Will Coronavirus hit used car prices?

[Deep Thought]

Venisonpie said:

Throttlebody said:

The CEO of the huge Vertu Motors group of dealers tried to deliver an upbeat assessment about how things are bouncing back, but the group has just announced 345 redundancies.

They are also moving more to online click and collect, but more importantly —————— deliberately reduced their used car stock by £21 million to put cash back into the business.

They are in touch with reality. Things are changing.

I don't think anyone is contending that the industry won't contract, it has to. What happens to prices during this time is very much debatable as the 400 pages here show.

Thats exactly it - it simply reinforces the sane view that the dealers and manufacturers will adapt to prevailing conditions, NOT just sit on their hands and watch their businesses burn behind them which is what some predicted / seem to want.

[Deep Thought]

PorkInsider said:

Deep Thought said:

Though maybe not as compelling as the suggestion of a 2020 delivery miles car for under £40K...

It's nearly a year old, it's not delivery mileage and it's nowhere near 'under £40k', but other than that...

Indeed.

[Earthdweller]

Deep Thought said:

PorkInsider said:

Deep Thought said:

Though maybe not as compelling as the suggestion of a 2020 delivery miles car for under £40K...

It's nearly a year old, it's not delivery mileage and it's nowhere near 'under £40k', but other than that...

Indeed.

Bowker have a 19 plate M4 with 1k on it for £39k

[Nefos]

Something for this thread of future:

I was applying for a personal loan to buy a car from Tescos. I have a very good credit score (checked from experian) and apparently I would have 95% chance to get accepted from AA, but tescos rejected me (applied there because of family recommendation). It can be a sign that many cheap and easy lenders will lend money out harder so a slow down can happen easily.

To be fair I am happy, as I was looking at Audi S3 8Ps, and at £7k ish prices there were only ropey ones with loads undocumented tunes and such, but I managed to find an Alfa Romeo GT for cheap, and I can afford to maintain this car well easily

[Butter Face]

Deep Thought said:

PorkInsider said:

Deep Thought said:

Though maybe not as compelling as the suggestion of a 2020 delivery miles car for under £40K...

It's nearly a year old, it's not delivery mileage and it's nowhere near 'under £40k', but other than that...

Indeed.

It is 2.9% APR though

[Deep Thought]

Earthdweller said:

Bowker have a 19 plate M4 with 1k on it for £39k

Which then starts to fall in to reasonable line of 2019 car = £39K, 2016 car = under £30K.

The anomaly was the perception of a 2016 car at £30K and a (2020) delivery miles car @ under £40K.

[growlerowl]

Throttlebody said:

The CEO of the huge Vertu Motors group of dealers tried to deliver an upbeat assessment about how things are bouncing back, but the group has just announced 345 redundancies.

They are also moving more to online click and collect, but more importantly —————— deliberately reduced their used car stock by £21 million to put cash back into the business.

They are in touch with reality. Things are changing.

I noticed an independent near me at the higher end seems to have greatly reduced their stock. Though obvs that could be because they simply can't get it

[anonymous-user]

growlerowl said:

Throttlebody said:

The CEO of the huge Vertu Motors group of dealers tried to deliver an upbeat assessment about how things are bouncing back, but the group has just announced 345 redundancies.

They are also moving more to online click and collect, but more importantly —————— deliberately reduced their used car stock by £21 million to put cash back into the business.

They are in touch with reality. Things are changing.

I noticed an independent near me at the higher end seems to have greatly reduced their stock. Though obvs that could be because they simply can't get it

I walked past a used car dealer at the weekend and they only had about 15 cars, the majority of which were very undesirable Honda and Suzukis. The highlight of their stock was a bright green Vauxhalll Corsa 1 litre with very rusty brake discs that had clearly been there a while.

I would imagine they wouldn't be trying to sell such dross if they could get hold of better stock.

But I agree, things are going to change from now on

[MellowshipSlinky]

Nefos said:

Something for this thread of future:

I was applying for a personal loan to buy a car from Tescos. I have a very good credit score (checked from experian) and apparently I would have 95% chance to get accepted from AA, but tescos rejected me (applied there because of family recommendation). It can be a sign that many cheap and easy lenders will lend money out harder so a slow down can happen easily.

To be fair I am happy, as I was looking at Audi S3 8Ps, and at £7k ish prices there were only ropey ones with loads undocumented tunes and such, but I managed to find an Alfa Romeo GT for cheap, and I can afford to maintain this car well easily

The days of easy money are coming to an end I think.
I’ve bought many cars over the last 30 plus years, some in finance, and have never had a problem.
Also bought vans for work with no finance issues.
I’ve now ordered a new van for work and I’m putting in a 30% deposit and taking the 0% finance.
This time, the finance company called me and I had to answer about 10 questions as to how my work load is, if the virus had affected me work wise, how I see future work coming etc.
My credit rating is very high, so I can only assume lenders are taking all precautions now.

[Venisonpie]

MellowshipSlinky said:

The days of easy money are coming to an end I think.
I’ve bought many cars over the last 30 plus years, some in finance, and have never had a problem.
Also bought vans for work with no finance issues.
I’ve now ordered a new van for work and I’m putting in a 30% deposit and taking the 0% finance.
This time, the finance company called me and I had to answer about 10 questions as to how my work load is, if the virus had affected me work wise, how I see future work coming etc.
My credit rating is very high, so I can only assume lenders are taking all precautions now.

Given the predicted mass redundancies it's inevitable credit will become harder to obtain and possibly more costly as the increased risk is factored in to the deal. This will have a huge impact on people's affordability and the number of car transactions. Can the industry contract fast enough?

[Throttlebody]

growlerowl said:

Throttlebody said:

The CEO of the huge Vertu Motors group of dealers tried to deliver an upbeat assessment about how things are bouncing back, but the group has just announced 345 redundancies.

They are also moving more to online click and collect, but more importantly —————— deliberately reduced their used car stock by £21 million to put cash back into the business.

They are in touch with reality. Things are changing.

I noticed an independent near me at the higher end seems to have greatly reduced their stock. Though obvs that could be because they simply can't get it

The key point with Vertu is they made a deliberate decision to reduce their used car stock.

Maybe some key forward thinking regarding future used values and all that ‘used car market is a manic goldmine’ isn’t quite as portrayed by other vested interest parties.

[Deep Thought]

Throttlebody said:

growlerowl said:

Throttlebody said:

The CEO of the huge Vertu Motors group of dealers tried to deliver an upbeat assessment about how things are bouncing back, but the group has just announced 345 redundancies.

They are also moving more to online click and collect, but more importantly —————— deliberately reduced their used car stock by £21 million to put cash back into the business.

They are in touch with reality. Things are changing.

I noticed an independent near me at the higher end seems to have greatly reduced their stock. Though obvs that could be because they simply can't get it

The key point with Vertu is they made a deliberate decision to reduce their used car stock.

Maybe some key forward thinking regarding future used values and all that ‘used car market is a manic goldmine’ isn’t quite as portrayed by other vested interest parties.

Jesus you just find misery everywhere dont you?

Heres the actual story.

https://www.thisismoney.co.uk/money/markets/articl...

Auto dealer Vertu Motors said 'strong' demand for new cars following the reopening of its English dealerships helped them to register a £9million profit in June.

Sales of the Gateshead-based firm's new retail cars rose by almost 1 per cent last month compared to June 2019

Adjusted profits before tax climbed to £9million from a £14.2million loss in the previous three months. Forrester said the business was helped by having a 'much stronger cash position' than expected. The AIM-listed group benefited to the tune of £4.2million from either furlough money or rates relief last month while also administering extensive efficiency savings.

[Throttlebody]

Deep Thought said:

Jesus you just find misery everywhere dont you?

Heres the actual story.

https://www.thisismoney.co.uk/money/markets/articl...

Auto dealer Vertu Motors said 'strong' demand for new cars following the reopening of its English dealerships helped them to register a £9million profit in June.

Sales of the Gateshead-based firm's new retail cars rose by almost 1 per cent last month compared to June 2019

Adjusted profits before tax climbed to £9million from a £14.2million loss in the previous three months. Forrester said the business was helped by having a 'much stronger cash position' than expected. The AIM-listed group benefited to the tune of £4.2million from either furlough money or rates relief last month while also administering extensive efficiency savings.

Wrong story dude. The original reference was to the Vertu CEO’s statement regarding redundancies and used car stock reductions.

[Deep Thought]

Throttlebody said:

Deep Thought said:

Jesus you just find misery everywhere dont you?

Heres the actual story.

https://www.thisismoney.co.uk/money/markets/articl...

Auto dealer Vertu Motors said 'strong' demand for new cars following the reopening of its English dealerships helped them to register a £9million profit in June.

Sales of the Gateshead-based firm's new retail cars rose by almost 1 per cent last month compared to June 2019

Adjusted profits before tax climbed to £9million from a £14.2million loss in the previous three months. Forrester said the business was helped by having a 'much stronger cash position' than expected. The AIM-listed group benefited to the tune of £4.2million from either furlough money or rates relief last month while also administering extensive efficiency savings.

Wrong story dude. The original reference was to the Vertu CEO’s statement regarding redundancies and used car stock reductions.

Yeah, no surprise you found that one first.

[Throttlebody]

Deep Thought said:

Yeah, no surprise you found that one first.

It was the CEO’s pre AGM statement. Nice try though DT, but well off target.

[Butter Face]

Throttlebody said:

Deep Thought said:

Yeah, no surprise you found that one first.

It was the CEO’s pre AGM statement. Nice try though DT, but well off target.

Sucks to be you TB, DT’s figures are taken form the exact same statement

https://investors.vertumotors.com/pdf/news/9646hla...

[Deep Thought]

Throttlebody said:

Deep Thought said:

Yeah, no surprise you found that one first.

It was the CEO’s pre AGM statement. Nice try though DT, but well off target.

Well heres a summary of it here.

https://cardealermagazine.co.uk/publish/vertu-moto...

Not the doom and gloom you were implying.

• Profits up in June compared to last June
• "Overall, retail sales demand appears to have positively rebounded due to a number of factors. Pent-up demand is evident with consumers having increased savings ratios during the lockdown." - which is what the general consensus from the motor trade is on here.
• "‘These trends have continued into July.’." - which is what the general consensus from the motor trade is on here.
• Vertu also reported that is has a strong cash position and has reduced its used vehicle stock to deliver £20.9m of cash back into the business. - seems like a good position to be in, not a negative.
• ‘The group’s cash position was much stronger than we could have hoped, despite the fact the board has made the decision to ensure all suppliers are paid in full, on time, illustrating the discipline within the business.

And they've reduced costs going forward.

All seems very in line with whats being said on here, and an example of a motor trade business adjusting to current market conditions and preparing for future ones.

All seems very aligned to the views on here by the motor trade, and sane people.

[Deep Thought]

Throttlebody said:

The key point with Vertu is they made a deliberate decision to reduce their used car stock.

Maybe some key forward thinking regarding future used values and all that ‘used car market is a manic goldmine’ isn’t quite as portrayed by other vested interest parties.

Totally not the key point. The key points are

• Profits up from last June
• They saw strong trading believed to be from pent up demand
• That is continuing in to July
• They're sitting on a pile of cash to help them in the market conditions ahead.

Frankly, i think anyone would struggle to find a more positive CEO statement at this time, but no - their deliberate decision to reduce their used car stock is the "key point".

[Throttlebody]

Butter Face said:

Throttlebody said:

Deep Thought said:

Yeah, no surprise you found that one first.

It was the CEO’s pre AGM statement. Nice try though DT, but well off target.

Sucks to be you TB, DT’s figures are taken form the exact same statement

https://investors.vertumotors.com/pdf/news/9646hla...

Nope. DT’s link was to just a filtered media article.

[Butter Face]

Throttlebody said:

Butter Face said:

Throttlebody said:

Deep Thought said:

Yeah, no surprise you found that one first.

It was the CEO’s pre AGM statement. Nice try though DT, but well off target.

Sucks to be you TB, DT’s figures are taken form the exact same statement

https://investors.vertumotors.com/pdf/news/9646hla...

Nope. DT’s link was to just a filtered media article.

And what’s the course material for that article?

The same statement you’ve quoted focusing only on the negative aspects. So DT was exactly right in his assessment of your post.