What's going to happen to the car market?
- Thread starter bazaarboy
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- car prices
Soldato
I’m pretty sure with the model 3 that we are staring at a disruptive technology
Thing is Model 3 registrations are surely just back-orders that were put in long ago but have been held up by supply chain disruption. I wonder at what point that gets cleared and we will start to see cars ordered from April onwards being delivered?
Hmm. Doesn’t seem to agree with the anecdotes of busy dealerships and “pent up demand”.
Soldato
doesn’t it? I thought you had to wait for a car to be built before you register it? Only really Americans and some impatient British expect to turn up at a dealer and drive away in a new car.
+1
maybe boris will rethink scrappage ... if they are now doing a stamp duty paliative too.
The dealers were/are on a hold your nerve/price mission, analogous to the face off at end of for a few dollars more ?
Do we know if the purchases were company/businees biased
https://www.autoexpress.co.uk/news/105893/new-car-sales-reach-145000-june-dealers-reopen
ok - thought it was private that would suffer more, and business from higher waged professionals, would hold.
Soldato
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The business my mrs works for being one for them. She's kept a text message from her boss saying, since you are getting furlough pay I may need to ask you to come in and work on some days.
We're almost certain she's being made redundant in September, but wasn't sure if it was a fair ask or not.
Soldato
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In my experience (was around a month ago now), when I phoned round lots of brokers they were offering very low GFVs compared to main dealers. They also couldn't match dealer APRs either.
Soldato
Not at all fair. She’s either furloughed and being paid to stay home or she’s working (as normal, reduced hours or WFH). There is no middle ground of “furloughed part-time”.
Soldato
Companies were loosing money hand over fist whilst closed, so they won’t be replacing fleet vehicles that have hardly been used in the last few months.
That isnt legal. The government was paying people to stay home, not simply covering their wages so the employer gets free man hours.
I was working from home and on call. They had to keep paying me normal wages for that.
It is now from 1st July. So long as she is paid for when she goes into work, employers can bring furlough staff back in for odd days or even part time hours during the week. They can;t just per her furlough pay when working though, that is illegal.
Soldato
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Yep, funnily enough there was a BBC news article on this last night which pretty much said the same thing. Employeers can ask staff back during furlough, but they have to be paid for the hours/days they work.
Anecdotally from other sources, the used industry appears to be doing well for now, with prices holding up. How long do we think this will last for? Until next month? October? Some other time? I'm slightly surprised how well things are holding up presently, but perhaps we're just seeing activity displaced from the previous quarter.
Thoughts/observations on how things are currently and where they'll go from here?
Thoughts/observations on how things are currently and where they'll go from here?
Soldato
I’m not sure the prices of used cars holding up or dropping really matter in the grand scheme of those. For dealers is about volume of sales and hence cash flow and the real danger is the supply starts dropping because new cars are a mess. We might see used forecourt prices not moving is just a reflection of dealers with limited sales trying to keep their business afloat?
I can imagine a few sales are a bit of YOLO/working from home which has boosted the last 7weeks or so.
I can imagine a few sales are a bit of YOLO/working from home which has boosted the last 7weeks or so.
Soldato
The new car market is surprising all of us with its strength this month. Not sure how long it will last, but the performance seen in the last week or so of June shows little sign of abating.
Associate
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I think the furlough is having quite a big effect on maintaining the car market at the moment.
Soldato
Indeed, redundancy and cutting back new company car allocation will also injection a boost to used cars to keep those people mobile.
Caporegime
I’ve been watching the trade in and second hand prices of my S3 since February, and even selling to the likes of WBAC has seen a steady rise of around 22% (around £4k increase).
It doesn’t appear to be affecting all types of cars in the same way though, some of the cars I’ve been contemplating as a replacement haven’t really changed in value.
What has changed for me though is the fact that I’m not even considering new now (I was on the brink of going electric, but with WFH now a long term reality, the incentive has gone - namely free charging at work), and would prefer to own outright for the foreseeable. This is a complete 180 change from what I’ve been doing the last 9 years.
It doesn’t appear to be affecting all types of cars in the same way though, some of the cars I’ve been contemplating as a replacement haven’t really changed in value.
What has changed for me though is the fact that I’m not even considering new now (I was on the brink of going electric, but with WFH now a long term reality, the incentive has gone - namely free charging at work), and would prefer to own outright for the foreseeable. This is a complete 180 change from what I’ve been doing the last 9 years.
Soldato
I'm along the same lines. Was considering electric at the start of the year but now with WFH being the new norm (possibly longer term for me too), I'm thinking why not just stick with a gas guzzler and enjoy it. I've also been watching the used car prices and was surprised to see I could still get about £20k (selling private) for my (admittedly well kitted) 2015 S3. WBAK offered me about £15.5k!