Will Coronavirus hit used car prices?
Discussion
Deep Thought said:
Vroomer said:
There's a very old joke about antique dealers:
Two antiques dealers were marooned together on an island...
...business was brisk!
Does the same apply to car dealers?
I havent been a motor trader for around 7 years.Two antiques dealers were marooned together on an island...
...business was brisk!
Does the same apply to car dealers?
What part of the information i gave - like the information i gave last Monday - was not objective?
I even said i didnt gather enough final prices to give any sort of trend.
I guess i could have found some ropey old Jag that the owner was still looking x2 its value for and cited it as example of how the market had dropped 30%?
The point I was making is that dealers buying stock at auction is a trade-to-trade sale. We are still waiting for consumer behaviour to settle down once 'pent up desire' has been satisfied!
Chancellor Rishi Sunak warned of a “severe recession, the likes of which we haven’t seen,”
Sunak, speaking to the House of Lords economic committee, said: “Although we have put unprecedented mitigating actions in place, I certainly won’t be able to protect every job and every business.
“We’re already seeing that in the data, and no doubt there will be more hardship to come. This lockdown is having a very significant impact on our economy.
“We are likely to face a severe recession, the likes of which we haven’t seen, and of course that will have an impact on employment.”
Soothsayers here responded: "But there will be no effect on used car prices."
Sunak, speaking to the House of Lords economic committee, said: “Although we have put unprecedented mitigating actions in place, I certainly won’t be able to protect every job and every business.
“We’re already seeing that in the data, and no doubt there will be more hardship to come. This lockdown is having a very significant impact on our economy.
“We are likely to face a severe recession, the likes of which we haven’t seen, and of course that will have an impact on employment.”
Soothsayers here responded: "But there will be no effect on used car prices."
northwest monkey said:
A month ago, there was a huge clamour for garden centres to open back up - if you listened to the news, everyone in the UK wanted bedding plants. 2 weeks after opening back up, our local garden centre is on Facebook every day saying "come down now, we have no queues"...
Same here.From today's Telegraph:
Buyers return to the property market, but this bounce could be short-lived, warn estate agents.
Property demand has risen sharply as buyers return to the market, but this short-lived bounce will not be enough to stop house prices falling, estate agents have warned.
Is this a parallel to the used car market?
Buyers return to the property market, but this bounce could be short-lived, warn estate agents.
Property demand has risen sharply as buyers return to the market, but this short-lived bounce will not be enough to stop house prices falling, estate agents have warned.
Is this a parallel to the used car market?
ChocolateFrog said:
Virtually no one is really feeling the effects of the incoming recession yet.
That is the point.People have been sitting at home (working and furloughed) not spending money and have a short-term pile of cash. Small businesses and self-employed have had money chucked at them by government. In many cases, people are feeling rather flush at the moment and this is funding pent-up demand for cars/vans.
We are not going to see the true effects of all this until the autumn.
In finance, a dead cat bounce is a small, brief recovery in the price of a declining stock.
The situation we have here is not quite that in as much as we've had a frozen market followed by a frenzy of activity caused by pent-up demand and Government pumping short-term money into the economy.
Where we'll be in the autumn when the business grants have been spent and furloughing has ended is anyone's guess.
The situation we have here is not quite that in as much as we've had a frozen market followed by a frenzy of activity caused by pent-up demand and Government pumping short-term money into the economy.
Where we'll be in the autumn when the business grants have been spent and furloughing has ended is anyone's guess.
undred orse said:
I saw an email yesterday offering about £7-9k off in stock Cayennes and up to £14.5k off in stock Panameras of various specs. I've never seen that before. Cancelled orders? I can certainly see some of the usual buyers of that sort of car being uncomfortable about taking on a new spend and being seen in it when the future of their business and workforce is uncertain.
Where is this? Please post a link. A friend is looking for a new Cayenne and has been disappointed with the discounts available.Deep Thought said:
Because it comes back to what i said very early on in this thread - people tend not to give a monkeys about the fact that other people (particularly in different industries) may be getting made redundant.
Fundamentally many people have at least as much money in their pocket, if not more, than pre-lockdown. They dont give a monkeys if, for example airline staff are being laid off.
Maybe they should (because it could be indicative of whats to come) - but typically they dont.
They may not be worrying about the people who have been made redundant, but the people who have been made redundant will stop spending.Fundamentally many people have at least as much money in their pocket, if not more, than pre-lockdown. They dont give a monkeys if, for example airline staff are being laid off.
Maybe they should (because it could be indicative of whats to come) - but typically they dont.
For sole traders there is no such thing as a company car.
There two methods of claiming tax relief on business travel.
The simplest is the standard HMRC amount of 45p per mile.
The other is the “actual cost method”.
To use the actual cost method, add up all your mileage, business and private, and then work out the business mileage as a percentage of the total mileage. For example, you may find that 20% of your car journeys are business journeys, so 20% is the business proportion of the car’s use.
Then, apply the business proportion to all the running costs of the car, such as fuel, repairs, MOT, insurance, servicing and so forth. For example, if your fuel bills total £1,000, then the business proportion of your fuel would be £1,000 * 20%, or £200. Do this for each running cost – these are the amounts you can include in your business’s accounts as day-to-day running costs for the car.
If you’re using the actual cost method you can also claim capital allowances on the business proportion of the cost of the car.
There two methods of claiming tax relief on business travel.
The simplest is the standard HMRC amount of 45p per mile.
The other is the “actual cost method”.
To use the actual cost method, add up all your mileage, business and private, and then work out the business mileage as a percentage of the total mileage. For example, you may find that 20% of your car journeys are business journeys, so 20% is the business proportion of the car’s use.
Then, apply the business proportion to all the running costs of the car, such as fuel, repairs, MOT, insurance, servicing and so forth. For example, if your fuel bills total £1,000, then the business proportion of your fuel would be £1,000 * 20%, or £200. Do this for each running cost – these are the amounts you can include in your business’s accounts as day-to-day running costs for the car.
If you’re using the actual cost method you can also claim capital allowances on the business proportion of the cost of the car.
After rising steadily for weeks after lifting of lockdown, the WBAC price of one of my cars has dropped 15% in two weeks and is now back to its January price. To me, this suggests the 'pent-up demand' has now been satisfied and prices have returned to normal.
Has anyone else noticed recent large drops in their WBAC price?
Has anyone else noticed recent large drops in their WBAC price?
Gman20 said:
We buy any car is a car buying service, not a valuation service.
It is no surprise that when you turned them down the first couple of times they upped the offer.
There is very likely an element of personalized negotiation in the prices.
It can happily be used for valuation purposes.It is no surprise that when you turned them down the first couple of times they upped the offer.
There is very likely an element of personalized negotiation in the prices.
There is no personalisation, it is based on mass data.
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