Will Coronavirus hit used car prices?

Will Coronavirus hit used car prices?

Author
Discussion

gizlaroc

14,644 posts

177 months

Thursday 26th March
quotequote all
Vroomer said:
Interesting statistic:

At around 10.00am today their were 531k cars listed on Autotrader.

At around 2.30pm today there were 532k cars listed on Autotrader.

So that's an increase of 1,000 cars in just over 4 hours at a time when people aren't meant't to be making inessential journeys.

What do you make of that?
I would guess that with dealerships closed and online sales only allowed we should see the numbers on autotrader grow like mad.
Many main dealers don't put all their stock on autotrader.
BMW often have dozens of a certain model on their AUC site that are not listed on Autotrader.
I bet now they are throwing money at the online side far more.

100

353 posts

29 months

Thursday 26th March
quotequote all
New prices have to come crashing down right?

AlexRS2782

5,876 posts

166 months

Thursday 26th March
quotequote all
jamoor said:
Interesting how people are buying cars when they aren't allowed to leave home!
Probably the same ones looking for loopholes in the current advice so they can go for a non essential drive / group motorbike run, etc.

They'll probably be the same ones complaining in a few weeks about even more draconian lockdown measures like those in Italy / France, etc, that will probably get introduced, because too many people aren't following some fairly clear / simple instructions.

23rdian

385 posts

116 months

Thursday 26th March
quotequote all
The extra enforcement will come anyway regardless of what people do. Same as these ones did. They were baked in from the beginning. The media will tell you what to think and you will do it.

80sMatchbox

3,732 posts

129 months

Thursday 26th March
quotequote all
23rdian said:
The extra enforcement will come anyway regardless of what people do. Same as these ones did. They were baked in from the beginning. The media will tell you what to think and you will do it.
The enforcement came far too late. S Africa has a proper lockdown and they've had no deaths. They've learnt from other nations, we didn't


cossers

2,118 posts

93 months

Thursday 26th March
quotequote all
isleofthorns said:
i listed an f80 m3 individual for sale a few weeks ago around 35k.

Had some Ok genuine interest, but nothing firm.

now, two weeks later, I'm getting emails with 'offers' at 25k to take it off my hands! Nice.
I hope you don’t need to sell do you can tell the vultures to FO!

Condi

9,589 posts

124 months

Friday 27th March
quotequote all
There seems to be some perverse thrill on here about prices coming down, either from those who want to buy something fun at silly cheap money, or those who are taking pleasure from someone else's expensive car now being worth less.

Chances are that used car prices will not move that far. This isn't 2008, people on the whole haven't run out of cash, they're just not spending it now.

mike74

1,822 posts

85 months

Friday 27th March
quotequote all
100 said:
New prices have to come crashing down right?
New prices have been irrelevant for years thanks to the pay monthly debt junkies.

carinaman

14,990 posts

125 months

Friday 27th March
quotequote all
Condi said:
There seems to be some perverse thrill on here about prices coming down, either from those who want to buy something fun at silly cheap money, or those who are taking pleasure from someone else's expensive car now being worth less.

Chances are that used car prices will not move that far. This isn't 2008, people on the whole haven't run out of cash, they're just not spending it now.
"When America Sneezes, the World Catches Cold"?

There's now more Covid-19 cases in the US than China. What's going on with stock prices and is it leading or lagging the wider economy?

Unsorted

290 posts

15 months

Friday 27th March
quotequote all
mike74 said:
100 said:
New prices have to come crashing down right?
New prices have been irrelevant for years thanks to the pay monthly debt junkies.
Nail on head.

powerstroke

9,008 posts

113 months

Friday 27th March
quotequote all
jamoor said:
Interesting how people are buying cars when they aren't allowed to leave home!

It must be that newfangled inter web thingy .... and rising levels of boredom , plenty of folk still being paid ,
I guess ???

V8fan

3,306 posts

221 months

Friday 27th March
quotequote all
80sMatchbox said:
The enforcement came far too late. S Africa has a proper lockdown and they've had no deaths. They've learnt from other nations, we didn't
They've 926 cases and no 'reported' deaths. It may be physiological, Germany has very high infection rate but low death rate.

It will sweep through the townships, where in some places, they have to share water taps, let alone accommodation, and that's if every cause of death is actually determined.

Back on topic, used 'prices' aren't the same as used sales. People will still need transport......

Ferodocastrol

4,503 posts

178 months

Friday 27th March
quotequote all
321boost said:
Ferodocastrol said:
My brother sold his Highline 140ps 63 plate VW Transporter today, 84k miles FVWSH.

He wanted £13.500 you'll never guess what he sold it for?



















£13.500! He didn't drop a pound coin! SOLD
Wow £13 and 50p sounds like a bargain laugh

boxedin £13,500

My bad, I was tired from log splitting most of the day.................not that type log...................


Edited by Ferodocastrol on Friday 27th March 08:26

V8RX7

19,727 posts

216 months

Friday 27th March
quotequote all
Much of the car market in the classic and exotic sectors has been massively overpriced for years following the financial disaster and very low interest rates, people have invested in cars.

If drivers can have access to them rather than investors that's a good thing in my opinion.

It is also a fairly regular cycle.

Being able to buy a new car, keep it a year and get all your money back, which has been possible with many desirable BMW Porsche etc models for the last five years is not a normal occurrence either.

swisstoni

8,929 posts

232 months

Friday 27th March
quotequote all
80sMatchbox said:
23rdian said:
The extra enforcement will come anyway regardless of what people do. Same as these ones did. They were baked in from the beginning. The media will tell you what to think and you will do it.
The enforcement came far too late. S Africa has a proper lockdown and they've had no deaths. They've learnt from other nations, we didn't
SA have had 2 reported overnight.
And it will go nuts from there unfortunately.

gizlaroc

14,644 posts

177 months

Friday 27th March
quotequote all
Condi said:
Chances are that used car prices will not move that far. This isn't 2008, people on the whole haven't run out of cash, they're just not spending it now.
Seriously?!


We are seeing unemployment like we have never seen before.
Try and log in to apply for Universal Credit because you have lost your job. See where you are in the queue just to apply for an interview.
Currently taking around 20 hours waiting online, you will start at around 50,000 in the queue.

Many countries are talking about unemployment hitting no more than 30% being a good result.

This is in every sector, the knock on from that can't be underestimated, the lack of money in the system will affect everyone.

We have seen government borrowing at a rate we have never experienced before. It was at £330bn before last night when he announced another £90bn plus for self employed workers.

This will have to paid back by us all with higher taxes, and we are not going to be talking an extra penny in the pound.

Risk rates for credit are already pushing borrowing up, we are seeing it with car loans, mortgages already and we haven't even really felt the results of this virus yet.

This is on a different level to 2008, hence the governments around the globe throwing so much money at it.


People have not run out of cash yet, but to think the majority won't in a few months I think is pretty naive. This will change are levels of spare income and our views of spending for many years to come I think, 90% of the country will feel much, much poorer over the coming years as we recover from this.



Not saying used car prices will plummet, in fact the reverse, but to say people are not running out of cash is ludicrous, most people are too far down the chain to realise we are running out of cash yet, there is a big difference.



crosseyedlion

1,970 posts

151 months

Friday 27th March
quotequote all
gizlaroc said:
Condi said:
Chances are that used car prices will not move that far. This isn't 2008, people on the whole haven't run out of cash, they're just not spending it now.
Seriously?!


We are seeing unemployment like we have never seen before.
Try and log in to apply for Universal Credit because you have lost your job. See where you are in the queue just to apply for an interview.
Currently taking around 20 hours waiting online, you will start at around 50,000 in the queue.

Many countries are talking about unemployment hitting no more than 30% being a good result.

This is in every sector, the knock on from that can't be underestimated, the lack of money in the system will affect everyone.

We have seen government borrowing at a rate we have never experienced before. It was at £330bn before last night when he announced another £90bn plus for self employed workers.

This will have to paid back by us all with higher taxes, and we are not going to be talking an extra penny in the pound.

Risk rates for credit are already pushing borrowing up, we are seeing it with car loans, mortgages already and we haven't even really felt the results of this virus yet.

This is on a different level to 2008, hence the governments around the globe throwing so much money at it.


People have not run out of cash yet, but to think the majority won't in a few months I think is pretty naive. This will change are levels of spare income and our views of spending for many years to come I think, 90% of the country will feel much, much poorer over the coming years as we recover from this.



Not saying used car prices will plummet, in fact the reverse, but to say people are not running out of cash is ludicrous, most people are too far down the chain to realise we are running out of cash yet, there is a big difference.
On the flip side, consider all the money that is having to be (Virtually) printed to pay for all this, and thats before we can start to get back to normal in 3-6 months time (hopefully) and they will need another big cash injection to stimulate the economy (at present we are just maintaining, not stimulating)...we are very likely to see monumental levels of inflation in the next 12-24 months. Conservatively I would expect £1 in the bank now to be worth 70p in 12 months time.

The values of 'stuff' will climb to compensate, although I would expect discretionary purchases such as anything but the most basic transport to be in much lower demand, that and many self employed/directors have been royally screwed - so prices effectively haemorrhaging for the forseeable.

Fezzaman

514 posts

146 months

Friday 27th March
quotequote all
crosseyedlion said:
On the flip side, consider all the money that is having to be (Virtually) printed to pay for all this, and thats before we can start to get back to normal in 3-6 months time (hopefully) and they will need another big cash injection to stimulate the economy (at present we are just maintaining, not stimulating)...we are very likely to see monumental levels of inflation in the next 12-24 months. Conservatively I would expect £1 in the bank now to be worth 70p in 12 months time.

The values of 'stuff' will climb to compensate, although I would expect discretionary purchases such as anything but the most basic transport to be in much lower demand, that and many self employed/directors have been royally screwed - so prices effectively haemorrhaging for the forseeable.
You're on to something here... there's a difference between 'prices' and 'values'. Over the last decade (and seems like going forwards as well given extent of proposed govt support) price of something becomes increasingly irrelevant and the relative value of it becomes more important.

av185

10,961 posts

80 months

Friday 27th March
quotequote all
V8RX7 said:
Being able to buy a new car, keep it a year and get all your money back, which has been possible with many desirable BMW Porsche etc models for the last five years is not a normal occurrence either.
Not sure what you mean by 'normal'.

It is simply the established market forces of supply and demand at work. Together with masterly marketing.

Porsche deliberately underprice their halo cars when new and restrict manufacturing numbers both in the name of branding which hugely drives sales of vanilla models and maintains high residuals.

crosseyedlion

1,970 posts

151 months

Friday 27th March
quotequote all
Fezzaman said:
crosseyedlion said:
On the flip side, consider all the money that is having to be (Virtually) printed to pay for all this, and thats before we can start to get back to normal in 3-6 months time (hopefully) and they will need another big cash injection to stimulate the economy (at present we are just maintaining, not stimulating)...we are very likely to see monumental levels of inflation in the next 12-24 months. Conservatively I would expect £1 in the bank now to be worth 70p in 12 months time.

The values of 'stuff' will climb to compensate, although I would expect discretionary purchases such as anything but the most basic transport to be in much lower demand, that and many self employed/directors have been royally screwed - so prices effectively haemorrhaging for the forseeable.
You're on to something here... there's a difference between 'prices' and 'values'. Over the last decade (and seems like going forwards as well given extent of proposed govt support) price of something becomes increasingly irrelevant and the relative value of it becomes more important.
I would be looking to put any money sat in the bank into 'things' as soon as restrictions are lifted.