Will Coronavirus hit used car prices?

Will Coronavirus hit used car prices?

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Butter Face

30,371 posts

161 months

Saturday 6th June 2020
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jimPH said:
https://cardealermagazine.co.uk/publish/investigat...

The post Corona bounce is on. My stocks are all flying, I'll be paying cash with the profit.
My sales are flying too. Might buy myself an X Type with this weeks commission rofl

Anonymous-poster

12,241 posts

207 months

Saturday 6th June 2020
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Good news for the government not having to bail out the car industry if it’s going so well!
And good news for owners as their cars will be worth more also so a win win. smile

Deep Thought

35,878 posts

198 months

Saturday 6th June 2020
quotequote all
Butter Face said:
jimPH said:
https://cardealermagazine.co.uk/publish/investigat...

The post Corona bounce is on. My stocks are all flying, I'll be paying cash with the profit.
My sales are flying too. Might buy myself an X Type with this weeks commission rofl
What are you going to do with the rest?

Maybe get yourself a couple wink

Deep Thought

35,878 posts

198 months

Saturday 6th June 2020
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Greggymagic said:
Deep Thought said:
Summary as a starting point here -

https://www.drivethedeal.com/SpecialOffers.aspx

around £26k off some A8s
around £15k off some A6s
around £8k off some A4s

Deals on Q3, Q5, Q7, Q8 also.
What is amazing in that list is that there is an Audi Q5 with a list price of nearly 70k!!!

70k!!! For an Audi Q5!! Even if that's the top model, that does seem a crazy list price.
Indeed absolutely mental pricing.


nickfrog

21,275 posts

218 months

Saturday 6th June 2020
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growlerowl said:
But it'll blow over and we'll be back to normal in no time thinking 'what was that all about?' eh! Think about the opportunities! It'll be bad, but we'll get through it! Nobody can predict what the future holds and those that think they can are stupid! Etc etc etc
I can't remember anyone calling you stupid or saying that it will blow over, but I guess you have fabricated so much stuff and used so many strawman arguments, I have literally lost count.

Apart from that, I agree with your assessment entirely.

growlerowl said:
“We don’t expect developed economies output to be back to pre-crisis levels until 2022,’’ the report said'
To manage your expectations, that sounds a little optimistic as this could be in just over 18 months time. Which, from a macro economic point of view would be "in no time" indeed, given the size of the issue. It might take a bit longer and my main fear is that in the meantime the less privileged will suffer the most.

Edited by nickfrog on Saturday 6th June 10:34

Hidey

90 posts

132 months

Saturday 6th June 2020
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I just sold a Golf GTD as it had not moved since mid-March and was unlikely to be going anywhere soon. Pre-lockdown WBAC valued it at £9300, early after lockdown it was £7k, then last week it was £8150. Advertised it for 3 weeks at £9300 and was one of the cheapest in the country for age, mileage etc - other cars seem to have been listed for ages.
Only 2 proper enquiries, the second chap payed £9000 which I’m happy with.
Who knows what’s coming and how severe it will be overall. Mid-March the future for my employer was so bright we had to wear shades - since then we’ve closed a subsidiary, made redundancies and furloughed staff. Some industries and firms will continue to prosper, some will fail, some will tick over - let’s hope any adverse impacts and job losses are minimised.

Anonymous-poster

12,241 posts

207 months

Saturday 6th June 2020
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Deep Thought said:
Indeed absolutely mental pricing.
Why do you think they price cars so unrealistically?

So

26,373 posts

223 months

Saturday 6th June 2020
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I've been keeping an eye on Bentley GTCs. Any good one coming to market is selling within hours. Providing no fantasy pricing.

Anonymous-poster

12,241 posts

207 months

Saturday 6th June 2020
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So said:
I've been keeping an eye on Bentley GTCs. Any good one coming to market is selling within hours. Providing no fantasy pricing.
The BB loans being put to good use?

So

26,373 posts

223 months

Saturday 6th June 2020
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Anonymous-poster said:
So said:
I've been keeping an eye on Bentley GTCs. Any good one coming to market is selling within hours. Providing no fantasy pricing.
The BB loans being put to good use?
Maybe!

But Bentley sold quite a number throughout lockdown, prior to BBLs.


Deep Thought

35,878 posts

198 months

Saturday 6th June 2020
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Anonymous-poster said:
Deep Thought said:
Indeed absolutely mental pricing.
Why do you think they price cars so unrealistically?
So cash buyers think they're getting a bargain wink

I think they really need to get a grip. They (Audi, BMW, Merc) seem to insist their product is "worth" more than the mainstream stuff, then discount the life out of it to get it moved.

25% off a 3 series isnt uncommon these days, and all it does is force the common or garden stuff in to the higher tax band because the list price breaks £40,000.

Its a jig they all need to stop dancing. They know their cars arent worth list, their customers know their cars arent worth list, just reprice them accordingly.

Edited by Deep Thought on Saturday 6th June 11:43


Edited by Deep Thought on Saturday 6th June 11:43

Anonymous-poster

12,241 posts

207 months

Saturday 6th June 2020
quotequote all
Deep Thought said:
So cash buyers think they're getting a bargain wink

I think they really need to get a grip. They (Audi, BMW, Merc) seem to insist their product is "worth" more than the mainstream stuff, then discount the life out of it to get it moved.

25% off a 3 series isnt uncommon these days, and all it does is force the common or garden stuff in to the higher tax band because the list price breaks £40,000.

Edited by Deep Thought on Saturday 6th June 11:43
Quite the reverse about cash buyers I would have thought?

Deep Thought

35,878 posts

198 months

Saturday 6th June 2020
quotequote all
Anonymous-poster said:
Deep Thought said:
So cash buyers think they're getting a bargain wink

I think they really need to get a grip. They (Audi, BMW, Merc) seem to insist their product is "worth" more than the mainstream stuff, then discount the life out of it to get it moved.

25% off a 3 series isnt uncommon these days, and all it does is force the common or garden stuff in to the higher tax band because the list price breaks £40,000.

Edited by Deep Thought on Saturday 6th June 11:43
Quite the reverse about cash buyers I would have thought?
Maybe. Who knows.

If we're getting the discount and at the price we want then great. Just seems unnecessary to have to go through the jig.

"Yes, well we can give you £X discount, then this month theres a free complimentary upgrade which equates to £x off and then theres a manufacturers incentive to take in to account". Dont care, whats the selling price.

Edited by Deep Thought on Saturday 6th June 11:49

fridaypassion

8,602 posts

229 months

Saturday 6th June 2020
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The trade is on fire at the moment as we predicted. Pent up demand and now I'm hearing report of crazy auction prices. Put your car into WBAC they are going mental buying stock go have a nice surprise!

It will soften of course but I think as we said all along sourcing is all of our main headaches not sales.

So

26,373 posts

223 months

Saturday 6th June 2020
quotequote all
fridaypassion said:
The trade is on fire at the moment as we predicted. Pent up demand and now I'm hearing report of crazy auction prices. Put your car into WBAC they are going mental buying stock go have a nice surprise!

It will soften of course but I think as we said all along sourcing is all of our main headaches not sales.
Hi FP

My casual observation is that we are seeing pent up demand chasing too few cars. I too think it will soften, but not until after the summer. What do you think as a professional?

Inky81

282 posts

97 months

Saturday 6th June 2020
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So said:
fridaypassion said:
The trade is on fire at the moment as we predicted. Pent up demand and now I'm hearing report of crazy auction prices. Put your car into WBAC they are going mental buying stock go have a nice surprise!

It will soften of course but I think as we said all along sourcing is all of our main headaches not sales.
Hi FP

My casual observation is that we are seeing pent up demand chasing too few cars. I too think it will soften, but not until after the summer. What do you think as a professional?
I had heard (not verified) that the big leasing companies (and manufacturer leasing Coys) had suspended collections of out-of-lease vehicles during Covid-19, so there just aren't the volumes going through auctions at present - leading to the sourcing issue FP raises. If that's the case, then any opening of auction houses as a route of disposal will lead to an 'oversupply' as the backlog is cleared - surely that's when forecourt prices have to adjust??

nickfrog

21,275 posts

218 months

Saturday 6th June 2020
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Anonymous-poster said:
Quite the reverse about cash buyers I would have thought?
It depends. I bought a new M135i for £26k when the list was £33k. I sold it privately 2 years down the line for £21. 5k when AUC cars were £24k. The guy thought my car was a bargain. I lost £187/month on a brand new M135i, that was a bargain too.

stevemcs

8,693 posts

94 months

Saturday 6th June 2020
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Looks like WBAC are only guaranteeing prices for 4 days.

So

26,373 posts

223 months

Saturday 6th June 2020
quotequote all
stevemcs said:
Looks like WBAC are only guaranteeing prices for 4 days.
They want you to sell to them quickly?

They don't know how quickly the market is going to change?

Auto810graphy

1,409 posts

93 months

Saturday 6th June 2020
quotequote all
Inky81 said:
I had heard (not verified) that the big leasing companies (and manufacturer leasing Coys) had suspended collections of out-of-lease vehicles during Covid-19, so there just aren't the volumes going through auctions at present - leading to the sourcing issue FP raises. If that's the case, then any opening of auction houses as a route of disposal will lead to an 'oversupply' as the backlog is cleared - surely that's when forecourt prices have to adjust??
The auctions have remained open and are putting a good number of cars through each day. Most of the remarketing sources are also open but logistics and refurbishment are still an issue so people are making sure any purchases are close to retail ready.

Over the past week in the trade I am noticing some late plate stuff is stumbling but 30 month and older sub £15k retail seems fine.

I would assume this is more because the main dealers have only just started buying again and are being careful not to overstock with faster depreciating stock.

Overall from the two weeks it feels like people are carrying on with a business as normal approach which is be great but I can’t help thinking we don’t want to be holding much stock if the music stops.

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