Will Coronavirus hit used car prices?

[anonymous-user]

Will we look back as seeing so few 20-plate cars available on the market? Having said that I have seen a few about now lockdown eased.

[Camelot1971]

Vroomer said:

Soothsayers here responded: "But there will be no effect on used car prices."

Nobody is saying there will be no effect. Of course there will be, but no one knows what effect. The doom mongers hope that the entire industry burns to the ground, PCP stops being a thing and they can gloat about how amazing their ancient Nissan Micra is.

There will be winners and losers from CV19. Personally, I'm in a very secure job and have £400 extra a month in my pocket from not commuting. I'm looking to buy a Camaro at the moment and I'm not the only person in a good position.

Sadly, others will be less fortunate, but that won't be the majority of people.

[Throttlebody]

Vroomer said:

Chancellor Rishi Sunak warned of a “severe recession, the likes of which we haven’t seen,”

Sunak, speaking to the House of Lords economic committee, said: “Although we have put unprecedented mitigating actions in place, I certainly won’t be able to protect every job and every business.

“We’re already seeing that in the data, and no doubt there will be more hardship to come. This lockdown is having a very significant impact on our economy.

“We are likely to face a severe recession, the likes of which we haven’t seen, and of course that will have an impact on employment.”

Soothsayers here responded: "But there will be no effect on used car prices."

The big picture perspective is important.

Anticipated April 2020-21 CV19 UK Govt cost - £300 Billion (source OBR).

There’s a choice between assessing inputs of realistic market data, valid economic feedback and future projections from impartial and respected economic sources or ........car salesmen’s patter and repeated Denial Thoughts.

[Welshbeef]

Throttlebody said:

The big picture perspective is important.

Anticipated April 2020-21 CV19 UK Govt cost - £300 Billion (source OBR).

There’s a choice between assessing inputs of realistic market data, valid economic feedback and future projections from impartial and respected economic sources or ........car salesmen’s patter and repeated Denial Thoughts.

So far Furlough has cost £17billion.

[V8fan]

I don't know if less dealers will affect availability, but lookers obviously don't feel there will be a big surge in demand, cutting 1500 jobs and closing dealerships:

https://www.bbc.co.uk/news/business-52917780

[Welshbeef]

V8fan said:

I don't know if less dealers will affect availability, but lookers obviously don't feel there will be a big surge in demand, cutting 1500 jobs and closing dealerships:

https://www.bbc.co.uk/news/business-52917780

Not good and again terrible news for those people losing jobs.

[eliot]

V8fan said:

I don't know if less dealers will affect availability, but lookers obviously don't feel there will be a big surge in demand, cutting 1500 jobs and closing dealerships:

https://www.bbc.co.uk/news/business-52917780

So essentially the staff were Furlough Zombies unfortunately.

The smart money has to be on 100% online business model trading out a large remote facility with decent photos, video calling and free delivery / inspection of cars and bin of the glass gin palaces

[nickfrog]

Throttlebody said:

There’s a choice between assessing inputs of realistic market data, valid economic feedback and future projections from impartial and respected economic sources or ........car salesmen’s patter and repeated Denial Thoughts.

I haven't seen any denial.

Your hatred for the car industry is irrational and we will never know where it comes from. A lot of emotion there that's for sure.

But the main thing is that you can't process more than 2 options. Binary thinking at its worst.

[Justin Case]

V8fan said:

I don't know if less dealers will affect availability, but lookers obviously don't feel there will be a big surge in demand, cutting 1500 jobs and closing dealerships:

https://www.bbc.co.uk/news/business-52917780

Is this just using coronavirus as an excuse, they were already in trouble and closed 15 showrooms and got rid of two of the board at the end of last year.

[gizlaroc]

Welshbeef said:

So far Furlough has cost £17billion.

Christ!

That is nearly a whole years worth of gross contributions to the EU.

[JQ]

eliot said:

So essentially the staff were Furlough Zombies unfortunately.

The smart money has to be on 100% online business model trading out a large remote facility with decent photos, video calling and free delivery / inspection of cars and bin of the glass gin palaces

Not a chance for second hand cars, someone spending £10,000 will want to touch the item before they commit in the majority of cases.

Estate Agency should be an easy transfer to online as you still get to touch the product, however, bricks and mortar agents still dominate that marketplace despite online agents having been around for years.

[Camelot1971]

Justin Case said:

V8fan said:

I don't know if less dealers will affect availability, but lookers obviously don't feel there will be a big surge in demand, cutting 1500 jobs and closing dealerships:

https://www.bbc.co.uk/news/business-52917780

Is this just using coronavirus as an excuse, they were already in trouble and closed 15 showrooms and got rid of two of the board at the end of last year.

This. For some businesses, CV will be convenient excuse, but the reality is the business was already failing. Lots of businesses have borrowed heavily, stripped out the money deliberately to a few people and then will fail with little consequence to the people who took all the money out.

There will also be new opportunities - if there is a gap in the market, someone will fill that gap and be successful, hire people etc.

[danp]

Welshbeef said:

So far Furlough has cost £17billion.

Where did you see that? I’ve read that it’s costing circa £14 billion a month.

e.g. https://www.telegraph.co.uk/business/2020/05/12/me...

[So]

V8fan said:

I don't know if less dealers will affect availability, but lookers obviously don't feel there will be a big surge in demand, cutting 1500 jobs and closing dealerships:

https://www.bbc.co.uk/news/business-52917780

In my experience, Lookers could lay off 100% of the workforce and the customer experience would be no worse.

[JQ]

Camelot1971 said:

This. For some businesses, CV will be convenient excuse

Yep - I suspect those very attractive British Airways employment contracts will be a thing of the past very shortly.

[the-photographer]

So said:

V8fan said:

I don't know if less dealers will affect availability, but lookers obviously don't feel there will be a big surge in demand, cutting 1500 jobs and closing dealerships:

https://www.bbc.co.uk/news/business-52917780

In my experience, Lookers could lay off 100% of the workforce and the customer experience would be no worse.

Lookers and Pendragon were discussed a few pages back, both are in trouble (pre-virus). Standby for a Pendragon announcement along the same lines.

[moonigan]

V8fan said:

I don't know if less dealers will affect availability, but lookers obviously don't feel there will be a big surge in demand, cutting 1500 jobs and closing dealerships:

https://www.bbc.co.uk/news/business-52917780

If my recent experience is anything to go by then unfortunatley they had it coming. If they were the only people selling cars I'd find an alternative means of transport rather than buy anything from them.

[Deep Thought]

Justin Case said:

V8fan said:

I don't know if less dealers will affect availability, but lookers obviously don't feel there will be a big surge in demand, cutting 1500 jobs and closing dealerships:

https://www.bbc.co.uk/news/business-52917780

Is this just using coronavirus as an excuse, they were already in trouble and closed 15 showrooms and got rid of two of the board at the end of last year.

+1

This will shake out the weakest businesses and sadly that has been where Lookers have been in the most recent years.

I also see Frankie & Bennys made the news yesterday although they're not totally blaming COVID (which if they did would fool nobody anyway)

They have been dying on their feet for some time now.

https://www.bbc.co.uk/news/business-52899624

[anonymous-user]

danp said:

Welshbeef said:

So far Furlough has cost £17billion.

Where did you see that? I’ve read that it’s costing circa £14 billion a month.

e.g. https://www.telegraph.co.uk/business/2020/05/12/me...

Welshbeef in bullst 'facts' shocker...!

[Deep Thought]

Camelot1971 said:

Justin Case said:

V8fan said:

I don't know if less dealers will affect availability, but lookers obviously don't feel there will be a big surge in demand, cutting 1500 jobs and closing dealerships:

https://www.bbc.co.uk/news/business-52917780

Is this just using coronavirus as an excuse, they were already in trouble and closed 15 showrooms and got rid of two of the board at the end of last year.

This. For some businesses, CV will be convenient excuse, but the reality is the business was already failing. Lots of businesses have borrowed heavily, stripped out the money deliberately to a few people and then will fail with little consequence to the people who took all the money out.

There will also be new opportunities - if there is a gap in the market, someone will fill that gap and be successful, hire people etc.

Exactly it.

If theres a market there someone will expand to absorb it.