Will Coronavirus hit used car prices? (Vol 2)

Will Coronavirus hit used car prices? (Vol 2)

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Tagteam

294 posts

25 months

Monday 12th December 2022
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Pommy said:
ghost83 said:
e-honda said:
Just been serviced by McLaren, I wonder if that was in February, or if along with the £11k price drop and probably a couple of £k in stock finance interest they've also had to pay for a main dealer service.
It’s said just been serviced by Mclaren since February, quite a big drop though in a week in my opinion basically 10%
Car sales go to the floor for the next few months I understand so not only is that a lot of money to be tied up doing nothing, it'll keep heading south even further.
Problem is big drops spook the market and think it is a falling market . No one will buy now . Has to find the floor now . That will be based on history - where pre Covid mclaren fell like stones.

911hope

2,768 posts

28 months

Monday 12th December 2022
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bencollins4 said:
e-honda said:
bencollins4 said:
The people struggling to afford to live weren’t in a position to buy a McLaren a few months back either. Sadly a lot of people are / will struggle. They are not / have never been buyers of expensive sports / supercars.

There is a price point for these cars where a lot of people with money will jump in.
You keep saying this sort of thing, but it just isn't the reality.

The Baron of Burnley isn't the person who sets the price of a 5 year old McLaren, if he wanted one he would have ordered it 6 years ago, It is very unlikely he would wake up 1 day and go from owning zero super cars to today is the day I want a McLaren, and if he did he would be one of the people paying overs for a 6 month old one if he couldn't bring himself to wait for a new one.
The people who control the price for second hand super cars are those moderately wealthy who have been saving for many many years for their 1 time purchase along with those who are a fair bit more wealthy and can afford to do it maybe every few years.
These people are affected by the economy
What’s not the reality? That the moderately wealthy won’t buy a supercar if the price drops?

I’ve not seen many more negative posters than you, full stop, and you ‘keep saying this sort of thing’. We are almost all affected by the economy, but it’s not the apocalypse for most that you keep peddling.
Saying used car prices will/should fall isn't negative. Merely a prediction based on economic factors.

If prices do fall, it is actually good for most people.

ghost83

5,493 posts

192 months

Tuesday 13th December 2022
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Tagteam said:
Problem is big drops spook the market and think it is a falling market . No one will buy now . Has to find the floor now . That will be based on history - where pre Covid mclaren fell like stones.
Exactly that, no one will buy anything overly expensive used as no one knows what’s going to happen with bills over the next 12 month, the fact it was 88k in February when people said cars like this would fly out the door, and literally 10 month later it’s lost 11k so where will it go before it sells

john41901

713 posts

68 months

Saturday 17th December 2022
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https://www.nbcnews.com/news/amp/rcna61916

Had this happened yet or are “semi conductors still in limited supply’ hence bubbie car prices will remain in a bubble forever…? rofl

Demand crash won’t make any difference? What happened to the comical Ali “where’s the deluded” poster always talking up the market?

Leicesterdave

2,282 posts

182 months

Saturday 17th December 2022
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My Cupra Born has really plummeted in value over the last 2 weeks. Is this down to seasonality?

Is it likely to go up again as I need to get rid in June? Crystal ball and all that but wondered what generally occurred in a normal market.

Earthdweller

13,671 posts

128 months

Saturday 17th December 2022
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Leicesterdave said:
My Cupra Born has really plummeted in value over the last 2 weeks. Is this down to seasonality?

Is it likely to go up again as I need to get rid in June? Crystal ball and all that but wondered what generally occurred in a normal market.
I’d say No and No

Mid range EV’s are becoming increasingly common with new models being released almost weekly which seem to be getting cheaper and better


Macron

9,989 posts

168 months

Saturday 17th December 2022
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Leicesterdave said:
My Cupra Born has really plummeted in value over the last 2 weeks. Is this down to seasonality?

Is it likely to go up again as I need to get rid in June? Crystal ball and all that but wondered what generally occurred in a normal market.
https://www.motortrader.com/motor-trader-news/automotive-news/ev-demand-falling-cost-living-energy-prices-increase-13-12-2022

No. Old battery tech, high electricity costs. What did you expect?

Tagteam

294 posts

25 months

Saturday 17th December 2022
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They will keep on falling , nothing to prop them up now .

ghost83

5,493 posts

192 months

Saturday 17th December 2022
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Not a chance prices are going to rise!


Also the 0.75% rise on my mortgage last month added £30 a month to the mortgage I’m assuming the 0.5% that has just been announced will add another £20

Anyone else on variable will be in the same boat and renters certainly will! If I hadn’t being overpaying my mortgage would have gone up over £200 a month luckily my payments are exactly where they were 12 months ago! Bank of England reckon inflation has peaked BUT will continue to raise interest rates for the time being

So yeah a lot of repossessions of vehicles might be incoming, I know someone who’s got his car for sale currently as he’s got 5k equity in it and he’s missed the last 2 finance payments

Leicesterdave

2,282 posts

182 months

Sunday 18th December 2022
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Macron said:
https://www.motortrader.com/motor-trader-news/auto...

No. Old battery tech, high electricity costs. What did you expect?
Old battery tech? Let’s not exaggerate!

I think we could go on and on about all forms of energy being expensive also.
Petrol and diesel certainly aren’t cheap, and with the 23% hike in fuel duty set to hit in March people will yet again panic about the costs of refuelling. Will ICE cars then take another hit?

It seems at the moment that there isn’t a clear solution for the average buyer out there. Cars are a waste of money and always will be!

bencollins4

1,107 posts

208 months

Sunday 18th December 2022
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Leicesterdave said:
Macron said:
https://www.motortrader.com/motor-trader-news/auto...

No. Old battery tech, high electricity costs. What did you expect?
Old battery tech? Let’s not exaggerate!

I think we could go on and on about all forms of energy being expensive also.
Petrol and diesel certainly aren’t cheap, and with the 23% hike in fuel duty set to hit in March people will yet again panic about the costs of refuelling. Will ICE cars then take another hit?

It seems at the moment that there isn’t a clear solution for the average buyer out there. Cars are a waste of money and always will be!
Some pretty extreme views in this thread - I wouldn’t pay too much attention to any car value advice in here! Also, a week before Christmas is not a time to be getting a trade-in valuation.

Marc p

1,045 posts

144 months

Sunday 18th December 2022
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As a car trader myself and although I mainly deal in older BMs, I do keep track of the market as a whole and I have noticed a looming knock-on effect of the London Ulez expansion coming, petrol cars of around 2006-2014 are starting to rise and traders paying way over trade value, whilst the diesel equivalents of the same age are starting to come down.

When it comes to high end super cars, when the stock market becomes less predictable, you’ll notice that the older cars go up in value as the wealthy move their money to tangible and appreciating assets, whilst newer examples(like the aforementioned McLaren) will drop in price, unless it’s something rare or scarce in availability bought as an investment, although these are risky as they rapidly inflate in value before crashing heavily (remember the 911R?)

AlexNJ89

2,535 posts

81 months

Sunday 18th December 2022
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ghost83 said:
I know someone who’s got his car for sale currently as he’s got 5k equity in it and he’s missed the last 2 finance payments
Someone opened up to me last night saying that he's in £32k of credit card debt.

His wife quit her job to be a full-time mum but keeps spending on his credit card because the kids are her world.

I think there could be a lot of people out there racking up debts that we can't see.

mk1coopers

1,239 posts

154 months

Sunday 18th December 2022
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^^^ He needs to have a conversation very quickly, I know several people who didn’t, because they were either hiding their inability to pay from their partner or didn’t want to upset them, things like this are a slow burn as they rise followed by a very quick drop off a cliff when the credit runs out, leading to a very dramatic change of lifestyle.

Back on cars, I have noticed a drop of a couple of thousand on vehicles I’m looking to change into, there will be the normal seasonal changes, however it does feel like there is less disposable income out there, having said that I also know someone that has placed a deposit on a car due in 12 months, with the expectation of moving it on for a profit, not a limited edition or anything sought after, I personally think they aren’t going to make anything from it, be interesting to see if they do.

ghost83

5,493 posts

192 months

Sunday 18th December 2022
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AlexNJ89 said:
Someone opened up to me last night saying that he's in £32k of credit card debt.

His wife quit her job to be a full-time mum but keeps spending on his credit card because the kids are her world.

I think there could be a lot of people out there racking up debts that we can't see.
He needs to have a good sit down with her and a serious conversation before it gets any worse, I also think credit card companies should be held accountable for allowing people to get in that much debt, it’s also what leads to things like suicide so please keep an eye on your friend as it will be affecting his mental health and the fact he’s keeping the impending doom from her will only make it all worse when it comes to light!

I had a 10k limit on my credit card and found it scary so I reduced it to 1k! Me being sensible damaged my credit rating (back in 2019) luckily it’s back up where it should be but again credit card companies are dangerous imo!

GT4RS

4,468 posts

199 months

Sunday 18th December 2022
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tooslow96 said:
AlexNJ89 said:
To me it really feels like a stand off between buyers and sellers.

There's isn't huge amounts on the market, but plenty of good cars with good specs when you look and they aren't selling.

Seller's putting it down to the winter months and then will begin to panic in February.

If we haven't had a 20% drop by April 2023 I'll be confused and concede that I was wrong.
Most Private sellers are listing at higher prices than Main dealers. When you call them they will literally tell you to F off if you try to tell them they are asking for than main dealers, they will tell you straight ' I know what i have!'.

These arent even people who have overpaid, when you put the reg in TCC you can see they are trying to profit off you even after owning the car for 3yr+ and putting on extra 20k, 30k miles +.

Sellers clearly dont need the money.
More like these sellers have their heads in the sand.

Gerradi

1,543 posts

122 months

Sunday 18th December 2022
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mk1coopers said:
^^^ He needs to have a conversation very quickly, I know several people who didn’t, because they were either hiding their inability to pay from their partner or didn’t want to upset them, things like this are a slow burn as they rise followed by a very quick drop off a cliff when the credit runs out, leading to a very dramatic change of lifestyle.
This sounds like De Ja Vu from 1990, exactly this where many, many people in negative equity. I remember when the place I worked closed the regional depot & many were overloaded as they had 2nd mortgages, large credit card debts....some even tried selling there new carpets , one chap god rest his soul took his life. Very hard times & I think this could easily be worse...

ghost83

5,493 posts

192 months

Sunday 18th December 2022
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Gerradi said:
This sounds like De Ja Vu from 1990, exactly this where many, many people in negative equity. I remember when the place I worked closed the regional depot & many were overloaded as they had 2nd mortgages, large credit card debts....some even tried selling there new carpets , one chap god rest his soul took his life. Very hard times & I think this could easily be worse...
Scary really

Niponeoff

2,156 posts

29 months

Sunday 18th December 2022
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ghost83 said:
AlexNJ89 said:
Someone opened up to me last night saying that he's in £32k of credit card debt.

His wife quit her job to be a full-time mum but keeps spending on his credit card because the kids are her world.

I think there could be a lot of people out there racking up debts that we can't see.
He needs to have a good sit down with her and a serious conversation before it gets any worse, I also think credit card companies should be held accountable for allowing people to get in that much debt, it’s also what leads to things like suicide so please keep an eye on your friend as it will be affecting his mental health and the fact he’s keeping the impending doom from her will only make it all worse when it comes to light!

I had a 10k limit on my credit card and found it scary so I reduced it to 1k! Me being sensible damaged my credit rating (back in 2019) luckily it’s back up where it should be but again credit card companies are dangerous imo!
I work in a remote part of the world and got a text from my CC saying do you recognise this transaction, so I replied N for No.

Next thing I know my card isn't working and my account disappears from my internet banking. Bit extreme I thought, but I suppose that's that sorted then.

I reapplied and got knocked back!

A month later I got an email saying you are at 90% of your limit!

Turns out they kept my card running but took my account down so I would call them! Leaving said clone to keep spending.

I don't know who decides these policies, but they must be incredibly stupid or just trying to tick me off.

Ontop of that, it took more phone cards than I could get at once to successfully call them.

And due to the CC application Knockback my credit rating is no longer maximum.

So yes, CC companies = massive bell ends.

Earthdweller

13,671 posts

128 months

Sunday 18th December 2022
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ghost83 said:
Gerradi said:
This sounds like De Ja Vu from 1990, exactly this where many, many people in negative equity. I remember when the place I worked closed the regional depot & many were overloaded as they had 2nd mortgages, large credit card debts....some even tried selling there new carpets , one chap god rest his soul took his life. Very hard times & I think this could easily be worse...
Scary really
I was a young PC working in an area that covered Epping Forest, quite a wealthy area then as now, lots of people working in the city, big houses/big mortgages etc

The number of suicides in the forest was insane .. people gassing themselves in cars, hanging from trees etc as well as people at home hanging from bannisters, in garages and other gruesome ways .. the worst being stepping in front of tube/overground trains

Horse riders were forever coming across them on their morning rides

Added to that the number of burning cars in the forest, businesses catching fire etc

It was a time I really wouldn’t want to relive again