Will Coronavirus hit used car prices?
Discussion
Maybe not m quite the topic of this thread, but I do wonder how used car prices are going to be affected as we move towards renewables; electric and hydrogen cars.
I'd imagine it'll be like cars that ran on leaded fuel. Eventually we just won't be able to get diesel, and petrol will only be available from specialists, and the vast majority of today's cars will become totally obsolete.
I'd imagine it'll be like cars that ran on leaded fuel. Eventually we just won't be able to get diesel, and petrol will only be available from specialists, and the vast majority of today's cars will become totally obsolete.
Deep Thought said:
Throttlebody said:
You can predict there’s going to a few big dealership that won’t survive in this new CV19 world. Big shiny outfits that were running loses even pre CV19.
Yup. Undoubtedly.It's madness how some dealer groups would operate though, some of the CarWow quotes that would be presented to us from the same names just shout desperation, one regular would happily lose £1k per car in the (one assumes) hope of hitting their target, thus earning from that, however it just isn't sustainable, they would even do this on cars with a 3-4m lead time.
I remember on a course a few years ago chatting to the EV specialist from a dealer, he was instructed to balls out every deal, just do it, give the lot away, this was on a car with a lead time up to 6m, just why!
jammy-git said:
Maybe not m quite the topic of this thread, but I do wonder how used car prices are going to be affected as we move towards renewables; electric and hydrogen cars.
I'd imagine it'll be like cars that ran on leaded fuel. Eventually we just won't be able to get diesel, and petrol will only be available from specialists, and the vast majority of today's cars will become totally obsolete.
I think we’re 20 years away minimum from that scenario. I'd imagine it'll be like cars that ran on leaded fuel. Eventually we just won't be able to get diesel, and petrol will only be available from specialists, and the vast majority of today's cars will become totally obsolete.
The spinner of plates said:
jammy-git said:
Maybe not m quite the topic of this thread, but I do wonder how used car prices are going to be affected as we move towards renewables; electric and hydrogen cars.
I'd imagine it'll be like cars that ran on leaded fuel. Eventually we just won't be able to get diesel, and petrol will only be available from specialists, and the vast majority of today's cars will become totally obsolete.
I think we’re 20 years away minimum from that scenario. I'd imagine it'll be like cars that ran on leaded fuel. Eventually we just won't be able to get diesel, and petrol will only be available from specialists, and the vast majority of today's cars will become totally obsolete.
jammy-git said:
Maybe not m quite the topic of this thread, but I do wonder how used car prices are going to be affected as we move towards renewables; electric and hydrogen cars.
I'd imagine it'll be like cars that ran on leaded fuel. Eventually we just won't be able to get diesel, and petrol will only be available from specialists, and the vast majority of today's cars will become totally obsolete.
Cars have a 20 year life (some a lot more but 20 years is where most are kind of done. I'd imagine it'll be like cars that ran on leaded fuel. Eventually we just won't be able to get diesel, and petrol will only be available from specialists, and the vast majority of today's cars will become totally obsolete.
Given that it will be 2040++ and we will still have ICE cars I’d wager into the 2050’s too. Clearly between now and then the share of new cars sold will see an increase in EVs from current position to no doubt very very / even 100% new cars would be Electric.
According to Autotrader demand is up for cheaper cars
https://www.telegraph.co.uk/business/2020/05/23/pu...
https://www.telegraph.co.uk/business/2020/05/23/pu...
jamoor said:
The spinner of plates said:
jammy-git said:
Maybe not m quite the topic of this thread, but I do wonder how used car prices are going to be affected as we move towards renewables; electric and hydrogen cars.
I'd imagine it'll be like cars that ran on leaded fuel. Eventually we just won't be able to get diesel, and petrol will only be available from specialists, and the vast majority of today's cars will become totally obsolete.
I think we’re 20 years away minimum from that scenario. I'd imagine it'll be like cars that ran on leaded fuel. Eventually we just won't be able to get diesel, and petrol will only be available from specialists, and the vast majority of today's cars will become totally obsolete.
I don’t think the infrastructure investment / consumer desire will make it happen any quicker. Step change Innovation is driven by necessity and right now there’s still plenty of oil and lots of people getting from A to B cheaply and easily. Things will change when that outlook is no longer possible. And it is possible for the next 20 years and more.
In 2040 we’ll still have ICE and petrol garages. They might not be the majority choice any more, but they won’t be obsolete.
HTP99 said:
Yep, times like these weedle out the weak.
It's madness how some dealer groups would operate though, some of the CarWow quotes that would be presented to us from the same names just shout desperation, one regular would happily lose £1k per car in the (one assumes) hope of hitting their target, thus earning from that, however it just isn't sustainable, they would even do this on cars with a 3-4m lead time.
I remember on a course a few years ago chatting to the EV specialist from a dealer, he was instructed to balls out every deal, just do it, give the lot away, this was on a car with a lead time up to 6m, just why!
It's always possible the manufacturer is giving more support, one way or another, to other dealers.It's madness how some dealer groups would operate though, some of the CarWow quotes that would be presented to us from the same names just shout desperation, one regular would happily lose £1k per car in the (one assumes) hope of hitting their target, thus earning from that, however it just isn't sustainable, they would even do this on cars with a 3-4m lead time.
I remember on a course a few years ago chatting to the EV specialist from a dealer, he was instructed to balls out every deal, just do it, give the lot away, this was on a car with a lead time up to 6m, just why!
I work for a manufacturer in another field selling through distributors - our business would be more like fleet sales, I suppose. We try and keep a level playing field but distributors exaggerate competition pricing or the order volume to get more support from us.
HTP99 said:
Yep, times like these weedle out the weak.
It's madness how some dealer groups would operate though, some of the CarWow quotes that would be presented to us from the same names just shout desperation, one regular would happily lose £1k per car in the (one assumes) hope of hitting their target, thus earning from that, however it just isn't sustainable, they would even do this on cars with a 3-4m lead time.
I remember on a course a few years ago chatting to the EV specialist from a dealer, he was instructed to balls out every deal, just do it, give the lot away, this was on a car with a lead time up to 6m, just why!
Our contract hire brokerage uses the same dealers and rarely change as we have built relationships and know they will stand on with issues but in the last 12 months.It's madness how some dealer groups would operate though, some of the CarWow quotes that would be presented to us from the same names just shout desperation, one regular would happily lose £1k per car in the (one assumes) hope of hitting their target, thus earning from that, however it just isn't sustainable, they would even do this on cars with a 3-4m lead time.
I remember on a course a few years ago chatting to the EV specialist from a dealer, he was instructed to balls out every deal, just do it, give the lot away, this was on a car with a lead time up to 6m, just why!
We have a good customer base who keep using us for the service we provide but I have noticed their are lots of desperate dealers making crazy offers to buy business.
It will be interesting to hear how the manufacturers help the dealers in regards to this years bonuses and help keep some open as it’s not in their interest to see them fail.
rovermorris999 said:
According to Autotrader demand is up for cheaper cars
https://www.telegraph.co.uk/business/2020/05/23/pu...
I thought this observation was very interesting - "Research by car sales website Auto Trader revealed 56pc of commuters with a driving licence who used public transport before the pandemic said they now expected to buy a car to get to work after the lockdown ended."https://www.telegraph.co.uk/business/2020/05/23/pu...
The spinner of plates said:
We’ll see.
I don’t think the infrastructure investment / consumer desire will make it happen any quicker. Step change Innovation is driven by necessity and right now there’s still plenty of oil and lots of people getting from A to B cheaply and easily. Things will change when that outlook is no longer possible. And it is possible for the next 20 years and more.
In 2040 we’ll still have ICE and petrol garages. They might not be the majority choice any more, but they won’t be obsolete.
The change will happen when an electric or other car is a better proposition than the ICE car they would have been thinking of buying, simple as.I don’t think the infrastructure investment / consumer desire will make it happen any quicker. Step change Innovation is driven by necessity and right now there’s still plenty of oil and lots of people getting from A to B cheaply and easily. Things will change when that outlook is no longer possible. And it is possible for the next 20 years and more.
In 2040 we’ll still have ICE and petrol garages. They might not be the majority choice any more, but they won’t be obsolete.
Wether it be cheaper, more reliable, easier to live with, or a combination of all factors.
Sheepshanks said:
It's always possible the manufacturer is giving more support, one way or another, to other dealers.
I work for a manufacturer in another field selling through distributors - our business would be more like fleet sales, I suppose. We try and keep a level playing field but distributors exaggerate competition pricing or the order volume to get more support from us.
I don't think manufacturers are in such a good position and they weren't even that great before the CV outbreak.I work for a manufacturer in another field selling through distributors - our business would be more like fleet sales, I suppose. We try and keep a level playing field but distributors exaggerate competition pricing or the order volume to get more support from us.
jamoor said:
The spinner of plates said:
We’ll see.
I don’t think the infrastructure investment / consumer desire will make it happen any quicker. Step change Innovation is driven by necessity and right now there’s still plenty of oil and lots of people getting from A to B cheaply and easily. Things will change when that outlook is no longer possible. And it is possible for the next 20 years and more.
In 2040 we’ll still have ICE and petrol garages. They might not be the majority choice any more, but they won’t be obsolete.
The change will happen when an electric or other car is a better proposition than the ICE car they would have been thinking of buying, simple as.I don’t think the infrastructure investment / consumer desire will make it happen any quicker. Step change Innovation is driven by necessity and right now there’s still plenty of oil and lots of people getting from A to B cheaply and easily. Things will change when that outlook is no longer possible. And it is possible for the next 20 years and more.
In 2040 we’ll still have ICE and petrol garages. They might not be the majority choice any more, but they won’t be obsolete.
Wether it be cheaper, more reliable, easier to live with, or a combination of all factors.
I sometimes think about an EV next.
Then I think about the cost and hassle of pissing around with my house to get a charge point installed.
But then I remember that we have plans to move soon and won't have a driveway and will park in any gap the street offers near the house.
And the hassle of being miles from home with kids asleep in the back and not finding an charger to complete the journey.
And then I remember that I quite like petrol engines and I'm not drawn to the impressive EV 0-60 times because in a family car I don't care.
I then weigh this against the money saved... which right now would be minimal.
And I consider the environmental impacts which again I consider minimal.
And then I think... well I simply stop thinking about getting an EV now because there is no burning necessity.
But yes, maybe at some time in the future when all of the above changes and others have trailed a blaze and the cost difference is massive - I'll do it.
It's currently how the vast majority think I'm afraid. So a step change is needed and I don't see it happening within 20 years. There are just other pressing priorities for humankind to busy their time and money with,
But hey, we'll see.
The spinner of plates said:
jamoor said:
The spinner of plates said:
We’ll see.
I don’t think the infrastructure investment / consumer desire will make it happen any quicker. Step change Innovation is driven by necessity and right now there’s still plenty of oil and lots of people getting from A to B cheaply and easily. Things will change when that outlook is no longer possible. And it is possible for the next 20 years and more.
In 2040 we’ll still have ICE and petrol garages. They might not be the majority choice any more, but they won’t be obsolete.
The change will happen when an electric or other car is a better proposition than the ICE car they would have been thinking of buying, simple as.I don’t think the infrastructure investment / consumer desire will make it happen any quicker. Step change Innovation is driven by necessity and right now there’s still plenty of oil and lots of people getting from A to B cheaply and easily. Things will change when that outlook is no longer possible. And it is possible for the next 20 years and more.
In 2040 we’ll still have ICE and petrol garages. They might not be the majority choice any more, but they won’t be obsolete.
Wether it be cheaper, more reliable, easier to live with, or a combination of all factors.
I sometimes think about an EV next.
Then I think about the cost and hassle of pissing around with my house to get a charge point installed.
But then I remember that we have plans to move soon and won't have a driveway and will park in any gap the street offers near the house.
And the hassle of being miles from home with kids asleep in the back and not finding an charger to complete the journey.
And then I remember that I quite like petrol engines and I'm not drawn to the impressive EV 0-60 times because in a family car I don't care.
I then weigh this against the money saved... which right now would be minimal.
And I consider the environmental impacts which again I consider minimal.
And then I think... well I simply stop thinking about getting an EV now because there is no burning necessity.
But yes, maybe at some time in the future when all of the above changes and others have trailed a blaze and the cost difference is massive - I'll do it.
It's currently how the vast majority think I'm afraid. So a step change is needed and I don't see it happening within 20 years. There are just other pressing priorities for humankind to busy their time and money with,
But hey, we'll see.
When you couple it with government incentives (Evs possibly being vat free) then it begins to make them more attractive. Fortunately our government is using carrots rather than sticks.
jamoor said:
Sheepshanks said:
It's always possible the manufacturer is giving more support, one way or another, to other dealers.
I work for a manufacturer in another field selling through distributors - our business would be more like fleet sales, I suppose. We try and keep a level playing field but distributors exaggerate competition pricing or the order volume to get more support from us.
I don't think manufacturers are in such a good position and they weren't even that great before the CV outbreak.I work for a manufacturer in another field selling through distributors - our business would be more like fleet sales, I suppose. We try and keep a level playing field but distributors exaggerate competition pricing or the order volume to get more support from us.
I think we'll see two step changes with the switch to EVs.
The first one will come soon, where for anyone well off, getting an EV and solar panels will make far more sense than leasing another BMW, Audi or Merc.
The second step change will be with automonous EVS. Once they come along, for anyone on a low income it'll make more sense to just pay a taxi charge fee as and when they need to go somewhere, than own their own car.
The first one will come soon, where for anyone well off, getting an EV and solar panels will make far more sense than leasing another BMW, Audi or Merc.
The second step change will be with automonous EVS. Once they come along, for anyone on a low income it'll make more sense to just pay a taxi charge fee as and when they need to go somewhere, than own their own car.
jammy-git said:
Maybe not m quite the topic of this thread, but I do wonder how used car prices are going to be affected as we move towards renewables; electric and hydrogen cars.
I'd imagine it'll be like cars that ran on leaded fuel. Eventually we just won't be able to get diesel, and petrol will only be available from specialists, and the vast majority of today's cars will become totally obsolete.
Horsey related stuff hasn't disappeared and they're essentially useless and obsolete. I'd imagine it'll be like cars that ran on leaded fuel. Eventually we just won't be able to get diesel, and petrol will only be available from specialists, and the vast majority of today's cars will become totally obsolete.
I bet it's an industry worth a billion or two.
jamoor said:
I don't think manufacturers are in such a good position and they weren't even that great before the CV outbreak.
It’s a bit risky but if they can keep the factory running at capacity the cost of building cars is buttons. It starts to get very expensive as utilisation falls.ChocolateFrog said:
jammy-git said:
Maybe not m quite the topic of this thread, but I do wonder how used car prices are going to be affected as we move towards renewables; electric and hydrogen cars.
I'd imagine it'll be like cars that ran on leaded fuel. Eventually we just won't be able to get diesel, and petrol will only be available from specialists, and the vast majority of today's cars will become totally obsolete.
Horsey related stuff hasn't disappeared and they're essentially useless and obsolete. I'd imagine it'll be like cars that ran on leaded fuel. Eventually we just won't be able to get diesel, and petrol will only be available from specialists, and the vast majority of today's cars will become totally obsolete.
I bet it's an industry worth a billion or two.
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