Will Coronavirus hit used car prices?

[V8RX7]

GT3Manthey said:

The people that can afford to spend 150k on a car to start with tend not to be skint especially given in order to have been able to buy one of these type cars in the first place you generally had to have had purchase history with Porsche in the 1st place

I've found you simply can't generalise.

[braddo]

thelostboy said:

... In January it looked like we were set up for a great recovery as an economy. Now it's going to be a sh*t show a matter of weeks after.

A great recovery wasn't coming (Brexit cliff edge at the end of 2020 creates far too much uncertainty) but it was certainly looking far better than it is now.

Behind the 2 world wars this might be the biggest unforseen 'black swan' event the world has seen, for the past couple of hundred years at least.

[anonymous-user]

WW2 was far more expected than this, you could see that coming for almost 10 years.

[Dracoro]

GT3Manthey said:

The people that can afford to spend 150k on a car to start with tend not to be skint especially given in order to have been able to buy one of these type cars in the first place you generally had to have had purchase history with Porsche in the 1st place

Check this thread > https://www.pistonheads.com/gassing/topic.asp?h=0&...

R8, Ferraris owners doing just this

Also, you'd be surprised how many people live paycheque to paycheque even on high income. Crazy that they do but many people do so.
We should alway have "rainy day" funds (most people don't), be "worth" more than we owe etc.
Hard for those on low incomes to do this of course, but little excuse for those on good incomes.

[av185]

Dracoro said:

GT3Manthey said:

The people that can afford to spend 150k on a car to start with tend not to be skint especially given in order to have been able to buy one of these type cars in the first place you generally had to have had purchase history with Porsche in the 1st place

Check this thread > https://www.pistonheads.com/gassing/topic.asp?h=0&...

R8, Ferraris owners doing just this

Also, you'd be surprised how many people live paycheque to paycheque even on high income. Crazy that they do but many people do so.
We should alway have "rainy day" funds (most people don't), be "worth" more than we owe etc.
Hard for those on low incomes to do this of course, but little excuse for those on good incomes.

Thing is those on high incomes generally have high expenditure too.

The living from hand to mouth is nothing new built on a debt ridden lifestyle which has been and will continue to a degree to be seen to be almost a badge of honour for the morons with little future vision.

This has always been the case and pcp has made it easier to get into a car many truly cannot afford but I know guys spending £4k+ a month on their supercars others who own outright and they will ride this crisis out no problem because they have the intelligence not to be highly leveraged in the first place.

But the chickens will come home to roost for those who are overstretched and more concerned with 'keeping up appearances' desperate for the next shiny trinket with no money for food in the fridge.

Wouldn't say there is much evidence to suggest that the proportion of repossessed vehicles worth over say £100k is any higher than in particular the 'aspirational' pseudot 'premium' brands of BMW Audi and Mercedes when things get tough although the latter day meteoric rise in popularity of these three has obviously been largely fuelled by relatively attractive pcp deals.

Edited by av185 on Wednesday 25th March 13:16

[Touring442]

av185 said:

We assume guilty by silence.

Sorry sweetheart, I was out.

It is of course rumour/heresay albeit from a Sytner employee.

I guess it's a bit like the story I heard about your Mrs and a Kenyan bingo caller called 'Errol', a large chap.

Just rumour.

[Helicopter123]

av185 said:

Dracoro said:

GT3Manthey said:

The people that can afford to spend 150k on a car to start with tend not to be skint especially given in order to have been able to buy one of these type cars in the first place you generally had to have had purchase history with Porsche in the 1st place

Check this thread > https://www.pistonheads.com/gassing/topic.asp?h=0&...

R8, Ferraris owners doing just this

Also, you'd be surprised how many people live paycheque to paycheque even on high income. Crazy that they do but many people do so.
We should alway have "rainy day" funds (most people don't), be "worth" more than we owe etc.
Hard for those on low incomes to do this of course, but little excuse for those on good incomes.

Thing is those on high incomes generally have high expenditure too.

The living from hand to mouth is nothing new built on a debt ridden lifestyle which has been and will continue to a degree to be seen to be almost a badge of honour for the morons with little future vision.

This has always been the case and pcp has made it easier to get into a car many truly cannot afford but I know guys spending £4k+ a month on their supercars others who own outright and they will ride this crisis out no problem because they have the intelligence not to be highly leveraged in the first place.

But the chickens will come home to roost for those who are overstretched and more concerned with 'keeping up appearances' desperate for the next shiny trinket with no money for food in the fridge.

Wouldn't say there is much evidence to suggest that the proportion of repossessed vehicles worth over say £100k is any higher than in particular the 'aspirational' pseudot 'premium' brands of BMW Audi and Mercedes when things get tough although the latter day meteoric rise in popularity of these three has obviously been largely fuelled by relatively attractive pcp deals.

Edited by av185 on Wednesday 25th March 13:16

Some good points, but some opinion as well.

With interest rates so low, the cheapest way into a car is often via some sort of a finance deal rather than outright purchase.

Secondly, the government continues to create moral hazard. 'Morons' (your word) continue to be bailed out, so why shouldn't others copy their behaviour? Why put money away for a rainy day when I can spank it on the monthly payments safe in the knowledge that HMRC will underpin 80% of my salary in a crisis?

[Shuvi McTupya]

Helicopter123 said:

Why put money away for a rainy day when I can spank it on the monthly payments safe in the knowledge that HMRC will underpin 80% of my salary in a crisis?

80% of your DECLARED salary a lot of self employed people are going to struggle!

[Smacko]

av185 said:

GT3Manthey said:

Yup i get all of this and run of the mill cars are not exempt. Not sure its the case with small number build GT cars.

Maybe some of the RS models return to list but that i suspect will be the worst of it

They will hold up relatively well and certainly compared to 488s Hurracans and of course Mclarens merely due to the usual demons of oversupply.

JZM have a 5k mile 18 18 Miami GT3 RS just over list price £185k although it appeared to have sold just before they closed. These were selling at £210k last month btw.

No they weren’t. 18 RS’s weren’t ‘selling’ for anywhere near £210k.

I know, I bought and sold one.

Edited by Smacko on Wednesday 25th March 16:40

[R.Sole]

Of course it depends but I have an example of a 6 month old 911 cab with less than 1k miles on PCP.
Needs shot and the OPC that’s old him the car said they would take the car back if he wrote a cheque for £51k!

[av185]

Smacko said:

No they weren’t. 18 RS’s weren’t ‘selling’ for anywhere near £210k.

I know, I bought and sold one.

Edited by Smacko on Wednesday 25th March 16:40

Spec, vendor, provenence and mileage dependent.

What were the details of yours re the above?

[Vroomer]

I had been looking at the new Suzuki Jimmy as a fun car. Entire 2020 stock had been sold out and people were asking £5-10k premiums for delivery mileage cars (some still are) but lots appearing now at list.

[gizlaroc]

Vroomer said:

I had been looking at the new Suzuki Jimmy as a fun car. Entire 2020 stock had been sold out and people were asking £5-10k premiums for delivery mileage cars (some still are) but lots appearing now at list.

Flippers will always suddenly think "Hmm, maybe best to try and get my money back."

Give it another month and they will be thinking "Hmmm, best to lose a couple of grand."

[anonymous-user]

Just watched an early wheelers dealers circa 2005(?) And Brewer bought a 70s 911S Targa for 5 big ones. Sold it with a reconditioned gearbox for £8k.

I think youd struggle to see the same car for under £40k - but could we see a reduction ? 911 prices in general had gone very crazy and whilst you could argue they aren't making them anymore (oh, wait. They are.) There are plenty out there.

Like to see a 'correction'

[jonah35]

Range rovers
Bentley GT
Mercedes s class

Those type of cars will collapse

Also the investment cars like a 996 gt3 will come down. Most buyers buy them instead of having a cash isa or pension contribution - they buy them cos of the residuals.

A 996 GT3 is not much different to investing in a stocks and shares ISA!

People are needing money
The drop hasn’t been seen yet but trade to trade deals have fallen off a cliff

In 3 months we will see the collapse

[GT3Manthey]

jonah35 said:

Range rovers
Bentley GT
Mercedes s class

Those type of cars will collapse

Also the investment cars like a 996 gt3 will come down. Most buyers buy them instead of having a cash isa or pension contribution - they buy them cos of the residuals.

A 996 GT3 is not much different to investing in a stocks and shares ISA!

People are needing money
The drop hasn’t been seen yet but trade to trade deals have fallen off a cliff

In 3 months we will see the collapse

Funny you mention 996 Gt3 as I had a buyer trying to put a deposit on the car I just bought so not sure this is entirely accurate.

Also remember 996 Gt3's are coming from a pretty low base. They got to around 40k for a decent car down from list in the 60's and that's where they are now unlike say a 991 RS that were swapping hands at 250 from a base of 140.

Run of the mill cars like my M2 yes for sure but then that's not for sale as I like the balance of both cars and I don't need to sell.

Edited by GT3Manthey on Wednesday 25th March 19:14

[Deep Thought]

GT3Manthey said:

Funny you mention 996 Gt3 as I had a buyer trying to put a deposit on the car I just bought so not sure this is entirely accurate.

Run of the mill cars like my M2 yes for sure but then that's not for sale as I like the balance of both cars and I don't need to sell.

Funnily i was just about to suggest M2s could be in for a battering.

For reference and to refer back to, cheapest car (at a dealers as it happens), auto, is this 2016 one with 64K miles @ £25K miles.

https://www.autotrader.co.uk/classified/advert/202...

3 others available under £26K too around the country.

Will be interesting to see where that sits in say 3 months time.

[GT3Manthey]

Deep Thought said:

Funnily i was just about to suggest M2s could be in for a battering.

For reference and to refer back to, cheapest car (at a dealers as it happens), auto, is this 2016 one with 64K miles @ £25K miles.

https://www.autotrader.co.uk/classified/advert/202...

3 others available under £26K too around the country.

Will be interesting to see where that sits in say 3 months time.

Mine is 13k miles and manual ( my preference) but i'm sucking a fat one with that !

At least I didn't buy it new . I paid 32k last august with 9k miles and its still under warranty.
TBF its a great car to hoon around in in all weathers but to sell it now? whos knows !

Great cars for the cash

[So]

jonah35 said:

Range rovers
Bentley GT
Mercedes s class

Those type of cars will collapse


In 3 months we will see the collapse

I've exposure to one of those and nearly to a second.

[GT3Manthey]

So said:

I've exposure to one of those and nearly to a second.

I also have one too but family wagon.

Bentleys I think if you own one you expect to take a bath.

Mercedes can go forever so there is a reason to run one for the rest of time