Car Crash

[WitsEnd]

With the evident downturn in house prices, has anybody noticed a downturn in car prices? With repossession comes seizure and disposal of assets. The price of petrol can't be helping, particularly with the gas guzzlers, and executive models.

How much of a downturn would the car market need before it seriously affects the crunch?

The two biggest purchases Joe Bloggs will make are a house and a car, and as belts are tightened, the 4x4 will have to go surely?

[Guest Bart of Darkness]

Bump.

[Bardon]

Once the demand drops right off I am going to get a strechted hummer.

[Guest Bart of Darkness]

Once the demand drops right off I am going to get a stretched hummer.

Have you been getting those emails as well?

Oh wait, a hummers a kind of car isn't it?

[Bardon]

Have you been getting those emails as well?

Oh wait, a hummers a kind of car isn't it?

Its how you use it I convinced myself of that

[Mikhail Liebenstein]

I reckon the price of so called gas guzzlers has dropped and certainly sales of cars to individuals are down, though fleet is apparently ok (something I read). Porsche were embarking on suing the Mayor of London over the £25 congestion charge which they must have thought would damage UK sales. Now that Boris as dropped the scheme, I assume they probably won't bother. Though it does seem the fuel price is having a significant impact on its own.

[Guest KingCharles1st]

One of my business associates in the motorsport arena, now retired, has in his barn a Ferrari Daytona, low mileage, metallic purple, "bought during a previous fuel crisis as it was soooo cheap I just couldn't pass it by."

I'm hoping I can get an Aston..

[the primitive]

With the evident downturn in house prices, has anybody noticed a downturn in car prices? With repossession comes seizure and disposal of assets. The price of petrol can't be helping, particularly with the gas guzzlers, and executive models.

How much of a downturn would the car market need before it seriously affects the crunch?

The two biggest purchases Joe Bloggs will make are a house and a car, and as belts are tightened, the 4x4 will have to go surely?

Some real data from the US (From the Economist).

[the primitive]

Eek no idea why it appeared 3 times, sorry....

Edited July 6, 2008 by the primitive

[AwaitingFairPrices]

With the evident downturn in house prices, has anybody noticed a downturn in car prices? With repossession comes seizure and disposal of assets. The price of petrol can't be helping, particularly with the gas guzzlers, and executive models.

How much of a downturn would the car market need before it seriously affects the crunch?

The two biggest purchases Joe Bloggs will make are a house and a car, and as belts are tightened, the 4x4 will have to go surely?

I don't think the car market affecting the crunch is the right way to look at it.

Even though we have a credit crunch, recently I've seen more 0% interest deals on cars, and this is clearly a sign of the pain they are starting to feel. Just look to the US where GM had to offer amazing deals involving discounts and 0% interest at the same time just to keep their figures respectable in May.

A downturn in the car market will affect our chance of recession, as like housing, there is a lot of industry attached to 'cars' and if job losses start to appear here it's going to accelerate our economic problems.

AFP

[The Masked Tulip]

As someone who is currently carless and looking I can only say that I ain't see any real reduction in new or used prices on the forecourts.

I am seeing a few dealers offer 0% on certain models but, only yesterday, I was surprised by numerous TV adverts from different firms offering way above 0% finance on new cars. I would have thought that by now a 0% deal would be the only way to get punters to buy?

There does seem to be a glut of bigger cars, 4x4s and, oddly enough, vans in the dealers but prices do seem high still.

[AteMoose]

With the evident downturn in house prices, has anybody noticed a downturn in car prices? With repossession comes seizure and disposal of assets. The price of petrol can't be helping, particularly with the gas guzzlers, and executive models.

How much of a downturn would the car market need before it seriously affects the crunch?

The two biggest purchases Joe Bloggs will make are a house and a car, and as belts are tightened, the 4x4 will have to go surely?

Yes, i see from the cars lining the roads with for sale signs in that lots of people are currently trying to sell larger cars, this started in April when the c02 tax bands were rolled back to cover older cars, a large estate, a faster coupe, 4x4 all are taxed at higher bands, next year the road tax will be 400 a year, beyond that I expect the road tax on G band will rise and rise, imho £1000 PA within 5 years. This fear combined with higher fuel has caused a massive crash in older nicer cars....

Edited July 6, 2008 by moosetea

[crouch]

As someone who is currently carless and looking I can only say that I ain't see any real reduction in new or used prices on the forecourts.

I am seeing a few dealers offer 0% on certain models but, only yesterday, I was surprised by numerous TV adverts from different firms offering way above 0% finance on new cars. I would have thought that by now a 0% deal would be the only way to get punters to buy?

There does seem to be a glut of bigger cars, 4x4s and, oddly enough, vans in the dealers but prices do seem high still.

I've just bought a used BMW 330ci coupe from a main dealer. The asking price four weeks before was £2500 more than I paid; a one off -possibly but maybe not?

[Harry Sacks]

I recently bought a 4.2 diesel Toyota land cruiser as I needed something to tow three and a half tonnes. When looking through the old service bills I found a bill of sale from last year - £6000. I paid £2800.

I have found it uses the same amount of fuel as my 2007 Ford Transit.

[yawnIHateSundays]

Put a 10 year old Passat 2.8V6 on ebay in March, had just 1 offer at the reserve price of £1000. Glad to get rid of it really as it averaged 27mpg.

[The Masked Tulip]

Been seeing quite a bit of the below in Wales in recent weeks

Workers shocked as car firm announces loss of 157 jobs

http://www.walesonline.co.uk/business-in-w...91466-21268066/

[stuckmojo]

I am not seeing anything dramatic, yet. I've been thinking of replacing my loved Z3 with a Z4, but prices haven't moved in the last 6 months.

I'm not in a hurry though. I get 40MPG out of mine as I only do motorway.

[19 year mortgage 8itch]

Pendragon cutting 500 jobs

http://www.manchestereveningnews.co.uk/new..._spark_job_cuts

I'd agree with TMT here, I've heard dealers are offering very low on gas guzzler trade in, "car tax innit, no one wants them" but they haven't quite dropped their asking prices for what they're selling. Similar stand off/denial as house prices I expect. Personally I think dealers will try their hardest to maintain the price of smaller, efficient, low tax cars as the public rush in to "save" money. Offer lower trade-ins on the same basis as the public's reasoning for buying low tax cars and try to maintain margins that way.

Will only get interesting when the money completely dries up. Until then the public will be more than happy to spend money to "save" money. Whilst thats happening there's money to be made.

[uro_who]

Our local BCA and Manheim auctions seem to be lovely and cheap. Standard £8-9k car at dealers seems to be going for 2-2.5k discount. The traders are picking them up much cheaper but trying not to pass them onto the customer. Best tip is go to the auction end August, early september as they try to shift the part exchanges that haven't sold.

[19 year mortgage 8itch]

Our local BCA and Manheim auctions seem to be lovely and cheap. Standard £8-9k car at dealers seems to be going for 2-2.5k discount. The traders are picking them up much cheaper but trying not to pass them onto the customer. Best tip is go to the auction end August, early september as they try to shift the part exchanges that haven't sold.

So the trade isn't daft but they're trying not to pass that onto the public yet. No surprise there. Ties in to what some of us are seeing then

top tip, go direct to auctions - just like houses

[The Masked Tulip]

I need a day out - how do you go about finding about car auctions in your area? Does every town have one or are they more regional - i.e. South Wales? I assume there are numerous different firms? Wouldn't mind going along to have a nose and see what is selling and for how much? I will take a packed lunch

[normdiploom]

I've been to several car auctions in the last couple of months, and watched what's been going through. Most buyers are trade, and these cars end up on forecourts.

There are an awful lot of cars going through and not selling, then being put back into the next auction, and the next.. People are just not bidding at all on some cars, on others their bids are being turned down by the vendors. The cars that are selling well are the smaller, more economical ones.

My feeling is that the trade are only buying what their customers want, but the auction vendors (who are mostly fleet, finance and large car retailers as I understand it) are still holding out for what they think these cars are "worth". If I'm right then transaction volumes should be down, at least on the large or prestige vehicles. Sounds a little like the housing market, doesn't it?!

[The Masked Tulip]

Ah, just found this for South Wales. Can someone please explain this link as I am a bit surprised to find several well known South Wales' dealers apparently selling cars via the auction - or am I reading this wrong?

http://www.british-car-auctions.co.uk/Defa...px?page=69#1753

[normdiploom]

Ah, just found this for South Wales. Can someone please explain this link as I am a bit surprised to find several well known South Wales' dealers apparently selling cars via the auction - or am I reading this wrong?

http://www.british-car-auctions.co.uk/Defa...px?page=69#1753

These are likely to be the part exchanged cars, which are just sent straight to auction. Also sometimes finance repossessions.

[pikestones]

Quote from the "Honest John" car website daily news,reporting on last weeks trade auctions.

http://www.honestjohn.co.uk/news/item.htm?id=4949

Big Price Variations at Auction Today

Fri, 4 Jul 2008 17:42

It’s all about emissions and conditions now. Low emission cars in top condition are over book. High emission, tatty cars are going for buttons. High mileage, high emission, tatty cars are the kiss of death.

dave