Chris Harris's Column -- Burst Bubble;Massive Dump;Bargains
Discussion
PS2018 said:
GioG - who do you think is on the hook for that long line of mclarens that are in storage because they aren’t selling?
Let’s pretend it’s a whole bunch of 540’s 570’s and 600’s - Do you think they are all unregistered? Has the dealer actually bought them from the factory - or is this factory output that’s been allocated to said dealer? so it’s McLaren themselves are still wearing this stock as a depreciating asset as the money hasn’t moved from A to B yet?
I am in the camp that hopes mclaren succeeds as a car builder but reading various threads on here the overhang seems huge and I’m not sure how they get rid of all of them- before we even mention the used market.
My understanding is that a franchised dealer (regardless of brand) has to guarantee a certain amount of sales per annum...so if customers don’t order cars they have to spec them and take them into stock. That guaranteed volume won’t be 100% of what their expected sales numbers are but it will be a decent %. Dealers get % bonuses from manufacturers for hitting sales volume targets as well. Let’s pretend it’s a whole bunch of 540’s 570’s and 600’s - Do you think they are all unregistered? Has the dealer actually bought them from the factory - or is this factory output that’s been allocated to said dealer? so it’s McLaren themselves are still wearing this stock as a depreciating asset as the money hasn’t moved from A to B yet?
I am in the camp that hopes mclaren succeeds as a car builder but reading various threads on here the overhang seems huge and I’m not sure how they get rid of all of them- before we even mention the used market.
It’s a bit of a two way street basically....ultimately both are on the hook to get cars shifted so manufactures and dealers will often both contribute to discounts to get cars sold.
It’s not a problem unique to McLaren....I think all the premium brands have a lot of cars looking for a home at the moment. Different sector but I was at Bruntingthorpe recently....literally hundreds of pre-registered Range Rovers lining the runway.
I think I may have viewed the same garage next to a classic car storage place (if it’s also next to an airfield...) - and it was stacked with McLarens well over a year ago
We were going to buy the unit next door (for more classics storage) - it must have had 60 or 70 or maybe 100 McC cars of all different sizes and colours there
Clearly a mismatch of supply and demand!
We were going to buy the unit next door (for more classics storage) - it must have had 60 or 70 or maybe 100 McC cars of all different sizes and colours there
Clearly a mismatch of supply and demand!
PS2018 said:
GioG - who do you think is on the hook for that long line of mclarens that are in storage because they aren’t selling?
Let’s pretend it’s a whole bunch of 540’s 570’s and 600’s - Do you think they are all unregistered? Has the dealer actually bought them from the factory - or is this factory output that’s been allocated to said dealer? so it’s McLaren themselves are still wearing this stock as a depreciating asset as the money hasn’t moved from A to B yet?
I am in the camp that hopes mclaren succeeds as a car builder but reading various threads on here the overhang seems huge and I’m not sure how they get rid of all of them- before we even mention the used market.
I suspect all unregistered, as they do not even look to have had a PDI. I did not ask about the circumstances, as clearly private, however seeing so many of them in their wrappings was an eye opener.. I am pretty sure they have over supplied..Let’s pretend it’s a whole bunch of 540’s 570’s and 600’s - Do you think they are all unregistered? Has the dealer actually bought them from the factory - or is this factory output that’s been allocated to said dealer? so it’s McLaren themselves are still wearing this stock as a depreciating asset as the money hasn’t moved from A to B yet?
I am in the camp that hopes mclaren succeeds as a car builder but reading various threads on here the overhang seems huge and I’m not sure how they get rid of all of them- before we even mention the used market.
G
For example bmw and mercedes (OK mass. Producers) have to disclose to smmt how many pre registered cars they have got on the books - Mercedes is nearly 8% of all their UK sales are pre registered. That's a lot of cars!!!
I'm betting there will be hundreds of astons sitting completed with out a buyer. Db11 2nd hand is now £97k about 2 yrs old and 8000 miles so that's a nice 80k loss.
Cars have always depreciated but the headline costs plus mad extra pcp finance costs is going to. Mean some people taking huge losses and can't believe the market is that deep.
I'm betting there will be hundreds of astons sitting completed with out a buyer. Db11 2nd hand is now £97k about 2 yrs old and 8000 miles so that's a nice 80k loss.
Cars have always depreciated but the headline costs plus mad extra pcp finance costs is going to. Mean some people taking huge losses and can't believe the market is that deep.
A DB11 sub 100k after 2 years does start to look somewhat attractive...how much does a dealer typically pay a manufacturer for a £180k list car...similarly what's the cost to the manufacturer to produce it? Maybe there's so much margin in these cars at that list that even a 30-40k discount still makes it viable?
Tom Hartley Jnr has this V12 Lusso for sale at £215K
https://www.tomhartleyjnr.com/car/stock/2019/ferra...
List price was 'over £315K'
Just 474 miles on it.
Just on those prices that's over £210 per mile in depreciation alone.
Add in Hartley's profit and that is an eye watering loss for the original owner.
https://www.tomhartleyjnr.com/car/stock/2019/ferra...
List price was 'over £315K'
Just 474 miles on it.
Just on those prices that's over £210 per mile in depreciation alone.
Add in Hartley's profit and that is an eye watering loss for the original owner.
andy97 said:
Cheib said:
t. Different sector but I was at Bruntingthorpe recently....literally hundreds of pre-registered Range Rovers lining the runway.
Probably thousands in fact, and each one earns the owners of Bruntingthorpe 50 pence per day I think. Kerching.Davey S2 said:
Tom Hartley Jnr has this V12 Lusso for sale at £215K
https://www.tomhartleyjnr.com/car/stock/2019/ferra...
List price was 'over £315K'
Just 474 miles on it.
Just on those prices that's over £210 per mile in depreciation alone.
Add in Hartley's profit and that is an eye watering loss for the original owner.
V12 Ferraris have a huge way to fall yet. Much further than McLarens in £ or even % terms. And the 488 has only depreciated marginally better than 720S.https://www.tomhartleyjnr.com/car/stock/2019/ferra...
List price was 'over £315K'
Just 474 miles on it.
Just on those prices that's over £210 per mile in depreciation alone.
Add in Hartley's profit and that is an eye watering loss for the original owner.
The whole supercar market is suffering Great if you're a used buyer though.
LotusJas said:
Davey S2 said:
Tom Hartley Jnr has this V12 Lusso for sale at £215K
https://www.tomhartleyjnr.com/car/stock/2019/ferra...
List price was 'over £315K'
Just 474 miles on it.
Just on those prices that's over £210 per mile in depreciation alone.
Add in Hartley's profit and that is an eye watering loss for the original owner.
V12 Ferraris have a huge way to fall yet. Much further than McLarens in £ or even % terms. And the 488 has only depreciated marginally better than 720S.https://www.tomhartleyjnr.com/car/stock/2019/ferra...
List price was 'over £315K'
Just 474 miles on it.
Just on those prices that's over £210 per mile in depreciation alone.
Add in Hartley's profit and that is an eye watering loss for the original owner.
The whole supercar market is suffering Great if you're a used buyer though.
LotusJas said:
Davey S2 said:
Tom Hartley Jnr has this V12 Lusso for sale at £215K
https://www.tomhartleyjnr.com/car/stock/2019/ferra...
List price was 'over £315K'
Just 474 miles on it.
Just on those prices that's over £210 per mile in depreciation alone.
Add in Hartley's profit and that is an eye watering loss for the original owner.
V12 Ferraris have a huge way to fall yet. Much further than McLarens in £ or even % terms. And the 488 has only depreciated marginally better than 720S.https://www.tomhartleyjnr.com/car/stock/2019/ferra...
List price was 'over £315K'
Just 474 miles on it.
Just on those prices that's over £210 per mile in depreciation alone.
Add in Hartley's profit and that is an eye watering loss for the original owner.
The whole supercar market is suffering Great if you're a used buyer though.
It is 7 years old though, so fair enough
Davey S2 said:
Tom Hartley Jnr has this V12 Lusso for sale at £215K
https://www.tomhartleyjnr.com/car/stock/2019/ferra...
List price was 'over £315K'
Just 474 miles on it.
Just on those prices that's over £210 per mile in depreciation alone.
Add in Hartley's profit and that is an eye watering loss for the original owner.
I can’t imagine someone doing just 474 in their new Ferrari before selling it is that bothered. Unless of course they’re the kind of customer who suddenly realised the speed at which it was shedding money and wanted out. Or perhaps it was bought in order to get access to something limited edition? Either way, one person’s loss etc...https://www.tomhartleyjnr.com/car/stock/2019/ferra...
List price was 'over £315K'
Just 474 miles on it.
Just on those prices that's over £210 per mile in depreciation alone.
Add in Hartley's profit and that is an eye watering loss for the original owner.
Davey S2 said:
Tom Hartley Jnr has this V12 Lusso for sale at £215K
https://www.tomhartleyjnr.com/car/stock/2019/ferra...
List price was 'over £315K'
Just 474 miles on it.
Just on those prices that's over £210 per mile in depreciation alone.
Add in Hartley's profit and that is an eye watering loss for the original owner.
Lovely spec and quite clearly staggering depreciation, but whoever buys it could quite easily keep it for a year, put another 1,000 ish miles on it and be flogging it for £150k at best.https://www.tomhartleyjnr.com/car/stock/2019/ferra...
List price was 'over £315K'
Just 474 miles on it.
Just on those prices that's over £210 per mile in depreciation alone.
Add in Hartley's profit and that is an eye watering loss for the original owner.
It heralds a return to normality but with an inevitable over-correction first, given the volume of some models that are being produced.
Davey S2 said:
Tom Hartley Jnr has this V12 Lusso for sale at £215K
https://www.tomhartleyjnr.com/car/stock/2019/ferra...
List price was 'over £315K'
Just 474 miles on it.
Just on those prices that's over £210 per mile in depreciation alone.
Add in Hartley's profit and that is an eye watering loss for the original owner.
Perhaps the original owner woke up one morning and realised it was all hype and he had bought an ugly 4 seat car. It's definitely not Ferrari's finest.https://www.tomhartleyjnr.com/car/stock/2019/ferra...
List price was 'over £315K'
Just 474 miles on it.
Just on those prices that's over £210 per mile in depreciation alone.
Add in Hartley's profit and that is an eye watering loss for the original owner.
[runs for cover]
easytiger123 said:
Lovely spec and quite clearly staggering depreciation, but whoever buys it could quite easily keep it for a year, put another 1,000 ish miles on it and be flogging it for £150k at best.
It heralds a return to normality but with an inevitable over-correction first, given the volume of some models that are being produced.
Lovely spec? That colour interior is probably one of the reasons it is so cheap. It heralds a return to normality but with an inevitable over-correction first, given the volume of some models that are being produced.
Gassing Station | Supercar General | Top of Page | What's New | My Stuff