Will Coronavirus hit used car prices?

[Court_S]

Deep Thought said:

So cash buyers think they're getting a bargain

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

This times a lot.

Also surely for stuff that is sailing close to the £40k additional tax bracket they’ll sell more options which I’m guessing are quite profitable. I had one eye on the £40k limit when speccing my M140i. Although I wasn’t paying anywhere near list it had an impact going forward.

Same with the new M135i with the price rises and things like paint now costing £750 it’s very easy to sail passed £40k and although you’ll never pay that, you will get hammered in VED for the next few years.

[Court_S]

WBAC will now quote on my M140i - £19,305

It’s a 19 plate car with 11.5k on the clock. Wasn’t quite as bad as I thought. How does that compare to CAP clean etc?

[Anonymous-poster]

nickfrog said:

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.

Was the discount a contribution to finance?

[Hidey]

nickfrog said:

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.

My Golf was a bargain too. I put 68k on it so depreciation cost £179/mth, some of which was at £0.45/mile which will not be happening going forward for quite a while.

[nickfrog]

Anonymous-poster said:

nickfrog said:

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.

Was the discount a contribution to finance?

I had to take £6k in HP to trigger the last £500 worth of discount which was a BMW FS contribution but paid that back after 2 weeks. The rest was not conditional to any finance.

[Deep Thought]

Watching some auctions on the trade online site i follow.

2015 320d M Sport in an ok but not exceptional spec has already got bid above CAP clean. Has three curbed alloys, a couple of parking dings and two bumper scuffs to sort out too.

Leggy 2012 Q5 in white hitting CAP clean also with two days to run.

2016 M4 made +£1,100 over CAP clean.

31 cars currently listed. Bidding seems to be back to pre COVID levels with desirable stuff making over CAP clean and mainstream cooking variants making CAP clean.

Will be interest to see how long that continues for.

Edited by Deep Thought on Saturday 6th June 14:41

[stevemcs]

So said:

They want you to sell to them quickly?

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

Just an observation, they normally guarantee for 7 days

I've just been to Peterborough and Jaguar, Volvo, Toyota and LandRover have quite a few people wandering about.

[nickfrog]

I see that Caterham are doing very well since they reopened the show room this week, which is brilliant news. I guess some people are still optimistic or so pessimistic that they might as well go out with a bang.

[Butter Face]

Deep Thought said:

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

What are you going to do with the rest?

Maybe get yourself a couple

Yeah or maybe I’ll go crazy and buy an X type Aand a Micra

On a serious note it’s been awesome. Enjoyed this week more than any I can remember.

[Inky81]

Auto810graphy said:

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.

Understood, and I'll bow to your knowledge given you're in the trade, but aren't volumes going through auctions significantly lower than this time last year - meaning supply is an issue which is holding prices where they are?

If so, will be interesting to see where prices go once supply isn't the issue, demand is...

Edited by Inky81 on Saturday 6th June 17:13

[Throttlebody]

Deep Thought said:

Watching some auctions on the trade online site i follow.

2015 320d M Sport in an ok but not exceptional spec has already got bid above CAP clean. Has three curbed alloys, a couple of parking dings and two bumper scuffs to sort out too.

Leggy 2012 Q5 in white hitting CAP clean also with two days to run.

2016 M4 made +£1,100 over CAP clean.

31 cars currently listed. Bidding seems to be back to pre COVID levels with desirable stuff making over CAP clean and mainstream cooking variants making CAP clean.

Will be interest to see how long that continues for.

Edited by Deep Thought on Saturday 6th June 14:41

In tough times people prefer to buy used cars.

[Throttlebody]

Meanwhile - outside of the odd showroom, Bentley is now cutting 25% of it’s workforce after having 66% of them furloughed.

[Inky81]

Throttlebody said:

Deep Thought said:

Watching some auctions on the trade online site i follow.

2015 320d M Sport in an ok but not exceptional spec has already got bid above CAP clean. Has three curbed alloys, a couple of parking dings and two bumper scuffs to sort out too.

Leggy 2012 Q5 in white hitting CAP clean also with two days to run.

2016 M4 made +£1,100 over CAP clean.

31 cars currently listed. Bidding seems to be back to pre COVID levels with desirable stuff making over CAP clean and mainstream cooking variants making CAP clean.

Will be interest to see how long that continues for.

Edited by Deep Thought on Saturday 6th June 14:41

In tough times people prefer to buy used cars.

Mmmmmm. Not sure about that.

Used cars appeal to many, but many will also prefer the warranties offered by newer cars, especially with the manufacturers chucking huge finance support at new models.

[Throttlebody]

Butter Face said:

Deep Thought said:

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

What are you going to do with the rest?

Maybe get yourself a couple

Yeah or maybe I’ll go crazy and buy an X type Aand a Micra

On a serious note it’s been awesome. Enjoyed this week more than any I can remember.

UK new car sales for May. Keep your eye on the big picture and longer term.

[nickfrog]

Butter Face said:

On a serious note it’s been awesome. Enjoyed this week more than any I can remember.

Good to hear. It is all about spirit and attitude. Thankfully the terminally disgruntled living with their parents and hoping for the worst are in a minority.

[Butter Face]

Throttlebody said:

Butter Face said:

Deep Thought said:

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

What are you going to do with the rest?

Maybe get yourself a couple

Yeah or maybe I’ll go crazy and buy an X type Aand a Micra

On a serious note it’s been awesome. Enjoyed this week more than any I can remember.

UK new car sales for May. Keep your eye on the big picture and longer term.

So, what you’re saying is that, even when closed for another month, the new car market was up 8%? And actually the private market was ‘only’ down 83%? Not too bad I’d say.

It was 97% down YOY in April!

Anyway, this thread is about used car prices.

[Deep Thought]

Throttlebody said:

Deep Thought said:

Watching some auctions on the trade online site i follow.

2015 320d M Sport in an ok but not exceptional spec has already got bid above CAP clean. Has three curbed alloys, a couple of parking dings and two bumper scuffs to sort out too.

Leggy 2012 Q5 in white hitting CAP clean also with two days to run.

2016 M4 made +£1,100 over CAP clean.

31 cars currently listed. Bidding seems to be back to pre COVID levels with desirable stuff making over CAP clean and mainstream cooking variants making CAP clean.

Will be interest to see how long that continues for.

Edited by Deep Thought on Saturday 6th June 14:41

In tough times people prefer to buy used cars.

This is a thread discussing the potential for price drops of used cars. I'm reiterating what i'm seeing on a used car trade site.

[Throttlebody]

Butter Face said:

So, what you’re saying is that, even when closed for another month, the new car market was up 8%? And actually the private market was ‘only’ down 83%? Not too bad I’d say.

It was 97% down YOY in April!

Anyway, this thread is about used car prices.

Do you only sell used cars?

[maz8062]

Deep Thought said:

Throttlebody said:

Deep Thought said:

Watching some auctions on the trade online site i follow.

2015 320d M Sport in an ok but not exceptional spec has already got bid above CAP clean. Has three curbed alloys, a couple of parking dings and two bumper scuffs to sort out too.

Leggy 2012 Q5 in white hitting CAP clean also with two days to run.

2016 M4 made +£1,100 over CAP clean.

31 cars currently listed. Bidding seems to be back to pre COVID levels with desirable stuff making over CAP clean and mainstream cooking variants making CAP clean.

Will be interest to see how long that continues for.

Edited by Deep Thought on Saturday 6th June 14:41

In tough times people prefer to buy used cars.

This is a thread discussing the potential for price drops of used cars. I'm reiterating what i'm seeing on a used car trade site.

I don't understand the connection between the price a trader pays for a car and its potential impact on used car prices. There's supply-side and demand-side. I think it'll be the demand that will dictate the direction of prices.

[jimPH]

I think most of the redundancies are due to expectations. If things continue, they'll be rehired quickly.

The biggest change will be tourism and travel once that flips to full beans, it will be full steam ahead.