Will Coronavirus hit used car prices? (Vol 2)

[Milemuncher]

Tax cuts for the wealthiest + energy bail out mean a tumbling pound and high levels of inflation are here to stay, at least as long as the current Govt is in power.

I no longer think prices - used or new - will be under downward pressure, and in fact they are more likely to go up.

[e-honda]

Fast Bug said:

We've been told to expect a price increase of between 7-12% and a reduction in customer support terms for next year. I don't think any of the manufacturers will be hitting the panic button for a while yet.

Of course you've been told that.
They aren't going to says the market isn't that great right now, we're cancelling future price rises and are preparing to start discounting in 2023, don't tell anyone what ever you do.

[Fast Bug]

e-honda said:

Fast Bug said:

We've been told to expect a price increase of between 7-12% and a reduction in customer support terms for next year. I don't think any of the manufacturers will be hitting the panic button for a while yet.

Of course you've been told that.
They aren't going to says the market isn't that great right now, we're cancelling future price rises and are preparing to start discounting in 2023, don't tell anyone what ever you do.

They've also told key customers to brace themselves for a steep uplift in pricing and we've had requests for support rejected at levels that would have been approved earlier this year for other customers.

But as ever, you know far better than me

[nickfrog]

Fast Bug said:

We've been told to expect a price increase of between 7-12% and a reduction in customer support terms for next year. I don't think any of the manufacturers will be hitting the panic button for a while yet.

Not surprised at all. Why would they chop their margin headroom and not pass on their increased costs? I am pretty sure they have shareholders too.

[jonwm]

Saw some interesting production and forecast figures from the global markets today, snapshot of Europe below, don't see the huge upturn on production that we are all hoping for..

[ghost83]

bencollins4 said:

To counter that, only around 1/3 of people have a mortgage, with 1/3 of those on fixed rates so maybe only 1 in 9/10 immediately affected by an increase in interest rates. Also, the government have just announced a range of measures which give middle / higher earners a fair bit more money in their pocket so it’s not exactly the apocalypse just yet!

And how many on rent where their rents are going up?

[TTmonkey]

ghost83 said:

BlackR8 said:

Well done thats a good result. It's posts like this that make me wonder if it is all really doom and gloom in the car market. Your experience suggests there is still an appetite for stock from dealers which must mean retail demand still remains healthy.

Still seems cheap for a 420d imo I’d have thought these were around 15/18k

Now that it’s been announced we are officially in a recession and interest rates up yet again on the run to Xmas surely this is where things start to go stale and allow manufacturers to start catching up!

Ppl are already struggling to survive

It had 85k miles. So quite high. Was lovely car though. Easy sale with good profit margin in my view.

Private sales say it’s about a 14k car, maybe a bit less. Bit with all the hassle.

I’m really happy as I paid 15k for it exactly three years ago. The WBAC price drop from 9600 to 7400 over one week was a shocker.

[e-honda]

ghost83 said:

And how many on rent where their rents are going up?

You rent doesn't go up just because it's more expensive for your landlord to operate, it is market forces that dictate the prices not some arbitrary margin people feel they deserve.
Although it's the same argument for why prices for every thing including cars don't just go up because someone wants to charge more but no one listens. Many of them are sales people who believe buyers are liers and are constantly telling them they cannot afford as much as they really can to cheat them out of their fair margin.

[chickenbarns]

ghost83 said:

chickenbarns said:

Hybrids sold until 2035 and fuel till 2040 has nothiggn to do with it. If the only new car you could buy were a 1L bog standard the last 2L sport will be viewed as rare and is going up in price.

-CB

Or by then ppl might not care for fossil fuelled cars, by 2035 my kids will be 22 and 20 they will want the latest and greatest which will be electric or whatever, why do you think you see a lot of kids these days in the new cars on pcp rather than the older stuff what we had, they want the latest! None of them will want a 30-40yr old evo or a Audi rs3 that’s 20yr old they will want a car that has self driving tech etc etc, it’s only us dinosaurs that like the analogue life!

Who said I dont want electric car? People dont care about 1940s cars but they are sold for more than they were new. Similiar will happen to interesting fossil fuelled cars in just a couple years.

-CB

[chickenbarns]

e-honda said:

ghost83 said:

And how many on rent where their rents are going up?

You rent doesn't go up just because it's more expensive for your landlord to operate, it is market forces that dictate the prices not some arbitrary margin people feel they deserve.
Although it's the same argument for why prices for every thing including cars don't just go up because someone wants to charge more but no one listens. Many of them are sales people who believe buyers are liers and are constantly telling them they cannot afford as much as they really can to cheat them out of their fair margin.

Absolutely the market is going to force used car prices higher. This is why there wont be a drop.

-CB

[chickenbarns]

Milemuncher said:

Tax cuts for the wealthiest + energy bail out mean a tumbling pound and high levels of inflation are here to stay, at least as long as the current Govt is in power.

I no longer think prices - used or new - will be under downward pressure, and in fact they are more likely to go up.

Tax cuts mean people will now have more money this will push used car prices higher or keep them there. There is no doom.
Good news for those with low milage cars. People keeping their existing cars for longer means the market has cars with higher miles so those with low miles will bget a better price.
https://www.fleetnews.co.uk/news/fleet-industry-ne...

-CB

[chickenbarns]

e-honda said:

Fast Bug said:

We've been told to expect a price increase of between 7-12% and a reduction in customer support terms for next year. I don't think any of the manufacturers will be hitting the panic button for a while yet.

Of course you've been told that.
They aren't going to says the market isn't that great right now, we're cancelling future price rises and are preparing to start discounting in 2023, don't tell anyone what ever you do.

Are you really questioning what fast bug has been told about price rises? i would believe someone who knows and works at a dealership.

-CB

[Seraph14]

Milemuncher said:

Tax cuts for the wealthiest + energy bail out mean a tumbling pound and high levels of inflation are here to stay, at least as long as the current Govt is in power.

I no longer think prices - used or new - will be under downward pressure, and in fact they are more likely to go up.

The energy bail out will keep inflation a lot lower than it would otherwise have been. Whether the tax cuts and devaluation will cancel that out remains to be seen but I doubt it. What will happen is a recession will either be avoided or it will be less severe than it would have been. There were no good options for the government here but they've probably taken the least worst one, despite all the predictable moaning from the usual quarters.

[Milemuncher]

Energy prices are not the only thing driving inflation.

Today’s tax cuts are a sticking plaster designed to deliver an election victory in 2024, nothing more nothing less.

I will benefit significantly on a personal level but I don’t think for one minute it will help the country. It’s just kicking the real issues down the road.

[johnnyBv8]

Seraph14 said:

Milemuncher said:

Tax cuts for the wealthiest + energy bail out mean a tumbling pound and high levels of inflation are here to stay, at least as long as the current Govt is in power.

I no longer think prices - used or new - will be under downward pressure, and in fact they are more likely to go up.

The energy bail out will keep inflation a lot lower than it would otherwise have been. Whether the tax cuts and devaluation will cancel that out remains to be seen but I doubt it. What will happen is a recession will either be avoided or it will be less severe than it would have been. There were no good options for the government here but they've probably taken the least worst one, despite all the predictable moaning from the usual quarters.

I don’t think the measures will help avoid a recession. The markets also reacted badly to it. It’s also ridiculously tiered to increase cuts with increased salary. I’ll benefit personally but I would’ve far rather seen savings targeted at lower earners, and fewer tax/NI cuts overall…. it’s borrowing that we could avoid. The energy bailout was necessary, but again could’ve been more nuanced.

As to whether it’ll affect the used car market, I don’t think it’ll sway things much either way.

[Macron]

chickenbarns said:

There is no doom.

-CB

I cannot quite work out what you're smoking, and if I really want some to experience these incredible delusions, or it should be banned. Of course :

"The Treasury said the £5bn-plus move would “mean 31 million people will be better off by an average of £170 per year” in 2023-24. However, the move benefits those on higher incomes more. On average, basic-rate taxpayers will be £130 better off in 2023-24, while for higher-rate taxpayers the gain is £360, the Treasury said."

Oh but energy bills have jumped by what was it now? Oh yes, £120 pcm on average. So this means for three months of a year a higher rate tax payer won't have an additional cost, for their home heat and light bill. They will have higher petrol or diesel costs, they will have higher food costs, and with the pound in the gutter, anything bought in from abroad will cost much more.

Yeah you're right, no doom anywhere.

Anyone got a light?

[Earthdweller]

Macron said:

chickenbarns said:

There is no doom.

-CB

I cannot quite work out what you're smoking, and if I really want some to experience these incredible delusions, or it should be banned. Of course :

"The Treasury said the £5bn-plus move would “mean 31 million people will be better off by an average of £170 per year” in 2023-24. However, the move benefits those on higher incomes more. On average, basic-rate taxpayers will be £130 better off in 2023-24, while for higher-rate taxpayers the gain is £360, the Treasury said."

Oh but energy bills have jumped by what was it now? Oh yes, £120 pcm on average. So this means for three months of a year a higher rate tax payer won't have an additional cost, for their home heat and light bill. They will have higher petrol or diesel costs, they will have higher food costs, and with the pound in the gutter, anything bought in from abroad will cost much more.

Yeah you're right, no doom anywhere.

Anyone got a light?

It’s CB for chemical (b)Ali

[RUSTILLDOWN]

Just checked CB’s IP Address… confirmed it’s AV185.

[robsco]

-CB

[911hope]

Milemuncher said:

Energy prices are not the only thing driving inflation.

Today’s tax cuts are a sticking plaster designed to deliver an election victory in 2024, nothing more nothing less.

I will benefit significantly on a personal level but I don’t think for one minute it will help the country. It’s just kicking the real issues down the road.

Tax cuts for the richer few will not benefit the economy. No credible person thinks it will.

Ironically, it will also not win the next election for the Tories.

Obviously that is a good thing, as a decade in opposition will do them and the country some good.