Will Coronavirus hit used car prices?

Will Coronavirus hit used car prices?

Author
Discussion

TwigtheWonderkid

33,200 posts

108 months

Thursday 12th March
quotequote all
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.

gizlaroc

15,367 posts

182 months

Thursday 12th March
quotequote all
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. wink

dreamcracker

2,981 posts

175 months

Thursday 12th March
quotequote all
Free toilet rolls with every car sold could be a winner with many places sold out.

jjr1

2,788 posts

218 months

Thursday 12th March
quotequote all
Coronavirus will hit everyone in two distinct ways.

It will be a complete fking nightmare for the NHS as we try to slow the spread of this disease and therefore allow as many as possible to receive treatment.

The stock market is already reacting to this and recognising that we won't be travelling anywhere or buying anything other than the necessities. This ultimately means that the economies of the world will tank faster than any other time this century. The USA will be hit hardest as they are completely fked with regard to employment, social security and health matters.

So all the debt we currently have allowed ourselves to swim in will come to bite us back. Dream on if you think used car prices won't tank and all assets will become distressed sales !

Gerradi

997 posts

78 months

Friday 13th March
quotequote all
TwigtheWonderkid said:
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.
The govt's own figures estimate 80%is "worst case"

gizlaroc

15,367 posts

182 months

Friday 13th March
quotequote all
TwigtheWonderkid said:
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.
Is it more worrying?

I don't think it is for many. Worrying about loosing their homes, no food etc. I would imagine is far more worrying for some than dying.
As for parents dying? C'mon, be realistic.

loskie

2,311 posts

78 months

Friday 13th March
quotequote all
Pistonheads: "Scaremongering Matters"

WonkeyDonkey

1,023 posts

61 months

Friday 13th March
quotequote all
R.Sole said:
Exactly what PCP is designed to do!
Hence the name, perpetual car payments.

smartypants

47,208 posts

127 months

Friday 13th March
quotequote all
gizlaroc said:
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. wink
Same, BMW are going through a massive email drive I've not had for a long while! I think new sales will plummet, I'm not convinced we'll see much of a move on used apart from really expensive stuff.

TokyoRich

131 posts

139 months

Friday 13th March
quotequote all
Its really interesting and I have been thinking about it a lot as I have just put down a deposit on a car! There are lots of moving parts and my thoughts were broadly:

- The new car market is buggered. Manufacturers are already struggling as their number one market has pretty much shut (china) so companies that were already hemorrhaging cash last year (JLR / AML) will struggle to survive. The Germans are going to take a big hit too and the idea of mothballing factories and makign staff redundant is inevitable. So there will be massive incentives out there to buy new as the manufacturers want to avoid a build up of inventory and help their working capital when they may already be fearing a cash squeeze.
- With interest rates coming down again this will exacerbate the attractiveness of new cars
- Used cars suffered heavily in 08/09 so I was trying to think why.. Well lots of forced sellers for one, lots of non Brits got laid off and went home and sold at any price and lots of guys got fired and wanted to clear some cash, especially in finance so some interesting cars were floating around. Also property prices were falling and the housing market came to a halt and lots of people tend to buy interesting cars when they have just refinanced their house or made a killing on a property sale. So will these things happen now.. difficult to say but probably. The housing market should have had a Brexit hit anyway, but low interest rates (and greed) will slow that. Stamp duty changes should also have softened the pace of fast money in the market. Will lots of people get fired.. Probably.. In finance, banks will have a torrid year so this will be anticipated now and headcount will be at best frozen.

So lots of questions.. no real conclusion. Ultimately less new cars coming online should lead to a positive dynamic in the used market if you believe in vanilla supply and demand. But if the last 2 weeks have shown us anything it is that Panic will always prevail. So strap in and get ready for those used bargains!

Venisonpie

1,078 posts

40 months

Friday 13th March
quotequote all
Economy is going to take a massive hit.
People scared about short to medium term future of their income.
Put all big purchases on hold.
Prices will fall.

I'm tendering for a lot of vehicles at the moment and plan to hit the discount button hard.

Chipper

935 posts

175 months

Friday 13th March
quotequote all
I wonder how the car bloggers with all their cars on PCP will cope.


TokyoRich

131 posts

139 months

Friday 13th March
quotequote all
Chipper said:
I wonder how the car bloggers with all their cars on PCP will cope.
Yes its funny but true.. Also the old Ferrari flipping has to be toast now so there could be lots of people stuck with cars on order and no sale on the last car they expected to sell for it.... That will crush Ferrari prices in particular.. Think Maranello has bigger problems right now though..

gizlaroc

15,367 posts

182 months

Friday 13th March
quotequote all
Chipper said:
I wonder how the car bloggers with all their cars on PCP will cope.
I wonder how the UK with all their cars on PCP will cope?


That is the reality.



55palfers

4,754 posts

122 months

Friday 13th March
quotequote all
gizlaroc said:
Already falling fast.



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!

. wink
Have forecourt prices dropped by similar amounts? I sniff a bit of profiteering

smartypants

47,208 posts

127 months

Friday 13th March
quotequote all
gizlaroc said:
I wonder how the UK with all their cars on PCP will cope?


That is the reality.
They will just roll the shortfall into a newer sttier car but will have a bigger ipad strapped to the dash.

BlackR8

341 posts

35 months

Friday 13th March
quotequote all
Chipper said:
I wonder how the car bloggers with all their cars on PCP will cope.
If Corona means people will have to take up measures like social distancing and office employees required to work from home, then I expect YT viewing may even go up which will be good news for the YouTubers

av185

12,154 posts

85 months

Friday 13th March
quotequote all
55palfers said:
gizlaroc said:
Already falling fast.



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!

. wink
Have forecourt prices dropped by similar amounts? I sniff a bit of profiteering
Trade prices are up not down.

Dont believe everything you read.

Got to love all these stories about mate of a mate down the pub lol.

kambites

60,072 posts

179 months

Friday 13th March
quotequote all
Presumably if this carries on for long, new car supply is going to start drying up which could easily push used car prices up.

The automotive industry is so reliant on its "just in time" supply chain it wouldn't take much of a disruption to have a serious effect on the world's ability to actually produce cars.

Jamescrs

1,307 posts

23 months

Friday 13th March
quotequote all
Never mind about used car prices, I'm hoping Corona beer takes a hit on the price so I can stock up.