Will Corona effect the Supercar Market

Will Corona effect the Supercar Market

Author
Discussion

ThePackMan

93 posts

18 months

Tuesday 24th March
quotequote all
Murcielago_Boy said:
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
There will be thousands of owners of successful businesses who will be bricking it right now. A lot of them probably have their house up as security for bank borrowing. So before you start spouting off about the privileged, maybe think about those guys. Putting money into their business right now has massive risk attached to it, and that assumes they have cash to do that (which many won’t). Staggering...

av185

10,494 posts

79 months

Tuesday 24th March
quotequote all
Interesting post from the used car thread:

Desert Dragon

678 posts

36 months

Tuesday 24th March
quotequote all
av185 said:
Interesting post from the used car thread:
Its not really that interesting and red herring. There will be a sell off of proportions the market has never seen across all sectors. Affluent who are liquid are about to make a fortune. The asss has definitely already fallen out of the market to the point its not longer about what your car is worth. Its whether you can sell it or not. Liquidity everything in post apocalypse scenerio. So GT3 might be best of a bad bunch unless you can raise suspension and turn into a Paris Dakar off roader, add some barbed wire, machine gun turrets and I'll have yours off you. smile

av185

10,494 posts

79 months

Tuesday 24th March
quotequote all
The timescale of the crisis (e.g. 3 months or into and over the winter) will have a huge bearing on projected demand across the whole car sector.

Desert Dragon

678 posts

36 months

Tuesday 24th March
quotequote all
If you do the maths its obvious (to me anyway) this will be longer than the next 90 days ie 1 individual passes to 400 and those 400 then pass on to next 400.

400x400x400x400 ad infinitum capped up to the total global population troubles me. Vaccine critical and way off the horizon. Keep an eye on Italy as our situation similar in many ways with an ageing population and similar way of socialising.

av185

10,494 posts

79 months

Tuesday 24th March
quotequote all
Nobody knows how long this will last anyone who claims they do is talking bullst.

FezSpider

424 posts

184 months

Tuesday 24th March
quotequote all
Desert Dragon said:
Vaccine critical and way off the horizon.
Might not be. Trials are being done today in the usa, one guy already has been saved. Sky news Australia.
Watch from 4.25 in. Fingers crossed but it seems promising.
https://youtu.be/xv9LA4f3BT8

DevonPaul

686 posts

89 months

Tuesday 24th March
quotequote all
ghost83 said:
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
They haven't wiped it out. What they have done (rather successfully) is prevent the spread so that all those that were infected and going to die have done, and the rest recovered. "Starved it out" as someone put it, which is fine but only if the rest of the planet does the same thing at the same time.

The problem will arise as soon as they allow infected people back in and it all starts again as most of the population haven't been exposed and so have no immunity.

As for a "cure", there will be treatments for the symptoms and antivirals might help limit the infection, but the long term solution is a vaccine.

Be aware that the current lockdown isn't to protect you from infection, it is to slow the spread of infection and protect the Health System from being swamped. The chances are you will catch it at some point, but hopefully by then the system will have capacity to deal with the sick.

At least the car wil be very clean when Carrs reopens and I can take it for a service, even if the service will cost more than the car will be worth by then smile

Paul

Van Dessel

25 posts

10 months

Tuesday 24th March
quotequote all
https://collectingcars.com/

Some cheap cheap deals so far, not all are supercars but some of them are. You need to question the logic of looking for liquidity in this particular asset class at this moment when you cannot drive it, inspect it, speak to the owner, nor ask a specialist to examine it for you...

av185

10,494 posts

79 months

Tuesday 24th March
quotequote all
£19750 for a 4 year old RS Focus lol.

If correct so much for a dead market.

footsoldier

1,511 posts

144 months

Tuesday 24th March
quotequote all
It’s going to be like a stock market shock that happens over the weekend...
When the world starts up again, cars will open limit down.

f1ten

1,905 posts

105 months

Tuesday 24th March
quotequote all
I tend to agree. The feel good factor has just gone out the window.
Businesses having to put money back in to stay afloat etc etc versus by that unnecessary toy...

DevonPaul

686 posts

89 months

Wednesday 25th March
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Oddly yesterday's single biggest 1 day rise in the FTSE100 doesn't seem to have made headline news anywhere.

I guess good news doesn't sell after all.

browngt3

952 posts

163 months

Wednesday 25th March
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A lot of doom and gloom about but when this is all over I'm guessing one or two will be wishing they bought a supercar when they had the chance. With massive stimulus and ultra low interest rates plus an oil glut giving low oil prices we may see big inflation. Supercar prices will recover very quickly indeed.

laingy

483 posts

193 months

Wednesday 25th March
quotequote all
DevonPaul said:
Oddly yesterday's single biggest 1 day rise in the FTSE100 doesn't seem to have made headline news anywhere.

I guess good news doesn't sell after all.
Or that is cost $2trn dollars to achieve the move.

footsoldier

1,511 posts

144 months

Wednesday 25th March
quotequote all
After it’s over, taxes are going up and we all have to pay for it.
No-one can complain either - we’re all socialists now...and with good reason.

Even after the massive govt support for jobs etc, some businesses will be on borrowed time, even if they get to the end of the virus. Lots will be unemployed anyway, and some sectors’ prospects have changed for this generation at least.

On top of that, who can argue that even more money needs to go to NHS and its staff in future? (By 2025 we’ll be well prepared for the 2120 pandemic that’s due next)

Does all of that make swanning around in a new supercar a good thing or not, for most? I’m doubting it.

r o n n i e

70 posts

128 months

Wednesday 25th March
quotequote all
https://europe.autonews.com/automakers/mclaren-joi...

Good to see and will hopefully soon lead to another model to add to the range!!

Taffy66

3,510 posts

54 months

Wednesday 25th March
quotequote all
After all this blows over the UK Government will need a huge rethink on how to run the country in the future..There needs to be a huge reduction in the number of people employed in non-productive public sector jobs such as getting rid of desk bound council workers(oxymoron ?), quangos and civil servants..To do this there needs to be significant deregulation and the billions saved annually should be diverted to employ more essential public sector workers such as GPs, Doctors, Nurses. Policemen etc.
UK manufacturing and agriculture needs to be supported and encouraged so we become more independent and less dependent on importing essentials for an acceptable standard of living.

IMI A

7,265 posts

153 months

Wednesday 25th March
quotequote all
footsoldier said:
After it’s over, taxes are going up and we all have to pay for it.
No-one can complain either - we’re all socialists now...and with good reason.

Even after the massive govt support for jobs etc, some businesses will be on borrowed time, even if they get to the end of the virus. Lots will be unemployed anyway, and some sectors’ prospects have changed for this generation at least.

On top of that, who can argue that even more money needs to go to NHS and its staff in future? (By 2025 we’ll be well prepared for the 2120 pandemic that’s due next)

Does all of that make swanning around in a new supercar a good thing or not, for most? I’m doubting it.
Good time to get out of a 991 GT2 RS. Timing impeccable wink

DevonPaul

686 posts

89 months

Wednesday 25th March
quotequote all
Taffy66 said:
After all this blows over the UK Government will need a huge rethink on how to run the country in the future..There needs to be a huge reduction in the number of people employed in non-productive public sector jobs such as getting rid of desk bound council workers(oxymoron ?), quangos and civil servants..To do this there needs to be significant deregulation and the billions saved annually should be diverted to employ more essential public sector workers such as GPs, Doctors, Nurses. Policemen etc.
UK manufacturing and agriculture needs to be supported and encouraged so we become more independent and less dependent on importing essentials for an acceptable standard of living.
Would these be all the desk bound folk coming up with the ways of compensating people for loss of income, or paying mortgage/rent, or dealingwith the glut of Universal Credit applicants, or organising sites for field hospitals and corpse storage and arranging for equipment and access, or the ones being redeployed to helplines, etc etc.

I agree that if the Govt removed a lot of the red tape and regulatory requirements they place on Local Authorities then it could be streamlined massively - Public Sector Auditing is far more stringent than seems to happen to many Publicly Quoted companies, but half of the problem this week has been the sudden demand on Government workers and lack of staff to come up with and assess the proposals.