Secondhand car price crash?
Discussion
911hope said:
nickfrog said:
I don't think they need any cover, I can't remember Porsche using inflation headlines before but you might do as you follow stuff with more rigour than me when it comes to Porsche.
After all, Porsche price elasticity is even greater than other car brands.
8% seems reasonable when £ alone lost 6% of its value in 12 months, Porsche also need to consider their shareholders and staff.
So will there be a price cut, if the exchange rate dictates?After all, Porsche price elasticity is even greater than other car brands.
8% seems reasonable when £ alone lost 6% of its value in 12 months, Porsche also need to consider their shareholders and staff.
Edited by nickfrog on Thursday 30th March 12:33
That would be reasonable.
911hope said:
So will there be a price cut, if the exchange rate dictates?
That would be reasonable.
You probably need to ask Porsche. Yearly increase is normally 3-5% and despite their € income having gone down by 6% in the interim, they are therefore not passing on much of the underlying inflation, are they? Or they are and are simply foregoing their Forex loss for now (or they have decent currency forward contracts). Or a combination of both.That would be reasonable.
I have no axe to grind in this. I am just trying to understand impartially.
nickfrog said:
You probably need to ask Porsche. Yearly increase is normally 3-5% and despite their € income having gone down by 6% in the interim, they are therefore not passing on much of the underlying inflation, are they? Or they are and are simply foregoing their Forex loss for now (or they have decent currency forward contracts). Or a combination of both.
I have no axe to grind in this. I am just trying to understand impartially.
3.8% change in exchange rate with the Euro in the last 12 months.I have no axe to grind in this. I am just trying to understand impartially.
They must be getting something wrong to be doing so badly. Their cars aren't conspicuously cheap. In fact, many of the BMWs I've looked at were being advertised at main dealer prices. There were a couple I'd have bought if they'd been open to offers, but I guess if they only make around £400 on a unit then there isn't a deal to be done.
I have a business idea that I'd really like to try, but if someone takes my idea and does it that's fine as I will probably never have the time.
But it would be an escrow service for car purchases. Both seller and buyer go to a booth like you would with WeBuyAnyCar, they send the money to the escrow, they do a quick inspection on the car for you, HPI etc, ODB read, then the money is cleared, paper worked signed and money sent to the seller.
That way people can buy their £40k+ cars for a lot less without having to worry about transferring such a large amount of money.
I assume the volume of cars sold won't make it a viable business I guess.
But it would be an escrow service for car purchases. Both seller and buyer go to a booth like you would with WeBuyAnyCar, they send the money to the escrow, they do a quick inspection on the car for you, HPI etc, ODB read, then the money is cleared, paper worked signed and money sent to the seller.
That way people can buy their £40k+ cars for a lot less without having to worry about transferring such a large amount of money.
I assume the volume of cars sold won't make it a viable business I guess.
AlexNJ89 said:
I have a business idea that I'd really like to try, but if someone takes my idea and does it that's fine as I will probably never have the time.
But it would be an escrow service for car purchases. Both seller and buyer go to a booth like you would with WeBuyAnyCar, they send the money to the escrow, they do a quick inspection on the car for you, HPI etc, ODB read, then the money is cleared, paper worked signed and money sent to the seller.
That way people can buy their £40k+ cars for a lot less without having to worry about transferring such a large amount of money.
I assume the volume of cars sold won't make it a viable business I guess.
It’s called Sale Or Return, done for years, works for some.But it would be an escrow service for car purchases. Both seller and buyer go to a booth like you would with WeBuyAnyCar, they send the money to the escrow, they do a quick inspection on the car for you, HPI etc, ODB read, then the money is cleared, paper worked signed and money sent to the seller.
That way people can buy their £40k+ cars for a lot less without having to worry about transferring such a large amount of money.
I assume the volume of cars sold won't make it a viable business I guess.
AlexNJ89 said:
I have a business idea that I'd really like to try, but if someone takes my idea and does it that's fine as I will probably never have the time.
But it would be an escrow service for car purchases. Both seller and buyer go to a booth like you would with WeBuyAnyCar, they send the money to the escrow, they do a quick inspection on the car for you, HPI etc, ODB read, then the money is cleared, paper worked signed and money sent to the seller.
That way people can buy their £40k+ cars for a lot less without having to worry about transferring such a large amount of money.
I assume the volume of cars sold won't make it a viable business I guess.
Ultimately you're introducing a middle man who has to be trusted by both parties whos warranting the condition and good title of the car. They'd need premises to facilitate this transaction and actual people to inspect the cars.But it would be an escrow service for car purchases. Both seller and buyer go to a booth like you would with WeBuyAnyCar, they send the money to the escrow, they do a quick inspection on the car for you, HPI etc, ODB read, then the money is cleared, paper worked signed and money sent to the seller.
That way people can buy their £40k+ cars for a lot less without having to worry about transferring such a large amount of money.
I assume the volume of cars sold won't make it a viable business I guess.
After their costs they're going to have to also make profit.
Trust would be an issue as ultimately you're sending your £40K off in to the ether to some bank account of someone likely standing in a hired retail unit in an industrial estate somewhere.
As a seller i probably wouldnt want to be bothered as the buyer is basically saying "i dont trust you, so i'm going to inconvenience you greatly to complete this transaction".
Fast Bug said:
I see Cazoo have announced losses over another £700m. Most shocking was they only managed to make £400 prpfot per unit.
I feel for the staff on the ground
For year ending 31/12, plenty of change as a result post dating that, so I don't think those figs in isolation tell the current story, given from this they said they'd sell sites etc and reduce costs. All on track. I feel for the staff on the ground
They say they have £225M cash still, and will shift 40-50k cars this year, which may prove optimistic, we'll perhaps see if the public agrees mad gas and council tax bills don't hurt and there is no recession after all.
Maybe this update is more reflective of action now taken.
https://www.motortrader.com/motor-trader-news/auto...
Macron said:
For year ending 31/12, plenty of change as a result post dating that, so I don't think those figs in isolation tell the current story, given from this they said they'd sell sites etc and reduce costs. All on track.
They say they have £225M cash still, and will shift 40-50k cars this year, which may prove optimistic, we'll perhaps see if the public agrees mad gas and council tax bills don't hurt and there is no recession after all.
Maybe this update is more reflective of action now taken.
https://www.motortrader.com/motor-trader-news/auto...
So they made a loss of £700 million but have £225 million of cash reserves. I don't know if my maths is correct but surely that would mean Cazoo have less than 6 months before they run out of money?They say they have £225M cash still, and will shift 40-50k cars this year, which may prove optimistic, we'll perhaps see if the public agrees mad gas and council tax bills don't hurt and there is no recession after all.
Maybe this update is more reflective of action now taken.
https://www.motortrader.com/motor-trader-news/auto...
MrManual said:
So they made a loss of £700 million but have £225 million of cash reserves. I don't know if my maths is correct but surely that would mean Cazoo have less than 6 months before they run out of money?
So if their inventory is in anyway overvalued , and perhaps savvy customers have snapped up all the value , then what they have left in stock and currently on the OVERVALUED books COULD be worth a fraction of its balance sheet value , and IS a liabilty due to holding costs and depreciation ( remember that !!!)Sounds like a perfect storm to me .
Cash reserves of £225 mill could easily become a negative, if they had to liquidate in the morning.
nickfrog said:
MrManual said:
So they made a loss of £700 million but have £225 million of cash reserves. I don't know if my maths is correct but surely that would mean Cazoo have less than 6 months before they run out of money?
Yes possibly, unless their burn rate has slowed down now for instance.They do, according to the new chief, say they will get through £125m of that actual cash this year, so the asset sale has stretched their runway quite a lot.
I was of the view they might not see end Q1, but I'd the turnaround plan works, they will hang on for a while, it seems.
They still haven't got rid of my neighbour's 330i. I can't remember what they paid, a lot more than this. No one here believed it, but their previous MO was to acquire stock they thought would sell, volume being key to brand awareness they thought. Constant losses are one way to achieve that, but aren't long term sustainable. No idea if this is now at a good price, it's on for less than it was for sure. And what the computer was telling them would sell when they bought it, has not turned out to be correct.
https://www.cazoo.co.uk/car-details/3f4ae8d2-fd98-...
Hub said:
The Rotrex Kid said:
Macron said:
Intrigued to see what they think they'll get post £26511 net (26660- 149 to collect bc neighbour couldn't be arsed to get back from the Edinburgh collection centre himself!) Rare for sure but if they don't clear 30 that's an awful lot to have to try and make from a finance spread +/- any extras.
Are you saying Cazoo paid your neighbour twenty-six-thousand pounds for that car?No way. Someone is lying/confused here for sure.
Hub said:
Hub said:
The Rotrex Kid said:
Macron said:
Intrigued to see what they think they'll get post £26511 net (26660- 149 to collect bc neighbour couldn't be arsed to get back from the Edinburgh collection centre himself!) Rare for sure but if they don't clear 30 that's an awful lot to have to try and make from a finance spread +/- any extras.
Are you saying Cazoo paid your neighbour twenty-six-thousand pounds for that car?No way. Someone is lying/confused here for sure.
Fast Bug said:
If they're around at Christmas I'll be surprised. They're making £400 a unit when the average in nearly 4 times that amount....
They haven't got a clue what they're doing in all honesty!
They werent the first to try the online car buying model for used cars and pretty much everyone whos tried it before them has crashed and burned.They haven't got a clue what they're doing in all honesty!
The logistics and costs of moving and storing vast amounts of cars around the country soon add up. And without a bricks and mortar presence you're relying on expensive advertising online and on TV to get your name out there and in peoples minds.
Hub said:
Hub said:
The Rotrex Kid said:
Macron said:
Intrigued to see what they think they'll get post £26511 net (26660- 149 to collect bc neighbour couldn't be arsed to get back from the Edinburgh collection centre himself!) Rare for sure but if they don't clear 30 that's an awful lot to have to try and make from a finance spread +/- any extras.
Are you saying Cazoo paid your neighbour twenty-six-thousand pounds for that car?No way. Someone is lying/confused here for sure.
I know a guy who was a high up in IT, was paid loads "silly London money for occasionally popping in to Manchester" he said, reckoned all the modelling was incredibly optimistic by design with lots of assumptions.
One of which, I highly doubt, was for stock to sit about for months, long after overpaying.
Gassing Station | Car Buying | Top of Page | What's New | My Stuff