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Another Economic Indicator Perhaps..

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Large car sales company, shares down 22% today

Pendragon shares fell on Thursday as the car dealer moved to shore up its debt-laden balance sheet with a £75.2m ($121m) rights issue and refinancing. The fundraising is a condition of the banks agreeing to new three-year loan terms and will cut its £300m debt burden to around £220m by December, enabling a dividend to be paid next year. Existing investors will be offered new shares at 10p each, on the basis of nine new shares for every eight held.

http://www.ft.com/cms/s/0/354ae550-ae0a-11e0-a2ab-00144feabdc0.html#axzz1Ts9gDO2O

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The sector is going through pain. I can see it. Many garages I've seen have gone under or turned into hand car washes. Our garage nearby were mostly selling cars in the £5000+ bracket. Now they appear to be selling cheaper cars from £3000+. Theres a nice silver VW polo for £3500 in there, am I tempted?

Edited by Money Spinner

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The sector is going through pain. I can see it. Many garages I've seen have gone under or turned into hand car washes. Our garage nearby were mostly selling cars in the £5000+ bracket. Now they appear to be selling cheaper cars from £3000+. Theres a nice silver VW polo for £3500 in there, am I tempted?

Yeah I'm sure profitofdoom has seen the same thing in his business....5k has become too expensive, 3k is what's selling.

Which begs the question of why aren't we seeing the housing market falling? But one year ago or so the used car market was flying.....

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Give it time. I'm seeing £5-10K off properties after coming back from my 2 week break abroad. I am going through the final stages of my FTB purchase myself. Not too bothered if things go wrong as there are other, if not better properties in my price range now.

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Give it time. I'm seeing £5-10K off properties after coming back from my 2 week break abroad. I am going through the final stages of my FTB purchase myself. Not too bothered if things go wrong as there are other, if not better properties in my price range now.

You mean you are describing house deflation? You keep seeing that houses you may like are falling in value. So why buy today when it'll be cheaper tomorrow? Japan has had tht feeling for about 20 yrs so that some property has fallen 90% in value! Is that possible you ask, when it's the most populated country on earth for size? Yes, it is.

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Give it time. I'm seeing £5-10K off properties after coming back from my 2 week break abroad. I am going through the final stages of my FTB purchase myself. Not too bothered if things go wrong as there are other, if not better properties in my price range now.

yeah seriously you must be nuts to take a mortgage on something now. you're seeing falls after 2 weeks equivalent to a years rent and you're going to buy now? Bonkers, sorry.

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The difference is it is a house to live in. The plan from the start in 2004 was to buy a freehold 2-bed brick built starter home with a garden in an OK area and not to borrow not more than 3x my income on a fixed mortgage before I reached 30. This is trade plan I am sticking to. Except I am 31 now, so it was not perfect.

Sure I can wait 5 years to get to the bottom and just borrow 2x or even 1x, but Mrs Moneyspinner (with what she describes as poor health) deserves not to. Time is a bugger isn't it. I have remaining funds to hedge these falls and a contingency fund if all else fails which sure beats 90% of the rest of the public.

Now does anyone want to buy a clapped out Renault for £3600?

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Er...we are

....you mean as in the 5k car becomes 4,900? Bring on those 30, 40 and 50% falls!

Actually my situation is not too bad, prices are falling at 3.1% annually here, my rent is around 4% gross and I'm getting 0.2% interest on most of my savings! (Yen!)

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  • 284 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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