Will Coronavirus hit used car prices?
Discussion
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!
Most wont have it in their current account.I am sure some do (this Is PH after all) but most wont!
I bought two cars on PCP because
1) I got a very good deal
2) I didn’t want to use up all my cash
3) I was worried about residual values on diesel
I do have the cash, but I don’t keep it in the current account. I was getting a better return than the interest.
One car finished the PCP in October. I paid the GMFV and now own it outright. My wife loves it.
I really like mine too and I was initially going to do the same at the right time, however the GMFV on that was looking to be much less than I would get at trade in and very similar indeed to what I could buy another one for (from a dealer [with warranty, map updates, InControl, etc.] that would cost me £1500+ to buy for my own). All due to the demonisation of diesel - the GMFV on a new one is significantly less despite the RRP being higher).
Unless things change by the end of the year, with the Coronavirus shenanigans the value will have dropped significantly further. It won’t be worth my while buying it. I certainly haven’t come out of it smelling of roses though as I won’t be wanting to liquidate any of my S&S ISA in the foreseeable future! Fortunately I have enough in the current account to buy something like a Golf R coming off a 2 year lease, which will be a bit of a change and will tide me over. Hopefully by the time things recover there will be some better electric vehicles available.
BrettMRC said:
How did this become yet another PCP thread?
Also, given the lockdown, how do I get out there to buy these bargain cars now? :O
Yeah with the lockdown now in place, and 0 cars being sold, clearly this "used car bargain" isn't gonna happen, at least not in the next 3 weeks.Also, given the lockdown, how do I get out there to buy these bargain cars now? :O
And if Covid cases are decreasing when lockdown is lifted (which would make sense), then people may be more positive about buying cars therefore prices stay high.
Before today I was thinking the best time to buy a car would be just as we reach the peak of Coronavirus but clearly that can't happen any more, sadly
Pommy said:
Those who have been so opposed to PCP and only buy cash are looking a bit f
ked 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 car’s only an asset, if I come to sell it. It’s a paid for mode of transport, that will remain so wether I’m at work or not.ked 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.If some of the lads I work with have to return their PCP cars due to lack of work, they’re on the bus.
I can’t see how they’re any better off.
Alextodrive said:
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.
Yep this is what it is essentially about.Laughable to hear those overstretched pcprs 'livin the trinket dream' claiming the moral high ground in situations like this which clearly speaks volumes about their major insecurities which are obviously as maxxed out as much as their 'mumflies' not just on their poverty spec white diesel A4 but invariably ingrained in their ott 'financed to the hilt' superficial lifestyle.
Essentially seen it all in before in the last financial crash.
What could possibly go wrong this time.
swanny71 said:
Isn’t the market effectively stagnant at the moment? Nothing selling, nobody buying, dealers and auctions have stopped doing what they do. A big virtual pause button has been pressed.
So at the moment (and in the short term) prices will have stopped moving?
That would be my take on it. As decreed by Boris nobody can buy or sell in any way so prices are a moot point. When the market reopens so to speak we will see where prices are.So at the moment (and in the short term) prices will have stopped moving?
swanny71 said:
Isn’t the market effectively stagnant at the moment? Nothing selling, nobody buying, dealers and auctions have stopped doing what they do. A big virtual pause button has been pressed.
So at the moment (and in the short term) prices will have stopped moving?
Traders need to sell much more than buyers need to buy, so prices are going to plummet.So at the moment (and in the short term) prices will have stopped moving?
The cars in the market last week are still in the market. The buyers are mainly locked up at home. So if you want your car to be the one to sell, you need to make it cheaper.
swanny71 said:
Isn’t the market effectively stagnant at the moment? Nothing selling, nobody buying, dealers and auctions have stopped doing what they do. A big virtual pause button has been pressed.
So at the moment (and in the short term) prices will have stopped moving?
Interesting point.So at the moment (and in the short term) prices will have stopped moving?
av185 said:
swanny71 said:
Isn’t the market effectively stagnant at the moment? Nothing selling, nobody buying, dealers and auctions have stopped doing what they do. A big virtual pause button has been pressed.
So at the moment (and in the short term) prices will have stopped moving?
Interesting point.So at the moment (and in the short term) prices will have stopped moving?
swanny71 said:
Isn’t the market effectively stagnant at the moment? Nothing selling, nobody buying, dealers and auctions have stopped doing what they do. A big virtual pause button has been pressed.
So at the moment (and in the short term) prices will have stopped moving?
Agreed. So at the moment (and in the short term) prices will have stopped moving?
Dealers are the only real issue as private punters, both buyers and sellers, will just hold their powder.
3 weeks time could be a totally different story
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.
ked 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.
As everything I own is bought, not on any finance.
Remind me how I'm in trouble as I haven't got any bills to pay ?
GT3Manthey said:
swanny71 said:
Isn’t the market effectively stagnant at the moment? Nothing selling, nobody buying, dealers and auctions have stopped doing what they do. A big virtual pause button has been pressed.
So at the moment (and in the short term) prices will have stopped moving?
Agreed. So at the moment (and in the short term) prices will have stopped moving?
Dealers are the only real issue as private punters, both buyers and sellers, will just hold their powder.
3 weeks time could be a totally different story
If used cars are stockpiled due to non sales in the short term this will have little effect on residuals as buyers return to the market.
But if the crisis deepens and for example extends into the winter these stockpiled cars will obviously be ageing although mileages will effectively be lower irrespective of this it will be newish under 12month old mainstream cars which will depreciate the quickest.
A degree of support to residuals ££ will inevitably be provided to later used car stock make and model dependent primarily by the inevitability of resticted or no new car production.
Edited by av185 on Tuesday 24th March 10:30
Alextodrive 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.
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.ked 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.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.
Why do threads about car buying always turn into a pissing contest about the way you buy them?
Does anyone really care in the real world? Is this just internet point-scoring?
swanny71 said:
Isn’t the market effectively stagnant at the moment? Nothing selling, nobody buying, dealers and auctions have stopped doing what they do. A big virtual pause button has been pressed.
So at the moment (and in the short term) prices will have stopped moving?
It's more a Schroedinger's cat type situation - if no trade takes place, prices have stopped moving.... but 'value' could be anything from a tenner for a 458 to a million quid for an Astra So at the moment (and in the short term) prices will have stopped moving?
It's not like a circuit breaker type situation in the US where the market is/has opened and buyers and sellers are interacting with each other and the market is frozen for 20mins after a 7% drop. Right now the car market is effectively 'shut'.
We still have buyers and sellers, but who are they? What/why are they looking to 'trade'?
Who wants to buy or sell at the moment?
Who needs to buy or sell at the moment?
I think we can all agree that prices are going to go down. Answer the above questions and we can then drill down to where the 'bargains' will be found - which kinds of cars and how much will they fall?
At what point is the 'risk' worth the 'reward'? Note - risk in this is beyond 'oh no I bought a 991 GT3 for 60k and the market is still collapsing and they're going for 40k now - woe is me'.
It's how can I physically grab a bargain (reward) without catching covid19 and associated health implications/consequences (risk) and then actually being able to enjoy the damn thing subject to being allowed out to go for a drive!
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