Will Coronavirus hit used car prices?

[Reciprocating mass]

Err what do you think if you put on your common sense cap ?

[Pommy]

Those who have been so opposed to PCP and only buy cash are looking a bit fked now - they have an asset dropping like a stone that they cant get out of and costing them massively more than a loss limiting PCP/finance arrangement.

[bluezedd]

Pommy said:

Those who have been so opposed to PCP and only buy cash are looking a bit fked now - they have an asset dropping like a stone that they cant get out of and costing them massively more than a loss limiting PCP/finance arrangement.

Totally fked with my £500 to £1500 buckets that I've had for 5 to 10 years depending on the car or bike. That would also be assuming I'd be selling in this time of "desperation".

[Reciprocating mass]

I should imagine most that buy cars with cash keep them for some time so no it’s people not having an income that need to pay out x amount a month that will be shafted the most rather than somebody that just needs to tax mot and insure or just sorn it

[Unsorted]

Both of the above are correct. Our family car is a 5K run around. Owned, and do not really care how much it loses. Father bought a new Mazda and the best deal was zero percent with a GFV. He could have bought cash, but the deal favoured finance. With cars now dropping in price, he is pleased the GFV gives the car a value floor underwritten by a finance company and not him. I am pleased I don't have an extra monthly cost being finance.

Edited by Unsorted on Tuesday 24th March 00:27

[DukeDickson]

Pommy said:

Those who have been so opposed to PCP and only buy cash are looking a bit fked now - they have an asset dropping like a stone that they cant get out of and costing them massively more than a loss limiting PCP/finance arrangement.

Did exactly that, not looking remotely fked. Car does what it was meant to do, just less of it at the moment. In fact this whole thing is probably doing me a favour on the mileage front, so residual value later.

If it doesn't, well the value was always going to be trashed by the use anyway, so I'll take the up front saving .

I'd much rather be in a position of fewer outgoings in an abnormal time than wondering where the next monthly is coming from. Unfortunately, many won't be in that position.

Edited by DukeDickson on Tuesday 24th March 00:27

[Alextodrive]

Pommy said:

Those who have been so opposed to PCP and only buy cash are looking a bit fked now - they have an asset dropping like a stone that they cant get out of and costing them massively more than a loss limiting PCP/finance arrangement.

I suspect most people who own their car outright who could afford to pay for the whole cost up front, arent as f***** as the amount of people living a life on finance.

But hey, I didnt realise it was a competition on who was more f****** and who could be more smug about what financial choices they made.

I hope whatever they decided, they can weather this storm.

[Reciprocating mass]

It’s not a competition but you would hope that people are sensible enough to live within there means
Regardless of how they pay for things,either way it’s a st show for all concerned let’s hope it’s soon over

[Mr Tidy]

Reciprocating mass said:

It’s not a competition but you would hope that people are sensible enough to live within there means
Regardless of how they pay for things,either way it’s a st show for all concerned let’s hope it’s soon over

Call me cynical (or whatever else you like really) but I can't help thinking most people on PCPs, etc. are trying to live above their means!

Mine are both paid for, and will probably tank in value, but for now that is pretty irrelevant - it's more about getting through this pandemic, which sadly I don't think will be over any time soon.

[Condi]

Mr Tidy said:

Call me cynical (or whatever else you like really) but I can't help thinking most people on PCPs, etc. are trying to live above their means!

Mine are both paid for, and will probably tank in value, but for now that is pretty irrelevant - it's more about getting through this pandemic, which sadly I don't think will be over any time soon.

It's totally irrelevant, as you say.

Those on PCP might find that if they have no job their car is collected and taken away. Someone who paid cash might have an asset falling in value, but at least it's not going anywhere - in any form!

[JxJ Jr.]

Pommy said:

Those who have been so opposed to PCP and only buy cash are looking a bit fked now - they have an asset dropping like a stone that they cant get out of and costing them massively more than a loss limiting PCP/finance arrangement.

My assets have been dropping like a stone?? Meh. They're still worth more than your liabilities.

[Pommy]

DukeDickson said:

Pommy said:

Those who have been so opposed to PCP and only buy cash are looking a bit fked now - they have an asset dropping like a stone that they cant get out of and costing them massively more than a loss limiting PCP/finance arrangement.

Did exactly that, not looking remotely fked. Car does what it was meant to do, just less of it at the moment. In fact this whole thing is probably doing me a favour on the mileage front, so residual value later.

If it doesn't, well the value was always going to be trashed by the use anyway, so I'll take the up front saving .

I'd much rather be in a position of fewer outgoings in an abnormal time than wondering where the next monthly is coming from. Unfortunately, many won't be in that position.

Edited by DukeDickson on Tuesday 24th March 00:27

So, let's say you had £30k cash and chose to keep that in the bank and PCP, you would now have your £30k and a monthly payment (which at the moment could be funded from your £30k in the bank) and a car with a known cost to you over the term - but you feel its better to have £30k in a more than normal rapidly depreciating asset that you cant sell and your end loss is getting even worse by the day, let alone the month, and that's a better outcome?

[gangzoom]

Pommy said:

but you feel its better to have £30k in a more than normal rapidly depreciating asset that you cant sell and your end loss is getting even worse by the day, let alone the month, and that's a better outcome?

Why are you treating any car as some kind of financial 'asset'? Its a car not a pension product.

Any car losses money regardless how you purchase it. When we bought our cars I looked at PCP, but it made zero sense to pay interest on a product we could afford to buy in cash.

I certainly don't factor in our cars residual value in our household finances, they are trested as a sunken cost, money down the drain as soon as they were purchased. I couldn't care less about residual value at a time like this, as selling up and buying another car is the last thing on my mind - and most other peoples I suspect.

Right now what matters to us, and many others I suspect is the on going monthly costs. With both car owned, and insurance just renewed for both, there is no on going monthly cost for keeping our cars on the driveway regardless of usage.

If we had PCP/finance our cars I would be kicking my self for having to continue and pay £££/month for something we are hardly using.

This whole awful COVID19 situation has taught me to avoid finance/debt like a plague even more than before. Right now am really glad apart from the mortgage we own everything in our lives. Given the job insecurity so many people must be facing, not having to worry about paying X/Y/Z finance company £££/month is a real relief.

This is a time for all of us to come together as a nation and help each other out, not try and get one up on your neighbour/friend/colleague.

Edited by gangzoom on Tuesday 24th March 03:54

[Pommy]

gangzoom said:

Pommy said:

but you feel its better to have £30k in a more than normal rapidly depreciating asset that you cant sell and your end loss is getting even worse by the day, let alone the month, and that's a better outcome?

Why are you treating any car as some kind of financial 'asset'? Its a car not a pension product.

Any car losses money regardless how you purchase it. When we bought our cars I looked at PCP, but it made zero sense to pay interest on a product we could afford to buy in cash.

I certainly don't factor in our cars residual value in our household finances, they are trested as a sunken cost, money down the drain as soon as they are purchased.

Right now what matters to us, and many others I suspect is the on going monthly costs. With both car owned, and insurance just renewed for both, there is no on going monthly cost for keeping our cars on the driveway regardless of usage.

If we had PCP/finance our cars I would be kicking my self for having to continue and pay £££/month for something we are hardly using.

If nothing else this whole awful COVID19 situation has taught me to avoid finance/debt like a plague. Right now am really glad apart from the mortgage we own everything in our lives. Given the job insecurity so many people must be facing, not having to worry about paying X/Y/Z finance company £££/month is a real relief.

This is a time for all of us to come together as a nation and help each other out, not try and get one up on your neighbour/friend/colleague.

Firstly, this is a car forum discussion about cars and purchasing thereof - the 'let's all care for each other' comments are irrelevant to the discussion at hand and can be found on other topics. It's just a discussion on a topic, not a 'haha fk you hope you get ill because youre cash only' discussion. Two different things.

Secondly, I'm not discussion cars themselves, im discussing the financing topic so yes, it is a financial asset.

Thirdly, this is about those who have the cash to pay for a car and choose not to PCP as, too often, there is some sense of 'if you have to finance you can't afford' so for you point above, if you had the cash in the bank still - you wouldn't be worrying about the monthly cost. The arguement is null and void talking about worrying about the monthly cost if you have the cash to buy the car outright. If you don't have the cash and need/chose to PCP then yeah, youre a bit screwed right now.

When you say it has taught you to avoid debt it seems perverse to effectively say 'I may not have an income but at least all my spare cash is tied up in unsellable assets'. Now, I'm not trying to be obtuse because isnt the dream scenario no debt and plenty of cash in the bank which may well be your position, but let's be clear to my point, if you chose to pump your spare cash into a car and have little spare to pay bills, right now you made the wrong decision and you would be in a much more effective position to cope through whats to come if you have cash in the bank and a necessary vehicle that is a small monthly drain on that money.

I'd rather have £20k in cash right now and be paying £300pm for a car than no cash and a car i paid £20k for and is now worth a lot less.

Edited by Pommy on Tuesday 24th March 04:13

[Shuvi McTupya]

Surely most people that have cars on PCP dont have the value of the car sitting in their current account.

I am sure some do (this Is PH after all) but most wont!

[mike74]

Shuvi McTupya said:

Surely most people that have cars on PCP dont have the value of the car sitting in their current account.

I am sure some do (this Is PH after all) but most wont!

I can assure you the vast majority won't despite whatever ever the debt junkie ten bob millionaires claim.

[Shuvi McTupya]

mike74 said:

I can assure you the vast majority won't despite whatever ever the debt junkie ten bob millionaires claim.

I actually do have the value of my car sitting in my bank account.

Unfortunately that is nothing to brag about

[Pvapour]

Pommy said:

gangzoom said:

Pommy said:

but you feel its better to have £30k in a more than normal rapidly depreciating asset that you cant sell and your end loss is getting even worse by the day, let alone the month, and that's a better outcome?

Why are you treating any car as some kind of financial 'asset'? Its a car not a pension product.

Any car losses money regardless how you purchase it. When we bought our cars I looked at PCP, but it made zero sense to pay interest on a product we could afford to buy in cash.

I certainly don't factor in our cars residual value in our household finances, they are trested as a sunken cost, money down the drain as soon as they are purchased.

Right now what matters to us, and many others I suspect is the on going monthly costs. With both car owned, and insurance just renewed for both, there is no on going monthly cost for keeping our cars on the driveway regardless of usage.

If we had PCP/finance our cars I would be kicking my self for having to continue and pay £££/month for something we are hardly using.

If nothing else this whole awful COVID19 situation has taught me to avoid finance/debt like a plague. Right now am really glad apart from the mortgage we own everything in our lives. Given the job insecurity so many people must be facing, not having to worry about paying X/Y/Z finance company £££/month is a real relief.

This is a time for all of us to come together as a nation and help each other out, not try and get one up on your neighbour/friend/colleague.

Firstly, this is a car forum discussion about cars and purchasing thereof - the 'let's all care for each other' comments are irrelevant to the discussion at hand and can be found on other topics. It's just a discussion on a topic, not a 'haha fk you hope you get ill because youre cash only' discussion. Two different things.

Secondly, I'm not discussion cars themselves, im discussing the financing topic so yes, it is a financial asset.

Thirdly, this is about those who have the cash to pay for a car and choose not to PCP as, too often, there is some sense of 'if you have to finance you can't afford' so for you point above, if you had the cash in the bank still - you wouldn't be worrying about the monthly cost. The arguement is null and void talking about worrying about the monthly cost if you have the cash to buy the car outright. If you don't have the cash and need/chose to PCP then yeah, youre a bit screwed right now.

When you say it has taught you to avoid debt it seems perverse to effectively say 'I may not have an income but at least all my spare cash is tied up in unsellable assets'. Now, I'm not trying to be obtuse because isnt the dream scenario no debt and plenty of cash in the bank which may well be your position, but let's be clear to my point, if you chose to pump your spare cash into a car and have little spare to pay bills, right now you made the wrong decision and you would be in a much more effective position to cope through whats to come if you have cash in the bank and a necessary vehicle that is a small monthly drain on that money.

I'd rather have £20k in cash right now and be paying £300pm for a car than no cash and a car i paid £20k for and is now worth a lot less.

Edited by Pommy on Tuesday 24th March 04:13

I doubt you scenario is common for cash buyers tbh, if they’re astute enough to have 30, 40, 50k cash for a car then they’ll most likely still have that amount sat in the bank once the car is bought, their attitude toward money is slightly different to the ‘I want it now but can’t afford it brigade’ they probably own their own house to and I don’t mean mortgaged.

[So]

So said:

V8fan said:

They're closing the showrooms but carrying on maintenance. Still be an online buying platform. It's to avoid personal contact:

"We will also continue to support customers who wish to purchase cars, by launching a buy online option on our website. This will be live within the next few days and will allow you to obtain a part exchange valuation, apply for finance and have your car delivered, all without having to leave your home."

https://www.sytner.co.uk/bmw/news/covid-19/

Sytner said:

Our workshops will however remain open until work already booked in is complete and will then support the sales teams to prepare purchased cars for delivery to our customers. Once this has been completed, our workshops will close to customers, with a number remaining open to support key workers".

I am not a key worker and can pretty much guarantee that the workshops of the marque I was buying will be firmly closed.

And this morning:

sytner said:

Dear Mr So

In light of the Government’s announcement this evening, I am writing to let you know that we have temporarily closed our dealerships with immediate effect, until further notice.

As I outlined in my previous letter to you, we take our responsibility to protect our colleagues and customers seriously. As such this means that team members will not be permitted to attend our dealerships tomorrow morning, which means that we will be unable to attend to customers. Therefore please do not travel to any of our locations tomorrow as you will be disappointed.

We are mindful however that there may be keyworkers among our customers who have cars currently in our workshops.

We would ask, that if you are a keyworker, that you contact us via this email address: [e-mail]. We will make every endeavour to return your car to you, but we must ensure that we do this in a safe and compliant manner.

If you are not a keyworker, but have questions about your vehicle, please also contact us via this address. We will get back to you as soon as possible.



These are unprecedented events and we anticipate that many of our customers will contact us at this time, so we ask that you please bear with us.

It was my hope that we would be able to facilitate an orderly closure as outlined in my previous letter, however the safety and welfare of all UK citizens must now take priority.

Thank you for your understanding.

[Fezzaman]

[redacted]