Will Coronavirus hit used car prices?

[Deep Thought]

visitinglondon said:

fridaypassion said:

Good old PH

Always divides up into the following:

Know it all types that look down their noses at the peasants who have to use something so common as finance to buy a car - 99% of the time these are just people that inherited wealth and would be stacking shelves if daddy or granddady didn't bankroll them.

People that like to buy things using finance within their means (most normal people)

People that would like to buy a nice car but have to wait for their personal situation to improve before pressing the button

People that could afford to buy a nice car but run round in a stter perhaps not realising that one day you are dead and although its nice to own everything and now owe the bank anything we all ultimately rent everything in this life

Short answer - Let's just wait and see and stop being horrible to eachother.

You forgot those who take out ruinous finance deals to impress their friends and neighbours, don’t actually have a pot to piss in and will be royally fked by this downturn.

Hopefully it will teach them some financial discipline going forward.

Of course. Theres a minority in society who have done that - and at the first opportunity will do so again - but it will be interesting to see what happens in six months time.

If the PCP haters are to believed, most people who PCP are actually in that category so we should see hundreds of thousands of cars repossessed, if not millions, and on the back of living hand to mouth - which again most of them do apparently - we'll see millions of these suburbanites suddenly living in abject poverty.

[Deep Thought]

BrabusMog said:

I'm the only one out of my RRS owning friends that actually paid my cash for the car up front as I am intending on keeping it forever, there are 3 others in my friendship group that have one and one has a FFRR on tick and has just been furloughed. I suspect this is the norm and there are going to be some squeaky bums! We also ticked a shopping cart for my missus this month but £215 a month isn't breaking the bank at the moment luckily!

Ironically hes probably better off on his 80% now than if he was working and paying for commuting costs, fuel, going out, etc, etc.

[Earthdweller]

gizlaroc said:

The mistake many make is using car dealer finance on used cars.

£25000
60 x £456
final payment £8000 at 11.9% apr

£25000
60 x £454
Owned outright at 3.5% apr.


Yet the PCP is sold on "But we guarantee your car will be worth £8000 at the end."
"No you don't! You guarantee I will have to pay you an extra £8000 at the end or walk away with nothing."

Absolutely spot on with that

I bought an X3 on PCP (4.9%apr) for the extra discount then paid it off with a bank loan at 3% Apr

The final payment was £17k at 48 months

Monthly’s were pretty much the same .. at 48 months I think I owed £8k on it .. now it’s paid off

[Deep Thought]

Earthdweller said:

gizlaroc said:

The mistake many make is using car dealer finance on used cars.

£25000
60 x £456
final payment £8000 at 11.9% apr

£25000
60 x £454
Owned outright at 3.5% apr.


Yet the PCP is sold on "But we guarantee your car will be worth £8000 at the end."
"No you don't! You guarantee I will have to pay you an extra £8000 at the end or walk away with nothing."

Absolutely spot on with that

I bought an X3 on PCP (4.9%apr) for the extra discount then paid it off with a bank loan at 3% Apr

The final payment was £17k at 48 months

Monthly’s were pretty much the same .. at 48 months I think I owed £8k on it .. now it’s paid off

Some of the finance "offers" on BMW Approved Used are frankly shocking. £10,000 of interest charges on a used 320d

[Vroomer]

Deep Thought said:

Ironically hes probably better off on his 80% now than if he was working and paying for commuting costs, fuel, going out, etc, etc.

I think you've forgotten the £2500 pm salary cap

[Sa Calobra]

G_Morto said:

I work in the public sector and in my civil service department there's zero chance of being let go. Our yearly pay rise is actually going ahead as scheduled next month

You say that.

I also work in somewhere similar.

If and when it goes bad our salaries won't be paid but we will be fully expected to work owed the money.

Governments can and do fail with no money to pay staff and any money paid make be worthless if inflation is rampant.

[gizlaroc]

Wills2 said:

There is enough PCP debt out there to bankrupt the big three German brands if is goes wrong, Merkel would have to bail them out.

She is not allowed to bail them out though.

[liner33]

I'm so glad I bought on pcp, what with the crash in used values coming in could well be sat with an asset worth considerably less than I'd expected come trade in time .

Of course with the market crash my investments will have dropped and not given me the return on the capital meaning I'll be paying more in interest than I'd hoped as I usually use the capital in investments rather than buying cars.

[Vroomer]

Sa Calobra said:

Governments can and do fail with no money to pay staff and any money paid make be worthless if inflation is rampant.

Give one example of a European government failing since WWII.

[kharma45]

gizlaroc said:

She is not allowed to bail them out though.

State aid rules have been changed significantly, so she could

https://ec.europa.eu/commission/presscorner/detail...

[mstrbkr]

liner33 said:

I'm so glad I bought on pcp, what with the crash in used values coming in could well be sat with an asset worth considerably less than I'd expected come trade in time .

If you're going to trade it in, using the value of it against a new car, the lower used value isn't an advantage!

If you were just going to hand it back and walk away, it doesn't matter to you what the used market is doing.

[Deep Thought]

gizlaroc said:

Wills2 said:

There is enough PCP debt out there to bankrupt the big three German brands if is goes wrong, Merkel would have to bail them out.

She is not allowed to bail them out though.

I see they're bailing out TUI?

[warp9]

Deep Thought said:

BrabusMog said:

I'm the only one out of my RRS owning friends that actually paid my cash for the car up front as I am intending on keeping it forever, there are 3 others in my friendship group that have one and one has a FFRR on tick and has just been furloughed. I suspect this is the norm and there are going to be some squeaky bums! We also ticked a shopping cart for my missus this month but £215 a month isn't breaking the bank at the moment luckily!

Ironically hes probably better off on his 80% now than if he was working and paying for commuting costs, fuel, going out, etc, etc.

Not if he was taking home £5k per month

[Deep Thought]

warp9 said:

Deep Thought said:

BrabusMog said:

I'm the only one out of my RRS owning friends that actually paid my cash for the car up front as I am intending on keeping it forever, there are 3 others in my friendship group that have one and one has a FFRR on tick and has just been furloughed. I suspect this is the norm and there are going to be some squeaky bums! We also ticked a shopping cart for my missus this month but £215 a month isn't breaking the bank at the moment luckily!

Ironically hes probably better off on his 80% now than if he was working and paying for commuting costs, fuel, going out, etc, etc.

Not if he was taking home £5k per month

Indeed yes, i forgot about the cap on it

[crosseyedlion]

Vroomer said:

Give one example of a European government failing since WWII.

Give one example of a pandemic causing a complete global shutdown for months since ww2?

[gizlaroc]

kharma45 said:

State aid rules have been changed significantly, so she could

https://ec.europa.eu/commission/presscorner/detail...

That is good news.

It is shame that it takes a pandemic and for it to effect everyone for them to allow this, this is one of the EU rules that seemed bonkers to me.

Every country needs to be able to give financial support to businesses in times of need to protect their economy and their people.

Strange that something so awful may well see the EU project slip back to what it should have been in the first place. Fingers crossed.

[R.Sole]

Vroomer said:

Deep Thought said:

Ironically hes probably better off on his 80% now than if he was working and paying for commuting costs, fuel, going out, etc, etc.

I think you've forgotten the £2500 pm salary cap

And I think there is tax and NI to come off the £500pw also!

[Deep Thought]

R.Sole said:

Vroomer said:

Deep Thought said:

Ironically hes probably better off on his 80% now than if he was working and paying for commuting costs, fuel, going out, etc, etc.

I think you've forgotten the £2500 pm salary cap

And I think there is tax and NI to come off the £500pw also!

Good points well made by you both - i hadnt had my first coffee when i typed it.

[Lord-Haggis]

crosseyedlion said:

Vroomer said:

Give one example of a European government failing since WWII.

Give one example of a pandemic causing a complete global shutdown for months since ww2?

Greece, they were lucky they got bailed out. The same might not be possible at the moment.

On the pandemic front, we have been lucky this hasn't happened more often. We have dodged a lot of bullets all man made from nuclear power, factory farming, globalisation, homogenisation. At some point they will all throw their cards, if they haven't already and we haven't seen it. The biggest being Chernobyl thus far that we have seen.

Make no mistake, we are at the mouth of a rabbit hole of greed, the hippies were right about a few things. This virus is but a small weapon in our planets arsenal.

Edited by Lord-Haggis on Wednesday 1st April 10:24

[R.Sole]

Deep Thought said:

R.Sole said:

Vroomer said:

Deep Thought said:

Ironically hes probably better off on his 80% now than if he was working and paying for commuting costs, fuel, going out, etc, etc.

I think you've forgotten the £2500 pm salary cap

And I think there is tax and NI to come off the £500pw also!

Good points well made by you both - i hadnt had my first coffee when i typed it.

Also many small companies that furloughed staff because they were told the government would cover it did nor realise it may be not until the end of April and by that time they will be out of cash and the staff will not get anything and they will be 4 weeks further down the line in getting benefits.