Will Corona effect the Supercar Market
Discussion
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 
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.
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.
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.
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.....
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.....
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.
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
(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 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? 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...
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? 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...
Then, who's going to pay for the billions spent fighting the disease? Taxes will be going up...
Pretty grim times ahead...
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.
The very rich wont be affdcted by this, and those without the cash before still wont have the cash.
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