Will Coronavirus hit used car prices? (Vol 2)
Discussion
Venisonpie said:
I bought a brand new Cayman 981 3 days before Christmas in 2013, 9 mths after they were launched.
Was guards red stock car and I managed a discount of just under 11% on list.
Try that in the next 3 years for a similar car. No chance.
I bought a mint 1 owner 3 month old black 62 plate 911 Turbo S 300 miles high spec c £150k new for £92k in 2013 direct from Porsche Finance.Was guards red stock car and I managed a discount of just under 11% on list.
Try that in the next 3 years for a similar car. No chance.
Huge initial depreciation relatively for the cars age and low mileage.
But as you say those days are long gone. Whilst 997 TTs were heavy depreciators the 991 improved the 991.2 was better and the 992 Turbo S is still currently on decent premiums over list ££.
Lexington59 said:
Sounds like people that need the money imo.Tomanybikes said:
Lexington59 said:
Sounds like people that need the money imo.I don’t read the article as 10k extra cars entering the used market every month or being traded in for new ones
Now I could be interpreting it wrongly .. but if 10k are stepping off the pcp wheel every month and deciding to keep their cars, that is significant
Perhaps there is a significant uplift in private sales of cars and numbers offered for sale ? New and used dealer sales are down .. so it seems these cars aren’t going back into the trade .. so where are they going ?
Most likely, people have changed working habits, using their cars less, having savings and deciding to settle the finance and stick with their current car having effectively been priced out of the market
Tomanybikes said:
Lexington59 said:
Sounds like people that need the money imo.PCP has worked really well recently due to rising prices meaning it's virtually risk free motoring.
The finance company put a bottom level on the depreciation exposure and the customer can take advantage of any market over performance.
Venisonpie said:
Or moving to more competitive finance options?
PCP has worked really well recently due to rising prices meaning it's virtually risk free motoring.
The finance company put a bottom level on the depreciation exposure and the customer can take advantage of any market over performance.
You would only do that if you were planning on keeping the car beyond the PCP term though surely ? PCP has worked really well recently due to rising prices meaning it's virtually risk free motoring.
The finance company put a bottom level on the depreciation exposure and the customer can take advantage of any market over performance.
Earthdweller said:
Venisonpie said:
Or moving to more competitive finance options?
PCP has worked really well recently due to rising prices meaning it's virtually risk free motoring.
The finance company put a bottom level on the depreciation exposure and the customer can take advantage of any market over performance.
You would only do that if you were planning on keeping the car beyond the PCP term though surely ? PCP has worked really well recently due to rising prices meaning it's virtually risk free motoring.
The finance company put a bottom level on the depreciation exposure and the customer can take advantage of any market over performance.
Old trick.
Earthdweller said:
I’m not quite sure what to make of that report, to me it reads that 10k agreements are being paid off every month … early .. and the cars are being kept by the people who paid them off
I don’t read the article as 10k extra cars entering the used market every month or being traded in for new ones
Now I could be interpreting it wrongly .. but if 10k are stepping off the pcp wheel every month and deciding to keep their cars, that is significant
Perhaps there is a significant uplift in private sales of cars and numbers offered for sale ? New and used dealer sales are down .. so it seems these cars aren’t going back into the trade .. so where are they going ?
Most likely, people have changed working habits, using their cars less, having savings and deciding to settle the finance and stick with their current car having effectively been priced out of the market
Finance company won't know.I don’t read the article as 10k extra cars entering the used market every month or being traded in for new ones
Now I could be interpreting it wrongly .. but if 10k are stepping off the pcp wheel every month and deciding to keep their cars, that is significant
Perhaps there is a significant uplift in private sales of cars and numbers offered for sale ? New and used dealer sales are down .. so it seems these cars aren’t going back into the trade .. so where are they going ?
Most likely, people have changed working habits, using their cars less, having savings and deciding to settle the finance and stick with their current car having effectively been priced out of the market
Chance are most are paying off the finance with a payment from a dealer / car buyer but who knows if that is to pocket the equity because they don't need the car or because they are upgrading / downgrading early.
I can't imagine many will simply be settling the finance early to keep it, the amount of extra equity would be irrelevant to those people because they would need to find the exact same amount of money anyway.
e-honda said:
Earthdweller said:
I’m not quite sure what to make of that report, to me it reads that 10k agreements are being paid off every month … early .. and the cars are being kept by the people who paid them off
I don’t read the article as 10k extra cars entering the used market every month or being traded in for new ones
Now I could be interpreting it wrongly .. but if 10k are stepping off the pcp wheel every month and deciding to keep their cars, that is significant
Perhaps there is a significant uplift in private sales of cars and numbers offered for sale ? New and used dealer sales are down .. so it seems these cars aren’t going back into the trade .. so where are they going ?
Most likely, people have changed working habits, using their cars less, having savings and deciding to settle the finance and stick with their current car having effectively been priced out of the market
Finance company won't know.I don’t read the article as 10k extra cars entering the used market every month or being traded in for new ones
Now I could be interpreting it wrongly .. but if 10k are stepping off the pcp wheel every month and deciding to keep their cars, that is significant
Perhaps there is a significant uplift in private sales of cars and numbers offered for sale ? New and used dealer sales are down .. so it seems these cars aren’t going back into the trade .. so where are they going ?
Most likely, people have changed working habits, using their cars less, having savings and deciding to settle the finance and stick with their current car having effectively been priced out of the market
Chance are most are paying off the finance with a payment from a dealer / car buyer but who knows if that is to pocket the equity because they don't need the car or because they are upgrading / downgrading early.
I can't imagine many will simply be settling the finance early to keep it, the amount of extra equity would be irrelevant to those people because they would need to find the exact same amount of money anyway.
The article says lots more people are settling off their finance ..
But new car sales are down, used car sales are down so if they are selling the cars where are they going ?
So are they settling to take out a new agreement on another car or just getting off the wheel ?
That’s why I said the article doesn’t make sense and gives no conclusions as to why thousands more people are settling finance
Earthdweller said:
Interesting,
So he’s saying 18 months plus wait now but likely to reduce to less than 12 months or even quicker than that for non GTS models
How does that compare to pre Covid delivery times ?
Re the 911 and two year wait .. likewise, haven’t they always had long lead times ?
The last two BMW’s I factory ordered ( pre Covid ) were 6 months and 10 months respectively)
Ordered a Macan GTS early 2020, we got a cancelled order car in September 2020 but kept the original order in place. The spec then changed so we moved to themnew model which has now arrived at the centre. We have agreed a px price of more than we paid in 2020. So he’s saying 18 months plus wait now but likely to reduce to less than 12 months or even quicker than that for non GTS models
How does that compare to pre Covid delivery times ?
Re the 911 and two year wait .. likewise, haven’t they always had long lead times ?
The last two BMW’s I factory ordered ( pre Covid ) were 6 months and 10 months respectively)
Last year I ordered a company Taycan 4S, this just keeps getting delayed but I am told this could be due to not ordering many options, I hear you need to put £20k+ to get priority. Also have a decent spec Defender 110 arriving at the dealer any day now that we are going to sell as the Macan is such a good car.
South tdf said:
Ordered a Macan GTS early 2020, we got a cancelled order car in September 2020 but kept the original order in place. The spec then changed so we moved to themnew model which has now arrived at the centre. We have agreed a px price of more than we paid in 2020.
Last year I ordered a company Taycan 4S, this just keeps getting delayed but I am told this could be due to not ordering many options, I hear you need to put 20k+ to get priority. Also have a decent spec Defender 110 arriving at the dealer any day now that we are going to sell as the Macan is such a good car.
Did I read that land rover were doing sales contracts that forbade selling within a time frame, potentially with a clause about only selling back to Land Rover ? Last year I ordered a company Taycan 4S, this just keeps getting delayed but I am told this could be due to not ordering many options, I hear you need to put 20k+ to get priority. Also have a decent spec Defender 110 arriving at the dealer any day now that we are going to sell as the Macan is such a good car.
Was there a thread here about it ?
Earthdweller said:
Did I read that land rover were doing sales contracts that forbade selling within a time frame, potentially with a clause about only selling back to Land Rover ?
Was there a thread here about it ?
The dealer asked us to sign a document saying we would not resell the car but to date I have not signed or returned it. I know I will probably be blacklisted from future Land Rovers but my other half loves the Macan over her previous Evoque and being up £10k makes it worthwhile.Was there a thread here about it ?
South tdf said:
The dealer asked us to sign a document saying we would not resell the car but to date I have not signed or returned it. I know I will probably be blacklisted from future Land Rovers but my other half loves the Macan over her previous Evoque and being up 10k makes it worthwhile.
Given your pipeline I don't think you need be concerned. South tdf said:
Earthdweller said:
Did I read that land rover were doing sales contracts that forbade selling within a time frame, potentially with a clause about only selling back to Land Rover ?
Was there a thread here about it ?
The dealer asked us to sign a document saying we would not resell the car but to date I have not signed or returned it. I know I will probably be blacklisted from future Land Rovers but my other half loves the Macan over her previous Evoque and being up 10k makes it worthwhile.Was there a thread here about it ?
Let’s hope they don’t have that as part of the contract of sale and decide you’ve breached their terms and decline to sell a car to you
But then, even if you did sign it what redress they’d have against you is doubtful .. and you’d surely just buy the next one in your wife’s name
South tdf said:
Earthdweller said:
Did I read that land rover were doing sales contracts that forbade selling within a time frame, potentially with a clause about only selling back to Land Rover ?
Was there a thread here about it ?
The dealer asked us to sign a document saying we would not resell the car but to date I have not signed or returned it. I know I will probably be blacklisted from future Land Rovers but my other half loves the Macan over her previous Evoque and being up 10k makes it worthwhile.Was there a thread here about it ?
Mine was £18.6k if I remember correctly.
Tomanybikes said:
South tdf said:
Earthdweller said:
Did I read that land rover were doing sales contracts that forbade selling within a time frame, potentially with a clause about only selling back to Land Rover ?
Was there a thread here about it ?
The dealer asked us to sign a document saying we would not resell the car but to date I have not signed or returned it. I know I will probably be blacklisted from future Land Rovers but my other half loves the Macan over her previous Evoque and being up 10k makes it worthwhile.Was there a thread here about it ?
Mine was 18.6k if I remember correctly.
Pica-Pica said:
Tomanybikes said:
South tdf said:
Earthdweller said:
Did I read that land rover were doing sales contracts that forbade selling within a time frame, potentially with a clause about only selling back to Land Rover ?
Was there a thread here about it ?
The dealer asked us to sign a document saying we would not resell the car but to date I have not signed or returned it. I know I will probably be blacklisted from future Land Rovers but my other half loves the Macan over her previous Evoque and being up 10k makes it worthwhile.Was there a thread here about it ?
Mine was 18.6k if I remember correctly.
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