Will Coronavirus hit used car prices?

Will Coronavirus hit used car prices?

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Discussion

undred orse

701 posts

151 months

Tuesday 30th June
quotequote all
I saw an email yesterday offering about £7-9k off in stock Cayennes and up to £14.5k off in stock Panameras of various specs. I've never seen that before. Cancelled orders? I can certainly see some of the usual buyers of that sort of car being uncomfortable about taking on a new spend and being seen in it when the future of their business and workforce is uncertain.

HTP99

16,564 posts

95 months

Tuesday 30th June
quotequote all
Deep Thought said:
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.
We have people still on furlough, a couple of mechanics and a few drivers, yes we are busy and could probably use the mechanics, no do much the drivers, but we also have to balance their return with cash flow too, we have been open a month now, we are down on money, if these guys return now then that is even more money to find whilst we have less.

Deep Thought

26,746 posts

152 months

Tuesday 30th June
quotequote all
HTP99 said:
Deep Thought said:
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.
We have people still on furlough, a couple of mechanics and a few drivers, yes we are busy and could probably use the mechanics, no do much the drivers, but we also have to balance their return with cash flow too, we have been open a month now, we are down on money, if these guys return now then that is even more money to find whilst we have less.
Good to have real world input to back that up. Hope everyone gets back in soon.

tertius

5,624 posts

185 months

Tuesday 30th June
quotequote all
tertius said:
danp said:
Black one at 26.5k? Think I saw it on AT but not sure I clocked it was a CAT S.
Ah, so it is - pretty sure it wasn’t showing as a Cat S on AT? The category marking is pretty obvious there. Is the change of platform related I wonder?
Now back on AT at the lower price, has "CAT/S" in the description but doesn't have the category marker on the summary.

J4CKO

30,655 posts

155 months

Tuesday 30th June
quotequote all
pablo said:
As you may have guessed, I’m only looking at classics and interesting stuff but the SWVA auction on Friday was fun to follow online but quite frankly all over the place, a Scimitar GTE went for £7400, prices rising perhaps reflecting the fact there are less than 1000 still on the road. The tidy 1970 MGB I was looking at went for £5900 which looked about right given the car was in regular use but more than I wanted to pay and I was also looking at the GT6 but that went for £8800, again perhaps suggesting they’ve been undervalued for a while?

XK8s are still a bargain and a well maintained Ferrari Mondial QV with more history than Blenheim Palace “only” made £22000 which really got me thinking... Yes it’s probably the least desirable Ferrari out there but it’s a nicer way to transport a family of four than a Nissan Juke....

Cars inspired by the Festival of the Unexceptional are also selling well
Think there are a few folk who have piled up some cash as they havent been spending and they have a lot of time to look and research the classic they have always fancied.

Can imagine a family runabout Mondial

"Daddy, whats that noise"

"Can you smell petrol"


There is a reason familes buy Nissans and not aging cheap Ferraris.!

Butter Face

21,015 posts

115 months

Tuesday 30th June
quotequote all
tertius said:
tertius said:
danp said:
Black one at 26.5k? Think I saw it on AT but not sure I clocked it was a CAT S.
Ah, so it is - pretty sure it wasn’t showing as a Cat S on AT? The category marking is pretty obvious there. Is the change of platform related I wonder?
Now back on AT at the lower price, has "CAT/S" in the description but doesn't have the category marker on the summary.
Interesting that it's showing as all clear on the checks


mike74

1,929 posts

87 months

Tuesday 30th June
quotequote all
Deep Thought said:
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.
If dealers are realising that they can cope in the current post lockdown situation of a flurry of pent up demand and Sunaks free money burning a hole in peoples pockets with half the number of staff, I suspect they'll realise they can definitely cope with reduced staff levels when things get back to normal, whatever ''normal'' will be.

av185

11,260 posts

82 months

Tuesday 30th June
quotequote all
undred orse said:
I saw an email yesterday offering about £7-9k off in stock Cayennes and up to £14.5k off in stock Panameras of various specs. I've never seen that before. Cancelled orders? I can certainly see some of the usual buyers of that sort of car being uncomfortable about taking on a new spend and being seen in it when the future of their business and workforce is uncertain.
Been some discount on certain spec and model stock Cayennes and Panameras for some time not Covid or any consequential reduced demand related.

jonindorset

951 posts

199 months

Tuesday 30th June
quotequote all
Is this the calm before the storm? There are clearly two, maybe three sets of people out there.

1) Those working from home, carrying on as normal but with far higher savings than normal as little to spend money on - household savings rates have rocketed... Demand for family houses is exceptionally strong in many parts of the country. Some still finding the stock market little better than a casino are still busy out buying trophy cars (Porsche prices still seem remarkably strong) for example.

2) Business owners enjoying interest free loans, in some cases on multiple businesses I'm hearing busy buying new vans, sports cars and even speedboats! (so I'm being told...) My favourite local indy has said he's done more pre-purchase inspections in the last month or so than ever before.

3) Lower paid furloughed often service sector employees with potentially zombie jobs that will never return. Many now prevented from getting mortgages or faced with prohibitively large deposit requirements to get on the property ladder, starting to damage the lower end of the property market.

As wage inflation drops off a cliff along with job security and unemployment hits 5 million plus I envisage bargains galore come January / February.

Deep Thought

26,746 posts

152 months

Tuesday 30th June
quotequote all
mike74 said:
If dealers are realising that they can cope in the current post lockdown situation of a flurry of pent up demand and Sunaks free money burning a hole in peoples pockets with half the number of staff, I suspect they'll realise they can definitely cope with reduced staff levels when things get back to normal, whatever ''normal'' will be.
Theres only so many customers any car salesman can manage at any one time. Better to have sales people in there meeting the demand. Any dealers i know of are phasing returns to match demand. Granted they may get it wrong for a week or two and thus some areas might be "flat out" but they're managing the returns.

Long term, who knows. But if the demand is currently there and that is the immediate outlook, they're not going to risk not scooping up those customers and deals due to a shortage of salesmen.

Staff overheads in a dealership are always very tightly controlled due to waifer thin net margins, so its naive to think a dealership has only now suddenly come to realise they only actually needed half the sales staff.

From HTP99's real world experience -

HTP99 said:
We have people still on furlough, a couple of mechanics and a few drivers, yes we are busy and could probably use the mechanics, no do much the drivers, but we also have to balance their return with cash flow too, we have been open a month now, we are down on money, if these guys return now then that is even more money to find whilst we have less.

Vroomer

Original Poster:

1,486 posts

135 months

Tuesday 30th June
quotequote all
undred orse said:
I saw an email yesterday offering about £7-9k off in stock Cayennes and up to £14.5k off in stock Panameras of various specs. I've never seen that before. Cancelled orders? I can certainly see some of the usual buyers of that sort of car being uncomfortable about taking on a new spend and being seen in it when the future of their business and workforce is uncertain.
Where is this? Please post a link. A friend is looking for a new Cayenne and has been disappointed with the discounts available.

Scootersp

1,403 posts

143 months

Tuesday 30th June
quotequote all
HTP99 said:
We have people still on furlough, a couple of mechanics and a few drivers, yes we are busy and could probably use the mechanics, no do much the drivers, but we also have to balance their return with cash flow too, we have been open a month now, we are down on money, if these guys return now then that is even more money to find whilst we have less.
From July these drivers and mechanics can come back part time in I think almost any way, ie one day or two weeks a week whatever is needed (as long as they've been properly furloughed for a 3 week period in the months before, this should allow a dealer to efficiently deal with demand without impacting cashflow.

Mexman

2,254 posts

39 months

Tuesday 30th June
quotequote all
As of tomorrow, if we get round to it, all of our used stock is being repriced, a lot of it will be going up by a few hundred quid, apart from a few old stock lurkers which need to go at whatever loss to the business.
Down to stock levels of around 20 with nothing to replace it with, that we can buy at anywhere near sensible money.

undred orse

701 posts

151 months

Tuesday 30th June
quotequote all
Vroomer said:
undred orse said:
I saw an email yesterday offering about £7-9k off in stock Cayennes and up to £14.5k off in stock Panameras of various specs. I've never seen that before. Cancelled orders? I can certainly see some of the usual buyers of that sort of car being uncomfortable about taking on a new spend and being seen in it when the future of their business and workforce is uncertain.
Where is this? Please post a link. A friend is looking for a new Cayenne and has been disappointed with the discounts available.
coast2coast cars - on a email from them

Lagom

156 posts

17 months

Tuesday 30th June
quotequote all
Butter Face said:
tertius said:
tertius said:
danp said:
Black one at 26.5k? Think I saw it on AT but not sure I clocked it was a CAT S.
Ah, so it is - pretty sure it wasn’t showing as a Cat S on AT? The category marking is pretty obvious there. Is the change of platform related I wonder?
Now back on AT at the lower price, has "CAT/S" in the description but doesn't have the category marker on the summary.
Interesting that it's showing as all clear on the checks

Different checks, different results. Happens far too frequently with HPI. Wonder if it's been in two accidents? It's done little over 500miles in 3 years.




Edited by Lagom on Tuesday 30th June 15:38

limpsfield

4,896 posts

208 months

Tuesday 30th June
quotequote all
Other half bought a pre registered z4 yesterday. These seems to be selling really quickly since the re-opening. I called 3 garages that were showing cars available on the BMW used site and they had all gone in the last week.

I do think when the post furlough reality kicks in things may well be different, but I do believe the stories of post-lockdown surge at the moment and am not seeing any distressed prices of the cars I have been looking to buy.

Thankyou4calling

8,134 posts

128 months

Tuesday 30th June
quotequote all
Last day of the month today so SMMT figures for June out soon after and there’s no hiding from them.

Actual Factual.

Let’s see if the “Really busy” “ Pent up demand” has translated through to a figure that confirms anecdotal.

I’m in the other camp I’m afraid and expect June 2020 to be below June 2019 even with the activity on here factored in.

Joey Deacon

2,366 posts

131 months

Tuesday 30th June
quotequote all
Thankyou4calling said:
Last day of the month today so SMMT figures for June out soon after and there’s no hiding from them.

Actual Factual.

Let’s see if the “Really busy” “ Pent up demand” has translated through to a figure that confirms anecdotal.

I’m in the other camp I’m afraid and expect June 2020 to be below June 2019 even with the activity on here factored in.
Especially with the number of manufacturers who are restructuring or making staff redundant. Either they have got it wrong and the demand is still there, or this is a dead cat bounce.

Lets see how sales are in October after a summer of companies announcing redundancies and the furlough scheme ending.

Butter Face

21,015 posts

115 months

Tuesday 30th June
quotequote all
Thankyou4calling said:
Last day of the month today so SMMT figures for June out soon after and there’s no hiding from them.

Actual Factual.

Let’s see if the “Really busy” “ Pent up demand” has translated through to a figure that confirms anecdotal.

I’m in the other camp I’m afraid and expect June 2020 to be below June 2019 even with the activity on here factored in.
SMMT figures will be for new registrations. I'm sure they will indeed be down on 2019 but no shocker there.

What would be interesting would be to see the used car sales figures (as per the title of the thread) we are down YOY on numbers on used, but only 10% different on overall profit. Go figure.

Thankyou4calling

8,134 posts

128 months

Tuesday 30th June
quotequote all
Why no shocker there BF?

Showrooms shut late March, all of April, all of May.

Plenty on here saying they are busy. Pretty much 10 weeks with no sales

If that doesn’t translate to June at least matching last year in my opinion the new car trade is really REALLY in trouble and it will expose the talk on here for what it is. Talk!

But let’s see. It’ll be interesting.