Will Corona effect the Supercar Market

[br d]

andrew said:

the fla alone know about 91.7% !

https://www.fla.org.uk/research/motor-finance/

Do you think that goes right across the board Andrew, that sort of rate on high end stuff too?

I remember buying a 911 in 2005, when they were the city boy car of choice, and the dealer telling me the vast majority were putting down the minimum (think it was 10% at the time) and financing the rest.

And to be clear, this isn't a moan against financing, I've done it myself in the past, just that it can't be nice sitting on a high payment with so much uncertainty.

[ghost83]

PrancingHorses said:

I work in medicine and there is no cure in sight for at least 18 months.

Makes you wonder how China have wiped it out so quickly! And used medicine, they have an 18 month Juno on everyone else!

Quite funny that considering

[markst]

never liked finance.....bad enough losing money when you change cars as it is. God , can you imagine if those GFVs are not set in stone at the end of the lease..

I'm not sure either , driving around in a flash would be a great idea when there so much trouble out there.

Values got a long way to go, I wonder were a 246 will end up ? missed them before they went silly.

[andrew]

br d said:

andrew said:

the fla alone know about 91.7% !

https://www.fla.org.uk/research/motor-finance/

Do you think that goes right across the board Andrew, that sort of rate on high end stuff too?

I remember buying a 911 in 2005, when they were the city boy car of choice, and the dealer telling me the vast majority were putting down the minimum (think it was 10% at the time) and financing the rest.

And to be clear, this isn't a moan against financing, I've done it myself in the past, just that it can't be nice sitting on a high payment with so much uncertainty.

absolutely
high-end owners often own their own company
for them, asset finance makes more sense than for we paye paupers
they invest all their cash in their business returning say 20% and "borrow" for their asset at around 9%
( cc we paye paupers where our savings earn <1% and imho asset finance ordinarily makers less financial sense )

[Cheib]

PrancingHorses said:

AstonExige said:

Isn't the above based on us not finding a cure? Which we will. So surely once a vaccination is produced and everyone (in particular the vulnerable) are inoculated it will be little different to Flu and alike and things will quickly get back to normal?

I work in medicine and there is no cure in sight for at least 18 months.

I haven’t said this to my Mum (who is 82 and in isolation) but I don’t see how she can really expect to return to a anything like a normal life for a year. The four month isolation thing is just to help manage the NHS capacity issues...my mother will still have a 25% chance of death if she catches it after that. There are of course anti-virals that may work for a lot of people but they will likely be months away.

My base case in terms of my life is that we’ll be at home with the kids for six months. Schools won’t open until September at the earliest and as someone with mild asthma who has it as a result of getting pneumonia a few years ago I am in no hurry to go anywhere,

Car market can only go one way and hard I think. People with cash will be more likely to invest it in stock markets (which I think go lower from here too) than cars when we return to something like normality.

[Murcielago_Boy]

andrew said:

absolutely
high-end owners often own their own company
for them, asset finance makes more sense than for we paye paupers
they invest all their cash in their business returning say 20% and "borrow" for their asset at around 9%
( cc we paye paupers where our savings earn <1% and imho asset finance ordinarily makers less financial sense )

Although a valid point, I don't think it takes primacy. As a business owner buying a new XYZ, you can either

- draw £330k from the company and pay income tax on that (ouch!)
OR
- draw £75k deposit + £4k p/m* and pay income tax on that, giving it back after X years. (not so ouch).

I think the tax argument is quite compelling, oddly more so than calculating a "% return on equity" VS finance - in fact I don't know ANY business owners that think like that...but what do I know!


Generally though, as I've got older and wiser, I've come to the realisation that 90% of the time, people finance cars because they cannot afford them without the borrowing......

Edited by Murcielago_Boy on Monday 23 March 20:40

[Van Dessel]

PrancingHorses said:

According to this article there seems to be no end date for this Covid-19 so how long does one wait?

https://www.bbc.co.uk/news/health-51963486

One US minor celeb was commenting "....we want a firm date when this unacceptable situation will stop..." Best reply was "I suggest you complain to the Covid 19 manager then"

Re; Boris' talk tonight, If you search for The Thick of It and Lcokdown there's a nice video to enjoy and take your mind of things.

[So]

andrew said:

absolutely
high-end owners often own their own company
for them, asset finance makes more sense than for we paye paupers
they invest all their cash in their business returning say 20% and "borrow" for their asset at around 9%
( cc we paye paupers where our savings earn <1% and imho asset finance ordinarily makers less financial sense )

We do this. We usually finance vehicles and keep money in our companies. But we never finance a car we couldn't buy outright.

[Ferruccio]

Won’t be able to get’em fixed now either.

[So]

Ferruccio said:

Won’t be able to get’em fixed now either.

This stopped me buying a new car last week. In part I thought I would be stopped from using it, in part I thought I couldn't be seen in it with people struggling but also because if I got it delivered, there was something wrong with it, and I couldn't drive it I'd be driven mental having a faulty car in my garage. Yes I am mental.

[Roof down]

MingtheMerciless said:

I think also things might get so grim that it might not be all that popular to be out and about in a candy coloured supercar.

https://www.dailymail.co.uk/news/article-8142013/H...

Spot on, to be driving around in a super car especially a red Ferrari convertible would be obscene.
I would never be comfortable when I know so many people cannot even afford to look after their families.
It would simply enrage most people and rightly so.

[cgt2]

Roof down said:

Spot on, to be driving around in a super car especially a red Ferrari convertible would be obscene.
I would never be comfortable when I know so many people cannot even afford to look after their families.
It would simply enrage most people and rightly so.

Agreed, and as discussed earlier the image supercars have gained via boorish owners the last few years is part of this equation. Now a nice vintage Lancia or Alfa looks far more appealing to me..

[av185]

Ferruccio said:

Won’t be able to get’em fixed now either.

Also interesting ramifications for warranty and future values if you have to miss a service due to lockdown.

Had a couple of mine serviced the other week at 2 years old luckily just in time.

Sytner closing evidently.

[Kid A]

Roof down said:

Spot on, to be driving around in a super car especially a red Ferrari convertible would be obscene.
I would never be comfortable when I know so many people cannot even afford to look after their families.
It would simply enrage most people and rightly so.

Probably one of the advantages of me driving a more plebeian car (a 981S). I took advantage of the empty roads and took it for a punt last weekend. Had a nice girl come along who also owned a sports car and we swapped cars and had a great time. Will do the same this weekend. Cars don't transmit the virus so I don't see any health hazard from driving on the empty roads. Someone's got to!

Back on topic, if supercar prices come down then I'll definitely be on the look-out. I'm already in the used market for a 570S but prices have only been slow to change here in Australia - suspect that might change after 6 months of this. I've been keeping tabs on each model - there are only about 15 in the whole of the country on the used car market - and I'll email dealers for any examples that have been on the floor for 12+ months. Figure they will be desperate to sell at some stage.

[rex]

Kid A said:

Probably one of the advantages of me driving a more plebeian car (a 981S). I took advantage of the empty roads and took it for a punt last weekend. Had a nice girl come along who also owned a sports car and we swapped cars and had a great time. Will do the same this weekend. Cars don't transmit the virus so I don't see any health hazard from driving on the empty roads. Someone's got to!

I must have missed the bit on Boris’s statement about you must stay indoors but it is OK for Kid A to go for a drive as someone has got to and we have decided it will be him. fking pleb. Which of the words are you having trouble with. Is it “stay” or the “indoors” bit.

[Kid A]

Settle down matey. No such advice has been given to residents in my state. Me going from my home to my garage to my car, then punting it along some twisty roads doesn't expose anyone to coronavirus more than posting this message does.

No need to get so antsy on a friendly discussion forum.

[br d]

rex said:

Kid A said:

Probably one of the advantages of me driving a more plebeian car (a 981S). I took advantage of the empty roads and took it for a punt last weekend. Had a nice girl come along who also owned a sports car and we swapped cars and had a great time. Will do the same this weekend. Cars don't transmit the virus so I don't see any health hazard from driving on the empty roads. Someone's got to!

I must have missed the bit on Boris’s statement about you must stay indoors but it is OK for Kid A to go for a drive as someone has got to and we have decided it will be him. fking pleb. Which of the words are you having trouble with. Is it “stay” or the “indoors” bit.

He's in Australia genius, and he said at the weekend.
Calm the fk down.

[rex]

My mistake. Apologies

[Pioneer]

Roof down said:

Spot on, to be driving around in a super car especially a red Ferrari convertible would be obscene.
I would never be comfortable when I know so many people cannot even afford to look after their families.
It would simply enrage most people and rightly so.

Jantelagen is a huge part of the culture in Scandinavia, esp. Sweden. I like the idea, may be a bit more like that here after C19

Good article on it here: https://www.bbc.com/worklife/article/20191008-jant...

“You can chat about your cabin in the woods and getting underfloor heating and a patio. People [are] not surprised by that – that is a common idea in the Nordics and a lot of people have a second home here,” he argues. “But to say you’d spent the same money on two Lamborghinis – you would probably get a bit laughed at!"

[br d]