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Post by charliefarlie on Sept 25, 2020 6:50:27 GMT
We had a discussion some while back where we debated car values and the covid situation and we kinda thought used and new prices would drop. In fact the opposite was closer. Many self employed found themselves with one kind of grant or another and the furlough scheme actually left a lot of people though not all of course better off. Add to this mortgage holidays etc etc and we can see why used prices at least actually firmed up.
Talking to a pal yesterday who has sold cars all his working life and he really does know his stuff. He sells high end stuff mostly.
He reckons and I agree that this moving situation has hit the top of the curve as far as car buying goes. Now we are entering a situation where financial holidays mortgage and cars etc won’t be available and the handouts also won’t be there plus furlough running out the list goes on and on. Plus the inevitable businesses folding
The general consensus is that car prices will tumble as an excess of cars will hit the market with very few buyers. So maybe right now is not the time to buy the more expensive cars from say 5K upwards. Bangers are bangers and will always sell but even those will drop but not by as much of course.
Opinions gentlemen?
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Post by unclebob on Sept 25, 2020 7:20:41 GMT
I think sales may go up in the coming weeks as buyers are concerned about the lock down comes back and nobody can buy anything 🤔
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Post by charliefarlie on Sept 25, 2020 7:40:57 GMT
I think sales may go up in the coming weeks as buyers are concerned about the lock down comes back and nobody can buy anything 🤔 I doubt it... For many the reality of this terrible situation will be hitting hard. Fair enough if your cash rich but it seems to me most aren’t like that in this age of credit we live in. I would think many who are hanging on will be handing back the keys as the government money runs out. My daughter who is an “Official Reciever” in her current role and has specialised in the insolvency sector reckons there are hundreds and hundreds of company’s treading water waiting for government money which of course isn’t going to come. The older generation among us may be better set up... It seems to me the younger generation run on empty tanks never thinking some terrible like this could or would come along. Why should they ?? None of us ever imagined a situation like this or I certainly didn’t. When I spoke to the sales exec early week about that wee Polo she claimed they are shifting so many cars they couldn’t find enough quality stock. I strongly suspect that was sales bull though along with “ be quick we have someone else after the car” Who knows........ I don’t think we will or can have a full lockdown again. The financial repercussions would be to huge. |
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Post by firemac on Sept 25, 2020 9:25:46 GMT
I think sales may go up in the coming weeks as buyers are concerned about the lock down comes back and nobody can buy anything 🤔 I doubt it... For many the reality of this terrible situation will be hitting hard. Fair enough if your cash rich but it seems to me most aren’t like that in this age of credit we live in. I would think many who are hanging on will be handing back the keys as the government money runs out. My daughter who is an “Official Reciever” in her current role and has specialised in the insolvency sector reckons there are hundreds and hundreds of company’s treading water waiting for government money which of course isn’t going to come. The older generation among us may be better set up... It seems to me the younger generation run on empty tanks never thinking some terrible like this could or would come along. Why should they ?? None of us ever imagined a situation like this or I certainly didn’t. When I spoke to the sales exec early week about that wee Polo she claimed they are shifting so many cars they couldn’t find enough quality stock. I strongly suspect that was sales bull though along with “ be quick we have someone else after the car” Who knows........ I don’t think we will or can have a full lockdown again. The financial repercussions would be to huge. Well said, Charlie. I can't see another lockdown, it would finally destroy the economy. In that respect I reckon Rishi well and truly marked Boris's card yesterday. About time too.😡 |
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Post by clarki on Sept 25, 2020 10:17:34 GMT
I don't tend to worry about other people's financial situation - how they choose to live/spend is up to them.
Did hear that car second hand car values are on the up though. So tried the evoque in WBAC...£19K!! Wow!! For a car that's 6.5 years old and only cost £17.5K a year ago.
It's the housing market that seems to have gone the most crazy up here though. More or less everything going to a closing date and up to 30% over the asking price seems the norm!! We usually have a doer upper on the go but even those are going for £mega at the moment.
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Post by charliefarlie on Sept 25, 2020 10:34:42 GMT
I don't tend to worry about other people's financial situation - how they choose to live/spend is up to them. Did hear that car second hand car values are on the up though. So tried the evoque in WBAC...£19K!! Wow!! For a car that's 6.5 years old and only cost £17.5K a year ago. It's the housing market that seems to have gone the most crazy up here though. More or less everything going to a closing date and up to 30% over the asking price seems the norm!! We usually have a doer upper on the go but even those are going for £mega at the moment. I didn’t say I care about other people’s finances cos I don’t. This topic is about car values. The housing market is moving because of the tax cuts on purchases. Anyone considering buying would be mad not to get moving now...............Or would they. A close pal of mine is an agent. He reckons astute sellers are raising prices on account of folk are still thinking they’re getting away with something. Nothing gets people spending like a discount or reduced price . It’s all in how it’s packaged. He has seen houses taken off the market and put back on at higher prices and has actually done the same for a few of his clients.. |
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Post by philip42h on Sept 25, 2020 10:44:39 GMT
WBAC valued my RAV at £8,555 back in August; today they value the same car at the same mileage at £8,000 - that's a drop in value of 6.5% in one month. That doesn't look like second-hand prices holding firm to me - but then again it's a single point sample and not statistically significant. And it's WBAC! It would be an understatement to say that the economy isn't doing too well ATM with Covid likely to impact for at least the next six months and a bit of "Brexit uncertainty" to follow through into next year. Sensible folk would be looking to cut back on unnecessary expenditure right now because the economic situation isn't going to right itself any time soon. New car sales are well down - SMMT figures show that sales year to date (August 2020) are down almost 40% on 2019 - but that's not really too surprising given the impact of lock down. I suspect that there have also been quite a few cancelled orders as businesses and folk tightened their belts so that there is minor glut of unsold new cars in the country right now. Most manufacturers seem to be offering deals on cars that are in stock - 0% finance and/or modest discounts. But this isn't really too different from normal sales activity - there's always a better month to buy a new car and prices aren't 'plummeting' by any means. But with fewer folk buying new cars, fewer cars will be coming onto the second-hand market - so, Id expect second-hand prices to hold firm. Both supply and demand will tend to fall as folk realise that with restrictions and working from home etc. they are doing fewer miles and have less need for a newer car on the driveway - under the circumstances they car they already have will do just fine. My thoughts anyway ...  |
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Post by phaeton on Sept 25, 2020 13:20:08 GMT
The lower end of the market has seen quite a big jump in prices, especially commuter cars where less people want to travel by public transport, no idea of anything above 5K as that's out of my league.
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Post by clarki on Sept 25, 2020 13:33:25 GMT
I don't tend to worry about other people's financial situation - how they choose to live/spend is up to them. Did hear that car second hand car values are on the up though. So tried the evoque in WBAC...£19K!! Wow!! For a car that's 6.5 years old and only cost £17.5K a year ago. It's the housing market that seems to have gone the most crazy up here though. More or less everything going to a closing date and up to 30% over the asking price seems the norm!! We usually have a doer upper on the go but even those are going for £mega at the moment. I didn’t say I care about other people’s finances cos I don’t. This topic is about car values. The housing market is moving because of the tax cuts on purchases. Anyone considering buying would be mad not to get moving now...............Or would they. A close pal of mine is an agent. He reckons astute sellers are raising prices on account of folk are still thinking they’re getting away with something. Nothing gets people spending like a discount or reduced price . It’s all in how it’s packaged. He has seen houses taken off the market and put back on at higher prices and has actually done the same for a few of his clients.. Nobody said you cared!! Chill. Errr, car values, errr, ok, errr, yeah, err, some are more valuable than others :TU: |
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Post by clarki on Sept 25, 2020 13:38:31 GMT
WBAC valued my RAV at £8,555 back in August; today they value the same car at the same mileage at £8,000 - that's a drop in value of 6.5% in one month. That doesn't look like second-hand prices holding firm to me - but then again it's a single point sample and not statistically significant. And it's WBAC! It would be an understatement to say that the economy isn't doing too well ATM with Covid likely to impact for at least the next six months and a bit of "Brexit uncertainty" to follow through into next year. Sensible folk would be looking to cut back on unnecessary expenditure right now because the economic situation isn't going to right itself any time soon. New car sales are well down - SMMT figures show that sales year to date (August 2020) are down almost 40% on 2019 - but that's not really too surprising given the impact of lock down. I suspect that there have also been quite a few cancelled orders as businesses and folk tightened their belts so that there is minor glut of unsold new cars in the country right now. Most manufacturers seem to be offering deals on cars that are in stock - 0% finance and/or modest discounts. But this isn't really too different from normal sales activity - there's always a better month to buy a new car and prices aren't 'plummeting' by any means. But with fewer folk buying new cars, fewer cars will be coming onto the second-hand market - so, Id expect second-hand prices to hold firm. Both supply and demand will tend to fall as folk realise that with restrictions and working from home etc. they are doing fewer miles and have less need for a newer car on the driveway - under the circumstances they car they already have will do just fine. My thoughts anyway ... TBH that makes sense to me. The amount of 0% deals at the moment is crazy. We're in the; do we really need 2 cars for work? camp at the moment. The misses has been told she'll be working from home for at least the next year. Either the Yaris or Evoque is probably going to go tbh. |
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Post by charliefarlie on Sept 25, 2020 17:06:32 GMT
Clarki . Lots of zero interest deals means either they can’t shift the cars or the buyer pays full list with no discounts. In these times I imagine it’s lack of sales.
I too suspect the smaller car prices will hold up best but if we have a situation like in 08/09 it could depend on how many smaller cars get handed back or re possessed ...
The bigger high end cars are the ones to suffer big residual drops. Give it till January and the big car bargains will be there for the picking.....
Finance may become an issue like in the crash of 2008. A friend who owned George White Superbikes lost his business as it went bust due to hardly anyone could get finance. I remember him saying that 9 out of ten finance applications went through no problem but at that time it was more like 2...... Most who bought those big expensive bikes did so using finance. I appreciate this is a different situation quite unlike the last finance based disaster but if and when repos start taking place the refusal rates will rise.
This is as has been said many times an unprecedented set of circumstances and could be the worst financial situation with higher unemployed since the last war. Fingers crossed it isn’t.
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