Will Coronavirus hit used car prices?
Discussion
I think the Focus will reflect the best.
Latest 2019 320d M-Sport took a kicking at the end of last year which put the cheapest down to around £24,995 as Sixt defleeted several hundred into the BMW network.
Audi Q5 has been dying for months and there are lots of standard S-Line 2.0 (40) ones with just tech pack knocking around which some dealers seem keen to shift.
Latest 2019 320d M-Sport took a kicking at the end of last year which put the cheapest down to around £24,995 as Sixt defleeted several hundred into the BMW network.
Audi Q5 has been dying for months and there are lots of standard S-Line 2.0 (40) ones with just tech pack knocking around which some dealers seem keen to shift.
Auto810graphy said:
I think the Focus will reflect the best.
Latest 2019 320d M-Sport took a kicking at the end of last year which put the cheapest down to around £24,995 as Sixt defleeted several hundred into the BMW network.
Audi Q5 has been dying for months and there are lots of standard S-Line 2.0 (40) ones with just tech pack knocking around which some dealers seem keen to shift.
Yes, i thought it would be interesting though just to see how a typical bread and butter car might fare, then something "premium" then something premium but to many unnecessary in terms of size, running costs and price.Latest 2019 320d M-Sport took a kicking at the end of last year which put the cheapest down to around £24,995 as Sixt defleeted several hundred into the BMW network.
Audi Q5 has been dying for months and there are lots of standard S-Line 2.0 (40) ones with just tech pack knocking around which some dealers seem keen to shift.
Actually, you make a good point though. I'll look at the new model ones, rather than the last of the old ones.
Petrolism said:
For now, prices may remain as they are; there will likely be a bit of post-lockdown pent up desire making heartful decisions...
The general U.K. public who've allowed themselves to be saddled with debt up to their eyeballs at this time, are unlikely to have suddenly become particularly financially astute.
Its interesting to see that in Japan (G3 country), the government wasn't only giving a stipend to each and every person in a household during the recently lifted (1 month) lockdown, but is now looking at another payout to tourism-related businesses, in addition to grants for web-related developments in addition to a grant to all businesses, of up to around £8,000, based on equaling the best month of income in 2019. Why are they supporting businesses and not just people? Because they see that the costs & time for recovery will be a LOT higher (& could take years) if businesses close down and there are no jobs. Japan isn't a country of much household debt. The average savings per capita are $150,000...
Now compare to the U.K. and how the government is coping. How many small businesses are they supporting? What are the average savings? Much like the U.S. I would expect... What are the prospects?
Those who believe there won't be a knock-on effect, are probably those who will are in highest debt and most likely to be hit hardest (This is the same with any crash). Living in denial doesn't make a situation disappear.
Those who haven't stretched themselves too thin and have some money saved for rainy days will likely fare better, but that's normally older people, who were brought up to only get what they can afford. I feel sorry for school leavers this year. Their prospects aren't looking great...
If 40+ million in the U.S. have signed up for unemployment and at least half of the U.S. live hand to mouth, its not difficult to surmise there will be greater unemployment numbers in the U.K. than currently, in the not very distant future.
Once U.K. government furlough payments start being reduced from the end of August, I suspect a lot of people will start losing their jobs. Especially in businesses affected by the reduction of international tourism, which accounts for roughly 10% of businesses, globally, whether directly or indirectly.
Once the furlough payments from the government end at the end of October, then we can expect to see the numbers of unemployed rise dramatically, not least if there is further contagion, will governments bring lockdown again? I suspect not - by then it'll have dawned on them that the cure is worse than the disease. And let's not forget that other countries will be affected by their own financial challenges, which can also be expected to affect markets internationally.
I've seen figures of a projected 17% dip in GDP for the U.K. being touted. Where some optimistically say that businesses will resume in the 3rd quarter. For the U.K. that may not be so likely... If it's anywhere near even half that (& will probably be more than 10%), it's going to hurt most businesses and realistically, wipe many out. Remember that many small businesses in the U.K. have had no income during the shutdown and rents, etc. remained payable. Then at the end of Aug the gov. want U.K. employers to pay NI & pension contributions with 10 & 20% contributions to wages in Sept & Oct.
A large drop in employment will have far-reaching, domino-effect consequences in the U.K. Adding to this the looming possibility of a no-deal Brexit and the uncertainties that may bring to British businesses, its not hard to imagine a lot of company bosses will be uneasy about investing in growth & taking on staff right now. They'll think of the opposite and hire later, if things return.
Of course, in some businesses such as IT & AI there will be growth, but that's a small minority.
With reduced demand, used cars will likely drop in value - although they were already low. Profit margins haven't been great; not least with weak values of Sterling. The Euro hasn't been faring much better either, but the buying power of currencies is diminished.
Selling products at below cost isn't sustainable in the long term for any viable business. So in answer to the question to this thread, when nobody is buying cars and PCP defaults being likely to become widespread, will be the best time to buy, just like housing or anything else. Christmas 2020...?
In time, once the dust has settled, there will be opportunities for growth but it's not going to be V-shaped, by any stretch.
NOURIEL ROUBINI (who correctly predicted the 2008 crisis to a tee) says this financial downturn will be L-shaped and looking at his history, he's probably right...
https://nymag.com/intelligencer/2020/05/why-the-ec...
Interesting read, thanksThe general U.K. public who've allowed themselves to be saddled with debt up to their eyeballs at this time, are unlikely to have suddenly become particularly financially astute.
Its interesting to see that in Japan (G3 country), the government wasn't only giving a stipend to each and every person in a household during the recently lifted (1 month) lockdown, but is now looking at another payout to tourism-related businesses, in addition to grants for web-related developments in addition to a grant to all businesses, of up to around £8,000, based on equaling the best month of income in 2019. Why are they supporting businesses and not just people? Because they see that the costs & time for recovery will be a LOT higher (& could take years) if businesses close down and there are no jobs. Japan isn't a country of much household debt. The average savings per capita are $150,000...
Now compare to the U.K. and how the government is coping. How many small businesses are they supporting? What are the average savings? Much like the U.S. I would expect... What are the prospects?
Those who believe there won't be a knock-on effect, are probably those who will are in highest debt and most likely to be hit hardest (This is the same with any crash). Living in denial doesn't make a situation disappear.
Those who haven't stretched themselves too thin and have some money saved for rainy days will likely fare better, but that's normally older people, who were brought up to only get what they can afford. I feel sorry for school leavers this year. Their prospects aren't looking great...
If 40+ million in the U.S. have signed up for unemployment and at least half of the U.S. live hand to mouth, its not difficult to surmise there will be greater unemployment numbers in the U.K. than currently, in the not very distant future.
Once U.K. government furlough payments start being reduced from the end of August, I suspect a lot of people will start losing their jobs. Especially in businesses affected by the reduction of international tourism, which accounts for roughly 10% of businesses, globally, whether directly or indirectly.
Once the furlough payments from the government end at the end of October, then we can expect to see the numbers of unemployed rise dramatically, not least if there is further contagion, will governments bring lockdown again? I suspect not - by then it'll have dawned on them that the cure is worse than the disease. And let's not forget that other countries will be affected by their own financial challenges, which can also be expected to affect markets internationally.
I've seen figures of a projected 17% dip in GDP for the U.K. being touted. Where some optimistically say that businesses will resume in the 3rd quarter. For the U.K. that may not be so likely... If it's anywhere near even half that (& will probably be more than 10%), it's going to hurt most businesses and realistically, wipe many out. Remember that many small businesses in the U.K. have had no income during the shutdown and rents, etc. remained payable. Then at the end of Aug the gov. want U.K. employers to pay NI & pension contributions with 10 & 20% contributions to wages in Sept & Oct.
A large drop in employment will have far-reaching, domino-effect consequences in the U.K. Adding to this the looming possibility of a no-deal Brexit and the uncertainties that may bring to British businesses, its not hard to imagine a lot of company bosses will be uneasy about investing in growth & taking on staff right now. They'll think of the opposite and hire later, if things return.
Of course, in some businesses such as IT & AI there will be growth, but that's a small minority.
With reduced demand, used cars will likely drop in value - although they were already low. Profit margins haven't been great; not least with weak values of Sterling. The Euro hasn't been faring much better either, but the buying power of currencies is diminished.
Selling products at below cost isn't sustainable in the long term for any viable business. So in answer to the question to this thread, when nobody is buying cars and PCP defaults being likely to become widespread, will be the best time to buy, just like housing or anything else. Christmas 2020...?
In time, once the dust has settled, there will be opportunities for growth but it's not going to be V-shaped, by any stretch.
NOURIEL ROUBINI (who correctly predicted the 2008 crisis to a tee) says this financial downturn will be L-shaped and looking at his history, he's probably right...
https://nymag.com/intelligencer/2020/05/why-the-ec...
Edited by Petrolism on Saturday 30th May 07:20
I’ve had my eye on this for a while. Was a fixed price for about 6 weeks. Dropped 30% today.
https://www.autotrader.co.uk/classified/advert/202...
https://www.autotrader.co.uk/classified/advert/202...
kambites said:
I wonder if everyone who's taking a payment holiday realises that after it ends, they'll be paying more per month than if they hadn't taken it. You'd hope the banks have explained it...
Alot might not be aware especially those that really needed to take time out right now cos of financial problems that they will fall in a sticky situation if they are made redundant as furlough ends. And if around the same time payment holiday ends they are bound by contract for repayments owing more than before.If both those take place around the same time, that is a big trouble waiting to happen. It's a payment holiday but as everyone is aware a 'holiday' comes at a price.
Throttlebody said:
I’ve had my eye on this for a while. Was a fixed price for about 6 weeks. Dropped 30% today.
https://www.autotrader.co.uk/classified/advert/202...
30% https://www.autotrader.co.uk/classified/advert/202...
So, Er, £300 or so?
The worlds gone mad eh.
Clean book value is £460 BTW. Dealer forecourt retail £1325 so it’s now actually about right for a private sale.
You should buy it.
t in the woods....
Butter Face said:
Throttlebody said:
I’ve had my eye on this for a while. Was a fixed price for about 6 weeks. Dropped 30% today.
https://www.autotrader.co.uk/classified/advert/202...
30% https://www.autotrader.co.uk/classified/advert/202...
So, Er, £300 or so?
The worlds gone mad eh.
Clean book value is £460 BTW. Dealer forecourt retail £1325 so it’s now actually about right for a private sale.
You should buy it.
Throttlebody said:
I’ve had my eye on this for a while. Was a fixed price for about 6 weeks. Dropped 30% today.
https://www.autotrader.co.uk/classified/advert/202...
"Private seller drops unrealistic asking price of old jag shocker". https://www.autotrader.co.uk/classified/advert/202...
The miles is nice on it, but its still at x2 what i'd like to pay for an old S Type needing MOT'd that the seller has only had for a few months and has been clearly trying to get of almost since he bought it.
I thought you told us you were an expert in this price of cars?
Edited by Deep Thought on Saturday 30th May 20:48
Edited by Deep Thought on Saturday 30th May 20:49
Throttlebody said:
Butter Face said:
Throttlebody said:
I’ve had my eye on this for a while. Was a fixed price for about 6 weeks. Dropped 30% today.
https://www.autotrader.co.uk/classified/advert/202...
30% https://www.autotrader.co.uk/classified/advert/202...
So, Er, £300 or so?
The worlds gone mad eh.
Clean book value is £460 BTW. Dealer forecourt retail £1325 so it’s now actually about right for a private sale.
You should buy it.
Deep Thought said:
Throttlebody said:
I’ve had my eye on this for a while. Was a fixed price for about 6 weeks. Dropped 30% today.
https://www.autotrader.co.uk/classified/advert/202...
"Private seller drops unrealistic asking price of old jag shocker". https://www.autotrader.co.uk/classified/advert/202...
The miles is nice on it, but its still at x2 what i'd like to pay for an old S Type needing MOT'd that the seller has only had for a few months and that the seller has been clearly trying to get of almost since he bought it.
Edited by Deep Thought on Saturday 30th May 20:41
Throttlebody said:
Deep Thought said:
Throttlebody said:
I’ve had my eye on this for a while. Was a fixed price for about 6 weeks. Dropped 30% today.
https://www.autotrader.co.uk/classified/advert/202...
"Private seller drops unrealistic asking price of old jag shocker". https://www.autotrader.co.uk/classified/advert/202...
The miles is nice on it, but its still at x2 what i'd like to pay for an old S Type needing MOT'd that the seller has only had for a few months and that the seller has been clearly trying to get of almost since he bought it.
Edited by Deep Thought on Saturday 30th May 20:41
In other words, battery is knackered so bring your jump leads, gearbox bangs like a hooker and the oil is like Brent crude.
Auto810graphy said:
From the advert: Has been sat a while, could do with a battery, gearbox filter and fluid change and a general service.
In other words, battery is knackered so bring your jump leads, gearbox bangs like a hooker and the oil is like Brent crude.
Exactly. That cars value is in stripping it to part out. In other words, battery is knackered so bring your jump leads, gearbox bangs like a hooker and the oil is like Brent crude.
Unless you’re some sort of eager jaguar spanner fan that’s going to get it running properly on your own time. Then it could be interesting at £395.
Throttlebody said:
Could be on old boy that doesn’t like the spanners and it just needs a bit of routine maintenance.
As per what was posted above from the advert - "needs a gearbox filter" usually means theres a gearbox issue and it "just needs an oil change" which is in reality very unlikely to resolve it. They were prone to gearbox problems. Changed ownership in January, you say its been advertised for six weeks - presumably on another advert as this one has only been up ten days - so he had it 2.5 months and hes been looking rid ever since.
I've a lot of time for a nice S-Type. I've had maybe four of them all between £750 and £1750 so never a fortune.
Genuinely - seek out a facelift version from late 2002 onwards with a years MOT. Much nice interior and dash and some other revisions. Nicer wheels, etc. Wont be much dearer.
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