Dealers rushing to sell before brexit?

[DeanR32]

Merry Christmas PH, first off. Hope you had a good one

So, with Brexit looming large at the end of jan (not sure that’ll happen tbh), what do you think dealers will do in the coming month? Do you think they’ll push hard to get cars out of the showrooms with amazing deals, anticipating tariffs, or no change from the usual Q1 quietness?

[ClaphamGT3]

Given that, barring some massive upset, this will be a managed Brexit with a minimum 12 month transition period where, essentially, we are rested as an EU member and act like one, despite having legally left the EU, there will be little difference, at least initially.

[PMacanGTS]

I don’t know anything about how car dealerships work, but why would they reduce prices on current stock if they think incoming stock will be more expensive?

[Deep Thought]

DeanR32 said:

Merry Christmas PH, first off. Hope you had a good one

So, with Brexit looming large at the end of jan (not sure that’ll happen tbh), what do you think dealers will do in the coming month? Do you think they’ll push hard to get cars out of the showrooms with amazing deals, anticipating tariffs, or no change from the usual Q1 quietness?

As per the previous two reasons, i dont think there'll be any noticable change.

Also Q1 quietness? Their busiest quarter of the year, surely? It certainly was when i was trading.

[DeanR32]

I didn’t say they’d reduce prices, but manufacturer/dealer contributions have been pretty big in recent months to get cars out there and onto the second hand market. If there were to be some sort of tariffs, then maybe they’d give more incentives before a price increase, which may make people bite before an increase, and therefore boost sales.

At least that’s what I’m hoping for!!

[HTP99]

I actually think that with now we know what is happening with regards to Brexit, then it will get busier out there across retail as a whole, not just in the motor trade.

[DeanR32]

Deep Thought said:

As per the previous two reasons, i dont think there'll be any noticable change.

Also Q1 quietness? Their busiest quarter of the year, surely? It certainly was when i was trading.

Quietness, as in deals are thin on the ground. It is indeed they’re busiest quarter, so no need for such incentives

[PMacanGTS]

DeanR32 said:

I didn’t say they’d reduce prices, but manufacturer/dealer contributions have been pretty big in recent months to get cars out there and onto the second hand market. If there were to be some sort of tariffs, then maybe they’d give more incentives before a price increase, which may make people bite before an increase, and therefore boost sales.

At least that’s what I’m hoping for!!

How is a dealer contribution different to a price reduction?

[Deep Thought]

DeanR32 said:

I didn’t say they’d reduce prices, but manufacturer/dealer contributions have been pretty big in recent months to get cars out there and onto the second hand market. If there were to be some sort of tariffs, then maybe they’d give more incentives before a price increase, which may make people bite before an increase, and therefore boost sales.

At least that’s what I’m hoping for!!

What car are you looking for?

I'd be checking the broker sites seeing what deals are available. I had a cursory look there at drivethedeal and 25% off was the discount on a C200 AMG Line which isnt to be sniffed at at any time of the year.

Leasing might be an idea also if you're not too fussy on the specific car and dont want to make a long term commitment.

Edited by Deep Thought on Thursday 26th December 13:47

[Deep Thought]

HTP99 said:

I actually think that with now we know what is happening with regards to Brexit, then it will get busier out there across retail as a whole, not just in the motor trade.

^^^^
THIS

I think people have been holding off on big purchases and now we have a reasonable idea of whats happening and when then people will start to make larger, long term commitments.

[DeanR32]

PMacanGTS said:

DeanR32 said:

I didn’t say they’d reduce prices, but manufacturer/dealer contributions have been pretty big in recent months to get cars out there and onto the second hand market. If there were to be some sort of tariffs, then maybe they’d give more incentives before a price increase, which may make people bite before an increase, and therefore boost sales.

At least that’s what I’m hoping for!!

How is a dealer contribution different to a price reduction?

I dare say it isn’t. You’d think factory orders made and booked before Brexit May miss any tariffs implied too.

Regardless, do you have any input on the opening post?

[Deep Thought]

DeanR32 said:

PMacanGTS said:

DeanR32 said:

I didn’t say they’d reduce prices, but manufacturer/dealer contributions have been pretty big in recent months to get cars out there and onto the second hand market. If there were to be some sort of tariffs, then maybe they’d give more incentives before a price increase, which may make people bite before an increase, and therefore boost sales.

At least that’s what I’m hoping for!!

How is a dealer contribution different to a price reduction?

I dare say it isn’t. You’d think factory orders made and booked before Brexit May miss any tariffs implied too.

Regardless, do you have any input on the opening post?

I thought there was a transitional period happening, so no tariff changes immediately after 31st Jan?

[PMacanGTS]

DeanR32 said:

I dare say it isn’t. You’d think factory orders made and booked before Brexit May miss any tariffs implied too.

Regardless, do you have any input on the opening post?

Yes, my input questions your hopes of any dealer reductions if they think prices will increase. Hence my questions. I really don’t understand your reasoning. It would make little business sense to lower prices when incoming stock is going to be more expensive. A rising tide lifts all ships.

[DeanR32]

PMacanGTS said:

DeanR32 said:

I dare say it isn’t. You’d think factory orders made and booked before Brexit May miss any tariffs implied too.

Regardless, do you have any input on the opening post?

Yes, my input questions your hopes of any dealer reductions if they think prices will increase. Hence my questions. I really don’t understand your reasoning. It would make little business sense to lower prices when incoming stock is going to be more expensive. A rising tide lifts all ships.

I don’t expect or hope for reductions at all. If a BMW X3M has an RRP of £80k, and BMW and their dealers can knock £20k off, then I neither expect more off, nor expect a significant increase, but wondered if they’d maintain the type of deals we’ve been seeing in what is usually a quarter where deals are thin on the ground, as everyone wants the new reg in March.

Not hoping for anything if I’m honest

[sasha320]

PMacanGTS said:

A rising tide lifts all ships.

I agree, but can the tide go any higher?

Can the UK car market bear any price increases?

I wonder, given the UK market is pretty mature, whether prices are pretty optimised?

Personally I think that the German car manufacturers will simply send their car to China and other markets post Brexit rather than subsidise UK cars and we’ll see BMW, Mercedes and Audi all return to premium status - when the Deutschmark made those cars affordable only to the wealthiest.

Vauxhall and Ford will dominate the market along with non-EU imports e.g., Kia.

Anyway, who knows?

[anonymous-user]

A rising tide lifts all ships.

[/quote]
How true and what a quote!

[anonymous-user]

sasha320 said:

Personally I think that the German car manufacturers will simply send their car to China and other markets post Brexit rather than subsidise UK cars and we’ll see BMW, Mercedes and Audi all return to premium status - when the Deutschmark made those cars affordable only to the wealthiest

So yeah all the ships will rise with the tide and there's every chance will go up rather than dealers having to beg you to buy their stock.

[nickfrog]

Deep Thought said:

I think people have been holding off on big purchases and now we have a reasonable idea of whats happening and when then people will start to make larger, long term commitments.

Absolutely we are seeing it in the property market where pent up demand is starting being unleashed since the elections. House builders shares have done extremely well in the past 2 weeks too and the ftse 100 is doing very well indeed.