Will Corona effect the Supercar Market

Will Corona effect the Supercar Market

Author
Discussion

andrew

8,937 posts

144 months

Friday 13th March
quotequote all
AndrewD said:
andrew said:
PompeyReece said:
Raygun said:
Bar toilet paper, hand cleaner and food I'm guessing Coronavirus will affect all markets in the current situation.
...and Netflix, Durex and games consoles smile
pretty dull sex if you also require netflix and a games console
Ironic post from somebody who requires torches, lay-bys and strangers smile

SVJBalboni

88 posts

6 months

Friday 13th March
quotequote all
I guess another way of looking at is low rates, trillions pumped into markets and pent up demand once this virus passes means prices should rebound. Things are rapidly changing daily but once a vaccine is announced I expect to see optimism go up and people getting back to normal. It still doesn't address the underlying concerns about the global economy but stimulus money should mask those concerns temporarily.

Wilmslowboy

2,741 posts

158 months

Saturday 14th March
quotequote all
A big change over the past decade in this domain has been the rise of the 'supercar SOR dealer'.

Whereas they are some very well managed and respected outfits, some equally operate 'hand to mouth', a small decline in sales and many of these will go out of business, causing losses for unfortunate sellers. A drop in confidence in this operating model will result in a further drop in business and a viscous downward cycle.

With fewer options to sell a supercar, values will decline, by how much is hard to predict.

I would not be surprised if they were 33% down (summer 2020 compared to summer 2019)


Covid19 on its own will not be the cause for the supercar mkt crash, the mkt has been overinflated for a couple years, it will however be the catalyst for the big drops.



sjc

11,219 posts

222 months

Saturday 14th March
quotequote all
Surely though, if you buy another vehicle at the moment, you’ve got Carowner virus ?...

LotusOmega375D

4,528 posts

105 months

Saturday 14th March
quotequote all
Wilmslowboy said:
A drop in confidence in this operating model will result in a further drop in business and a viscous downward cycle.
Yes it could get very sticky for some of them.

LAM80W

769 posts

144 months

Saturday 14th March
quotequote all

Roof down

202 posts

78 months

Saturday 14th March
quotequote all
markst said:
can anyone remember how much you used to get back on the bottles....
Three pence, old money of course, a three penny bit, happy days

Trev450

5,881 posts

124 months

Saturday 14th March
quotequote all
Roof down said:
markst said:
can anyone remember how much you used to get back on the bottles....
Three pence, old money of course, a three penny bit, happy days
Thrupence. Thought I'd translate that for you. smile

markst

Original Poster:

194 posts

117 months

Saturday 14th March
quotequote all
Trev450 said:
Thrupence. Thought I'd translate that for you. smile
or one of these...………...I can remember spending these !



roughly what a 360 or 430 will be worth by July...….


Matty3

435 posts

36 months

Saturday 14th March
quotequote all
It will do what it always does - go down -go up - go down, etc

But drivers will be having the best times of their lives and not worrying a hoot smile

xcentric

438 posts

171 months

Saturday 14th March
quotequote all
does make it tricky to work out whether to buy or not tho. Am in the market for a decent used supercar and whilst I want to enjoy it, I don't want to buy in just before a big dip.....

So considering a tougher negotiating stance on one were lookinge - it is to replace one bought a week ago whose engine went banging which we've returned - and whilst we like the replacement we've found, it was more than the one we'd originally bought which was already at top of budget. Think in a month or two this one will be back in/under budget, if we can be patient.....

Raygun

3,202 posts

72 months

Sunday 15th March
quotequote all
xcentric said:
does make it tricky to work out whether to buy or not tho. Am in the market for a decent used supercar and whilst I want to enjoy it, I don't want to buy in just before a big dip.....
If you've got any doubt in your mind I would be inclined to hold on to your money for the time being.
I think we can all agree the market isn't as buyont as it was four or five years ago but we haven't seen a great fall in the price of cars for sale, just a stalemate where quite a few cars are not selling. I reckon a lot of people having paid top £ for their car are happy to hold onto it rather than let go for a song, I can only see a total crash on prices if this coronavirus goes on too long and drags the economy down big time. We are charting unknown waters at the moment.

ghost83

3,496 posts

142 months

Sunday 15th March
quotequote all
This virus ain’t going to leave quickly, the last thing ppl are going to be doing is buying cars in general

(Bmw Audi mini Mercedes are already sending emails out with “special offers”)

So I would reckon that the cars you see for sale now most will probably still be for sale after summer and I’d expect prices to drop somewhat

Raygun

3,202 posts

72 months

Sunday 15th March
quotequote all
ghost83 said:
This virus ain’t going to leave quickly, the last thing ppl are going to be doing is buying cars in general
I thought I heard China had already started getting on top of it all?

LooneyTunes

3,924 posts

110 months

Sunday 15th March
quotequote all
Raygun said:
ghost83 said:
This virus ain’t going to leave quickly, the last thing ppl are going to be doing is buying cars in general
I thought I heard China had already started getting on top of it all?
China may be improving, but Covid-19 is going to be around for a while. I was surprised how long it took the markets to react and how little they’ve fallen. On Friday had an interesting discussion with asset manager at well known firm and was frankly stunned by the view that it was going to rebound in weeks rather than months+.

There are going to be BIG hits to earnings of many corporates, and some sectors currently appear completely FUBARed. I suspect that many won’t realise this until 1) people aren’t back to normal in a couple of weeks time; 2) corporates start defaulting on their commitments, and 3) earnings reports start to come out.

There are similarities with 2003 in terms of both event/sentiment and the unpredictable impact/duration, and with 07/08 if you look at potential for systemic and corporate impact. Some areas of the market and some asset classes will prove resilient but I remain unconvinced that people are thinking through the fallout of the current situation and that when they do there will be further falls.

For cars? Wouldn’t surprise me if the market gets very sticky for supercars and high end classics (further hit possible due to ownership demographic). Time will tell but covid might just be be the pin the bursts some bubbles...

Leylandeye

447 posts

7 months

Sunday 15th March
quotequote all
Raygun said:
ghost83 said:
This virus ain’t going to leave quickly, the last thing ppl are going to be doing is buying cars in general
I thought I heard China had already started getting on top of it all?
Heading in the right direction is probably the phrase I'd use. I have several friends in manufacturing and they are reporting a bounce back.

r o n n i e

70 posts

128 months

Sunday 15th March
quotequote all
Ferrari has shut down production at its Formula 1 and road-car factories in Italy for two weeks as a result of the coronavirus crisis.

It is part of a wider lockdown that began last week across badly-hit Italy...

Europe and USA are 3 months behind China in the Covid-19 lifecycle.

Larry5.2

450 posts

60 months

Sunday 15th March
quotequote all
News on the telly is saying this will be with us for 6 months. With restrictions on going out, it's going to hit the leisure industry the hardest with hotels, restaurants, pubs, taxis, hire companies, airlines etc being affected. Those people out work and then anything related to production that needs components from another country - I know of at least 2 automotive production lines shutting down shortly because they cant get parts from International suppliers. Those companies will be considering laying off staff so there'll be a lot of people out of work. That's just 2 sectors that I know about... The knock-on effect is going to be huge.

Then, who's going to pay for the billions spent fighting the disease? Taxes will be going up...

Pretty grim times ahead...

LooneyTunes

3,924 posts

110 months

Sunday 15th March
quotequote all
Larry5.2 said:
News on the telly is saying this will be with us for 6 months.
This is the bit that I’m convinced the financial markets have failed to grasp.

williamp

16,823 posts

225 months

Sunday 15th March
quotequote all
If business stops then busines owners need cash, which might be tied up in their car collection. They might need to sell, so we might see more cars appear at auction at lower then before reserves.

The very rich wont be affdcted by this, and those without the cash before still wont have the cash.