Will Coronavirus hit used car prices?
Discussion
I’ve enjoyed the peace!!Anonymous-poster said:
20 cars out of 23 not making reserve doesn’t seem like a mad rush to stock pile but if you have concrete evidence to the contrary please share as I’am not in the used car trade?
Lots of independents are looking for stock but without knowing which auction 20 out of 23 did not hit reserve its hard to comment without seeing the stock profile. If it’s the auction I think chances are they will take the bids but by setting higher reserves bidders are likely to increase their bid slightly.Anonymous-poster said:
Deep Thought said:
Car dealerships allowed to reopen from 1st June in England.
Yes, but social distancing rules must be observed so test drives will have to be unaccompanied.
Joking aside, it will be interesting to see what happens with car prices now....
Auto810graphy said:
Anonymous-poster said:
20 cars out of 23 not making reserve doesn’t seem like a mad rush to stock pile but if you have concrete evidence to the contrary please share as I’am not in the used car trade?
Lots of independents are looking for stock but without knowing which auction 20 out of 23 did not hit reserve its hard to comment without seeing the stock profile. If it’s the auction I think chances are they will take the bids but by setting higher reserves bidders are likely to increase their bid slightly.Auto810graphy said:
Anonymous-poster said:
20 cars out of 23 not making reserve doesn’t seem like a mad rush to stock pile but if you have concrete evidence to the contrary please share as I’am not in the used car trade?
Lots of independents are looking for stock but without knowing which auction 20 out of 23 did not hit reserve its hard to comment without seeing the stock profile. If it’s the auction I think chances are they will take the bids but by setting higher reserves bidders are likely to increase their bid slightly."Reserve" in the case of this particular auction is usually auto set a couple of hundred below CAP clean, so most cars didnt hit reserve but got an amber "reserve not met" flag on ending the auction which means they were close. A red marker means its quite some distance away from the reserve. I think most will end up going through as sold, perhaps with a small negotiation. Will know more when they relist them.
Cars on average were hitting £650 below CAP clean across the 23 that were ending today.
Could be either
- A reluctance to pay book value by the trade
- Not enough bidders to get prices up to reserve
- A combination of both
Deep Thought said:
Ok, well i've watched 23 auctions end on a trade site i'm still registered with. Heres my observations
Of the 23 cars, only 3 met reserve. 16 looked like they were close to reserve (amber status finish), 4 were some distance away (red status finish)
There were 8 cars with a CAP Clean of under £10K. On average they made £602 behind CAP Clean
There were 12 cars with a CAP Clean above £10K but under £20K. On average they made £734 behind CAP Clean
There were 3 cars with a CAP Clean above £20K but under £35K. On average they made £2436 behind CAP Clean (of interest, ALL were large 4x4s)
The average number of bids on diesel cars was 14, whereas the average number of bids on cooking petrol cars was 7. Of interest, the massive exception (and removed from the petrol car bid numbers to not skew the average) was on a Golf R with 36 bids.
4x4s under £20K fared no better and no worse than other cars at around £650 behind CAP Clean on average.
TL;DR - Cars under £20K were coming it at roughly £700 behind CAP clean. Strong bidding on diesels of all kinds. Bidding on large, expensive 4x4s very cautious.
Of the 23 cars, only 3 met reserve. 16 looked like they were close to reserve (amber status finish), 4 were some distance away (red status finish)
There were 8 cars with a CAP Clean of under £10K. On average they made £602 behind CAP Clean
There were 12 cars with a CAP Clean above £10K but under £20K. On average they made £734 behind CAP Clean
There were 3 cars with a CAP Clean above £20K but under £35K. On average they made £2436 behind CAP Clean (of interest, ALL were large 4x4s)
The average number of bids on diesel cars was 14, whereas the average number of bids on cooking petrol cars was 7. Of interest, the massive exception (and removed from the petrol car bid numbers to not skew the average) was on a Golf R with 36 bids.
4x4s under £20K fared no better and no worse than other cars at around £650 behind CAP Clean on average.
TL;DR - Cars under £20K were coming it at roughly £700 behind CAP clean. Strong bidding on diesels of all kinds. Bidding on large, expensive 4x4s very cautious.
Dedders 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?
I’ve been watching that for a while and keep being tempted as it’s a lot of car for the money and only 5 miles away from me. Must resist! 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?
HTP99 said:
Not from what I've been told.
Assuming that you are referring to the test drives rather than the permitted re-opening date?I don't think the government have set rules or advice on test drives. As far as I can see dealers will be free to set a policy of their choosing which will likely be either:
1) Unaccompanied
2) Not at all
3) In the manner that you might occupy an Uber
4) Only as far and as fast as the salesman can run alongside
Unless you want to buy a Disco 5 in which case it will come with a fortuitous full tank of fuel which will enable you to test drive it from London to Durham and nearly all the way back without stopping for fuel. Subject to temperature checks and a 30 mile preliminary drive to check your eyesight.
Anonymous-poster said:
HTP99 said:
Anonymous-poster said:
Deep Thought said:
Car dealerships allowed to reopen from 1st June in England.
Yes, but social distancing rules must be observed so test drives will have to be unaccompanied.Anyway when the company that I work for, had spoken to the insurance company a few weeks ago the costs off unaccompanied test drives in the event of an accident were sky high so it was a case of no unaccompanied test drives, but driver in the drivers seat and 1 other person in the passenger rear was within guidelines, then it changed to both the driver and front seat passenger being OK as both would be facing forward.
I guess I'll find out what we can do, when I return on 1st June.
Deep Thought said:
Ok, well i've watched 23 auctions end on a trade site i'm still registered with. Heres my observations
Of the 23 cars, only 3 met reserve. 16 looked like they were close to reserve (amber status finish), 4 were some distance away (red status finish)
There were 8 cars with a CAP Clean of under £10K. On average they made £602 behind CAP Clean
There were 12 cars with a CAP Clean above £10K but under £20K. On average they made £734 behind CAP Clean
There were 3 cars with a CAP Clean above £20K but under £35K. On average they made £2436 behind CAP Clean (of interest, ALL were large 4x4s)
The average number of bids on diesel cars was 14, whereas the average number of bids on cooking petrol cars was 7. Of interest, the massive exception (and removed from the petrol car bid numbers to not skew the average) was on a Golf R with 36 bids.
4x4s under £20K fared no better and no worse than other cars at around £650 behind CAP Clean on average.
TL;DR - Cars under £20K were coming it at roughly £700 behind CAP clean. Strong bidding on diesels of all kinds. Bidding on large, expensive 4x4s very cautious.
Deep, at first your comments were far far too optimistic but I could sense that you’re an intelligent chap and factual posts like the above are what I’ve personally been waiting for.Of the 23 cars, only 3 met reserve. 16 looked like they were close to reserve (amber status finish), 4 were some distance away (red status finish)
There were 8 cars with a CAP Clean of under £10K. On average they made £602 behind CAP Clean
There were 12 cars with a CAP Clean above £10K but under £20K. On average they made £734 behind CAP Clean
There were 3 cars with a CAP Clean above £20K but under £35K. On average they made £2436 behind CAP Clean (of interest, ALL were large 4x4s)
The average number of bids on diesel cars was 14, whereas the average number of bids on cooking petrol cars was 7. Of interest, the massive exception (and removed from the petrol car bid numbers to not skew the average) was on a Golf R with 36 bids.
4x4s under £20K fared no better and no worse than other cars at around £650 behind CAP Clean on average.
TL;DR - Cars under £20K were coming it at roughly £700 behind CAP clean. Strong bidding on diesels of all kinds. Bidding on large, expensive 4x4s very cautious.
I’m tired of the bashing on here. The best dealers / salesmen will still thrive by reducing their normal margin to create churn and reduce risk.
More insight into auction prices would be much appreciated.
Throttlebody said:
Jun 1+
Time for buyers to put their cards on the table. Time to see which dealers are holding a busted flush.
I’m a member of a US Facebook car dealer group. Apparently the US dealers are on a roll at the moment with new and used, some have done 30+ units in May alone. It’s likely some people desperate to splash some cash after not being able to for a while.Time for buyers to put their cards on the table. Time to see which dealers are holding a busted flush.
Having said that. The general consensus is that there are tough times ahead As we get toward the end of the year and reality sets in.
RUSTILLDOWN said:
Deep, at first your comments were far far too optimistic but I could sense that you’re an intelligent chap and factual posts like the above are what I’ve personally been waiting for.
Well, we'll see. 
I'm still not really seeing why believing that its going to be bad but we'll get through it and we'll see a V or at least a U shaped recovery over the next year to two years is considered wildly optimistic, but hey ho.
RUSTILLDOWN said:
I’m tired of the bashing on here. The best dealers / salesmen will still thrive by reducing their normal margin to create churn and reduce risk.
More insight into auction prices would be much appreciated.
Agreed. The motor trade - and other big businesses - havent got where they are by not reacting and adapting, and thats what they'll do now. It'll be interesting to watch as it evolves.More insight into auction prices would be much appreciated.
Yes, no problem, any i can get i will.
Edited by Deep Thought on Monday 25th May 21:40
Edited by Deep Thought on Monday 25th May 21:40
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