Will Coronavirus hit used car prices?
Discussion
lee_erm said:
Angela Merkel has suggested 2/3 of Germans could contract COVID-19. The current mortality rate in Italy is I think above 5%. I'd say yes if we're talking worst case infection scenarios.
Italy has the second oldest population in the world. That’s why they’re suffering with a high percentage of deaths. 80sMatchbox said:
'I have cash, I can offer you (some silly offer)' calls will increase for those selling!
I'm half looking for a car, so I welcome a bit of a dip.
Might work with a private seller, but as I already said, lower IR's and more printy printy means that anything for sale at dealers (especially anything that can vaguely be described as ''classic/exotic/performance'' or ''appreciating future classic'') means the debt pushers and debt junkies will be pushing prices even higher than the current stupid bubble prices for these kind of cars.I'm half looking for a car, so I welcome a bit of a dip.
and all those Micras being driven very very very s l o w l yging84 said:
New car sales are likely to come to a halt, this typically has a knock on affect of reducing supply of used cars so thier values go up, however low interest rates have meant dealers are holding a lot more stock than they used to, so this might not happen.
There are some interesting dynamics at play with the new car mkt.Millions of customers on PCP deals, who when they come to the end of their deal, will
Not be able to afford to pay the GFV (buy their own PCP car)
Live without a car (hand it back and do nothing)
Afford to buy a used car (hand the PCP car back and replace with a used car)
This could mean the cheapest option (in cash terms) is to buy a new car on PCP.
Wilmslowboy said:
There are some interesting dynamics at play with the new car mkt.
Millions of customers on PCP deals, who when they come to the end of their deal, will
Not be able to afford to pay the GFV (buy their own PCP car)
Live without a car (hand it back and do nothing)
Afford to buy a used car (hand the PCP car back and replace with a used car)
This could mean the cheapest option (in cash terms) is to buy a new car on PCP.
Exactly what PCP is designed to do!Millions of customers on PCP deals, who when they come to the end of their deal, will
Not be able to afford to pay the GFV (buy their own PCP car)
Live without a car (hand it back and do nothing)
Afford to buy a used car (hand the PCP car back and replace with a used car)
This could mean the cheapest option (in cash terms) is to buy a new car on PCP.
The new car market will essentially grind to a halt resulting in a severe shortage of quality used stock.
This has been apparant through Jan Feb and March as quality used 3 year old cars have risen in value up to 10%.
To counteract this rise and going forward buyers will have less to spend and confidence will take a hit so broadly strong prices will be maintained and there won't be the bargains around some are hoping for.
As ever the best cars will command the best prices both mainstream and high end.
This has been apparant through Jan Feb and March as quality used 3 year old cars have risen in value up to 10%.
To counteract this rise and going forward buyers will have less to spend and confidence will take a hit so broadly strong prices will be maintained and there won't be the bargains around some are hoping for.
As ever the best cars will command the best prices both mainstream and high end.
Justin Case said:
Next to the other implications this isn't really important, what is potentially more worrying is that people may lose their jobs as a result of customers staying away
The govt's own figures estimate 80% of the population will get it, and 1% will die. That's around 560,000 people. That's possibly even more worrying than job losses...you know, actually dying, or if you're younger, your parents dying. Already falling fast.
I reckon we will see the same sort of price drops we saw in 2010.
I bet we see used prices slump 30% within 2 months.
I have been bombarded with texts and emails from Mercedes and BMW this week about "Never to be repeated deals this week!".
Speaking to the local dealers a few people have cancelled purchases over the last week.
Mate at Audi who works on the fleet sales side said just about every deal is on hold.
Just look at prices of bigger stuff.
Mate who was offered £14k for his 4.4 TDV8 Range Rover in Feb from LR, WBAC and Mercedes said the best price he has been offered this week is now £8800. Ouch!
The offer from WBAC on my 2014 5 series was down over 20% this morning from the offer 2 weeks ago!
It is only going to get worse.
Or better, if you're buying.
I reckon we will see the same sort of price drops we saw in 2010.
I bet we see used prices slump 30% within 2 months.
I have been bombarded with texts and emails from Mercedes and BMW this week about "Never to be repeated deals this week!".
Speaking to the local dealers a few people have cancelled purchases over the last week.
Mate at Audi who works on the fleet sales side said just about every deal is on hold.
Just look at prices of bigger stuff.
Mate who was offered £14k for his 4.4 TDV8 Range Rover in Feb from LR, WBAC and Mercedes said the best price he has been offered this week is now £8800. Ouch!
The offer from WBAC on my 2014 5 series was down over 20% this morning from the offer 2 weeks ago!
It is only going to get worse.
Or better, if you're buying.
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