Will Coronavirus hit used car prices?
Discussion
Mexman said:
And yet Sytner will not be the ones setting the interest rate.
Who does their finance?They insisted upon quoting me for a PCP deal a few weeks ago, even though I didn't want it. High interest rate but thumping big GFV, so the monthlies were about the same as a more sensible rate and cautious balloon.
av185 said:
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.
I only do single digit APR if it’s double digits then I will save that for the people who also sign up for pay day loans...
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.
Wonder when the first case of ‘unroadworthy vehicle’ will come from this. 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.
Working in a garage we were getting people ring us asking about it but the interesting dilemma for customers is the ‘vehicle must be roadworthy’ fact set out in the guidelines.
How many people know their vehicle is roadworthy? Granted some on here (maybe) but your average punter has about as much clue as flying in the air.
So, what’s the answer? Get an inspection done to say it’s roadworthy? (oh, May as well get an MOT) run it totally ‘ignorance is bliss’ style? What happens if your unroadworthy car is involved in an accident? Bet a pound to a pinch there will be some sort of check going on. People love a bald tyre! Will go down well.
Anyway, to go against the doom and gloom on the thread we’re opening back up Monday coming due to work requests and bookings while being down for 3 weeks.
Mexman said:
Supply and demand you mean, like any other market?
Demand will always be there, people need and want cars, how many knackered cars are there out there now, which have hardly moved for a month or so, which are now going to be suffering from non starting, flat batteries, dashes lit up etc.
Once lockdown ends and people need and have to go to work, the last thing you want is a car that wont start in the morning.
Like I said, the cheaper sub 5k end of the market for good, clean retailable stock, which is exactly the kind of stuff that you end up taking an end of life PX in against, will sell well.
It always has, always will do, and the leads and enquiries we are still currently receiving backs this up no end.
That's a very short sighted view. Personally I have been on the hunt for a 991.2 GTS for about 6-8 weeks as a weekend car, that plan has been scrapped not because I don't have the money, my income is the same as I work in hospital but I would rather use that money for a deposit if house prices fall or just keep it as cash.Demand will always be there, people need and want cars, how many knackered cars are there out there now, which have hardly moved for a month or so, which are now going to be suffering from non starting, flat batteries, dashes lit up etc.
Once lockdown ends and people need and have to go to work, the last thing you want is a car that wont start in the morning.
Like I said, the cheaper sub 5k end of the market for good, clean retailable stock, which is exactly the kind of stuff that you end up taking an end of life PX in against, will sell well.
It always has, always will do, and the leads and enquiries we are still currently receiving backs this up no end.
Also most people don't drive cars that will imminently break down, most cars tend to be reliable, why would they change in this climate?
What will happen to demand if households with 2+ cars realise they no longer need that many due to job losses?
Mexman said:
Saweep said:
Only if demand stays high.
If demand falls through the floor the things you say become meaningless.
Supply and demand you mean, like any other market?If demand falls through the floor the things you say become meaningless.
Demand will always be there, people need and want cars, how many knackered cars are there out there now, which have hardly moved for a month or so, which are now going to be suffering from non starting, flat batteries, dashes lit up etc.
Once lockdown ends and people need and have to go to work, the last thing you want is a car that wont start in the morning.
Like I said, the cheaper sub 5k end of the market for good, clean retailable stock, which is exactly the kind of stuff that you end up taking an end of life PX in against, will sell well.
It always has, always will do, and the leads and enquiries we are still currently receiving backs this up no end.
The real pain hasn't started yet. Financially, most people are still OK, but as time goes on, this is going to change. Buying cars for most of us, just isn't a priority right now. We have 4 cars in our home fleet and combined there is less than 100 miles on the clock between them in 2 months.
When this happens, I will be punting on 3 of them and replacing with one. One that was ordered before this all kicked off and is currently sitting awaiting PDI and delivery, as it turned up just as this crisis broke.
The country is about to see an economic contraction like none of us have ever experienced. 2008 was just a blip in comparison and that was pretty damned devastating. This is 100 year event stuff and you thinking your industry will come through unscathed or unchanged is just delusional I am afraid.
If cars don't start after this, then it is garages that will be busy not dealers. Even if there is a sudden flurry of car buying to rationalise things, that will be very, very short term after which point, people will only buy cars if it essential.
Spending habits on everything will be changed following this. Car buying will change and whilst there will still be a market, like everything else, it will be smaller.
IforB said:
The real pain hasn't started yet.
I'd say that the real pain has indeed started:Britain has received more than 1.5 million new claims for Universal Credit welfare payments since March 16, when people were first urged to stay at home to fight the spread of the coronavirus.
https://www.bloomberg.com/news/articles/2020-04-21...
uncleluck said:
Wonder when the first case of ‘unroadworthy vehicle’ will come from this.
Working in a garage we were getting people ring us asking about it but the interesting dilemma for customers is the ‘vehicle must be roadworthy’ fact set out in the guidelines.
How many people know their vehicle is roadworthy? Granted some on here (maybe) but your average punter has about as much clue as flying in the air.
So, what’s the answer? Get an inspection done to say it’s roadworthy? (oh, May as well get an MOT) run it totally ‘ignorance is bliss’ style? What happens if your unroadworthy car is involved in an accident? Bet a pound to a pinch there will be some sort of check going on. People love a bald tyre! Will go down well.
Anyway, to go against the doom and gloom on the thread we’re opening back up Monday coming due to work requests and bookings while being down for 3 weeks.
Having a valid MOT does not mean you have a roadworthy car, it never has done.Working in a garage we were getting people ring us asking about it but the interesting dilemma for customers is the ‘vehicle must be roadworthy’ fact set out in the guidelines.
How many people know their vehicle is roadworthy? Granted some on here (maybe) but your average punter has about as much clue as flying in the air.
So, what’s the answer? Get an inspection done to say it’s roadworthy? (oh, May as well get an MOT) run it totally ‘ignorance is bliss’ style? What happens if your unroadworthy car is involved in an accident? Bet a pound to a pinch there will be some sort of check going on. People love a bald tyre! Will go down well.
Anyway, to go against the doom and gloom on the thread we’re opening back up Monday coming due to work requests and bookings while being down for 3 weeks.
It is a test at one point in time, it is up to the driver to ensure the car is safe whilst used.
I posted a similar article around a month ago. Ally Financial has 25% asking for an auto loan referral. Q1 loss $319million.
https://www.thedrive.com/news/33095/more-and-more-...
You dont have to search hard for these articles.
https://www.thedrive.com/news/33095/more-and-more-...
You dont have to search hard for these articles.
jsf said:
Having a valid MOT does not mean you have a roadworthy car, it never has done.
It is a test at one point in time, it is up to the driver to ensure the car is safe whilst used.
But the average driver wont check their tyres, or know how much brake pad they have left etc, they usually leave it to their service or MOTIt is a test at one point in time, it is up to the driver to ensure the car is safe whilst used.
IforB said:
Seriously Mexman, you are only fooling yourself.
The real pain hasn't started yet. Financially, most people are still OK, but as time goes on, this is going to change. Buying cars for most of us, just isn't a priority right now. We have 4 cars in our home fleet and combined there is less than 100 miles on the clock between them in 2 months.
When this happens, I will be punting on 3 of them and replacing with one. One that was ordered before this all kicked off and is currently sitting awaiting PDI and delivery, as it turned up just as this crisis broke.
The country is about to see an economic contraction like none of us have ever experienced. 2008 was just a blip in comparison and that was pretty damned devastating. This is 100 year event stuff and you thinking your industry will come through unscathed or unchanged is just delusional I am afraid.
If cars don't start after this, then it is garages that will be busy not dealers. Even if there is a sudden flurry of car buying to rationalise things, that will be very, very short term after which point, people will only buy cars if it essential.
Spending habits on everything will be changed following this. Car buying will change and whilst there will still be a market, like everything else, it will be smaller.
Where the fuk did I say we will come thru unscathed or unchanged? The real pain hasn't started yet. Financially, most people are still OK, but as time goes on, this is going to change. Buying cars for most of us, just isn't a priority right now. We have 4 cars in our home fleet and combined there is less than 100 miles on the clock between them in 2 months.
When this happens, I will be punting on 3 of them and replacing with one. One that was ordered before this all kicked off and is currently sitting awaiting PDI and delivery, as it turned up just as this crisis broke.
The country is about to see an economic contraction like none of us have ever experienced. 2008 was just a blip in comparison and that was pretty damned devastating. This is 100 year event stuff and you thinking your industry will come through unscathed or unchanged is just delusional I am afraid.
If cars don't start after this, then it is garages that will be busy not dealers. Even if there is a sudden flurry of car buying to rationalise things, that will be very, very short term after which point, people will only buy cars if it essential.
Spending habits on everything will be changed following this. Car buying will change and whilst there will still be a market, like everything else, it will be smaller.
I'm sick of repeating myself, read my fukin posts
anonymous said:
[redacted]
I agree. The sheer number of 1-2 year old pcp cars returned by furloughed workers with no commission will flood and destroy the market. Cheap stuff won’t be affected. There are always people that can’t afford or prioritise a 20k+ car. Especially 2- 5 year old performance variants.
If we’re honest some prices have been over inflated for ages. “Porsche tax” should not be applicable now they are mass produced but they have got away with it.
I expect 997 and 991 prices to take a beating over the next 6 months. AMG GT won’t stay above £50k much longer either.
It seems a lot of “speculators” want out of their gt3’s and GT4’s.
I think the “it will never happen” sub £60k 981 gt4 is still for sale on here, and here is a £40k manual R8 v10 on AT.
Mexman said:
Where the fuk did I say we will come thru unscathed or unchanged?
I'm sick of repeating myself, read my fukin posts
Come on, say it one more time!I'm sick of repeating myself, read my fukin posts
Kev78 said:
I agree. The sheer number of 1-2 year old pcp cars returned by furloughed workers with no commission will flood and destroy the market.
Cheap stuff won’t be affected. There are always people that can’t afford or prioritise a 20k+ car. Especially 2- 5 year old performance variants.
If we’re honest some prices have been over inflated for ages. “Porsche tax” should not be applicable now they are mass produced but they have got away with it.
I expect 997 and 991 prices to take a beating over the next 6 months. AMG GT won’t stay above £50k much longer either.
It seems a lot of “speculators” want out of their gt3’s and GT4’s.
I think the “it will never happen” sub £60k 981 gt4 is still for sale on here, and here is a £40k manual R8 v10 on AT.
Im more than happy to relieve someone of their GT3 at the right price Cheap stuff won’t be affected. There are always people that can’t afford or prioritise a 20k+ car. Especially 2- 5 year old performance variants.
If we’re honest some prices have been over inflated for ages. “Porsche tax” should not be applicable now they are mass produced but they have got away with it.
I expect 997 and 991 prices to take a beating over the next 6 months. AMG GT won’t stay above £50k much longer either.
It seems a lot of “speculators” want out of their gt3’s and GT4’s.
I think the “it will never happen” sub £60k 981 gt4 is still for sale on here, and here is a £40k manual R8 v10 on AT.
Edited by BananaSlug on Tuesday 21st April 18:13
So what is going to happen to the £50k + market prices....?
I was going to buy a £70k Porsche just before this all started.....but that plan is on hold.
Will I be able to buy a 2 year old GT3 instead for the same money in a couple of months....or will the specialist luxury market be un affected?
I was going to buy a £70k Porsche just before this all started.....but that plan is on hold.
Will I be able to buy a 2 year old GT3 instead for the same money in a couple of months....or will the specialist luxury market be un affected?
Edited by tokyotv on Tuesday 21st April 18:16
tokyotv said:
So what is going to happen to the £50k + market prices....?
I was going to buy a £70k Porsche just before this all started.....but that plan is on hold.
Will I be able to a GT3 instead for the same money in a couple of months....or will the specialist luxury market be un affected?
You may have put the plan on hold and the 70k may well buy you 'more' such as a GT3 at the depths of this. However, how confident are you that you are comfortable in sinking the money in to a car of that value and that your business/job/cashflow is secure enough to allow that level of discretionary spending whilst covering your ongoing expenses (for x period of time)? Obviously only you know the state of your own financial affairs etc, but prices for such cars will be affected by that loss of confidence/uncertainty of all the individuals that would have otherwise bought a car at 30/50/70/100k whatever price point you want to put on it.I was going to buy a £70k Porsche just before this all started.....but that plan is on hold.
Will I be able to a GT3 instead for the same money in a couple of months....or will the specialist luxury market be un affected?
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