Will Coronavirus hit used car prices?

Will Coronavirus hit used car prices?

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Discussion

GroundZero

459 posts

9 months

Monday 29th June
quotequote all
Jasandjules said:
Stay in Bed Instead said:
Anonymous-poster said:
Or he can say he’s dropped the price to entice customers?
What was the purpose of increasing it then?
Are you genuinely asking or just being facetious?
Most should know that it is a well used tactic with prices on forecourts and with other products as well.
The seller will have a very good idea of what is in demand and will sell quickly, and also what is high in supply and may stay on the forecourt for a while.
Slowly increasing prices portrays a message of "in demand", "buy now", "act quickly". Dealer knowing all the time that it may tempt the desperate buyer who is not willing to look further afield, but the dealer's main "play" is when the 'discount' is advertised.

This will be then advertised as "huge discount", "buy now before somebody else gets it", and so on. There will then be no movement on price negotiations as the "huge discount" will be the reason thrown back at you.

It is seen often in the car sales game. Many smaller traders do it.

growlerowl

270 posts

4 months

Monday 29th June
quotequote all
bish_345 said:
To be fair, the somewhat alarmist "resurgence in 11 European countries" headline bandied about in the news is potentially rather misleading if, like most of us, you are looking at how Europe is coping from an EU/UK perspective. The 11 countries named by the WHO are Albania, Armenia, Azerbaijan, Bosnia, Kazakhstan, Kosovo, Kyrgyzstan, Moldova, North Macedonia, Ukraine and Sweden. With the exception of Sweden (which doesn't agree with the methodology that put it on the WHO list in the first place), that's a rather distant group. Moreover, that unusually broad geographic definition of "Europe" encompasses a population base of over 750 million people, of which the 11 named countries represent only a small percentage.
Some of those are definitely a bit silly - I mean Kyrgyzstan was somewhat Europeanised culturally during the Soviet era, but even then and still today had/has at least a small number of people living a centuries old mongolian steppe type of life based around yurts and horses fgs! If that's not archetypically Asian I don't know what is.
Hope they get CV under control as I'd like a visit. Stunning scenery etc.

ettore

2,802 posts

207 months

Monday 29th June
quotequote all
In other news, I heard today (from a source that would know) that the Chinese new car market is back to pre-Covid numbers, French sales figures are now north of last year with Germany expected to report the same and that the U.K. is starting to experience brisk showroom trading.

Of course pent up demand could be providing a dead cat bounce but let’s look at the positive!

Tim O

112 posts

124 months

Monday 29th June
quotequote all
Skoda dealers I was at last week told me they were flat out, very brisk trading. Their group HQ had told them to put up the prices of their used stock (but he would say that, wouldn't he!)
Apparently the VW showroom across the road (part of the same group) was equally busy.

Helicopter123

8,015 posts

111 months

Monday 29th June
quotequote all
Starting to look as if pent-up demand is offsetting any nerves about the economy?

With all the government money now bouncing about, some will have had a financially positive lockdown period with precious little to spend it on.

Throttlebody

691 posts

9 months

Monday 29th June
quotequote all
Spoke to the guys in a Hyundai dealer over the weekend and they are also ‘flat out’ but it was because half the staff are still on furlough. Saves the dealership money. Govt pays the bills.

RUSTILLDOWN

22 posts

23 months

Monday 29th June
quotequote all
Helicopter123 said:
Starting to look as if pent-up demand is offsetting any nerves about the economy?

With all the government money now bouncing about, some will have had a financially positive lockdown period with precious little to spend it on.
I fully expected pent up demand but have been quite surprised to hear of “strong” prices as a result of the demand.

Pent up demand is temporary so I would have thought that dealers should be reluctant to replace some of their existing stock and therefore auction prices would slowly slide.

Anyway, I was ready to buy before all of this and have saved a fortune over the last few months but my nerves about the economy and the fact that I’ve done very very few miles mean that I’ve completely postponed any purchase until Q1 / Q2 next year. I’m sure I’m not the only one.

Deep Thought

26,746 posts

152 months

Monday 29th June
quotequote all
Throttlebody said:
Spoke to the guys in a Hyundai dealer over the weekend and they are also ‘flat out’ but it was because half the staff are still on furlough. Saves the dealership money. Govt pays the bills.
So furlough doing exactly what its supposed to then?

Auto810graphy

575 posts

47 months

Monday 29th June
quotequote all
Throttlebody said:
Spoke to the guys in a Hyundai dealer over the weekend and they are also ‘flat out’ but it was because half the staff are still on furlough. Saves the dealership money. Govt pays the bills.
Probably saw you coming and all pretended to be busy.

I hear the I10 is a good car.

Mexman

2,254 posts

39 months

Monday 29th June
quotequote all
Auto810graphy said:
Throttlebody said:
Spoke to the guys in a Hyundai dealer over the weekend and they are also ‘flat out’ but it was because half the staff are still on furlough. Saves the dealership money. Govt pays the bills.
Probably saw you coming and all pretended to be busy.

I hear the I10 is a good car.
laugh
And the Micra, prices for these are thru the roof.

ghost83

3,874 posts

145 months

Monday 29th June
quotequote all
RUSTILLDOWN said:
I assume he means 2k per month.

There will be lots of hidden products / services where demand will reduce. I’d never have thought pool tables would be one to be honest but it kinda makes sense.

When I speak to people they really do seem completely oblivious that this virus will likely never disappear and seem even more confused when I tell them we just need to learn to adapt, live with it and acknowledge risks. Crazy times.
Yeah sorry 2k per month

Throttlebody

691 posts

9 months

Tuesday 30th June
quotequote all
Back in the real world, Mercedes Retail is closing 3 of its London dealerships and HR Owen is making redundancies across its group of operations.

Mexman

2,254 posts

39 months

Tuesday 30th June
quotequote all
Throttlebody said:
Back in the real world, Mercedes Retail is closing 3 of its London dealerships and HR Owen is making redundancies across its group of operations.
Pleased?

itsallyellow

3,578 posts

175 months

Tuesday 30th June
quotequote all
The three dealers were going to be shut pre COVID anyway.

My Mercedes dealers are well ahead of last years figures. Q3 will probably be more challenging but so far there seems no sign of it slowing down.

I don’t post much on ph anymore but these dealership threads have surprised me. The lack of insight into how the motor trade works from car enthusiasts is the biggest surprise. As is the negativity towards the trade.

Mike

HTP99

16,564 posts

95 months

Tuesday 30th June
quotequote all
Mexman said:
Throttlebody said:
Back in the real world, Mercedes Retail is closing 3 of its London dealerships and HR Owen is making redundancies across its group of operations.
Pleased?
Of course he is, 3 more to add to his chart on his bedroom wall!

mike74

1,929 posts

87 months

Tuesday 30th June
quotequote all
Deep Thought said:
So furlough doing exactly what its supposed to then?
Didn't realise the purpose of furlough was to make employers realise that actually they can cope with half the staff they originally had and they can let half their workforce go once furlough does eventually end.

Throttlebody

691 posts

9 months

Tuesday 30th June
quotequote all
mike74 said:
Deep Thought said:
So furlough doing exactly what its supposed to then?
Didn't realise the purpose of furlough was to make employers realise that actually they can cope with half the staff they originally had and they can let half their workforce go once furlough does eventually end.
Also, helps the car salesman’s ‘really busy’ narrative. Business down overall with less staff doing the work.

Venisonpie

788 posts

37 months

Tuesday 30th June
quotequote all
The market seems very mixed, the used stuff is going really well and some new is strong. I'd temper that with the conversation I had with my Toyota rep on Friday who is desperate to move metal - they've got tons of it sitting about with offers galore on fleet.

The current market seems to be finding it's feet but I still remain in the dead cat bounce corner.

Auto810graphy

575 posts

47 months

Tuesday 30th June
quotequote all
HTP99 said:
Of course he is, 3 more to add to his chart on his bedroom wall!
I now have a picture in my head of Throbberbodies bedroom wall having a map of the UK where he puts pins in dealers that have closed.

Deep Thought

26,746 posts

152 months

Tuesday 30th June
quotequote all
mike74 said:
Deep Thought said:
So furlough doing exactly what its supposed to then?
Didn't realise the purpose of furlough was to make employers realise that actually they can cope with half the staff they originally had and they can let half their workforce go once furlough does eventually end.
A phased return.

They need half as many sales people currently as they're ramping back up.

Furlough protected the jobs of people they might otherwise have had to let go in the meantime.

Not hard to see that.