Will Coronavirus hit used car prices?

[growlerowl]

Mexman said:

I dont think many people will be putting, "selling due to redundancy " in their adverts.
That to me is like saying, "I'm skint, selling my car, come and pull my pants down".
Not a very clever sales technique.

Yeah fair point.

[Court_S]

Tannedbaldhead said:

I'm a QS who was badly burned by the credit crunch. Learned my lesson and as things picked up took a safe position with a facilities management company looking after hospitals, schools, prisons, MOD estates and social housing.

Money was never great but looking where I am today I'm in a much better place than colleagues who chased the big bucks with private development contracts and are now seeing notice of redundancy procedure letters coming through their doors.

I was at the start of my career so wasn’t burnt too badly. This time around I’m a bit more concerned. I’ve been moved to a different and have projects on site until next year which is good. A lad had just left us to go to a smaller, newer practice which seems like a bold move to me.

One of the contractor QS’s I’ve been working with for the last 10months or so has just been made redundant. He’s managed to walk straight into a new job with a developer with a full order book for a few years....he’s been very lucky. Guess it’ll be harder soon once there are more construction stuff looking for new jobs.

[anonymous-user]

growlerowl said:

There are limits though - diminishing returns, hyperinflation.

I've seen that mentioned twice now.

Deflation is the most likely scenario structurally.

[Anonymous-poster]

jsf said:

growlerowl said:

There are limits though - diminishing returns, hyperinflation.

I've seen that mentioned twice now.

Deflation is the most likely scenario structurally.

What is better for the government?

[anonymous-user]

Anonymous-poster said:

What is better for the government?

2% inflation

[Condi]

Anonymous-poster said:

jsf said:

growlerowl said:

There are limits though - diminishing returns, hyperinflation.

I've seen that mentioned twice now.

Deflation is the most likely scenario structurally.

What is better for the government?

Deflation would be a disaster for the government because it makes their debt pile comparatively larger. Inflation above the interest rate of their borrowings is what they want, and with the amount of cash injected into the economy I don't see how deflation is likely.

[Masiv]

Deep Thought said:

Agreed. And any scaling of that assumes as soon as someone gets made redundant they "must" sell their car.

Although it'll be a handy new reason for sale for the traders masquerading as private sellers. Will make a change from "only selling so quickly because my wife doesnt like it" or similar.

Edited by Deep Thought on Sunday 5th July 12:22

Beat me to it. I've been seeing a bit of that. 'Moving abroad' is another one that's quite often used over the years.

[Anonymous-poster]

Deep Thought said:

And therein lies a side effect of "free money" to small businesses who perhaps didnt need it and BBLs with no checks again on need.

It will be interesting to see what action the government take through HMRC - i suspect very little, publicly at least, though i'd say there will be some in the hot seat down the line in front of an HMRC investigation.

That is getting close to “sneering”!

[Deep Thought]

Anonymous-poster said:

Deep Thought said:

And therein lies a side effect of "free money" to small businesses who perhaps didnt need it and BBLs with no checks again on need.

It will be interesting to see what action the government take through HMRC - i suspect very little, publicly at least, though i'd say there will be some in the hot seat down the line in front of an HMRC investigation.

That is getting close to “sneering”!

Nah.

I quoted the phrase free money as i had seen it used by some people who availed of it, not because thats how i view it.

I think most businesses have had a tough time of it. Granted theres a small minority who seem to have used the BBLs to pay the deposit on supercars but that will be between them, their accountants and HMRC.

The purpose of it was to prevent small businesses having to burn up their own cashflow and money to keep going. On that front i think its been largely successful.

Would you agree?

[Anonymous-poster]

Deep Thought said:

Anonymous-poster said:

Deep Thought said:

And therein lies a side effect of "free money" to small businesses who perhaps didnt need it and BBLs with no checks again on need.

It will be interesting to see what action the government take through HMRC - i suspect very little, publicly at least, though i'd say there will be some in the hot seat down the line in front of an HMRC investigation.

That is getting close to “sneering”!

Nah.

I quoted the phrase free money as i had seen it used by some people who availed of it, not because thats how i view it.

I think most businesses have had a tough time of it. Granted theres a small minority who seem to have used the BBLs to pay the deposit on supercars but that will be between them, their accountants and HMRC.

The purpose of it was to prevent small businesses having to burn up their own cashflow and money to keep going. On that front i think its been largely successful.

Would you agree?

The government has been super generous but the fact that you think HMRC should be investigating small buisiness smacks of jealousy or as you often use “sneering” when in fact a lot of it was “free money” which only caveat was you were impacted financially by Covid-19 which if you were £1 worse off, you were!
The BB loans were just another money drop and as long as you spent it in the UK it helped the economy which is exactly what the government wanted.

[Deep Thought]

Anonymous-poster said:

The government has been super generous but the fact that you think HMRC should be investigating small buisiness smacks of jealousy or as you often use “sneering” when in fact a lot of it was “free money” which only caveat was you were impacted financially by Covid-19 which if you were £1 worse off, you were!
The BB loans were just another money drop and as long as you spent it in the UK it helped the economy which is exactly what the government wanted.

No i was referring to those putting the deposits on supercars as subsequently explained and previously referenced on here.

You and i have both commented on this and how someone could possibly draw £50K out of a LTD co from a BBL for personal use such as a supercar deposit. I think those people could have trouble explaining that to their accountant and / or HMRC. I recall questioning this and you commenting that a BBL for a small business could have been paid in to a personal account.

I also recall at one point you called the grant "free money" did you not, so not entirely sure why you've taken offense suddenly?

I do think where there is a high profile case and evidence of someone directly using the money to fund say a supercar deposit, HMRC would be very interested. Any other use of it, probably not.

I genuinely dont think HMRC will investigate small businesses nor would i expect them to nor would i think there is, broadly speaking, any case to answer given as you say there were really little conditions put on the loan or grant.

[Deep Thought]

Anonymous-poster said:

Deep Thought said:

Anonymous-poster said:

Deep Thought said:

And therein lies a side effect of "free money" to small businesses who perhaps didnt need it and BBLs with no checks again on need.

It will be interesting to see what action the government take through HMRC - i suspect very little, publicly at least, though i'd say there will be some in the hot seat down the line in front of an HMRC investigation.

That is getting close to “sneering”!

Nah.

I quoted the phrase free money as i had seen it used by some people who availed of it, not because thats how i view it.

I think most businesses have had a tough time of it. Granted theres a small minority who seem to have used the BBLs to pay the deposit on supercars but that will be between them, their accountants and HMRC.

The purpose of it was to prevent small businesses having to burn up their own cashflow and money to keep going. On that front i think its been largely successful.

Would you agree?

The government has been super generous but the fact that you think HMRC should be investigating small buisiness smacks of jealousy or as you often use “sneering” when in fact a lot of it was “free money” which only caveat was you were impacted financially by Covid-19 which if you were £1 worse off, you were!
The BB loans were just another money drop and as long as you spent it in the UK it helped the economy which is exactly what the government wanted.

Maybe you should re-read the bit highlighted. I did NOT say HMRC should be investigating small businesses.

I also explicitly said "I think most businesses have had a tough time of it. The purpose of it was to prevent small businesses having to burn up their own cashflow and money to keep going. On that front i think its been largely successful."

I'm not sure how much more supportive i could be of small businesses and the scheme generally?

People using the deposit for supercars from their LTD co or a previously dormant LTD co, not so much

[Anonymous-poster]

Deep Thought said:

Maybe you should re-read the bit highlighted. I did NOT say HMRC should be investigating small businesses.

I also explicitly said "I think most businesses have had a tough time of it. The purpose of it was to prevent small businesses having to burn up their own cashflow and money to keep going. On that front i think its been largely successful."

I'm not sure how much more supportive i could be of small businesses and the scheme generally?

People using the deposit for supercars from their LTD co or a previously dormant LTD co, not so much

I don’t know how you could get a BB loan from a dormant LTD Co?

[Anonymous-poster]

Deep Thought said:

No i was referring to those putting the deposits on supercars as subsequently explained and previously referenced on here.

You and i have both commented on this and how someone could possibly draw £50K out of a LTD co from a BBL for personal use such as a supercar deposit. I think those people could have trouble explaining that to their accountant and / or HMRC. I recall questioning this and you commenting that a BBL for a small business could have been paid in to a personal account.

I also recall at one point you called the grant "free money" did you not, so not entirely sure why you've taken offense suddenly?

I do think where there is a high profile case and evidence of someone directly using the money to fund say a supercar deposit, HMRC would be very interested. Any other use of it, probably not.

I genuinely dont think HMRC will investigate small businesses nor would i expect them to nor would i think there is, broadly speaking, any case to answer given as you say there were really little conditions put on the loan or grant.

I don’t recall calling BB loans free money but the Grant through rateable value certainly was!
I think you can use the BB loan to pay a director his salary but I don’t know as I have never been involved with a Ltd Co.

Edited by Anonymous-poster on Sunday 5th July 17:39

Edited by Anonymous-poster on Sunday 5th July 17:40

[jammy-git]

Anonymous-poster said:

I don’t know how you could get a BB loan from a dormant LTD Co?

It is against the terms of the loan, so if anyone has they're committing fraud.

Edited by jammy-git on Sunday 5th July 17:47

[Anonymous-poster]

jammy-git said:

It is against the terms of the loan, so if anyone has they're committing fraud.

Martin Lewis I think said you could use the BB loan to pay yourself a salary as Co directors were left with little or no help from the government?

[jammy-git]

Anonymous-poster said:

jammy-git said:

It is against the terms of the loan, so if anyone has they're committing fraud.

Martin Lewis I think said you could use the BB loan to pay yourself a salary as Co directors were left with little or no help from the government?

I was replying to the other post. I've edited my reply now to add context!

[Deep Thought]

Anonymous-poster said:

Deep Thought said:

Maybe you should re-read the bit highlighted. I did NOT say HMRC should be investigating small businesses.

I also explicitly said "I think most businesses have had a tough time of it. The purpose of it was to prevent small businesses having to burn up their own cashflow and money to keep going. On that front i think its been largely successful."

I'm not sure how much more supportive i could be of small businesses and the scheme generally?

People using the deposit for supercars from their LTD co or a previously dormant LTD co, not so much

I don’t know how you could get a BB loan from a dormant LTD Co?

I had seen it commented on that people were allegedly doing it. I've no idea either.

[Deep Thought]

Anonymous-poster said:

I don’t recall calling BB loans free money but the Grant through rateable value certainly was!
I think you can use the BB loan to pay a director his salary but I don’t know as I have never been involved with a Ltd Co.

You really should re-read what i put - i'm not against you on this.

I said "you called the grant "free money" did you not," - reread what i put.

Yes, i think the easiest way to pull it out of a LTD co would be to a salary with it. All perfectly legal. Even trying to take it out to invest elsewhere i assume would incur charges.

[jammy-git]

Ultimately you self certify when you apply and the lender assumes the information you've given is correct. I've heard of some lenders doing some further checks, but mostly not.