What's going to happen to the car market?

I was enquiring about a facelift MKII Superb at a local Skoda dealer and they are opening on the 11th for the workshop. They're doing home viewings and delivery. Decided to get something cheaper anyway as my job is too uncertain and I'm not in a rush to get a new car.

Hoping to get a super cheap XC90 or X5 sized car knowing it might need work I can do myself and keep money in the bank for more important things.
 
When are used car prices likely to drop, everything is still priced at pre CV levels?

Thinking of getting a 335d or 340i used, best to enjoy a 3 litre while I can
 
they have dropped - negotiate ?
... but , it does seem a gamble, on one side they want the immediate cash flow, on the other, the market may deteriorate, further depressing prices.
 
Maccy said:
Friend of a friend works for a Lexus dealership, they may be going back soon but will be "paired" up with another sales rep and work via a shift rota. There will be lots of PPE for staff and screens being installed, also they've been told test drives won't be offered initially.
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BallisticGT3 said:
Sytner Group is fully re-opening on 18 May.
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Nasher said:
18th is the current data for things to start reopening, but it might still get extended.
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That's interesting, I wonder why the 18th in particular? Presumably based on some sort of loose guidelines provided by the govt?

On the topic of the car market, some interesting data from Google:
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The cyclical dip you see is just before Christmas (as expected) and car finance searches correlate very positively with car for sale purchases. However, the dip you see on the far right is when lockdown was announced but it appears to be making a sharp rebound. It obviously tells you nothing about the mix of buyers (although you could probably dig deeper by searching for things such as 'ferrari for sale', 'mercedes for sale', 'new car for sale', 'used car for sale' etc).

What is interesting though is the positive correlation that was regularly seen before seems to be diverging for now (I don't think it will diverge forever by any means). Could this mean cash buyers will drive the resurgence in car sales?
 
DereksDontRun said:
add to any surplus stock already in the pipeline. I'm sure there's a few new models/facelifts being launched this September and they will already be either being built or at least have all the stock ordered and made - assuming sales figures based on last year... So, there's going to be a LOT of stock (either in full cars, or just bits) that will need to be sold (possibly at a reduced price) to prevent it being a financial millstone...

It won't just be automotive manufacturing tho... I'm a design engineer for a company that makes components generally used within the casino and pub trade - we can't just return after furlough and expect instant sales, we're going to need our customers to return, get themselves settled and in order before they can start placing orders with us, it's all a knock-on effect... And that's before any comments from last week (or so) about pubs possibly only re-opening in the winter... At least with global sales/markets we're not reliant on the UK trade - but I'm pretty sure we will not be returning from furlough to our previous hours/pay - personally 1/2 expecting to be asked to return to a 3 day week (for ~3 months) to keep our jobs. So, after dropping down to 80% salary (or even less with the cap) and then possibly dropping to 60%.... It just means less $ when we're entering a recession, great... Now, if other companies do similar gradual/phased employment after lockdown then it can only have a knock on effect to all manor of markets (housing, car, food, etc.)
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It certainly will effect all industry, i certainly didnt mean to imply that the automotive manufacturing will be the only one. This is going to be felt by everyone. I am back into work on Monday, as my role is very hands on, going to be staggering all of our start times for those of us that are going back. Very strict working conidtion with temp check before entering the site, all having to wear masks and face visors. Everything will end up taking a lot longer to do etc. We havent had anything comunicated down to us if they have plans, for us to only be working reduced weeks yet. But i can see it happening in the near future. I have been told that i will be working one day a week from home, been told to save all of my admin work for that day alone. Office based staff have been told they will continue to work from home. All meeting will done via teams.
 
Had confirmation from Mercedes they are delivering again, albeit slowly as they catch up with a backlog and operate under reduced capacity.
 
https://cardealermagazine.co.uk/pub...prepares-start-moving-values-next-week/191818

CAP announced expected drop of 3-5% on used prices. TBH, thought the drop would be more - but I guess this is potentially just the start...

‘However, I do think supply will be greater than demand and we are in for a volatile few weeks post lockdown.’

He warned that it may not be dealers flooding the market with stock in an attempt to get money back in their banks – it could be rental companies that cause issues.

They have been particularly hard hit by the crisis as tourism has dropped off and few people are hiring cars, he explained.

Martin added: ‘If the rental and leasing companies decide to flood the market with cars because of the downturn they have seen in their businesses then it could cause serious issues.
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I hadn't even thought about the rental market, but makes complete sense.
 
Judging by the 90's recession and the financial crash and car prices seem to stay around the same from what I recall. The only thing I noticed especially during the 90's was a lot of tat appeared used. People that had scrimped on servicing by using back street auto's and still wanted big money. Smaller cars will probably become big sellers again as people tighten their budgets.

I reckon the private EV market could take a real tanking if the economic forecast is as bad as they say. They will of course stay popular with company car market for tax reasons
 
skookum said:
Judging by the 90's recession and the financial crash and car prices seem to stay around the same from what I recall. The only thing I noticed especially during the 90's was a lot of tat appeared used. People that had scrimped on servicing by using back street auto's and still wanted big money. Smaller cars will probably become big sellers again as people tighten their budgets.

I reckon the private EV market could take a real tanking if the economic forecast is as bad as they say. They will of course stay popular with company car market for tax reasons
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That still happens with old "exotic" cars. You need to be careful what you buy :/

Also I wouldn't touch used BMWs with a barge pole (except proper collectable ones). They just seem to attract certain owners. So many have been clocked and other dodgy stuff done to them.
 
Journey said:
My prediction is car sales will be 50+% down on last year, and the only segments with growth will be BEV and PHEV, and possibly MHEV.
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Yes and I feel used cars will drop in the future as small car dealerships or owners need cash to survive will see some strong deals on cars of all values. Right now it is more luxary end of market seeing big impacts but it will filter down for sure.
Could be some very good opportunities in coming months.
 
https://www.motortrader.com/motor-t...st-lockdown-sales-finance-packages-14-05-2020
Volkswagen Group UK is aiming to build post lockdown sales with new finance packages for the Seat and Skoda brands.
When a customer finances a brand new model on Solutions Personal Contract Plan (PCP) via SEAT Financial Services, SEAT will pay between £1,000 and £3,000 deposit contribution, along with a three month payment break, at 5.9% APR.
It is also offering services included for £149 and an additional £500 if the order is placed before the 30 June.
ŠKODA is covering the first three payments on all new PCP agreements and offering deposit contributions of up to £4,250.
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starting a new pcp and needing to use the payment break too, sounds a bit contradictory
 
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