another car purchase for 6 months in the market where those lower value car owners live, your low cost car sales guy just lost a chunk of his customers from the market.
Thank heavens we've some one as bright as you to "walk us through it". Maybe i have to walk you through this.
You own a car that would fail an MOT at it's next test but is currently within the valid MOT period so is being used by the car owner, the MOT test is due next week, you get a letter from the government to say your MOT period has been extended for 6 months, therefor you don't need to MOT the car until another 6 months from the original date, no MOT failure occurs because it is not tested, you continue to use the car, you don't need to buy something else.
That gives the car owner an extra 6 months before they have to either scrap the car or repair it, that means less demand for another car purchase for 6 months in the market where those lower value car owners live, your low cost car sales guy just lost a chunk of his customers from the market.
stevemcs said:
That's the thing with lease, you cannot give it back, you are on the hook until the end. Its going to be difficult for sure.
With contract hire you can early terminate, the termination figures vary according to the finance company bit a good estimate is 50% of remaining payments.jack_86 said:
I love how Sytner now have a buy online feature on some of their site. I’m sure they would love some fool to sign up to a pcp deal on a used car at 10.9% APR!!
They can’t be really expecting any one to actually be buying at those rates
Wonder what low proportion of pcpers actually read what they are signing up for.They can’t be really expecting any one to actually be buying at those rates
Suppose there is little pointing reading the agreement if 10.9% apr is meaningless gobbledegook anyway.
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