Car sales

Ewan

Ewan

Member
Messages
6,843
Are they about to drop off a cliff?

With the markets in turmoil, everyone requested to stay home, hundreds of thousands of jobs at risk (i.e. anyone working for an airline, airport, hotel, restaurant, bar, club, theatre, shop (other than food), and their supply chains and stakeholders), surely the car industry is about to take the biggest battering ever. If you can’t even go to Costa for a coffee, who’s going to a garage to buy a car!?

I see that Maserati, Ferrari and Lambo have all closed their factories. Lots more to follow, surely. Especially in France, Germany and Spain.

So, I called a Caterham dealer to chat about a used car I have my eye on and asked what he could do on the price to incentivise me to commit there and then. His best offer? £O discount. Not even a mention of a free key ring. Oh, and if I wanted it delivered, that would be extra!

To quote Julia Roberts from Pretty Woman, “Big Mistake”. I’d like to see how many Caterhams he sells at full asking price over the next couple of months.
 
Oneball

Oneball

Member
Messages
11,133
You could argue that with factories closing the prices will go up after this as there won’t be the supply to meet demand, maybe he’s rubbing his hands together.
 
Ewan

Ewan

Member
Messages
6,843
But what demand? Lots of unfortunate people are going to lose their jobs, while lots of rich people have seen their wealth diminish by circa 25% over the last 2 weeks.

Anyone trying to sell a car should do so now, before the real depreciation kicks in. Dealers with large inventories will be stuffed and part ex values will be woeful. It’s about to get ugly.
 
philw696

philw696

Member
Messages
25,666
I have been planning on getting another GT car and been watching prices carefully but as I haven't worked yet this year and now the situation we're in I'm putting it on hold and watching even more carefully.
 
Felonious Crud

Felonious Crud

Administrator
Staff member
Messages
21,288
My view is the same as Ewan's. It'll be carnage (boom, boom!) for a wee while. Everyone will be reassessing priorities and dropping tens or hundreds of thousands of pounds on something totally unnecessary won't be very high on the priority list until the world dusts itself down in [insert period of time here]. I shall be hanging on to time for a bit longer.

Not only that, there are practical considerations regarding test drives. It'd take some creative social distancing to take a prospective punter out in a Caterham at a distance of not less than two metres.

"old out yer 'aaand."

Actually, don't.

PS - edit to comment on PCP now I've read more recent posts. Give it a couple of months and I reckon there'll be some stonking deals with low interest and crazy-inflated balloons to drive fresh energy into the new car business, but perhaps not so much at the super or sports car end of the spectrum.
 
zagatoes30

zagatoes30

Member
Messages
21,065
No doubt there will be a drop in sales and anybody who needs to turn assists back into cash will have to sell at whatever the market will stand. I can see some cheap cash deals around the corner for those with a nest egg and potentially prices will improve in 6-12mths time as we come through this.
 
B

bigbob

Member
Messages
8,973
Ewan said:
Are they about to drop off a cliff?

With the markets in turmoil, everyone requested to stay home, hundreds of thousands of jobs at risk (i.e. anyone working for an airline, airport, hotel, restaurant, bar, club, theatre, shop (other than food), and their supply chains and stakeholders), surely the car industry is about to take the biggest battering ever. If you can’t even go to Costa for a coffee, who’s going to a garage to buy a car!?

I see that Maserati, Ferrari and Lambo have all closed their factories. Lots more to follow, surely. Especially in France, Germany and Spain.

So, I called a Caterham dealer to chat about a used car I have my eye on and asked what he could do on the price to incentivise me to commit there and then. His best offer? £O discount. Not even a mention of a free key ring. Oh, and if I wanted it delivered, that would be extra!

To quote Julia Roberts from Pretty Woman, “Big Mistake”. I’d like to see how many Caterhams he sells at full asking price over the next couple of months.
Click to expand...

Yep, only people getting new cars will be those whose PCP’s will be up in the next six months. Most cannot afford the balloon so will roll into another car, but a cheaper model. This was already happening - my local Audi dealer used to be one of the largest RS/S dealers in the UK but A1s seem to selling a lot better now than they used to!

Caterham dealers are strange creatures as they often have cars in stock for well over a year. He will just pretend winter is a bit longer this time round.

There is a hilarious thread on PH with some Supercar owners convincing themselves that top end mid engined exotica will not fall in value - wishful thinking, we are in for six months of carnage.
 
philw696

philw696

Member
Messages
25,666
Have to say for the first time in many years I only have 3 cars and none of them relatively expensive but all enjoyable.
None of us knew what was going to happen and what we're now in so you have to make the decisions that best suit yourself.
Nice to see people still chasing their desires though.
 
GeoffCapes

GeoffCapes

Member
Messages
14,000
A friend of mine who has his own events business has already laid off most of his staff, and is in the process of handing back his Porsche and has cancelled the new Volvo for his missus he has ordered. All on finance because he literally has no money coming in.

If all of the cars in your household are on finance and you have nothing coming in then it's the obvious thing to do.
Sadly I know of lots of people who will be in a similar boat. They all laugh when I say I buy all of my cars for cash, especially when I have a 9 year old Jag and they have brand new BMW's but the moment the brown stuff hits the fan, I still have my 9 year old Jag and they have to walk everywhere.
 
rockits

rockits

Member
Messages
9,185
There will be carnage on car sales new and used no doubt. Main reason is like the financial markets there were not in a good solid fundimental place in the first place.

Anyone who thinks prices will go up or stay the same are deluded. These are one of the prime assets some people still own that will be one of the first things to liquidise if they need quick cash.

WBAC and BCA will not be able to process the numbers and if they could the buyers won't be there so values will plumit.

I really don't see any scenario that plays out well in this sector. It could get very very messy. Especially if the virus huts hard and hangs around for some time.

Ewan, I would keep your pencil dry. Buy in a month or two or more and prices will be much less I'm convinced.

I can't see how they wouldn't be. Only the strongest, tightest business with cash reserves can do OK in the coming scenario.
 
Oneball

Oneball

Member
Messages
11,133
Im not deluded I was pointing out an alternate scenario.

I think this is going to be quite unprecedented in a lot of businesses in that a shortage of supply/reduction in production will occur in conjunction with an economic downtown and not because of it.
 
rockits

rockits

Member
Messages
9,185
Sorry I wasn't suggesting you were deluded btw. However there will be many in denial and believe that bizarrely prices will increase in some way.

There is already over supply and has been for years. The market is ripe for collapse as it was already sitting on a false precipice. It was never going to need much to nudge it.

It is for the long term benefit.....IF we learn. There will be some fallout and pain. I expect many of the nice guys or wrong people will lose out. Also that many of the wrong people and rich will benefit.

It all stinks.....but doesn't it always.
 
allandwf

allandwf

Member
Messages
11,019
I got a Jaguar Land Rover email today, letting me know they would come to me if required, even for test drives.
 
Phil H

Phil H

Member
Messages
4,199
You would hope that CV and end of month targets might be an incentive but who knows. I'm getting regular emails from a local Hyundai dealer who's keen to talk, although I'm quite happy with the present one as a dd.

Dick Lovett's revamped Ferrari showroom should be opening shortly, so I wonder if they'll have deals for those lucky enough to be looking.

PH
 
Ewan

Ewan

Member
Messages
6,843
VW has announced factory closures this morning. More to follow.

3m people in the UK work in the hospitality industry, and we have to assume that the majority of these will not be working for at least the next few weeks, if not months. For examples, the Carluccios chain is about to announce closures. How are these people going to be paying for their existing car loans, as its not as if these are highly paid jobs in the first place...
 
You must log in or register to reply here.