Will Coronavirus hit used car prices?

[Butter Face]

Deep Thought said:

Throttlebody said:

Deep Thought said:

Was 24K miles in a year a good idea in a 2.0 litre petrol BMW? Surely a 320d would have made more sense?

Only 6000 miles in the 330i.

You did 18,000 miles in the Micra?

Obviously he’s got another 3 cars he’s yet to make up reveal

[Roaringopenfire]

Vroomer said:

During the 2008 financial crisis used car prices fell like a stone before recovering in 2009.

Do you think the current Coronavirus crisis will have a similar impact?

The difference then was that there was still supply but less demand. I collected a new car today. Dealer said they normally aim to sell 30 used cars a month, already at 40. Some pent up demand that will fall away but still long wait times for new cars due to factory closures in east few months. So long as demand outstrips supply IMO we'll see no drop in prices.

[Roaringopenfire]

Vroomer said:

During the 2008 financial crisis used car prices fell like a stone before recovering in 2009.

Do you think the current Coronavirus crisis will have a similar impact?

The difference then was that there was still supply but less demand. I collected a new car today. Dealer said they normally aim to sell 30 used cars a month, already at 40. Some pent up demand that will fall away but still long wait times for new cars due to factory closures in east few months. So long as demand outstrips supply IMO we'll see no drop in prices.

[Deep Thought]

jsf said:

Dump the boring fridge in a skirt and buy a toy.

Just to update, i took your advice and got it done, as i said i was going to.

Advertised the 330i this morning.

Bought a Z4 3.0Si Coupe this evening, silver, low miles, FSH.

I have a buyer on 330i - from Aberdeen oddly, price agreed and her grandparents live local to me are coming to view it tomorrow and hopefully confirm the sale.

The Z4 will keep me amused until i see how the market pans out - though i think this one will be a keeper either way.

Going to sort out 19 inch CSLs for it on Monday, which really sets them off.

Edited by Deep Thought on Sunday 21st June 07:43

[Trevor555]

I read today that the government may reduce VAT in the next few weeks.

So all the VAT qualifying cars/vans on dealer forecourts.

Will they reduce the prices in line with the lower VAT rate so the customer benefits?

Or will the end prices stay the same and the dealer benefits having to charge less VAT?

Anyone in the know?

Predictions?

Let's say a £40,000 VAT qualifying camper van, will the buyer save approx £3,000 by waiting a few weeks if they half the VAT?

[Thankyou4calling]

Trevor555 said:

I read today that the government may reduce VAT in the next few weeks.

So all the VAT qualifying cars/vans on dealer forecourts.

Will they reduce the prices in line with the lower VAT rate so the customer benefits?

Or will the end prices stay the same and the dealer benefits having to charge less VAT?

Anyone in the know?

Predictions?

Let's say a £40,000 VAT qualifying camper van, will the buyer save approx £3,000 by waiting a few weeks if they half the VAT?

The VAT rate isn’t going to be cut in half.

It won’t even be reduced.

[CRA1G]

Trevor555 said:

I read today that the government may reduce VAT in the next few weeks.

So all the VAT qualifying cars/vans on dealer forecourts.

Will they reduce the prices in line with the lower VAT rate so the customer benefits?

Or will the end prices stay the same and the dealer benefits having to charge less VAT?

Anyone in the know?

Predictions?

Let's say a £40,000 VAT qualifying camper van, will the buyer save approx £3,000 by waiting a few weeks if they half the VAT?

There's no chance they'll half the VAT....if they do reduce it it'll be around 3%. Any thing that's advertised + VAT will directly benefit but other wise a I can't see any changes to the forecourt prices.

[Trevor555]

CRA1G said:

Trevor555 said:

I read today that the government may reduce VAT in the next few weeks.

So all the VAT qualifying cars/vans on dealer forecourts.

Will they reduce the prices in line with the lower VAT rate so the customer benefits?

Or will the end prices stay the same and the dealer benefits having to charge less VAT?

Anyone in the know?

Predictions?

Let's say a £40,000 VAT qualifying camper van, will the buyer save approx £3,000 by waiting a few weeks if they half the VAT?

There's no chance they'll half the VAT....if they do reduce it it'll be around 3%. Any thing that's advertised + VAT will directly benefit but other wise a I can't see any changes to the forecourt prices.

Ok, thanks for answering.

I don't think a 3% reduction will have everyone rushing out to spend their money, all that'll do is lessen the governments income.

I should stop reading the Daily Fail...

[Throttlebody]

Deep Thought said:

Throttlebody said:

Deep Thought said:

Throttlebody said:

100%. Car sales volumes will drop. Deep recession. For the current situation, if there’s flexibility with car ownership, sell high, buy low. Sell now, buy later.

Well it had to come one day i guess - i agree with you.

Sell now buy later may well be the smart option if someone can make that work for them.

Remember DT, I’m always right, you just don’t realise it yet.

Though you were wrong about the car dealers practically begging people to take their cars once dealers reopened?

And you were wrong about there being an immediate drop in used car prices?

In fact - based on that, you've been wrong about everything so far?

That’s just your usual extreme misinterpretation of dialogue.

[Throttlebody]

Trevor555 said:

I read today that the government may reduce VAT in the next few weeks.

So all the VAT qualifying cars/vans on dealer forecourts.

Will they reduce the prices in line with the lower VAT rate so the customer benefits?

Or will the end prices stay the same and the dealer benefits having to charge less VAT?

Anyone in the know?

Predictions?

Let's say a £40,000 VAT qualifying camper van, will the buyer save approx £3,000 by waiting a few weeks if they half the VAT?

It’s being considered by the Govt as an economic kick start. Very likely for a limited period.

[Deep Thought]

Throttlebody said:

Deep Thought said:

Throttlebody said:

Deep Thought said:

Throttlebody said:

100%. Car sales volumes will drop. Deep recession. For the current situation, if there’s flexibility with car ownership, sell high, buy low. Sell now, buy later.

Well it had to come one day i guess - i agree with you.

Sell now buy later may well be the smart option if someone can make that work for them.

Remember DT, I’m always right, you just don’t realise it yet.

Though you were wrong about the car dealers practically begging people to take their cars once dealers reopened?

And you were wrong about there being an immediate drop in used car prices?

In fact - based on that, you've been wrong about everything so far?

That’s just your usual extreme misinterpretation of dialogue.

Really? How else would you interpret your post from 10th April on this thread when you replied to a comment about what would happen when dealers reopened?
(And theres loads of other posts where you reiterated this same message)

Throttlebody said:

Buyers will rule, prices will drop.

There’s never been a situation like this before in history with car manufacturing completely shut down. Millions is haemorrhaging daily. When production starts and dealers fire up again, they will need to sell quickly to generate revenue just to survive. The same applies to the independents and small traders, It will be survival of the fittest.

Buyers on the hunt don’t have to commit to buy though - unless the deal is great (including that trade in). They hold all the cards, they can walk, go elsewhere or wait. Prices will tank.

Seems very clear to me what your view was.

Is that what happened? Is that what used car buyers (and dealers) have reported back?

Edited by Deep Thought on Sunday 21st June 11:16

[Throttlebody]

Deep Thought said:

Throttlebody said:

Deep Thought said:

Throttlebody said:

Deep Thought said:

Throttlebody said:

100%. Car sales volumes will drop. Deep recession. For the current situation, if there’s flexibility with car ownership, sell high, buy low. Sell now, buy later.

Well it had to come one day i guess - i agree with you.

Sell now buy later may well be the smart option if someone can make that work for them.

Remember DT, I’m always right, you just don’t realise it yet.

Though you were wrong about the car dealers practically begging people to take their cars once dealers reopened?

And you were wrong about there being an immediate drop in used car prices?

In fact - based on that, you've been wrong about everything so far?

That’s just your usual extreme misinterpretation of dialogue.

Realy? How else would you interpret your post from 10th April on this thread?

Throttlebody said:

Buyers will rule, prices will drop.

There’s never been a situation like this before in history with car manufacturing completely shut down. Millions is haemorrhaging daily. When production starts and dealers fire up again, they will need to sell quickly to generate revenue just to survive. The same applies to the independents and small traders, It will be survival of the fittest.

Buyers on the hunt don’t have to commit to buy though - unless the deal is great (including that trade in). They hold all the cards, they can walk, go elsewhere or wait. Prices will tank.

That’s still true. We are in the early stages of a developing deep recession with just some pent up demand being satisfied. It’s a long game, post furlough, increasing unemployment.

[Throttlebody]

Deep Thought said:

Just to update, i took your advice and got it done, as i said i was going to.

Advertised the 330i this morning.

Bought a Z4 3.0Si Coupe this evening, silver, low miles, FSH.

I have a buyer on 330i - from Aberdeen oddly, price agreed and her grandparents live local to me are coming to view it tomorrow and hopefully confirm the sale.

The Z4 will keep me amused until i see how the market pans out - though i think this one will be a keeper either way.

Going to sort out 19 inch CSLs for it on Monday, which really sets them off.

Edited by Deep Thought on Sunday 21st June 07:43

Should we believe you?

[Throttlebody]

Trevor555 said:

CRA1G said:

Trevor555 said:

I read today that the government may reduce VAT in the next few weeks.

So all the VAT qualifying cars/vans on dealer forecourts.

Will they reduce the prices in line with the lower VAT rate so the customer benefits?

Or will the end prices stay the same and the dealer benefits having to charge less VAT?

Anyone in the know?

Predictions?

Let's say a £40,000 VAT qualifying camper van, will the buyer save approx £3,000 by waiting a few weeks if they half the VAT?

There's no chance they'll half the VAT....if they do reduce it it'll be around 3%. Any thing that's advertised + VAT will directly benefit but other wise a I can't see any changes to the forecourt prices.

Ok, thanks for answering.

I don't think a 3% reduction will have everyone rushing out to spend their money, all that'll do is lessen the governments income.

I should stop reading the Daily Fail...

Latest survey says over half of the UK won’t be doing any unnecessary shopping. A VAT cut won’t be a significant stimulus for the economy.

The IFS has just forecast the UK will need £30 billion in tax rises just to maintain fiscal integrity. Tough times ahead.

[Trevor555]

Throttlebody said:

Trevor555 said:

CRA1G said:

Trevor555 said:

I read today that the government may reduce VAT in the next few weeks.

So all the VAT qualifying cars/vans on dealer forecourts.

Will they reduce the prices in line with the lower VAT rate so the customer benefits?

Or will the end prices stay the same and the dealer benefits having to charge less VAT?

Anyone in the know?

Predictions?

Let's say a £40,000 VAT qualifying camper van, will the buyer save approx £3,000 by waiting a few weeks if they half the VAT?

There's no chance they'll half the VAT....if they do reduce it it'll be around 3%. Any thing that's advertised + VAT will directly benefit but other wise a I can't see any changes to the forecourt prices.

Ok, thanks for answering.

I don't think a 3% reduction will have everyone rushing out to spend their money, all that'll do is lessen the governments income.

I should stop reading the Daily Fail...

Latest survey says over half of the UK won’t be doing any unnecessary shopping. A VAT cut won’t be a significant stimulus for the economy.

The IFS has just forecast the UK will need £30 billion in tax rises just to maintain fiscal integrity. Tough times ahead.

Yup, a 3% cut won't make a huge difference in people rushing out to spend on every day items.

But some looking at larger purchases may now wait to see what happens. Not the effect the Government wants, surely?

[av185]

Throttlebody said:

Latest survey says over half of the UK won’t be doing any unnecessary shopping. A VAT cut won’t be a significant stimulus for the economy.

The IFS has just forecast the UK will need £30 billion in tax rises just to maintain fiscal integrity. Tough times ahead.

Stock market up Friday largely due to increasing retail volumes far better than expected in May.

[Deep Thought]

Throttlebody said:

That’s still true. We are in the early stages of a developing deep recession with just some pent up demand being satisfied. It’s a long game, post furlough, increasing unemployment.

You distinctly - and repeatedly - said that when dealers opened up again dealers would immediately be begging customers to take cars off their hands at any price as they would need the revenue and that the customer would hold all the cards.

That didnt happen.

You were wrong.

End of.

[Deep Thought]

Throttlebody said:

Should we believe you?

Yes, i dont make things up. Now added to my profile.

Edited by Deep Thought on Sunday 21st June 11:48

[Roaringopenfire]

CRA1G said:

Trevor555 said:

I read today that the government may reduce VAT in the next few weeks.

So all the VAT qualifying cars/vans on dealer forecourts.

Will they reduce the prices in line with the lower VAT rate so the customer benefits?

Or will the end prices stay the same and the dealer benefits having to charge less VAT?

Anyone in the know?

Predictions?

Let's say a £40,000 VAT qualifying camper van, will the buyer save approx £3,000 by waiting a few weeks if they half the VAT?

There's no chance they'll half the VAT....if they do reduce it it'll be around 3%. Any thing that's advertised + VAT will directly benefit but other wise a I can't see any changes to the forecourt prices.

In 2008 post financial crisis VAT was cut by 2.5% for six months. It was an automatic reduction on all goods/services bought within the period.

[Mexman]

Deep Thought said:

Throttlebody said:

Should we believe you?

Yes, i dont make things up. Now added to my profile.

Edited by Deep Thought on Sunday 21st June 11:48

Apart from your opinions.