Will Coronavirus hit used car prices? (Vol 2)

Will Coronavirus hit used car prices? (Vol 2)

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Leicester Loyal

4,552 posts

123 months

Wednesday 28th September 2022
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bencollins4 said:
Right now, I would stick with the Clio. I wouldn’t go to the lengths that some are on here though and wait another 2 years or so to pick up a bargain. Those same people have been waiting since at least March 2020 for that bargain and they’re still driving a crap car, letting life pass them by. Question is, at what point do they buy? They will be perpetually waiting for the bottom of that market and may miss out entirely.
Same as houses ain't it, people wait and and wait and then end up unhappy because they never bought originally.

Think I'll wait 6 months, put some more savings away throughout winter and then buy when I've got more savings stashed away.

Hippea

1,818 posts

70 months

Wednesday 28th September 2022
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Bargain hunters are going to be sorely disappointed, prices are going to remain high if not rise

911hope

2,710 posts

27 months

Wednesday 28th September 2022
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Hippea said:
Bargain hunters are going to be sorely disappointed, prices are going to remain high if not rise
That's right.. the car market will be completely immune to

huge rises in mortgage rates.
Huge rises in car finance rates
Huge levels of inflation.
Huge drops in consumer confidence.
Increased supply of new cars

The power of wishful thinking must be what provides this wishful thinking.
So strong that it will reverse the downward trend that has already been seen.

Backtobasics2

124 posts

22 months

Wednesday 28th September 2022
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Hippea said:
Bargain hunters are going to be sorely disappointed, prices are going to remain high if not rise
We’re looking into the financial abyss, one not seen before with both recession and inflation happening simultaneously.

The challenges for the average person is worrying. I was in town most of the day today, I was walking behind a women who was talking to someone on speaker, the other person was saying the shop will close by Christmas, her husband put his arm round her at that point thankfully they went left and I went right so didn’t hear what happened next. Walked past a bus driver saying he doesn’t know how he’d pay his mortgage.

We nearly lost our pensions today, propped up by a £65b intervention.

I need new gates and a new front door, both firms said the phones have just stopped ringing. The electrician I’m using said wholesalers are calling him for business now which hasn’t happened for years. The same ones that halved his credit with no reason last month.

The wealthy will still go on as normal. Anything under £25k will have an interesting time. Anyone in car sales will be putting on a very brave face, but this will make ‘08 look like a blip if we continue down this path of self destruction

ghost83

5,482 posts

191 months

Wednesday 28th September 2022
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Hippea said:
Bargain hunters are going to be sorely disappointed, prices are going to remain high if not rise
I think you’re sticking your head in the sand!

As the ppl above me have said we are starting to go down the pan and very quickly! Cars are not immune to this!

Also Ben Collins, if ppl are stupid enough to buy now at a ridiculous price when in the next 12-24 month they can get the same car for a hell of a lot less then they’re stupid! Yes u could die in that time frame but even if you die it’s not like you have the memories of driving your dream dead is dead! I’d rather wait it’s not a priority for me! It’s a want not a need so I’m quite happy to sit back!

bencollins4

1,103 posts

207 months

Wednesday 28th September 2022
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ghost83 said:
Hippea said:
Bargain hunters are going to be sorely disappointed, prices are going to remain high if not rise
I think you’re sticking your head in the sand!

As the ppl above me have said we are starting to go down the pan and very quickly! Cars are not immune to this!

Also Ben Collins, if ppl are stupid enough to buy now at a ridiculous price when in the next 12-24 month they can get the same car for a hell of a lot less then they’re stupid! Yes u could die in that time frame but even if you die it’s not like you have the memories of driving your dream dead is dead! I’d rather wait it’s not a priority for me! It’s a want not a need so I’m quite happy to sit back!
Sure, it doesn’t seem a great time to buy to me but people are still buying cars, some through necessity (change in circumstances, broken / written off / stolen car, change in commute / job), some because they have a few £ lying around and where else would you pit it right now?! They’re not all stupid, but stretching yourself right now to buy that car / house, probably is.





lord trumpton

7,406 posts

127 months

Thursday 29th September 2022
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sat1983 said:
Half of UK homeowners own their home outright and a fair majority of the rest are on fixed rates.

It’s unlikely the housing market will crash.
No crash but a 10% fall in price is the current forecast.

Not to be sniffed at


Pommy

14,264 posts

217 months

Thursday 29th September 2022
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One area that has undoubtedly propped up the spending boom (and willingness to spend a lot/overs on cars) in the last few years is the massive amount of cheap money pumped into the market - this has disappeared.

The reasons for the market boom don't exist now so there is nothing supporting continued high prices.

Venisonpie

3,287 posts

83 months

Thursday 29th September 2022
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Pommy said:
One area that has undoubtedly propped up the spending boom (and willingness to spend a lot/overs on cars) in the last few years is the massive amount of cheap money pumped into the market - this has disappeared.

The reasons for the market boom don't exist now so there is nothing supporting continued high prices.
Except restricted supply, an inflationary market that is forcing manufacturers to increase prices of new cars and a significant tax cut for higher earners meaning they've still got spending power.
Oh, and a nosediving pound making imported goods more expensive by the hour.

Edited by Venisonpie on Thursday 29th September 06:37

Fusion777

2,236 posts

49 months

Thursday 29th September 2022
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Venisonpie said:
Except restricted supply, an inflationary market that is forcing manufacturers to increase prices of new cars and a significant tax cut for higher earners meaning they've still got spending power.
Oh, and a nosediving pound making imported goods more expensive by the hour.

Edited by Venisonpie on Thursday 29th September 06:37
That tax cut may yet be reversed, but higher earners have spending power anyway.

Pommy

14,264 posts

217 months

Thursday 29th September 2022
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Venisonpie said:
Pommy said:
One area that has undoubtedly propped up the spending boom (and willingness to spend a lot/overs on cars) in the last few years is the massive amount of cheap money pumped into the market - this has disappeared.

The reasons for the market boom don't exist now so there is nothing supporting continued high prices.
Except restricted supply, an inflationary market that is forcing manufacturers to increase prices of new cars and a significant tax cut for higher earners meaning they've still got spending power.
Oh, and a nosediving pound making imported goods more expensive by the hour.

Edited by Venisonpie on Thursday 29th September 06:37
The supply conversation is an interesting one given there are a)so many new cars in stock and available and b) wait times where they exist are coming down rapidly.

Interesting the noise about supply is coming out of areas with a vested interest in high pricing and yet supply doesn't really seem to be as much as an issue as portrayed.

Inflation in the markets will only dampen demand

FX rates will further increase imported goods costs like food, heating etc in turn leading people to further reconsider the need to buy a car, therefore reducing demand making the supply issue redundant to a degree.

e-honda

8,918 posts

147 months

Thursday 29th September 2022
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lord trumpton said:
No crash but a 10% fall in price is the current forecast.

Not to be sniffed at
That's absolutely a crash.
With inflation at over 10% and climbing that is a real terms fall of 20% or more, when the long term trend has been 2.5% above inflation.
The mid 2020s will likely end up like the 90s where if you were forced to sell / didn't buy or up size you have 30 years to regret it.

911hope

2,710 posts

27 months

Thursday 29th September 2022
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Fusion777 said:
That tax cut may yet be reversed, but higher earners have spending power anyway.
Since 90% of new car purchases use finance and the interest rates are rocketing, the new car market will take a big hit.

The high earners also use finance and have BIG mortgages and are a small proportion of the customer base.

Realistic thinking beats wishful thinking.

time waster

676 posts

242 months

Thursday 29th September 2022
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Fusion777 said:
Venisonpie said:
Except restricted supply, an inflationary market that is forcing manufacturers to increase prices of new cars and a significant tax cut for higher earners meaning they've still got spending power.
Oh, and a nosediving pound making imported goods more expensive by the hour.

Edited by Venisonpie on Thursday 29th September 06:37
That tax cut may yet be reversed, but higher earners have spending power anyway.
If you are a high earner and you get a tax cut will you spend it? Lots of uncertainty now.

time waster

676 posts

242 months

Thursday 29th September 2022
quotequote all
lord trumpton said:
sat1983 said:
Half of UK homeowners own their home outright and a fair majority of the rest are on fixed rates.

It’s unlikely the housing market will crash.
No crash but a 10% fall in price is the current forecast.

Not to be sniffed at
House prices just behave like a bond, we've had falling interest rates for years , which has just been reversed in a massive way in a short period of time. unfortunately a significant correction is coming.

e-honda

8,918 posts

147 months

Thursday 29th September 2022
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I wonder if wbac prices will tank again or if they were able to forsee the risk of this happening and was why they slashed prices a couple of weeks ago.

Hippea

1,818 posts

70 months

Thursday 29th September 2022
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e-honda said:
I wonder if wbac prices will tank again or if they were able to forsee the risk of this happening and was why they slashed prices a couple of weeks ago.
They are currently rising, mine has risen by £400 today

time waster

676 posts

242 months

Thursday 29th September 2022
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Mine has dropped by £400 in a week

Earthdweller

13,596 posts

127 months

Thursday 29th September 2022
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Venisonpie said:
Except restricted supply, an inflationary market that is forcing manufacturers to increase prices of new cars and a significant tax cut for higher earners meaning they've still got spending power.
Oh, and a nosediving pound making imported goods more expensive by the hour.

Edited by Venisonpie on Thursday 29th September 06:37
The GBP is now rising against every other major currency including the USD

Don’t forget the EURO has collapsed against the USD and is now worth less than a dollar

The volatility is due to the US Fed raising rates to try to curb inflation there as Biden pumps trillions into their economy in the main and other countries/markets reacting

This is a global issue not just a GBP one tbf

time waster

676 posts

242 months

Thursday 29th September 2022
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The bigger issue was the GILT market intervention, not just currency