Will Coronavirus hit used car prices?

Will Coronavirus hit used car prices?

Author
Discussion

RUSSELLM

5,280 posts

199 months

Wednesday 25th March
quotequote all
Not the greatest of stats for following car prices.

If I stick an XJ on Autotrader for £1M, all of a sudden the ‘Below average price’ increases across the board.

smile

av185

10,392 posts

79 months

Wednesday 25th March
quotequote all
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.

SidewaysSi

6,671 posts

186 months

Wednesday 25th March
quotequote all
So said:
av185 said:
av185 said:
Touring442 said:
Fezzaman said:
it will be interesting to see how Sytner go about their 'buy cars online' model.
They've dumped 2000 cars at auction, no reserve. Their overheads are incredible.
scratchchin

Custard/link.
Repeat custard link.

I call bullst.

coffee
You haven't got the hang of this have you. You should be calling "custard".
No chance of getting 2000 tins of Birds now is there?

jsf

15,516 posts

188 months

Wednesday 25th March
quotequote all
GT3Manthey said:
Agreed. The run of the mill cars fine but something like a GT porsche wont fall another 30% IMO
Why not?

The people who own this type of car tend to live expensive lives, their income could be severely reduced compared to the average person now on 80% salary.

They also tend to be business owners who may need cash to stay afloat.

So isn't this type of car the most likely to get hammered on price?

GT3Manthey

157 posts

1 month

Wednesday 25th March
quotequote all
jsf said:
Why not?

The people who own this type of car tend to live expensive lives, their income could be severely reduced compared to the average person now on 80% salary.

They also tend to be business owners who may need cash to stay afloat.

So isn't this type of car the most likely to get hammered on price?
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

Fezzaman

476 posts

145 months

Wednesday 25th March
quotequote all
jsf said:
Why not?

The people who own this type of car tend to live expensive lives, their income could be severely reduced compared to the average person now on 80% salary.

They also tend to be business owners who may need cash to stay afloat.

So isn't this type of car the most likely to get hammered on price?
As ever, the answer is 'it depends'. A business owner who has a chain of hotels or restaurants - absolutely. A business owner that produces something very niche for a pharmaceutical company? Maybe not so much.

And even then, a business owner who owns all his restaurants outright with no rent/mortgage to pay with sufficient cash reserves is not as stressed as a business owner who has just started out and taken out loans etc just to get off the ground...

thelostboy

3,800 posts

177 months

Wednesday 25th March
quotequote all
This country is built on credit. There are a load more GT Porsches these days and many are bought on finance - people only care about what they are paying out a month rather than the fact they've just bought a £150,000+ car.

I have plenty of mates who run successful small businesses who are going to really feel the squeeze, and sadly I think cars will be sold out of necessity and therefore big losses are inevitable.

In February, my client had a successive record week as part of an all time record month after almost 10 years in business. Yesterday they were making redundancies; just a few weeks later.

I think that is a fair indication of what's happening nationwide. 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.

V8RX7

19,394 posts

215 months

Wednesday 25th March
quotequote all
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

6,713 posts

140 months

Wednesday 25th March
quotequote all
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. frown

jsf

15,516 posts

188 months

Wednesday 25th March
quotequote all
WW2 was far more expected than this, you could see that coming for almost 10 years.

Dracoro

7,604 posts

197 months

Wednesday 25th March
quotequote all
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

10,392 posts

79 months

Wednesday 25th March
quotequote all
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'scratchchin 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

1,225 posts

161 months

Wednesday 25th March
quotequote all
av185 said:
We assume guilty by silence. judge
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. biggrin

Helicopter123

7,325 posts

108 months

Wednesday 25th March
quotequote all
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'scratchchin 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

23,517 posts

199 months

Wednesday 25th March
quotequote all
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 smile a lot of self employed people are going to struggle!

Smacko

84 posts

27 months

Wednesday 25th March
quotequote all
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

10,885 posts

158 months

Wednesday 25th March
quotequote all
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! yikes

av185

10,392 posts

79 months

Wednesday 25th March
quotequote all
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

Original Poster:

1,367 posts

132 months

Wednesday 25th March
quotequote all
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

14,107 posts

176 months

Wednesday 25th March
quotequote all
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."