Supercar sales pre-covid vs today

Supercar sales pre-covid vs today

Author
Discussion

rkanaga

327 posts

175 months

Friday 19th June
quotequote all
I don’t get it, the loan has to be paid back and so the only saving is the interest which even at 6% would only be £3000 over a year.

This along with the likelihood that the economy and company earnings is likely to be worse in the near future means that this is surely the height of irresponsibility?

There seems to be an assumption that you can just apply for these loans, HMRC are going to be retrospectively looking at the circumstances as they are for companies that claim furlough payments and if they were not genuinely neede can apply 100% penalties.

If you couldn’t afford to finance a car without a £3000 pa saving then you probably should not do so now?

If the loan cannot be repaid then you can be sure that HMRC will be looking into the circumstances and uncovering fraud leading to prosecutions as well.

The irony is that people with the assets to buy now are probably biding their time to buy.

z4RRSchris

9,443 posts

134 months

Friday 19th June
quotequote all
https://www.autotrader.co.uk/classified/advert/201...

This is a £600k Mclaren Senna, new was £750k plus options?


Joscal

1,318 posts

155 months

Friday 19th June
quotequote all
rkanaga said:
I don’t get it, the loan has to be paid back and so the only saving is the interest which even at 6% would only be £3000 over a year.

This along with the likelihood that the economy and company earnings is likely to be worse in the near future means that this is surely the height of irresponsibility?

There seems to be an assumption that you can just apply for these loans, HMRC are going to be retrospectively looking at the circumstances as they are for companies that claim furlough payments and if they were not genuinely neede can apply 100% penalties.

If you couldn’t afford to finance a car without a £3000 pa saving then you probably should not do so now?

If the loan cannot be repaid then you can be sure that HMRC will be looking into the circumstances and uncovering fraud leading to prosecutions as well.

The irony is that people with the assets to buy now are probably biding their time to buy.
This is exactly what I think but we appear to be in the minority..

drcarrera

618 posts

180 months

Friday 19th June
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Saweep said:
drcarrera said:
I'm obviously being naive here but these loans are to companies, not individuals, so how can they be used to buy supercars? I know a company could technically buy a supercar as a company car but surely the benefit in kind to the individual who drove it would be astronomical?
They're available to Sole Traders.

So no different to a personal bank loan really.
Ah, that makes more sense. I guess they're then relying on the fact the chances of an HMRC investigation is so small as to make it worth the risk.
As a company owner who's always done things by the book it makes my blood boil, really.

Cheib

18,748 posts

130 months

Friday 19th June
quotequote all
z4RRSchris said:
https://www.autotrader.co.uk/classified/advert/201...

This is a £600k Mclaren Senna, new was £750k plus options?
For cars made in such low numbers it feels like there are always a few for sale....I doubt there are many with their original owners.

BlackR8

329 posts

32 months

Friday 19th June
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cgt2 said:
Very interesting, every dealer I speak to is literally off their feet selling cars (including supercars) at a rate not seen in years. This could explain some of the goings on, but also with every economic indicator showing we are not in good shape I am still a little puzzled as to how people are splashing out at such a rate.

FunkyNige

6,827 posts

230 months

Tuesday 23rd June
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PompeyReece said:
Thanks for posting. More evidence the super and sports car market is far from on its knees. Backs up the Autotrader figures too.
Seems to be the case at the cheaper end too - I keep an eye on what Lotus Elises are for sale at the local Lotus (+ others) dealer, normally there are 6 or 7 but at the moment they don't have any! Still have two Caparo T1s that have been sat there for years mind...

cgt2

1,612 posts

143 months

Tuesday 23rd June
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Best friend just sold his Series 2 E Type convertible LHD for 85k Euros. He's pretty happy with that though I'm not because I enjoyed when he let me borrow it!

Cheib

18,748 posts

130 months

Tuesday 23rd June
quotequote all
BlackR8 said:
cgt2 said:
Very interesting, every dealer I speak to is literally off their feet selling cars (including supercars) at a rate not seen in years. This could explain some of the goings on, but also with every economic indicator showing we are not in good shape I am still a little puzzled as to how people are splashing out at such a rate.
Speculation on another thread that Boris’s Bounce Back Loans are being spent on toys rather than investing in a business!

ghost83

3,856 posts

145 months

Tuesday 23rd June
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Yep my cousin and uncle have just done this


TP321

1,167 posts

153 months

Tuesday 23rd June
quotequote all
The Bounce Back Loans were available to EVERY business whether or not it has been affected by Covid. So obviously those not affected have simply had up to £50k at super-low interest rates. Why pay dealer finance at 6-10% when the UK Government is offering you the money at 2.5%?

But car sales will dry out in a month or so when all this money is spent and I think that's when used prices will be affected.

RSbandit

1,104 posts

87 months

Tuesday 23rd June
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Cheib said:
Speculation on another thread that Boris’s Bounce Back Loans are being spent on toys rather than investing in a business!
I cannot believe what I'm reading...people using govt loans to small businesses to put down deposits on supercars? That's disgraceful imo.

RSbandit

1,104 posts

87 months

Tuesday 23rd June
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And even if they don't need the money and are using it as cheap financing still doesn't make it right imo.

Saweep

5,080 posts

141 months

Tuesday 23rd June
quotequote all
RSbandit said:
And even if they don't need the money and are using it as cheap financing still doesn't make it right imo.
Why? Assuming they pay it back, which I'm sure they intend to.

Drl22

331 posts

20 months

Tuesday 23rd June
quotequote all
Saweep said:
Why? Assuming they pay it back, which I'm sure they intend to.
Exactly. Making these loans so easy to get is designed to help inject spending into the economy. As long as you pay it back there is no problem.

650spider

1,008 posts

126 months

Tuesday 23rd June
quotequote all
Drl22 said:
Saweep said:
Why? Assuming they pay it back, which I'm sure they intend to.
Exactly. Making these loans so easy to get is designed to help inject spending into the economy. As long as you pay it back there is no problem.
The way i am hearing it is that as the loans are unsecured, in month 11, some are going to fold the business before they pay back a single penny.

Some of the guys i have spoken to genuinely see nothing wrong and that only an idiot would not take advantage of it.

These are guys that i won't be wasting a minute of my time with ever again.


Taffy66

3,791 posts

57 months

Tuesday 23rd June
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650spider said:
The way i am hearing it is that as the loans are unsecured, in month 11, some are going to fold the business before they pay back a single penny.

Some of the guys i have spoken to genuinely see nothing wrong and that only an idiot would not take advantage of it.

These are guys that i won't be wasting a minute of my time with ever again.
This will be very commonplace IMO and like you pretty disgusted that some are already planning this..I have no issues in spending this money on whatever means which helps another employing business, but to premeditate with no intention of repaying BBL loans is beyond despicable.

RSbandit

1,104 posts

87 months

Tuesday 23rd June
quotequote all
Drl22 said:
Exactly. Making these loans so easy to get is designed to help inject spending into the economy. As long as you pay it back there is no problem.
I imagine the govt envisaged that the money would be used to help support the business in some way or as capital expenditure on equipment that is required by the business...I very much doubt that using it to fund a supercar purchase is what they had in mind even if the loan is repaid in full. I doubt they will audit every single business as to what the funds were used for but if people are planning on winding things up before the loan is due to be repaid that's pretty poor form all told.

Drl22

331 posts

20 months

Tuesday 23rd June
quotequote all
RSbandit said:
I imagine the govt envisaged that the money would be used to help support the business in some way or as capital expenditure on equipment that is required by the business...I very much doubt that using it to fund a supercar purchase is what they had in mind even if the loan is repaid in full. I doubt they will audit every single business as to what the funds were used for but if people are planning on winding things up before the loan is due to be repaid that's pretty poor form all told.
I 100% agree. If they are planning on winding up the business before repayment that is disgraceful but otherwise it’s just a cheap loan that will repaid and there is no harm in the that. Most business owners, myself included have had no other form of support, I’ve not furloughed anyone and had no grants so why not take a cheap loan. I must hasten to add that I have not spent mine on a supercar but each to their own.


Edited by Drl22 on Tuesday 23 June 23:29

DeejRC

1,301 posts

37 months

Tuesday 23rd June
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It is, in a way, helicopter money/liquidity injection directly to small businesses. So long as it is spent and then repaid, I suspect the govt will not care one jot. Those Biz that take the money and then wind up when the money is due, will find themselves - at some point - suffering some form of overly intense scrutiny. I suspect that when it all plays itself out, relatively few ppl will have gotten away with being complete dicks.