Will Coronavirus hit used car prices?
Discussion
Auto810graphy said:
Earthdweller said:
The first thing that will go is the fancy car .. and the last thing to come back
Anecdotally, I was having a chat with a friend last night, who has just been offered an M4 for what it owes the guy who has it .. he’s a small businessman and his entire cash flow has gone
It’s a fire sale to keep a roof over his head
I very much doubt he’s alone
To be fair as a finance broker we have been offered quite a few cars and vans in the last 10 days. Normally we would jump at the chance but we have nowhere to go with them and don’t want the risk of having them just in case the market does suffer badly. Anecdotally, I was having a chat with a friend last night, who has just been offered an M4 for what it owes the guy who has it .. he’s a small businessman and his entire cash flow has gone
It’s a fire sale to keep a roof over his head
I very much doubt he’s alone
HTP99 said:
Nothing to do with "scheming used car dealers", prices of used car rose after the recession, its supply and demand.
People buy because they have to, not because they want to, they don't want to spend on new so they buy a used car, demand goes up, as do prices.
It wasn't clear to you that I was kidding?People buy because they have to, not because they want to, they don't want to spend on new so they buy a used car, demand goes up, as do prices.
Edited by HTP99 on Thursday 2nd April 10:35
Well for the sake of clarity: I was kidding when I suggested used car dealers were behind a conspiracy to unleash a global pandemic in order to shut down new car production and cause used car prices to rise.
growlerowl said:
HTP99 said:
Nothing to do with "scheming used car dealers", prices of used car rose after the recession, its supply and demand.
People buy because they have to, not because they want to, they don't want to spend on new so they buy a used car, demand goes up, as do prices.
It wasn't clear to you that I was kidding?People buy because they have to, not because they want to, they don't want to spend on new so they buy a used car, demand goes up, as do prices.
Edited by HTP99 on Thursday 2nd April 10:35
Well for the sake of clarity: I was kidding when I suggested used car dealers were behind a conspiracy to unleash a global pandemic in order to shut down new car production and cause used car prices to rise.
growlerowl said:
HTP99 said:
Nothing to do with "scheming used car dealers", prices of used car rose after the recession, its supply and demand.
People buy because they have to, not because they want to, they don't want to spend on new so they buy a used car, demand goes up, as do prices.
It wasn't clear to you that I was kidding?People buy because they have to, not because they want to, they don't want to spend on new so they buy a used car, demand goes up, as do prices.
Edited by HTP99 on Thursday 2nd April 10:35
Well for the sake of clarity: I was kidding when I suggested used car dealers were behind a conspiracy to unleash a global pandemic in order to shut down new car production and cause used car prices to rise.
Edited by HTP99 on Thursday 2nd April 11:24
So said:
Assuming your response is typical, that suggests that prices will take a bath quite soon.
Interesting question is whether there will be any used car dealers left in 6-12 months' time if big price drops are in the pipeline. Will they be forced to liquidate and refinance? If so where will the finance come from?growlerowl said:
So said:
Assuming your response is typical, that suggests that prices will take a bath quite soon.
Interesting question is whether there will be any used car dealers left in 6-12 months' time if big price drops are in the pipeline. Will they be forced to liquidate and refinance? If so where will the finance come from?But you cannot help but think they'll be fewer in number.
Auto810graphy said:
To be fair as a finance broker we have been offered quite a few cars and vans in the last 10 days. Normally we would jump at the chance but we have nowhere to go with them and don’t want the risk of having them just in case the market does suffer badly at the current prices they've been offered.
EFA Surely the stuff you have been offered you would 'jump at the chance' at a particular price (assuming logistics of delivery and ownership admin are possible)? At what price would you take the risk?
Also something else which will affect long term is the fact when all this is over taxes for self employed people are going up according to the chancellor he wants a level playing field for everyone so if taxes go up profits go down wage bills have gone up due to living wage etc etc, company directors/owners possibly won’t have the same money they once had,
Very stressful times ahead for a lot of people and businesses, even more so for those that aren’t legit with their books as they won’t get 80% of their true income
Very stressful times ahead for a lot of people and businesses, even more so for those that aren’t legit with their books as they won’t get 80% of their true income
ghost83 said:
Also something else which will affect long term is the fact when all this is over taxes for self employed people are going up according to the chancellor he wants a level playing field for everyone so if taxes go up profits go down wage bills have gone up due to living wage etc etc, company directors/owners possibly won’t have the same money they once had,
Very stressful times ahead for a lot of people and businesses, even more so for those that aren’t legit with their books as they won’t get 80% of their true income
That speech was in reference to IR35 and those in avoidance, not all self employed. Self employed builders, plumbers, Sparky's and the like are not affected. That's way way I received it anyway.Very stressful times ahead for a lot of people and businesses, even more so for those that aren’t legit with their books as they won’t get 80% of their true income
Sa Calobra said:
How can they go up when people will have maxed out credit or have no jobs or their employers are struggling?
It's not like coming out of a recession. We are decimating our economy and then entering a recession that'll follow covid.
Sorry in advance to be pedantic....It's not like coming out of a recession. We are decimating our economy and then entering a recession that'll follow covid.
But "decimating" is really losing one in ten (it comes from the way Roman leaders used to motivate a lazy army: line them all up along the parapet of a high bridge and push every tenth soldier to their deaths).
There may well be more than 1 in 10 laid off, and the economy is likely to suffer worse than 10%. All this even without Brexit.
Pandemic job loses, then resulting deep recession (we won't have any money left go stimulate the economy) then brexit.
It'll be more than 10%. It's a perfect storm.
Brexit will be delayed. It has to be now.
Boris won't though. His whole principle upon winning the election was based on out now.
Otherwise baton down. It's going to be a 1920's style US depression.
It'll be more than 10%. It's a perfect storm.
Brexit will be delayed. It has to be now.
Boris won't though. His whole principle upon winning the election was based on out now.
Otherwise baton down. It's going to be a 1920's style US depression.
suffolk009 said:
Sorry in advance to be pedantic....
But "decimating" is really losing one in ten (it comes from the way Roman leaders used to motivate a lazy army: line them all up along the parapet of a high bridge and push every tenth soldier to their deaths).
There may well be more than 1 in 10 laid off, and the economy is likely to suffer worse than 10%. All this even without Brexit.
But "decimating" is really losing one in ten (it comes from the way Roman leaders used to motivate a lazy army: line them all up along the parapet of a high bridge and push every tenth soldier to their deaths).
There may well be more than 1 in 10 laid off, and the economy is likely to suffer worse than 10%. All this even without Brexit.
Absolutely correct, but the correct definition of ‘decimate’ is so little-known, and the word so consistently misused, as to render any attempt at correction pretty pointless.
ghost83 said:
Also something else which will affect long term is the fact when all this is over taxes for self employed people are going up according to the chancellor he wants a level playing field for everyone so if taxes go up profits go down wage bills have gone up due to living wage etc etc, company directors/owners possibly won’t have the same money they once had,
Very stressful times ahead for a lot of people and businesses, even more so for those that aren’t legit with their books as they won’t get 80% of their true income
If the chancellor wants a level playing field and the self employed to pay equivalent taxes, he'd better figure out how to pay the self employed their holidays, sick days, pensions and offer them all the same other benefits..Very stressful times ahead for a lot of people and businesses, even more so for those that aren’t legit with their books as they won’t get 80% of their true income
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