Will Coronavirus hit used car prices? (Vol 2)

Will Coronavirus hit used car prices? (Vol 2)

Author
Discussion

jonwm

2,196 posts

95 months

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

5,108 posts

171 months

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

18,740 posts

228 months

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

7,831 posts

127 months

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

66 posts

1 month

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

66 posts

1 month

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

66 posts

1 month

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

66 posts

1 month

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

19 posts

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

355 posts

96 months

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

2,261 posts

172 months

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

7,687 posts

147 months

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

10,713 posts

107 months

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

laugh

RUSTILLDOWN

277 posts

49 months

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

robsco

7,491 posts

157 months

-CB

911hope

391 posts

7 months

Saturday
quotequote all
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.

jsf

27,408 posts

217 months

Saturday
quotequote all
Macron said:
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?
From the USA or priced in US$, but not everywhere. The € and ¥ have been hammered too, Japan intervened directly to prop up the ¥ for the first time in decades just this week.

Money is flying into US$ from everywhere, it's not a UK centric issue.

Pommy

12,988 posts

197 months

Yesterday (10:59)
quotequote all
jonwm said:
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..

One of the economic downturn non believers will be along soon to denounce your data whilst not proffering any of their own to support their affirmation all is ok.

ghost83

5,108 posts

171 months

Yesterday (14:13)
quotequote all
911hope said:
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.
Yeah but Labour are already saying they will increase taxes that isn’t a good thing either

Venisonpie

2,317 posts

63 months

Yesterday (17:39)
quotequote all
Pommy said:
jonwm said:
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..

One of the economic downturn non believers will be along soon to denounce your data whilst not proffering any of their own to support their affirmation all is ok.
I think the point being made is that new car production isn't forecast to improve thus meaning used car pricing will remain strong. I could of course be wrong.