Pendragon Shares under 1 1/2p! How will this play out?
Discussion
Pendragon - Reg Vardy, CD Bramall, Stratstones, Evans Halshaw - shares have dropped to under 1 1/2p from £1.25 last year.
Given they have debts of £80m that lenders may want back, over 300 dealerships, and god knows how many second hand cars, what do you guys think will happen and when?
Will the banks force them into liquidation and send all the cars to BCA? How do you think this could affect the second-hand car market as all their stock gets put in a fire sale?
Given they have debts of £80m that lenders may want back, over 300 dealerships, and god knows how many second hand cars, what do you guys think will happen and when?
Will the banks force them into liquidation and send all the cars to BCA? How do you think this could affect the second-hand car market as all their stock gets put in a fire sale?
haworthlloyd1 said:
good question but i'm sure you already know the answer 
Ish. If the banks let them go, then there will be even more carnage. But, will the banks let this happen? Are there any suitors who may rescue bits of it? If it did happen, how quickly would the cars get sent off to auction?I'm tempted to buy a DB9, but I note that Stratstones have 30 of them. If these get sent to auction in the next 6 months I suspect I'd regret it if I'd bought one now!
cccscotland said:
haworthlloyd1 said:
good question but i'm sure you already know the answer
Ish. If the banks let them go, then there will be even more carnage. But, will the banks let this happen? Are there any suitors who may rescue bits of it? If it did happen, how quickly would the cars get sent off to auction?I'm tempted to buy a DB9, but I note that Stratstones have 30 of them. If these get sent to auction in the next 6 months I suspect I'd regret it if I'd bought one now!
DB9 has been hit hard and there are some mega deals to be done even on the DBS... just because stock goes to auction, does not mean that it will sell at a bargin price - some people just think that auction = cheap cars; it doesn`t always.
Dealers are interested in cash flow - and if you are a serious cash buyer then I would make some phone calls and bargain hard ..you may be surprised.
If they have 30 in stock that have been there for sometime - what does that tell you about the market demand for the car? Any car you buy at the moment is still liable for a big hit, less so if it is over 3 years old.
cccscotland said:
haworthlloyd1 said:
good question but i'm sure you already know the answer
Ish. If the banks let them go, then there will be even more carnage. But, will the banks let this happen? Are there any suitors who may rescue bits of it? If it did happen, how quickly would the cars get sent off to auction?I'm tempted to buy a DB9, but I note that Stratstones have 30 of them. If these get sent to auction in the next 6 months I suspect I'd regret it if I'd bought one now!
Plug550 said:
Why? Thought you'd just bought a 550.
www.cccscotland.com - I've worked out that now is a good time to upgrade my fleet, so as well as the 550 (which has been branded a good 'un by my local specialist) I'm in the market for a DB9, a 996 Turbo, and a Tuscan/Tamora as well as a couple of other bits and pieces. That's also why I'm very price sensitive! 2009 may be a good year for us..... Here's hoping.Edited to try and make hyperlink work...
Edited by cccscotland on Friday 19th December 17:04
cccscotland said:
Plug550 said:
Why? Thought you'd just bought a 550.
www.cccscotland.com - I've worked out that now is a good time to upgrade my fleet, so as well as the 550 (which has been branded a good 'un by my local specialist) I'm in the market for a DB9, a 996 Turbo, and a Tuscan/Tamora as well as a couple of other bits and pieces. That's also why I'm very price sensitive! 2009 may be a good year for us..... Here's hoping.Edited to try and make hyperlink work...
Edited by cccscotland on Friday 19th December 17:04
cccscotland said:
Plug550 said:
Why? Thought you'd just bought a 550.
www.cccscotland.com - I've worked out that now is a good time to upgrade my fleet, so as well as the 550 (which has been branded a good 'un by my local specialist) I'm in the market for a DB9, a 996 Turbo, and a Tuscan/Tamora as well as a couple of other bits and pieces. That's also why I'm very price sensitive! 2009 may be a good year for us..... Here's hoping.Edited to try and make hyperlink work...
Edited by cccscotland on Friday 19th December 17:04
markmullen said:
Lookers may be in the wings to buy up some of the group, amusing when during negotiations for Pendragon to buy Reg Vardy not long ago Pendragon threatened to buy Lookers if they snapped RV up from underneath them.
A though i've had is will Sir PV cherry pick the northern sites for PV Jnr to expand the empire? I can think of 5 sites in Scotland that Sir PV would like back.
LHDisbest said:
markmullen said:
Lookers may be in the wings to buy up some of the group, amusing when during negotiations for Pendragon to buy Reg Vardy not long ago Pendragon threatened to buy Lookers if they snapped RV up from underneath them.
A though i've had is will Sir PV cherry pick the northern sites for PV Jnr to expand the empire? I can think of 5 sites in Scotland that Sir PV would like back.I know of a Northern group that would like some bits too.
markmullen said:
LHDisbest said:
markmullen said:
Lookers may be in the wings to buy up some of the group, amusing when during negotiations for Pendragon to buy Reg Vardy not long ago Pendragon threatened to buy Lookers if they snapped RV up from underneath them.
A though i've had is will Sir PV cherry pick the northern sites for PV Jnr to expand the empire? I can think of 5 sites in Scotland that Sir PV would like back.I know of a Northern group that would like some bits too.
Hmmmmm not sure the SMMT would be too happy, that would almost mean a monopoly on car sales in the north.
I could see it happening though.
Was in Evans Halshaw in Preston on Wednesday. Got the Focus serviced and also got a sneak pre-launch nosey at the new Ka (mother wants one). Very good service all round, be a shame if they disappear.
Some bloody cheap new cars outside too. £16k for a brand new non-poverty spec Mondeo. Amazing value.
Some bloody cheap new cars outside too. £16k for a brand new non-poverty spec Mondeo. Amazing value.
cccscotland said:
Pendragon - Reg Vardy, CD Bramall, Stratstones, Evans Halshaw - shares have dropped to under 1 1/2p from £1.25 last year.
Given they have debts of £80m that lenders may want back, over 300 dealerships, and god knows how many second hand cars, what do you guys think will happen and when?
Will the banks force them into liquidation and send all the cars to BCA? How do you think this could affect the second-hand car market as all their stock gets put in a fire sale?
Nearly correct, but their debts are actually £280m. I think the technical term for their condition is 'a right old pickle' - they're breaching banking covenants left right and centre and have no real assets of value because they did a sale and leaseback deal on all their property portfolio about a year ago.Given they have debts of £80m that lenders may want back, over 300 dealerships, and god knows how many second hand cars, what do you guys think will happen and when?
Will the banks force them into liquidation and send all the cars to BCA? How do you think this could affect the second-hand car market as all their stock gets put in a fire sale?
Most of their stock will be owned by manufacturers or finance houses so won't be sold off by administrators but it'll have to find its way back into the supply chain somehow.
If they go they will be replaced when the market picks up.
Must be upsetting if you had shares in the business but otherwise who cares? None of these large outfits offer consistent high levels of service that we'll miss or that couldn't be replaced by any other service business in the future.
Must be upsetting if you had shares in the business but otherwise who cares? None of these large outfits offer consistent high levels of service that we'll miss or that couldn't be replaced by any other service business in the future.
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