Will Coronavirus hit used car prices?
Discussion
I can tell you that some independent prestige and performance dealers have been breaking records in terms of enquiries and, for some, used car sales in May/ June (so far) - believe it or not. Volume market - as I understand it - is much quieter.
For every bidder that thinks they are going to buy a cheap car because the market is on its knees, there is someone else who is happy to pay the money. I'd say you'd have to ring quite a few dealers and find one that was in trouble to get the sort of deal that some buyers think they might get.
Lots of pent up demand out there, especially as big dealer groups aren't yet up to full speed and new cars aren't selling.
Lenders are lending again, so I'd say the forecast in the short term for used prestige and performance sales is looking pretty rosy. Who knows what will happen when the furloughs finish, though.
For every bidder that thinks they are going to buy a cheap car because the market is on its knees, there is someone else who is happy to pay the money. I'd say you'd have to ring quite a few dealers and find one that was in trouble to get the sort of deal that some buyers think they might get.
Lots of pent up demand out there, especially as big dealer groups aren't yet up to full speed and new cars aren't selling.
Lenders are lending again, so I'd say the forecast in the short term for used prestige and performance sales is looking pretty rosy. Who knows what will happen when the furloughs finish, though.
Nefos said:
Do you expect the prices to normalise in a couple of month? Or what do you mean my the omminous ... Initially part?
Cheaper retail end of the market seems to be on fire, more so than usual, expect it to level out back to normal as time goes on.More expensive stuff, seems to be slower, as expected, so prices may/will drop to get things moving, and then stabilise sometime in the future, once job security is better and financiers become less stringent.
Mexman said:
Cheaper retail end of the market seems to be on fire, more so than usual, expect it to level out back to normal as time goes on.
More expensive stuff, seems to be slower, as expected, so prices may/will drop to get things moving, and then stabilise sometime in the future, once job security is better and financiers become less stringent.
Interesting - and not unreasonable - take on it all.More expensive stuff, seems to be slower, as expected, so prices may/will drop to get things moving, and then stabilise sometime in the future, once job security is better and financiers become less stringent.
Mexman said:
Hardly surprising Sherlock.
Not sure they are exactly desirable, nor relatively cheap, nor big, fast sellers anyway.
I've said all along, that sub 5k retailable stock will sell, more expensive stuff that is usually financed may struggle initially.
Bangers replacing their expensive PCPs which will all need to come to the market in the future.Not sure they are exactly desirable, nor relatively cheap, nor big, fast sellers anyway.
I've said all along, that sub 5k retailable stock will sell, more expensive stuff that is usually financed may struggle initially.
Cobraball said:
I've had 39 cars on my AT saved list mix of RR Evouge SE Tech and VW Tiguan R-Line all 2017 onwards and under 30K miles and in the last 14 days only two have sold. Not sure that's booming !!!
I mentioned some pages back that i thought small SUVs are likely - IMHO - to be hard hit because they usually fall in to the "nice to have" category. Very few people really need a soft roader type format with higher running costs, etc when a 3 series or A4 or smaller will do the same job for them.Cobraball said:
Mexman said:
Hardly surprising Sherlock.
Not sure they are exactly desirable, nor relatively cheap, nor big, fast sellers anyway.
I've said all along, that sub 5k retailable stock will sell, more expensive stuff that is usually financed may struggle initially.
Bangers replacing their expensive PCPs which will all need to come to the market in the future.Not sure they are exactly desirable, nor relatively cheap, nor big, fast sellers anyway.
I've said all along, that sub 5k retailable stock will sell, more expensive stuff that is usually financed may struggle initially.
I dont think too many will go from new A4 -> banger. Some might have to / chose to, but i dont think it will be the norm or anywhere near it.
Deep Thought said:
I can forsee people taking a step change if they are wanting to keep an eye on outgoings, maybe Q5 -> A4, X3 -> 3 series, A4->A3 or similar. Or maybe a pre-reg or ex demo instead of new.
I dont think too many will go from new A4 -> banger. Some might have to / chose to, but i dont think it will be the norm or anywhere near it.
Agreed. Many would rather reduce the monthly PCP but still maintain having the latest shiny car on the drive to keep the image healthy rather than get rid of the status symbol and drive something they can actually afford. I dont think too many will go from new A4 -> banger. Some might have to / chose to, but i dont think it will be the norm or anywhere near it.
Mexman said:
Price of car is irrelevant.
Is this a 30k car, that was 60k when new?
Same as buying a second hand car at 7k that was 14k new.
Still 50pc of it's new value, therefore wear and tear to be expected.
Just because its 30k, does not mean there is any more profit in the car than a 5k retail sale.
I totally agree... when someone says " if I'm spending £30k on a car it's got to be like brand new"Is this a 30k car, that was 60k when new?
Same as buying a second hand car at 7k that was 14k new.
Still 50pc of it's new value, therefore wear and tear to be expected.
Just because its 30k, does not mean there is any more profit in the car than a 5k retail sale.
in that case go and buy a brand new £30K car.... don't be moaning because this £60K when new now £30K 3 year old 30,000 mile car has a small mark on a wheel and a micro stone chip on the bonnet...
Mexman said:
Booming, 13 sold in 7 trading days, stock level is now below 20 with virtually nothing coming in PX against our stock or from our main dealer franchise against new cars.
Replacing stock is going to be very difficult, I can see us being into a single figure stock holding in a week or so.
Enquiries are coming in quick and fast, very minimal, if any discounting going on.
It's all good currently.
No trade ins against new or used is that typical?Replacing stock is going to be very difficult, I can see us being into a single figure stock holding in a week or so.
Enquiries are coming in quick and fast, very minimal, if any discounting going on.
It's all good currently.
Edited by Mexman on Wednesday 10th June 11:28
Edited by Mexman on Wednesday 10th June 11:28
Was looking to px my daughters bmw 1 series 116im sport 2011 56k against an audi tt diesel 2012 with 80k on it.
My daughters car will need either a new (eBay) rear bumper or repairing plus it has a key scratch down the side and alloys need reufurbing.
The p/ex price for hers is £4000 and the audi which also needs alloy refurb price is £8500 .
Looking at dealer prices for her bmw on auto trader with her mileage it would be advertised for £8500 when repaired .
I would have thought that if stock is drying up on used 5-10k family cars ,the bmw would be an easier sale than a 2 +2 car .
My daughters car will need either a new (eBay) rear bumper or repairing plus it has a key scratch down the side and alloys need reufurbing.
The p/ex price for hers is £4000 and the audi which also needs alloy refurb price is £8500 .
Looking at dealer prices for her bmw on auto trader with her mileage it would be advertised for £8500 when repaired .
I would have thought that if stock is drying up on used 5-10k family cars ,the bmw would be an easier sale than a 2 +2 car .
Anonymous-poster said:
No trade ins against new or used is that typical?
New is, understandably quite, and certainly, at the price point I sell at, 3k to 8k, part exes are thin on the ground, the ones we are getting in, are not retailable, just junk, which is obviously disposed of accordingly. Pupbelly said:
Deep Thought said:
I can forsee people taking a step change if they are wanting to keep an eye on outgoings, maybe Q5 -> A4, X3 -> 3 series, A4->A3 or similar. Or maybe a pre-reg or ex demo instead of new.
I dont think too many will go from new A4 -> banger. Some might have to / chose to, but i dont think it will be the norm or anywhere near it.
Agreed. Many would rather reduce the monthly PCP but still maintain having the latest shiny car on the drive to keep the image healthy rather than get rid of the status symbol and drive something they can actually afford. I dont think too many will go from new A4 -> banger. Some might have to / chose to, but i dont think it will be the norm or anywhere near it.
r1monkey said:
Was looking to px my daughters bmw 1 series 116im sport 2011 56k against an audi tt diesel 2012 with 80k on it.
My daughters car will need either a new (eBay) rear bumper or repairing plus it has a key scratch down the side and alloys need reufurbing.
The p/ex price for hers is £4000 and the audi which also needs alloy refurb price is £8500 .
Looking at dealer prices for her bmw on auto trader with her mileage it would be advertised for £8500 when repaired .
I would have thought that if stock is drying up on used 5-10k family cars ,the bmw would be an easier sale than a 2 +2 car .
I think you're a mile out with your estimation of what her car would retail at.My daughters car will need either a new (eBay) rear bumper or repairing plus it has a key scratch down the side and alloys need reufurbing.
The p/ex price for hers is £4000 and the audi which also needs alloy refurb price is £8500 .
Looking at dealer prices for her bmw on auto trader with her mileage it would be advertised for £8500 when repaired .
I would have thought that if stock is drying up on used 5-10k family cars ,the bmw would be an easier sale than a 2 +2 car .
Heres one with a bit more miles (but lets be honest, the miles on hers is probably neither here nor there on her car) for £3995
https://www.autotrader.co.uk/classified/advert/202...
And another for £4995.
https://www.autotrader.co.uk/classified/advert/202...
£8,500 gets you a new model 2013 car with the same miles and a wad of change
https://www.autotrader.co.uk/classified/advert/201...
I think at £4K shes doing very well for her car, particularly given it needs approx £1,000 spent on it.
r1monkey said:
Was looking to px my daughters bmw 1 series 116im sport 2011 56k against an audi tt diesel 2012 with 80k on it.
My daughters car will need either a new (eBay) rear bumper or repairing plus it has a key scratch down the side and alloys need reufurbing.
The p/ex price for hers is £4000 and the audi which also needs alloy refurb price is £8500 .
Looking at dealer prices for her bmw on auto trader with her mileage it would be advertised for £8500 when repaired .
I would have thought that if stock is drying up on used 5-10k family cars ,the bmw would be an easier sale than a 2 +2 car .
8.5k retail for a 2011 1 series 116?My daughters car will need either a new (eBay) rear bumper or repairing plus it has a key scratch down the side and alloys need reufurbing.
The p/ex price for hers is £4000 and the audi which also needs alloy refurb price is £8500 .
Looking at dealer prices for her bmw on auto trader with her mileage it would be advertised for £8500 when repaired .
I would have thought that if stock is drying up on used 5-10k family cars ,the bmw would be an easier sale than a 2 +2 car .
Dont think so.
Sounds like hers needs 2k of prep minimum, which makes it 6k, even 6995, sounds optimistic to me?
Anyone else agree?
Mexman said:
r1monkey said:
Was looking to px my daughters bmw 1 series 116im sport 2011 56k against an audi tt diesel 2012 with 80k on it.
My daughters car will need either a new (eBay) rear bumper or repairing plus it has a key scratch down the side and alloys need reufurbing.
The p/ex price for hers is £4000 and the audi which also needs alloy refurb price is £8500 .
Looking at dealer prices for her bmw on auto trader with her mileage it would be advertised for £8500 when repaired .
I would have thought that if stock is drying up on used 5-10k family cars ,the bmw would be an easier sale than a 2 +2 car .
8.5k retail for a 2011 1 series 116?My daughters car will need either a new (eBay) rear bumper or repairing plus it has a key scratch down the side and alloys need reufurbing.
The p/ex price for hers is £4000 and the audi which also needs alloy refurb price is £8500 .
Looking at dealer prices for her bmw on auto trader with her mileage it would be advertised for £8500 when repaired .
I would have thought that if stock is drying up on used 5-10k family cars ,the bmw would be an easier sale than a 2 +2 car .
Dont think so.
Sounds like hers needs 2k of prep minimum, which makes it 6k, even 6995, sounds optimistic to me?
Anyone else agree?
Deep Thought said:
Pupbelly said:
Deep Thought said:
I can forsee people taking a step change if they are wanting to keep an eye on outgoings, maybe Q5 -> A4, X3 -> 3 series, A4->A3 or similar. Or maybe a pre-reg or ex demo instead of new.
I dont think too many will go from new A4 -> banger. Some might have to / chose to, but i dont think it will be the norm or anywhere near it.
Agreed. Many would rather reduce the monthly PCP but still maintain having the latest shiny car on the drive to keep the image healthy rather than get rid of the status symbol and drive something they can actually afford. I dont think too many will go from new A4 -> banger. Some might have to / chose to, but i dont think it will be the norm or anywhere near it.
Pupbelly said:
Deep Thought said:
Pupbelly said:
Deep Thought said:
I can forsee people taking a step change if they are wanting to keep an eye on outgoings, maybe Q5 -> A4, X3 -> 3 series, A4->A3 or similar. Or maybe a pre-reg or ex demo instead of new.
I dont think too many will go from new A4 -> banger. Some might have to / chose to, but i dont think it will be the norm or anywhere near it.
Agreed. Many would rather reduce the monthly PCP but still maintain having the latest shiny car on the drive to keep the image healthy rather than get rid of the status symbol and drive something they can actually afford. I dont think too many will go from new A4 -> banger. Some might have to / chose to, but i dont think it will be the norm or anywhere near it.
If you maybe want to loop back 100 pages or so, all the arguments and responses will be there. Saves us time covering all the old ground.
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