New Car Prices after lockdown

50Twuncle

What will happen to new car prices after lockdown has been removed ?

Dealers will have large unsold stock - so will have to offer some good deals in order to dispose of them ?

According to Honest John - used car prices have increased in the last few months

This implies that it could be a good move to sell a used car, now and purchase a new car in a few months time ?

neilmcl

No one knows. Wait and see, there's really no point in speculating.

AdrianC

50Twuncle said:

Dealers will have large unsold stock

Will they?

Just think about all the PCP and lease cars coming to the end of their finance over this few months. And remember that factories all over the world are closed, so no new cars are being built.

Exemplar

What an un-needed thread. No-one knows, don't speculate.

motorguy

As above.  Hard to say.  We'll know more once the dealers are allowed to reopen.  Supply v demand as always.

Kattekwaad

OK I'll bite.
Think this through.

The dealers and manufacturers want to give any prospective buyers the impression that the market is holding up and they will not be discounting.  They are talking their book and should be taken with a pinch of salt.

On the other side of the coin there are going to be many people who can't afford the cars they have at the moment.  Others will lose their job and be unable to service the finance so there will be repossessions

Car manufacturing is very different from (around) 2010 the last time there were huge discounts.  Manufacturers now tend to build cars when the order comes through so aren't sitting with a field of cars.  

So if you are going to buy a car you need to look at models that aren't popular (ie in stock) to get the best deals.

There will be deals but they may be short lived if depending on sentiment.

Good luck on selling a used car just now there is no market at the moment.

Scrapit

I can't see the prices falling much. Supply and demand, there's no supply currently which meets the no demand. At least one of those will change at some point.

DUTR

50Twuncle said:

What will happen to new car prices after lockdown has been removed ?

Dealers will have large unsold stock - so will have to offer some good deals in order to dispose of them ?

According to Honest John - used car prices have increased in the last few months

This implies that it could be a good move to sell a used car, now and purchase a new car in a few months time ?

Those that are fortunate to retain working, may well have more money than usual as there has been few places to spend.

born_again

Scrapit said:

I can't see the prices falling much. Supply and demand, there's no supply currently which meets the no demand. At least one of those will change at some point.

And when all the PCP/Lease cars are picked up and sold. 2nd hand market will hit rock bottom.

Scrapit

born_again said:

Scrapit said:

I can't see the prices falling much. Supply and demand, there's no supply currently which meets the no demand. At least one of those will change at some point.

And when all the PCP/Lease cars are picked up and sold. 2nd hand market will hit rock bottom.

But they are not new which the th read is about.  And pcp has been doing that to the market for a while.

Jonesya

Hard to call but a few further factors on new car sales:
- 50% of new cars go to company car fleets, will companies continue to replace their fleets at the same rate, or will they extend existing leases? 
- the rental companies buy new cars as they turn over their rental fleets, will they be buying as many as normal?
- most private purchases of new cars are bought on finance, will the economic situation and job uncertainty affect not only willingness to buy but willingness to lend?
- Related to above, there's also the issue around expectations of residual values because if future residuals are expected to rise of fall, that would then be reflected in cost of PCP or PCH deals making them more or less affordable.