Will Coronavirus hit used car prices?
Discussion
ging84 said:
Butter Face said:
Is that now taking into account covid or have cap values yet to have any adjustment due to the crisis yet?
jamoor said:
You should try driving a car with autonomous capabilities.
I’m fairly sure my car can drive and concentrate much better than I can on a 2 hour journey on a motorway.
It can measure the exact distance from the car in front rather than a guess like I do, I believe it can also see in very heavy fog and I think even see the car ahead of the one in front.
My Volvo V90 has semi - autonomous driving, where it can steer, brake, accelerate etc on it's own. It's sI’m fairly sure my car can drive and concentrate much better than I can on a 2 hour journey on a motorway.
It can measure the exact distance from the car in front rather than a guess like I do, I believe it can also see in very heavy fog and I think even see the car ahead of the one in front.
t. Tesla's are no where near perfect either, in fact all current systems are "ok" for cruising along a motorway but that's it. It will only ever work properly if every other car is fully autonomous too, and that is multiple decades away.
BTW, if you can't concentrate for 2 hours on a motorway, please hand your licence in - you are a menace on the roads.
Butter Face said:
Optimistic article from 6 April. Things have moved on. dave_s13 said:
Other car still has a 3.5litre V6 petrol though.
Still very interested in cars, just my needs have changed to fit my life/budget at the moment.
You have redeemed yourself with the V6 .Welcome back . You could always just put an Uber sign on your leaf to pretend that it is used for work.Still very interested in cars, just my needs have changed to fit my life/budget at the moment.
Coronavirus will hit used car prices up in the long run.
SARScov2 ~ bailouts/QE/stimulus ~ currency devaluation ~ inflation
New cars will go up, be even cheaper to own on zirp equivalent (manufacturer subsidised by them getting even more debt at nirp)
The quality will also drop to keep margins higher.
Just look at 2008/9 to see what happened.
Prices bottomed in ~ Nov/Dec08/Jan 09... right as markets bottomed from 07 crisis.
Since then the used car market buoyancy represents the underlying inflation, combined in the higher end market with the malinvestment easy/cheap credit or money seeking yield (investment) generates.
So to sum up.
It’ll crash, then recover even more stupidly than last time.
People will probably just not sell, except for those who have to, who’ll get a haircut.
SARScov2 ~ bailouts/QE/stimulus ~ currency devaluation ~ inflation
New cars will go up, be even cheaper to own on zirp equivalent (manufacturer subsidised by them getting even more debt at nirp)
The quality will also drop to keep margins higher.
Just look at 2008/9 to see what happened.
Prices bottomed in ~ Nov/Dec08/Jan 09... right as markets bottomed from 07 crisis.
Since then the used car market buoyancy represents the underlying inflation, combined in the higher end market with the malinvestment easy/cheap credit or money seeking yield (investment) generates.
So to sum up.
It’ll crash, then recover even more stupidly than last time.
People will probably just not sell, except for those who have to, who’ll get a haircut.
Camelot1971 said:
jamoor said:
You should try driving a car with autonomous capabilities.
I’m fairly sure my car can drive and concentrate much better than I can on a 2 hour journey on a motorway.
It can measure the exact distance from the car in front rather than a guess like I do, I believe it can also see in very heavy fog and I think even see the car ahead of the one in front.
My Volvo V90 has semi - autonomous driving, where it can steer, brake, accelerate etc on it's own. It's sI’m fairly sure my car can drive and concentrate much better than I can on a 2 hour journey on a motorway.
It can measure the exact distance from the car in front rather than a guess like I do, I believe it can also see in very heavy fog and I think even see the car ahead of the one in front.
t. Tesla's are no where near perfect either, in fact all current systems are "ok" for cruising along a motorway but that's it. It will only ever work properly if every other car is fully autonomous too, and that is multiple decades away.
BTW, if you can't concentrate for 2 hours on a motorway, please hand your licence in - you are a menace on the roads.
ging84 said:
Came across this beast browsing autotrader
https://www.autotrader.co.uk/classified/advert/202...
a 2006 bently continental for £15k
I'm not really too clued in on Bentley values so could be well wrong, but my initial reaction was must be a fix upper, but advert does not suggest it is.
seems way to cheap, 3 months ago I would have assumed scam but is this where thing are now?
Nearly 15 years old, looks quite dated (in and out) and by modern standards, considering it has a 6.0L engine it isn't particularly fast; seems reasonable to me. https://www.autotrader.co.uk/classified/advert/202...
a 2006 bently continental for £15k
I'm not really too clued in on Bentley values so could be well wrong, but my initial reaction was must be a fix upper, but advert does not suggest it is.
seems way to cheap, 3 months ago I would have assumed scam but is this where thing are now?
Mr Whippy said:
Coronavirus will hit used car prices up in the long run.
SARScov2 ~ bailouts/QE/stimulus ~ currency devaluation ~ inflation
New cars will go up, be even cheaper to own on zirp equivalent (manufacturer subsidised by them getting even more debt at nirp)
The quality will also drop to keep margins higher.
Just look at 2008/9 to see what happened.
Prices bottomed in ~ Nov/Dec08/Jan 09... right as markets bottomed from 07 crisis.
Since then the used car market buoyancy represents the underlying inflation, combined in the higher end market with the malinvestment easy/cheap credit or money seeking yield (investment) generates.
So to sum up.
It’ll crash, then recover even more stupidly than last time.
People will probably just not sell, except for those who have to, who’ll get a haircut.
SARScov2 ~ bailouts/QE/stimulus ~ currency devaluation ~ inflation
New cars will go up, be even cheaper to own on zirp equivalent (manufacturer subsidised by them getting even more debt at nirp)
The quality will also drop to keep margins higher.
Just look at 2008/9 to see what happened.
Prices bottomed in ~ Nov/Dec08/Jan 09... right as markets bottomed from 07 crisis.
Since then the used car market buoyancy represents the underlying inflation, combined in the higher end market with the malinvestment easy/cheap credit or money seeking yield (investment) generates.
So to sum up.
It’ll crash, then recover even more stupidly than last time.
People will probably just not sell, except for those who have to, who’ll get a haircut.
People who want / need to downsize will chop their cars in and get something more appropriate - which generates movement in the car market anyway.
Buying habits might change, but people will still have buying habits.
AndrewNR said:
ging84 said:
Came across this beast browsing autotrader
https://www.autotrader.co.uk/classified/advert/202...
a 2006 bently continental for £15k
I'm not really too clued in on Bentley values so could be well wrong, but my initial reaction was must be a fix upper, but advert does not suggest it is.
seems way to cheap, 3 months ago I would have assumed scam but is this where thing are now?
Nearly 15 years old, looks quite dated (in and out) and by modern standards, considering it has a 6.0L engine it isn't particularly fast; seems reasonable to me. https://www.autotrader.co.uk/classified/advert/202...
a 2006 bently continental for £15k
I'm not really too clued in on Bentley values so could be well wrong, but my initial reaction was must be a fix upper, but advert does not suggest it is.
seems way to cheap, 3 months ago I would have assumed scam but is this where thing are now?
But this one is significantly cheaper than other 2006 variants of the same car, even ones with higher miles.
I’d say that Bentley looks fantastic inside and out.
Many would think it a year or two old with a PP and at least a £100k car.
As to it being not particularly fast!
Blimey. Unless your Lewis H 200 Mph and 0-60 in less than 5 seconds is fast.
Many would think it a year or two old with a PP and at least a £100k car.
As to it being not particularly fast!
Blimey. Unless your Lewis H 200 Mph and 0-60 in less than 5 seconds is fast.
Edited by Thankyou4calling on Monday 25th May 11:04
Thankyou4calling said:
I’d say that Bentley looks fantastic inside and out.
Many would think it a year or two old with a PP and at least a £100k car.
As to it being not particularly fast!
Blimey. Unless your Lewis H Mph and 0-60 in less than 5 seconds is fast.
Especially fast when you’re driving something akin to a small house. And in similar comfort to a small house. Many would think it a year or two old with a PP and at least a £100k car.
As to it being not particularly fast!
Blimey. Unless your Lewis H Mph and 0-60 in less than 5 seconds is fast.
jamoor said:
Vroomer said:
Autotrader update today:
490k trade sales, a DECREASE of 20k on typical lockdown days
35k private sale, an INCREASE of 5k on typical lockdown days
Struggling to interpret that...
Traders going broke and private sellers desperate for cash490k trade sales, a DECREASE of 20k on typical lockdown days
35k private sale, an INCREASE of 5k on typical lockdown days
Struggling to interpret that...
There have been very few private sales due to the restrictions on movement, but as this starts to be relaxed it makes sense that private sales increase again - even if fairly low levels still.
Re traders, not sure how long the AT freebie offer lasts, but this may be part of it. Sales still seem to be completing, so perhaps traders are running down their stock a bit.
Butter Face said:
jammy-git said:
This might be a bit cheeky, but could I ask you to look up the value for this car please: https://www.carandclassic.co.uk/car/C1213258
Way over book but not unusual for that type of car IMO
Vroomer said:
Autotrader update today:
490k trade sales, a DECREASE of 20k on typical lockdown days
35k private sale, an INCREASE of 5k on typical lockdown days
Struggling to interpret that...
Perhaps : key workers need to replace cars, go to dealers who are taking suitable precautions to avoid infection. Key workers need to replace cars., avoid private sellers as no guarantee they are taking suitable precautions. What would you do? 490k trade sales, a DECREASE of 20k on typical lockdown days
35k private sale, an INCREASE of 5k on typical lockdown days
Struggling to interpret that...
Vroomer said:
Autotrader update today:
490k trade sales, a DECREASE of 20k on typical lockdown days
35k private sale, an INCREASE of 5k on typical lockdown days
Struggling to interpret that...
Element of dealer stock moving but hard to currently replace.490k trade sales, a DECREASE of 20k on typical lockdown days
35k private sale, an INCREASE of 5k on typical lockdown days
Struggling to interpret that...
Private seller confidence in market rising and lockdown restrictions easing so advertising their cars that they previously have been unable to.
Vroomer said:
Autotrader update today:
490k trade sales, a DECREASE of 20k on typical lockdown days
35k private sale, an INCREASE of 5k on typical lockdown days
Struggling to interpret that...
On the private sales element, it could be that folks are selling privately, hoping to get a higher price than the WBAC/trade-in values they've been quoted?490k trade sales, a DECREASE of 20k on typical lockdown days
35k private sale, an INCREASE of 5k on typical lockdown days
Struggling to interpret that...
Kinky said:
Vroomer said:
Autotrader update today:
490k trade sales, a DECREASE of 20k on typical lockdown days
35k private sale, an INCREASE of 5k on typical lockdown days
Struggling to interpret that...
On the private sales element, it could be that folks are selling privately, hoping to get a higher price than the WBAC/trade-in values they've been quoted?490k trade sales, a DECREASE of 20k on typical lockdown days
35k private sale, an INCREASE of 5k on typical lockdown days
Struggling to interpret that...
It shows very little as a standalone statistic. Not really a surprise if the amount of private sales of cars was to trend upwards for the reasons you've suggested.
On the other side, its hard to draw any concrete conclusion about the trade sales side of things until forecourts are allowed to reopen and people have more freedom of movement (likely to be announced this week i think with a view to restarting most likely 8th June, if not 15th June.
Im doing work with a company that does consumer research and insights on a national scale and they're saying that consumer spending habits are changing weekly and evolving with every change in the lockdown restrictions. Impossible to make any real predictions based on one snapshot of one view of the data in one particular week of lockdown.
Edited by Deep Thought on Monday 25th May 14:42
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