Will Coronavirus hit used car prices?
Discussion
Vroomer said:
You've taken this personally – not intended!
The point I was making is that dealers buying stock at auction is a trade-to-trade sale. We are still waiting for consumer behaviour to settle down once 'pent up desire' has been satisfied!
Sorry. My bad The point I was making is that dealers buying stock at auction is a trade-to-trade sale. We are still waiting for consumer behaviour to settle down once 'pent up desire' has been satisfied!
Yes, I take your point - currently we dont know if they're buying based on demand or buying based on what they perceive demand will be.
Time will tell. They have started listing cars again slowly on the trade site. Not big numbers (4 yesterday, 3 today). Of an average day they'd normally do 15 a day every day.
I guess, proportionally, it will show what level of business they are doing that is generating X amount of cars to be traded out (they retail many within brand where possible, they have a couple of used car sites - premium and quality used types, and then the rest gets traded out).
Court_S said:
I do too. Look at the queues to get into Ikea yesterday. Do people really need tea lights and meatballs that much? 
We’ll get a better picture later in the month when more shops open, but it does seem like there is pent up demand to get back to buying stuff just because.
All the people queuing to get in ikea makes it look busy but of course they would previously have been INSIDE the shop shuffling around so it’s not a good indicator. We’ll get a better picture later in the month when more shops open, but it does seem like there is pent up demand to get back to buying stuff just because.
If you want to see a queue stand at Primark in Hounslow on the 15th (maybe even the day before for the die yards) that’ll be the mother of all queues.
Albeit a small sample but in the last week I have spoken to two mates who run businesses. One has 65 people mostly in HQ and the other 170 people working from HQ and two satellite offices. They both confirmed they will be offloading office space at the earliest opportunity. In neither case is is cost-cutting driven. The past three months has proved that they don't need them. The portents for commercial property must be a worry. Whether this translates into fewer road journeys and ultimately in reduction in demand for cars who knows?
tinyboytim said:
Deep Thought said:
f
k me, do you work for the Daily Mail???
Please quote them CORRECTLY.
The Telegraph k me, do you work for the Daily Mail???Please quote them CORRECTLY.
Tuesday June 2 2020
Business Briefing
Good morning. Nationwide's house price tracker has reported the sharpest monthly fall since February 2009. Tesco's CFO is leaving and the Bank of England will provide fresh data on bank lending later.
5 things to start your day
House for sale
House prices have fallen by the greatest amount since 2009
Housing | House prices fall by greatest amount since 2009
House prices have fallen by the greatest amount in more than 11 years as the coronavirus crisis hammers the market, mortgage lender Nationwide said on Tuesday.
Sorry if it really upsets you, but that is exactly how it is written in the email the Telegraph have sent out.
Feeling a little under pressure this morning? You need to relax a little.
ChasW said:
Albeit a small sample but in the last week I have spoken to two mates who run businesses. One has 65 people mostly in HQ and the other 170 people working from HQ and two satellite offices. They both confirmed they will be offloading office space at the earliest opportunity. In neither case is is cost-cutting driven. The past three months has proved that they don't need them. The portents for commercial property must be a worry. Whether this translates into fewer road journeys and ultimately in reduction in demand for cars who knows?
What we dont know yet is what the tradeoff will be between the switch to WFH v driving to work rather than using public transport. Those shifting from public transport to driving to work are going to go for cheap white goods rather than flash high end IMHO.
jsf said:
What we dont know yet is what the tradeoff will be between the switch to WFH v driving to work rather than using public transport.
Those shifting from public transport to driving to work are going to go for cheap white goods rather than flash high end IMHO.
One would hope that the government's aim is to make the shift to working at home permanent and the shift from public transport to driving temporary. Whether they achieve that is of course another question entirely. Those shifting from public transport to driving to work are going to go for cheap white goods rather than flash high end IMHO.
Camelot1971 said:
What does this have to do with used car prices?
Apologise, I thought it said 'Used car prices have fallen by the greatest amount in more than 11 years as the coronavirus crisis hammers the market, mortgage lender Nationwide said on Tuesday.'Oh wait what's this, straight from the BOE's mouth:
Why is the housing market important to the economy?
The housing market is closely linked to consumer spending. When house prices go up, homeowners become better off and feel more confident. Some people will borrow more against the value of their home, either to spend on goods and services, renovate their house, supplement their pension, or pay off other debt.
When house prices go down, homeowners risk that their house will be worth less than their outstanding mortgage. People are therefore more likely to cut down on spending and hold off from making personal investments.
Mortgages are the greatest source of debt for households in the UK. If many people take out large loans compared to their income or the value of their house, this can put the banking system at risk in an economic downturn.
I'll let you figure it out.
CS Garth said:
I think behaviours will return to normal quicker than we think.
There will be job losses which are regrettable but we must also beware the learning of false lessons.
It’s easy to say “everything has changed for good”. Some things have, some haven’t in my opinion.
I know I keep saying it but we don't get a free holiday for millions without significant impact in one way or another. Think how tight they are with making new bank holidays due to the economic impact, then ponder on the fact we've effectively had week after week of them for a significant percentage of the population. If it were possible to do this without whacking GDP all democracies would be doing it all the time. But sadly there's no such thing as a free lunch, and positive attitudes etc simply cannot change the facts of economic life.There will be job losses which are regrettable but we must also beware the learning of false lessons.
It’s easy to say “everything has changed for good”. Some things have, some haven’t in my opinion.
In saying 'things haven't changed' you would in actuality be the one claiming that we had entered a new economic paradigm in which a complete stop to large parts of the economy didn't inevitably make us all poorer.
Not a reflection of the wider car market in any way but I sold my 86 911 Carrera 3.2 at the weekend - Surprisingly quickly.
I would have happily accepted the same price pre-covid and it was only for sale for a few weeks with a lot of interest in the car (A substantial amount of time wasters of course but that's nothing new and a fair few genuine enquiries too).
I would have happily accepted the same price pre-covid and it was only for sale for a few weeks with a lot of interest in the car (A substantial amount of time wasters of course but that's nothing new and a fair few genuine enquiries too).
Edited by milfordkong on Tuesday 2nd June 14:56
jsf said:
SpeckledJim said:
There's going to be a widespread opening of eyes to what life is really about.
Loads of people will be deciding/realising that they hate their jobs, and forming plans to not go back/go back on different terms.
Loads of people will realise that they've been working so very hard for the last 10% that they really don't need. Covid-19 has foisted a fascinating social experiment upon us. There will be some good PhD theses out of this.
Indeed, my brother has 3 young kids, this is the first time he has been able to see them for more than 30 minutes/ day on a work day because of his long work hours and commute into London. Loads of people will be deciding/realising that they hate their jobs, and forming plans to not go back/go back on different terms.
Loads of people will realise that they've been working so very hard for the last 10% that they really don't need. Covid-19 has foisted a fascinating social experiment upon us. There will be some good PhD theses out of this.
The kids that she currently nannies for asked for my wife to go to one of their school productions a while ago, when finished and at the and when the kids came out, they both ran past their mum and dad and straight to my wife.
Unfortunately my wife has lost her current job from September as her employer will be WFH indefinately, she has been asking to for years but it was always dismissed, the current situation has made her employer realise that WFH does work.
Anyway yes they earn loads but there has to be a work/life balance, sure a nice house and money but when would they enjoy it and both of them were constantly stressed, dad was having therapy and mum was close to a breakdown a couple of years ago.
highway said:
Given interest rates are so low I think the long anticipated classic car price crash may not be happening as I thought it would.
Sold my Boxster and 235 last month with considerable interest in both. I anticipated sales of used cars would tank due to covid. This has not been my experience at all thus far. I have pals who have sold 993 and an R8 during Covid as well.
Still far too early to gauge yet.Sold my Boxster and 235 last month with considerable interest in both. I anticipated sales of used cars would tank due to covid. This has not been my experience at all thus far. I have pals who have sold 993 and an R8 during Covid as well.
Plenty of idiots still lapping up there lives of leisure on furlough sat in their Argos inflatable hot tubs enjoying their beers and BBQ's... all blissfully unaware that their jobs no longer exist.
mike74 said:
Still far too early to gauge yet.
Plenty of idiots still lapping up there lives of leisure on furlough sat in their Argos inflatable hot tubs enjoying their beers and BBQ's... all blissfully unaware that their jobs no longer exist.
I am sure there are plenty of idiots like those you describe Mike, nonwithstanding the puerile stereotypes. Plenty of idiots still lapping up there lives of leisure on furlough sat in their Argos inflatable hot tubs enjoying their beers and BBQ's... all blissfully unaware that their jobs no longer exist.
But conversely there are plenty of disgruntled idiots making absolute and sweeping statements of fact about something very difficult to gauge / predict and telling us about the apocalypse. Probably because it makes thems feel better that they won't be quite the only ones to be struggling if that ever happens.
The idiots are normally at both ends of the spectrum of binary thinking.
The best way to predict the future is to create it. People make their own luck ; there are plenty of new opportunities out there if you're not terminally miserable.
nickfrog said:
I am sure there are plenty of idiots like those you describe Mike, nonwithstanding the puerile stereotypes.
But conversely there are plenty of disgruntled idiots making absolute and sweeping statements of fact about something very difficult to gauge / predict and telling us about the apocalypse. Probably because it makes thems feel better that they won't be quite the only ones to be struggling if that ever happens.
The idiots are normally at both ends of the spectrum of binary thinking.
The best way to predict the future is to create it. People make their own luck ; there are plenty of new opportunities out there if you're not terminally miserable.
But conversely there are plenty of disgruntled idiots making absolute and sweeping statements of fact about something very difficult to gauge / predict and telling us about the apocalypse. Probably because it makes thems feel better that they won't be quite the only ones to be struggling if that ever happens.
The idiots are normally at both ends of the spectrum of binary thinking.
The best way to predict the future is to create it. People make their own luck ; there are plenty of new opportunities out there if you're not terminally miserable.
nickfrog said:
mike74 said:
Still far too early to gauge yet.
Plenty of idiots still lapping up there lives of leisure on furlough sat in their Argos inflatable hot tubs enjoying their beers and BBQ's... all blissfully unaware that their jobs no longer exist.
I am sure there are plenty of idiots like those you describe Mike, nonwithstanding the puerile stereotypes. Plenty of idiots still lapping up there lives of leisure on furlough sat in their Argos inflatable hot tubs enjoying their beers and BBQ's... all blissfully unaware that their jobs no longer exist.
But conversely there are plenty of disgruntled idiots making absolute and sweeping statements of fact about something very difficult to gauge / predict and telling us about the apocalypse. Probably because it makes thems feel better that they won't be quite the only ones to be struggling if that ever happens.
The idiots are normally at both ends of the spectrum of binary thinking.
The best way to predict the future is to create it. People make their own luck ; there are plenty of new opportunities out there if you're not terminally miserable.
nickfrog said:
I am sure there are plenty of idiots like those you describe Mike, nonwithstanding the puerile stereotypes.
But conversely there are plenty of disgruntled idiots making absolute and sweeping statements of fact about something very difficult to gauge / predict and telling us about the apocalypse. Probably because it makes thems feel better that they won't be quite the only ones to be struggling if that ever happens.
The idiots are normally at both ends of the spectrum of binary thinking.
The best way to predict the future is to create it. People make their own luck ; there are plenty of new opportunities out there if you're not terminally miserable.
Why so coy? Tell us who you are referring to. Or are you just trying to shut down people speaking the inconvenient truth?But conversely there are plenty of disgruntled idiots making absolute and sweeping statements of fact about something very difficult to gauge / predict and telling us about the apocalypse. Probably because it makes thems feel better that they won't be quite the only ones to be struggling if that ever happens.
The idiots are normally at both ends of the spectrum of binary thinking.
The best way to predict the future is to create it. People make their own luck ; there are plenty of new opportunities out there if you're not terminally miserable.
Pointing out that the shutting down of whole sectors of the economy for months on end isn't exactly going to result in us all becoming millionaires isn't catastrophising, binary thinking, a sweeping statement, or terminally miserable. It's called being realistic. I'll also point out that the bloody chancellor has been saying these very things FFS! I guess he's just a binary thinking miserablist trying to talk down the economy though, right?
If you were including me in your list of rogues that is - perhaps I've got the wrong end of the stick.
Edited by growlerowl on Tuesday 2nd June 15:38
growlerowl said:
Why so coy? Tell us who you are referring to. Or are you just trying to shut down people speaking the inconvenient truth?
Pointing out that the shutting down of whole sectors of the economy for months on end isn't exactly going to result in us all becoming millionaires isn't catastrophising, binary thinking, a sweeping statement, or terminally miserable. It's called being realistic. I'll also point out that the bloody chancellor has been saying these very things FFS! I guess he's just a binary thinking miserablist trying to talk down the economy though, right?
If you were including me in your list of rogues that is - perhaps I've got the wrong end of the stick.
Don't be so harsh on him.Pointing out that the shutting down of whole sectors of the economy for months on end isn't exactly going to result in us all becoming millionaires isn't catastrophising, binary thinking, a sweeping statement, or terminally miserable. It's called being realistic. I'll also point out that the bloody chancellor has been saying these very things FFS! I guess he's just a binary thinking miserablist trying to talk down the economy though, right?
If you were including me in your list of rogues that is - perhaps I've got the wrong end of the stick.
Edited by growlerowl on Tuesday 2nd June 15:38
He and various others on here are clearly under a lot of pressure and very worried about their future, it's bound to make them lash out, even if it is done in a rather roundabout way.
nickfrog said:
The best way to predict the future is to create it. People make their own luck ; there are plenty of new opportunities out there if you're not terminally miserable.
The vast majority of people who will be made redundant cant do that Nick, they are not equipped with the ability, there will be far fewer opportunities for the average man in the street, especially those with lower ability to quickly retrain in a technical in demand skill.Some who previously coasted along will get a kick up their arse and be more inclined to maximise their ability of course, but there will be far more people who are going to struggle like hell, despite trying very hard to change their circumstances for the better.
Being miserable is not the major factor for those who are at the lower end of the in demand skill ladder and who will find it hard to adapt. Don't dismiss these people as lazy or of no value to society, not everyone is born equal. This is why UBI is becoming far more of a mainstream idea, as just throwing these people on the scrap heap isn't going to give us a society many of us want to live in, as AI takes over traditional middle management roles, this will only accelerate.
A couple of weeks ago the company I work for announced 2.5k redundancies and are planning to close many of our offices (mine included) due to the success of home working. We have been told that we will not go back to the offices once Covid is over and will WFH permanently. Apparently the cost for anyone working in an office averages out at 15k per head.
Also have a few friends who have been advised that it is likely they will spend more time WFH as their companies look to reduce the size of the office space.
Before Covid I was planning to trade in my 66 plate Astra for a 19/69 plate BMW 1/2 series (mini mid life crisis) so have been keeping an eye on the market over the last couple of months. Haven't noticed any movement on prices but very few have been sold or reserved.
Mid life crisis excepted not sure I can really justify trading in my car at the moment as i will be lucky to drive 2/3 k miles a year.
The price of used cars like everything else is based on supply snd demand and while i believe there is likely to be an initial demand as garages open up, longer term I would imagine there will be a significant downturn. With this in mind I think I will hold off my mid life crisis for now and see what happens to the market.
Also have a few friends who have been advised that it is likely they will spend more time WFH as their companies look to reduce the size of the office space.
Before Covid I was planning to trade in my 66 plate Astra for a 19/69 plate BMW 1/2 series (mini mid life crisis) so have been keeping an eye on the market over the last couple of months. Haven't noticed any movement on prices but very few have been sold or reserved.
Mid life crisis excepted not sure I can really justify trading in my car at the moment as i will be lucky to drive 2/3 k miles a year.
The price of used cars like everything else is based on supply snd demand and while i believe there is likely to be an initial demand as garages open up, longer term I would imagine there will be a significant downturn. With this in mind I think I will hold off my mid life crisis for now and see what happens to the market.
mike74 said:
Don't be so harsh on him.
He and various others on here are clearly under a lot of pressure and very worried about their future, it's bound to make them lash out, even if it is done in a rather roundabout way.
You're probably judging me by your own standards. He and various others on here are clearly under a lot of pressure and very worried about their future, it's bound to make them lash out, even if it is done in a rather roundabout way.
But you're partially right about the worry for my future. And that's the thing, I don't know the "inconvenient truth" nor what the future holds. I just don't assume it's going to be as catastrophic as some describe.
As for pressure, well yes some but not a lot. I work in risk and health. Needless to say we are very busy for now and probably until the end of the year at the very least, helping corporations get back to work. But at 51 I am still 4 years away from planned retirement and while my pension funds have now climbed back to pre C19 level overall, I dont want to cut down at all on track days and Ring trips between now and then although it wouldn't be catastrophic either, just inconvenient.
Edited by nickfrog on Tuesday 2nd June 17:14
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