Will Coronavirus hit used car prices? (Vol 2)
Discussion
Venisonpie said:
Superflow said:
As they’ve been on for months it’s more likely they can’t drop them as they’ll be selling at a loss I mean if I went in and looked at a car that’s been up for 2/3 months and wouldn’t move on price I’d just laugh and leave,just sell it and move on.
But why? The market may not drop in the way some are suggesting.
Big engined out of date stuff I think will tank at some point but otherwise the lack of supply will hold the market away from a crash. Interest rates are still ludicrously low and there's still plenty of cash about, the current inflation is only going to impact some people and not all.
av185 said:
You seriously think manufacturers are going to start slashing list prices after many have continually raised them over the past 12 months the most recent being up to 30 % merely in one rise alone the other week. I have a few new cars on order at various price points mainstream medium and relatively expensive and expect a minimum of at least two price rises before delivery.
You are conveniently forgetting the sc shortage backlog and componentry supply issues and huge price rises. Margin will continue to dominate over volume across many manufacturers and for obvious reasons. Whilst demand for new cars will tend to reduce clearly due to the economic constraints approaching this really is a non event for manufacturers chasing margin over volume as they will have fewer cars to sell but at higher prices. Their huge profit rises seen recently will continue because of this strategy. Demand will still exceed supply for the most part and many buyers forced away from the new car market will simply buy used instead thus supporting used values.
New car supply will broadly continue to be restricted well into next year.
Edited by av185 on Wednesday 18th May 13:21
And yet new car prices continue to rise with virtually no discounting on list or finance. Manufacturers wouldn't be raising them if they thought for one minute they would have to discount them again because they will have fewer cars to shift.
Edited by av185 on Wednesday 18th May 18:11
Fusion777 said:
No way are sales and prices going to hold up at 9% inflation (and we may not be near the peak).
Difficult to say. It's still down to basic supply/demand economics. New car prices may well also go up 9% a year, or more. Which might have an effect on used. Or we might simply see used cars start depreciating a bit more again, but difficult to say if it will be at the same rate as pre Covid rates. I think it will be slower.
And from what point? We might well see those 2 past years worth of depreciation never crystallise again.
av185 said:
And yet new car prices continue to rise with virtually no discounting on list or finance. Manufacturers wouldn't be raising them if they thought for one minute they would have to discount them again because they will have fewer cars to shift.
It's all in your headEdited by av185 on Wednesday 18th May 18:11
Minis latest prices are very much outliers
Just look where ons have put new car inflation, it is tracking at or below overall inflation.
Edited by e-honda on Wednesday 18th May 18:37
e-honda said:
It's all in your head
Minis latest prices are very much outliers
Just look where ons have put new car inflation, it is tracking at or below overall inflation.
That's presumably based on list. Not transaction prices. Dramatically reduced discounts might tell a different story. I suspect it might double that inflation figure, at least. Minis latest prices are very much outliers
Just look where ons have put new car inflation, it is tracking at or below overall inflation.
nickfrog said:
That's presumably based on list. Not transaction prices. Dramatically reduced discounts might tell a different story. I suspect it might double that inflation figure, at least.
Venisonpie said:
But why? The market may not drop in the way some are suggesting.
I was speaking to one of the main guys at a large insolvency firm today. His view is things will look very interesting towards the end of the year
As I mentioned previously on this thread, quite a few successful clients are now gearing up to buy assets 'when they drop', like they have many times before.
MaxFromage said:
I understand why some think it might not happen given the unique set of circumstances, but markets depend on confidence. Confidence is disappearing fast and no amount of new car restrictions will stop price drops IMO.
I was speaking to one of the main guys at a large insolvency firm today. His view is things will look very interesting towards the end of the year
As I mentioned previously on this thread, quite a few successful clients are now gearing up to buy assets 'when they drop', like they have many times before.
Bizarrely having recently had my car written off and a payout almost equal to it's new invoice cost I'd love the market to crash. I'm not convinced it will though.
Venisonpie said:
Fast Bug said:
If prices are going to plummet, will I be able to buy a Porsche 964 for 20k? Still kicking myself for missing that boat
You and me both. I looked at a 52000 mile guards red c2 coupe manual at 17k and bought a TVR Tuscan instead back in 2010. Duh!
Seán Kemple, managing director at Close Brothers Motor Finance, said: “Inflation continues to rise and cause headaches across the UK, not least for the motor industry.
“With the cost of living soaring, and fears of bad debt increasing, consumers are being attacked from all angles. Used car prices remain high a – trend which is changing the priorities of prospective buyers.”
“With the cost of living soaring, and fears of bad debt increasing, consumers are being attacked from all angles. Used car prices remain high a – trend which is changing the priorities of prospective buyers.”
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