Will Coronavirus hit used car prices? (Vol 2)

Will Coronavirus hit used car prices? (Vol 2)

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Discussion

HTP99

19,608 posts

117 months

Wednesday 23rd December 2020
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Vroomer said:
Big Al. said:
Is there a 500-page limit on topics?
You asked the same thing yesterday!

Jules Sunley

2,004 posts

70 months

Wednesday 23rd December 2020
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HTP99 said:
You asked the same thing yesterday!
Maybe they're suffering with Groundhog day. Sums up 2020 biggrin

Deep Thought

31,046 posts

174 months

Wednesday 23rd December 2020
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Fusion777 said:
Deep Thought said:
I think this is likely going to be the case.

Those who have been building up cash / savings because no hols, no commuting expenses, not going out, no coffees every day, etc will, as per post previous lockdown want to spend it.

And yes, it will be a case of the haves and have nots, though after this carnage there will be fewer haves than after the last lockdown.
Will these people not have just spent the money on other things though? Home/garden improvements, technology, furniture, so on and so on. Many people get through whatever cash they have available, we are not a nation of savers.
TBH i'm only going by what happened last time. It did seem that there was pent up demand after that main lockdown.

Who knows though.

ghost83

4,874 posts

167 months

Wednesday 23rd December 2020
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General employees that are getting 80% seem to be living as normal so probably not saving to spend on cars,

Self employed that aren’t getting any money will be living off whatever savings (me included)

So I’ll be surprised if many do have plenty of money

And I think if we go into another lockdown Boxing Day till 1st feb it’s just going to hurt everything even more!

My missus needs a new car but atm that’s not going to happen so just fixing hers to keep it going for now!

My mate who’s a trader has also said he was busy selling cars through the first lockdown but since the second lockdown it’s totally dried up

andyalan10

347 posts

114 months

Wednesday 23rd December 2020
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Fusion777 said:
Will these people not have just spent the money on other things though? Home/garden improvements, technology, furniture, so on and so on. Many people get through whatever cash they have available, we are not a nation of savers.
"ONS figures showed the household savings ratio was still 16.9 per cent in the third quarter of 2020, far above the 8 per cent average of the past two decades." from https://www.ft.com/content/be5b1eee-1d83-45a2-a24b...

I think some forms of high cost purchases will bounce back quicker than others - Holiday at villa with own pool, yes please, long haul flight to join cruise, maybe not. Similarly weekend car I've always promised myself, hell yeah, replace the £30k white good family hack with one 2 years newer when the current one has only done 10k miles, why would you?

buyer&seller

648 posts

155 months

Wednesday 23rd December 2020
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ghost83 said:
My mate who’s a trader has also said he was busy selling cars through the first lockdown but since the second lockdown it’s totally dried up
To be fair that's no surprise as trade generally goes slack in December anyway.

ghost83

4,874 posts

167 months

Wednesday 23rd December 2020
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[quote=buyer&seller]

To be fair that's no surprise as trade generally goes slack in December anyway.

[/quote]


Probably does, he does the trading on the side and usually sells 4-5 cars per month as well as been a paramedic

He’s sold nothing since November so just relying on his paramedic wage

Deep Thought

31,046 posts

174 months

Wednesday 23rd December 2020
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ghost83 said:
Probably does, he does the trading on the side and usually sells 4-5 cars per month as well as been a paramedic

He’s sold nothing since November so just relying on his paramedic wage
When i was trading from home December was always very quiet. You got the odd one away, but it was only because someone needed a car, not because they were actively changing their car. That would have been sub £5K stuff.

PrinceRupert

11,275 posts

62 months

Wednesday 23rd December 2020
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[quote=ghost83]General employees that are getting 80% seem to be living as normal so probably not saving to spend on cars,

Self employed that aren’t getting any money will be living off whatever savings (me included)

So I’ll be surprised if many do have plenty of money

And I think if we go into another lockdown Boxing Day till 1st feb it’s just going to hurt everything even more!

My missus needs a new car but atm that’s not going to happen so just fixing hers to keep it going for now!

My mate who’s a trader has also said he was busy selling cars through the first lockdown but since the second lockdown it’s totally dried up[/quote

Plenty of PAYE on 100% salary with reduced expenditure.

Fast Bug

10,209 posts

138 months

Wednesday 23rd December 2020
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Only 1 of my friends is on furlough. Everyone else is still working and not commuting to the office, so saving on train fares and fuel as well as lunches etc. I think there are quite a few people that are better off financially at the moment.

I feel for those who are furloughed or have lost their jobs, its a horrible place to be, but there is still money around.

nickfrog

16,764 posts

194 months

Wednesday 23rd December 2020
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WBAC value has increased for my M2 to £28.5k this week from £27.5k 2 weeks ago after having peaked at £30k in July.
I paid £29k AUC in March so not complaining either way.

Edited by nickfrog on Wednesday 23 December 19:12

BlackLabel

13,251 posts

100 months

Wednesday 6th January 2021
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What impact, if any, will this have on the used car market?

“ UK new car registrations in 2020 sink to 30-year low”



Edited by BlackLabel on Thursday 7th January 01:02

The Rotrex Kid

26,712 posts

137 months

Wednesday 6th January 2021
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BlackLabel said:
What impact, at any, will this have on the used car market?

“ UK new car registrations in 2020 sink to 30-year low”

It was discussed at great length on the previous volume, but the basics are that it will likely be one of the reasons for used car values sticking as they did/going up in some cases.

RUSTILLDOWN

252 posts

45 months

Wednesday 6th January 2021
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BlackLabel said:
What impact, at any, will this have on the used car market?

“ UK new car registrations in 2020 sink to 30-year low”

I think those stats are to be expected given lockdown(s) and people being allowed payment freezes and extensions galore. Used car prices won’t reduce until 6 months after furlough ends... in 2033.

Deep Thought

31,046 posts

174 months

Wednesday 6th January 2021
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The Rotrex Kid said:
BlackLabel said:
What impact, at any, will this have on the used car market?

“ UK new car registrations in 2020 sink to 30-year low”

It was discussed at great length on the previous volume, but the basics are that it will likely be one of the reasons for used car values sticking as they did/going up in some cases.
Agreed.

Court_S

7,647 posts

154 months

Wednesday 6th January 2021
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Having been looking at 130/125’s over the last few weeks, cars do seem to be selling having missed out on a few. Prices are all over the place too, with some dealers asking really strong money for cars.

To be honest, I have no idea what’s going to happen with prices.


untakenname

4,138 posts

169 months

Wednesday 6th January 2021
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Lots of people on furlough are realising that there's no need to have multiple cars if they aren't doing the commute or school run so multi car households may just survive with one till this is over.

prand

5,377 posts

173 months

Wednesday 6th January 2021
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Bigus said:
In relation to car used car prices , there is also the small matter of 100,000 to 150,000 used cars that are exported to Republic of Ireland every year. From 1 st January 2021 , these cars are NOW subject to an extra 21% vat on arrival into the Republic, plus perhaps a tariff. ( vat is definite).

The panic to get cars to the republic before January and into dealer stock has definitely affected U.K. demand and prices lately , and conversely will depress demand from now on.

The bulk of these cars would be less than 5 years old and have reasonable CO2 outputs , as taxation on entry to the Republic, is based loosely on a sliding scale to CO2 output.

Last year a new Nox tax was introduced which effectively ended the importation of pre 2016 (dirty)diesels to the Republic , which may have had a minor affect on older diesel demand in the U.K.

I know 150,000 units is not huge in relation to the overall UK market . But it’s not insignificant either, particularly when it applies to a narrow band of that market.
Interesting point this, my Irish colleagues are also complaining now about increased costs from purchasing through amazon.co.uk and uk ebay. So the relatively large potential market from UK small and large business is now likely to be hard hit.

Regarding car sales, I can see that once demand for the wider markets dries up, I'm sure there will be a hump of lease cars coming to the end of their initial 3-5yrs which might bring some bargains. After that, then we're simply just not going to see as much stock being purchased or leased going forward. Consequently the market will shrink, choice will become limited and as volumes reduce, prices may well go up, and also as demand for particular models, which are now rarer, you see increases in those prices too.

I'm really starting to love this Brexit/Coronavirus crisis, so many impacts to what was normal life. frown

Alex_225

4,941 posts

178 months

Wednesday 6th January 2021
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From my own personal experience, it doesn't seem to have affected sales or pricing. Admittedly it's only the one car so far from extensive but I advertised my partners CLS350cdi for sale on Facebook and on the MB forum. Had one person prepared to leave me a deposit before seeing it and the person who did buy it (nice guy who lurks on here I believe) messaged on FB, came to see it Saturday and took it last night. I wasn't beaten down on price but it sold for good but realistic money.

May have been luck of course but I can see two sides to it. People unable to buy cars are sitting tight and waiting or those who's jobs are impaired by Covid/furlough may be out of the market for new vehicles. Doesn't seem prices of used cars that is are plummeting at all.

Joey Deacon

5,310 posts

153 months

Wednesday 6th January 2021
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All second hand cars were brand new cars once, so surely if there are less new cars then there are less second hand cars too. This has to mean prices go up unless people just stop needing a car anymore.

Plus all this money the government keep printing has to go somewhere.