Coronavirus effect on car prices?

treeroy

I'm in the market for a new car and have seen a few adverts at good prices be up for a while and not selling. I would imagine once the used car market re-opens in 3 weeks, that prices will be going down significantly. 

I am just hoping i don't get stuck with my lease car for too long as lease company will not be able to pick my car up if we're on lock down.

[Deleted User]

It won't be 3 weeks. More like 3 months.

motorguy

fred990 said:

Very tempted too. Late low mileage main dealer 535d estate with toys now plummeted in price, might cycle round to see how keen they are to shift it!

That surprises me.  We are, after all only two weeks in to this.  Odd a main dealer is knee jerking already - in fact when you typed that we were a week in.

motorguy

I think prices will drop, but i cant forsee any big changes imminently among dealers (given most are closed).

It wouldnt surprise me if prices on some cars were down 25% in 6 months time.

marlot

Pre-reg/Nearly new could be very popular as factories have been closed and people might not be prepared to wait for new.

There's going to be a huge glut of ex lease/PCP cars.  Some people will have lost incomes so won't be looking to replace.

motorguy

marlot said:

There's going to be a huge glut of ex lease/PCP cars.  Some people will have lost incomes so won't be looking to replace.

Surely all those cars would be coming back at the end of the term anyway, so no extra used cars on the market?

Mercdriver

motorguy said:

marlot said:

There's going to be a huge glut of ex lease/PCP cars.  Some people will have lost incomes so won't be looking to replace.

Surely all those cars would be coming back at the end of the term anyway, so no extra used cars on the market?

They might have lower mileage on them, so potentially higher value...
Who knows how long this piece of string is?

fred990

motorguy said:

fred990 said:

Very tempted too. Late low mileage main dealer 535d estate with toys now plummeted in price, might cycle round to see how keen they are to shift it!

That surprises me.  We are, after all only two weeks in to this.  Odd a main dealer is knee jerking already - in fact when you typed that we were a week in.

Duh... my schoolboy error. They added a very nearly identical cheaper 530d that looks the same! 
I'll be watching both. 

marlot

motorguy said:

marlot said:

There's going to be a huge glut of ex lease/PCP cars.  Some people will have lost incomes so won't be looking to replace.

Surely all those cars would be coming back at the end of the term anyway, so no extra used cars on the market?

They're not currently collecting end of lease cars, so there will be 3-4 months worth arriving in a compressed period.
If dealers manage to sell their existing stock quickly it might not matter.  But I suspect there will be a temporary mismatch between supply and demand.
Might be a good time to buy.

[Deleted User]

The fact that a lot of people are unemployed or at best on 80% pay, and a lot of businesses are gone, will push down prices a lot.