Will Coronavirus hit used car prices?
Discussion
Lord Marylebone said:
Most of the people I know who own classics or stuff like a Lambo/Ferrari etc are relatively ordinary enthusiasts who made the purchase as soon as they had just about scraped together the £60k, £90k or what whatever was required.
They aren’t rolling in cash, and whatever they have stuck in their ‘one big purchase’ is pretty much all their spare money.
Maybe true of your friends , but me personally or guys I know don't tend to skint them self’s on cars . Old friend of my dads has 4 classic Ferrari’s among 15 other cars under an inch of dust in his shed . They aren’t rolling in cash, and whatever they have stuck in their ‘one big purchase’ is pretty much all their spare money.
he wouldn’t sell the dust. Weekendrebuild said:
Lord Marylebone said:
Most of the people I know who own classics or stuff like a Lambo/Ferrari etc are relatively ordinary enthusiasts who made the purchase as soon as they had just about scraped together the £60k, £90k or what whatever was required.
They aren’t rolling in cash, and whatever they have stuck in their ‘one big purchase’ is pretty much all their spare money.
Maybe true of your friends , but me personally or guys I know don't tend to skint them self’s on cars . Old friend of my dads has 4 classic Ferrari’s among 15 other cars under an inch of dust in his shed . They aren’t rolling in cash, and whatever they have stuck in their ‘one big purchase’ is pretty much all their spare money.
he wouldn’t sell the dust. Someone who has 19 classic cars including 4 classic Ferrari’s is in no way representative of the wider population, which is what we are actually talking about here.
Seen as how you mentioned ‘personally’, then no, I don’t “skint myself” (to use your terminology). I’ve paid off my property purchases, enjoyed a collection of classic Porsches, Astons etc and not had to acquire a penny of borrowings or debt to do it, whilst aged in my 30’s.
Vroomer said:
Have you got a link? Can't see a bloodbath on Pistonheads Porsche forum.
The 'Porsche Owners UK' Facebook group is probably the most active Porsche chat group on the go at the moment.Have a look though the posts there and you will see what I mean. Not a day goes by without someone saying they want to sell their car and are met with the sobering news and examples regarding prices, people in the trade saying 'nothing selling', people complaining they bought a 997.2 for £30k just over a year ago and now getting offered £17k for it etc.
You get the idea.
Lord Marylebone said:
The 'Porsche Owners UK' Facebook group is probably the most active Porsche chat group on the go at the moment.
Have a look though the posts there and you will see what I mean. Not a day goes by without someone saying they want to sell their car and are met with the sobering news and examples regarding prices, people in the trade saying 'nothing selling', people complaining they bought a 997.2 for £30k just over a year ago and now getting offered £17k for it etc.
You get the idea.
I'll give someone £18k for their 997.2.Have a look though the posts there and you will see what I mean. Not a day goes by without someone saying they want to sell their car and are met with the sobering news and examples regarding prices, people in the trade saying 'nothing selling', people complaining they bought a 997.2 for £30k just over a year ago and now getting offered £17k for it etc.
You get the idea.
gizlaroc said:
You also have to remember Italy is very, very tight knit family wise.
Many have their older family live with them under one roof, this will make a massive difference.
Iran have a massive amount of Chinese there, nearly every construction project is being done by the Chinese.
I have an Intalian customer. He added smoking as a factor contributing to poor lung health in many of the elderly in Italy and that the quaint mountain villages are quite densely populated, narrow lanes and multi-story properties.Many have their older family live with them under one roof, this will make a massive difference.
Iran have a massive amount of Chinese there, nearly every construction project is being done by the Chinese.
ChasW said:
gizlaroc said:
You also have to remember Italy is very, very tight knit family wise.
Many have their older family live with them under one roof, this will make a massive difference.
Iran have a massive amount of Chinese there, nearly every construction project is being done by the Chinese.
I have an Intalian customer. He added smoking as a factor contributing to poor lung health in many of the elderly in Italy and that the quaint mountain villages are quite densely populated, narrow lanes and multi-story properties.Many have their older family live with them under one roof, this will make a massive difference.
Iran have a massive amount of Chinese there, nearly every construction project is being done by the Chinese.
Just had a really, really interesting phone call with someone who works at Food Standards Agency.
They have been working with others across Europe for the last couple of years on a project to try and stop a loophole that the Italians have been using to import cheap and unregulated meat being brought in from China.
They said it was a huge problem and some of the meat tested was absolutely not suitable to human consumption.
The worrying thing is, the Italians have been eating it at a huge rate, many unknowingly as it has been repacked and sold into the restaurants and into markets, not only that it has also been found being sold in Spain and other parts of Europe.
They are very worried that this is why Italy has such a high rate of Covid-19 over there.
Chap on another forum mentioned he was offered a 2016 991.2 (lovely spec, over £90k list) for very early £40’s k. (WBAC list it at sub £40k)
Double whammy for Porsche used prices, years of froffy overvaluation to unwind and impact of an overall tightening market.
Double whammy for Porsche used prices, years of froffy overvaluation to unwind and impact of an overall tightening market.
Lord Marylebone said:
The 'Porsche Owners UK' Facebook group is probably the most active Porsche chat group on the go at the moment.
Have a look though the posts there and you will see what I mean. Not a day goes by without someone saying they want to sell their car and are met with the sobering news and examples regarding prices, people in the trade saying 'nothing selling', people complaining they bought a 997.2 for £30k just over a year ago and now getting offered £17k for it etc.
You get the idea.
Have a look though the posts there and you will see what I mean. Not a day goes by without someone saying they want to sell their car and are met with the sobering news and examples regarding prices, people in the trade saying 'nothing selling', people complaining they bought a 997.2 for £30k just over a year ago and now getting offered £17k for it etc.
You get the idea.
Lord Marylebone said:
Weekendrebuild said:
jamoor said:
They will store assets away unless they need the money?
True but generally people with assets like that have money to begin with . They aren’t rolling in cash, and whatever they have stuck in their ‘one big purchase’ is pretty much all their spare money.
Even if nothing goes wrong, the spectre of something going wrong and not being covered by warranty or whatever would mean you'd never be able to fully enjoy it. Every noise would make you question whether something is about to go wrong. Every mile you put on it you'd be thinking how much it had cost you in depreciation etc.
Only way to enjoy such frivolities is unencumbered. I can't think of much worse (besides COVID-19 I suppose) than owning your dream bedroom poster car or whatever and being apprehensive about driving it.
I've just bought a Model 3 Performance outright - if I'm going to kick the bucket from ARDS then I'm going to enjoy myself before that happens.
Vroomer said:
WBAC price on one of my cars down 10% in one week.
Why is that a surprise? Stuff like WBAC is used by people looking to sell, and if they're on WBAC they're probably wanting shot of their car sooner rather than later. WBAC isn't used by anyone who can comfortably bide their time for the right buyer to come along.Motivated buyers aren't usually the most trustworthy source of unbiased opinion about the value of an asset.
Well I own one 15yr old car worth <£2k and I've been considering buying another for fun so I'd quite like to see a price crash. I suspect the effects will vary quite a lot across the market price range, I doubt £500 cars with a full MOT are going to get any cheaper, nor do I see super expensive collector classics being affected but new mass market cars I can see taking a big hit.
If I was to make a prediction it would be that used values won't change all that much but sales will dry up massively. People will just hold on to the car they have and wait for everything to settle down so supply and demand will both dwindle equally.
If I was to make a prediction it would be that used values won't change all that much but sales will dry up massively. People will just hold on to the car they have and wait for everything to settle down so supply and demand will both dwindle equally.
Durzel said:
Why is that a surprise? Stuff like WBAC is used by people looking to sell, and if they're on WBAC they're probably wanting shot of their car sooner rather than later. WBAC isn't used by anyone who can comfortably bide their time for the right buyer to come along.
Motivated buyers aren't usually the most trustworthy source of unbiased opinion about the value of an asset.
It is a surprise because prices have been dropping around 1-2% a month for most 3 year old cars over the last year or so. Motivated buyers aren't usually the most trustworthy source of unbiased opinion about the value of an asset.
Demand at the moment is through the floor.
My old man has a 2016 X6, that has gone from a £25200 bid 2 weeks ago, to £21800 today.
He put in my mums Citreon C1 as well, that was £5850 to £4650 over 2 weeks.
I should have sold my 2014 5 series touring 2 weeks ago. Was being offered £10.5k trade for it.
I am now advertising it privately on eBay for £8995.
I've just scraped together £15k to buy a 996 (after also considering most things Italian). Even arranged to go and view a nice looking prospective purchase . . . will probably sit on my hands for a bit now.
It's not just the potential downside of taking a depreciation hit akin to a new car almost straight off . . . but juggling child care of a 10 year old and care of elderly relative, in her own home, three weeks after hip replacement, puts it all in perspective.
Also, my financial security (nice house, manageable mortgage, secure public sector job (on the downside, my employer will undoubtedly redeploy me from cushy analysis role, to something rather more hazardous on the front line!), wife earning really decent salary in ostensibly secure private sector role) is making me feel hugely privileged compared to what millions of our fellow citizens are facing right now. Will be looking for places to donate where I can be confident it will be put to good use.
It's not just the potential downside of taking a depreciation hit akin to a new car almost straight off . . . but juggling child care of a 10 year old and care of elderly relative, in her own home, three weeks after hip replacement, puts it all in perspective.
Also, my financial security (nice house, manageable mortgage, secure public sector job (on the downside, my employer will undoubtedly redeploy me from cushy analysis role, to something rather more hazardous on the front line!), wife earning really decent salary in ostensibly secure private sector role) is making me feel hugely privileged compared to what millions of our fellow citizens are facing right now. Will be looking for places to donate where I can be confident it will be put to good use.
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