Will Coronavirus hit used car prices?
Discussion
Smacko said:
Good luck to Lombard doing any business operating like this.
It sounded like it was something they were not keen on from the way he was talking. Like it was being pushed onto them from their lenders. Time will tell.
But I agree.
To be honest, we all know that those in charge will want to show they are protecting Joe public when we come out of this, and we all know that within 6 months any stricter lending will be out of the window.
gizlaroc said:
It sounded like it was something they were not keen on from the way he was talking. Like it was being pushed onto them from their lenders.
Time will tell.
But I agree.
To be honest, we all know that those in charge will want to show they are protecting Joe public when we come out of this, and we all know that within 6 months any stricter lending will be out of the window.
They're not going to have a choice in this. Balloon payments have to reduce as the used car market volatility increases. They're on the hook for the guaranteed future value, if they mess up that metric they'll be buying back customer cars at above market value.Time will tell.
But I agree.
To be honest, we all know that those in charge will want to show they are protecting Joe public when we come out of this, and we all know that within 6 months any stricter lending will be out of the window.
Deposit and APR are just a factor of risk appetite. Low deposits mean more negative equity in the vehicles that they'll have to swallow with defaults and repossessions. That can only really get back on track once some semblance of stability returns.
av185 said:
Deep Thought said:
I really really would like to see the artificial RRPs done away with. 20+% discount has now become the normal for a lot of brands and its just got silly. No need for it. Dacia have proven that honest pricing and practically no discounts is easily accepted by UK buyers.
Quite.Discounting is bad news for everyone imo and most intelligent buyers see through it.
Always took the view that a heavily discounted car was still too expensive as it is discounted for a reason and further hefty depreciation is inevitable. Net result is it that it is actually an expensive car in the long run and way more expensive in terms of depreciation than a non discounted car.
Smacko said:
gizlaroc said:
Deep Thought said:
....part of the reason for the big car price crash around 2009 was that a lot of people couldnt get finance. I dont think that will be the case in the new normal.
I think getting finance will be harder than we have ever seen before. Speaking to my account manager at Lombard he asked if I wanted a 6 month payment holiday on my 5 series as I was asking for a settlement figure. Said would it be better to keep the £10000 in the bank at the moment.
All interest frozen.
I said what about if I give you £3 or 4k and do the agreement as straight repayment over 60 months instead.
£100 a month, won't notice that and only ever owe what I can afford to pay off.
He said that currently they are not starting new agreements, rates of 3-4% apr that I have been getting will be long gone, and going forward it looks like all new agreements will be done seeing the last set of accounts and they are talking about needing confirmation from your bank that you can meet affordability.
He said they are already in talks with the credit check agencies about making it much tighter.
He said balloon payments will be much lower, deposits will need to be far higher, interest rates higher and with the price of new cars now they are expecting a big shift in the market going forward as most will not be eligible for finance or simply won't want to be paying £800 a month for a car they had been paying £400 for last time.
Now obviously, they are in the middle of all this and he said it could be panic mode at the moment, but they have been bombarded with people wanting/needing to do something currently which has shown them just how vulnerable they and the customer are.
This of course may mean we see price drops from the manufacturers as they need to shift metal.
I would if we will see smaller ranges, less discounting but more realistic retail pricing?
The current model of artificial RRP pricing with 20% discount helps no one.
It pushes many cars into the higher tax brackets, it pushes BIK tax far higher than it needs to be, and it makes the depreciation look far, far higher than it really is as it is calculated based on what the real price should be.
Who knows where we will be after this? But finance will not be as easy as it has been for many.
Vroomer said:
gizlaroc said:
More are being added but less are selling.
The private sales dropped below 100k the other day.
Now down to 32000.
Yup, private 32K. So why do dealers think it is worth putting up cars that nobody is allowed to travel to see and most showrooms are shut down anyway?The private sales dropped below 100k the other day.
Now down to 32000.
CRA1G said:
Ferodocastrol said:
CAP book and brick mobile was the life I wanted back then at Measham BCA, I was envious of those with a 'bricky n cap' (Just coined that) but even then I may have a had a better idea than the CAP book from autotrader alone, much better eaiser now to get an idea of the mkt online and of course bid online.
BCA Measham,those were the days.... I can go back further "Glass's and pager" and Tom Hartley at every sale swanking about....Jibaro said:
AT are offering traders payment holidays and stock listing offers as incentive to carry on advertising
The number of new trade adds being added should slow early next week as quite new additions will probably have been purchased earlier in the month and have now been through preparations etc.Ferodocastrol said:
Didn't he have blonde or highlighted hair? was always prancing about?
I bet like most traders, he was sitting his fat a***e on the bonnets of the parked cars scratching them. That or leaning on the bonnet of car to write something down. Happens at classic auctions too, very thoughtless. 
There will be people that sadly will need to sell and release cash and I feel for them .
Equally there are people that don't need to sell and will just keep what they have or some that are retired and never intended selling their cars anyway and this will ensure they just keep what they have.
Halting production will mean less new cars around to buy right now.
Where all this ends up i'm not sure anyone can call.
I'll be keeping what I have as I have all I need and I like what I have.
Good luck to those that want/need to sell and hopefully in a few weeks that will happen .
Just to add. think of those that have paid into a pension for years that could be wiped out by this virus that are now thinking life's too short i'm going to keep and enjoy my car and enjoy it or the pension company wins. Quite a sobering thought that !
Equally there are people that don't need to sell and will just keep what they have or some that are retired and never intended selling their cars anyway and this will ensure they just keep what they have.
Halting production will mean less new cars around to buy right now.
Where all this ends up i'm not sure anyone can call.
I'll be keeping what I have as I have all I need and I like what I have.
Good luck to those that want/need to sell and hopefully in a few weeks that will happen .
Just to add. think of those that have paid into a pension for years that could be wiped out by this virus that are now thinking life's too short i'm going to keep and enjoy my car and enjoy it or the pension company wins. Quite a sobering thought that !
Edited by GT3Manthey on Saturday 28th March 20:43
Auto810graphy said:
Jibaro said:
AT are offering traders payment holidays and stock listing offers as incentive to carry on advertising
The number of new trade adds being added should slow early next week 
all contracted Autotrader dealers will not be charged for the month the March ... so they can advertise as much as they want...hungry_hog said:
Vroomer said:
Yup, private 32K. So why do dealers think it is worth putting up cars that nobody is allowed to travel to see and most showrooms are shut down anyway?
beauty paradewant to show their stock, especially if a desirable car
robsco said:
Auto Trader have allowed us free advertising for the month of April. I have had a week of peace and quiet, no customers walking through the door which has allowed me to catch up on my digital presence before we closed the doors. Every new and used car we have on stock is now online, people are sat at home on the Internet. We have had used car email enquiries.
Good for you glad to hear people are still looking to buy once we are out of Lockdown. Good luck going forward
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