Buying a car with today’s news of the recession

anto135

Basically I’ve been planning to buy a new (not actually new but used) car for a couple of months now and I’ve been saving to pay off previous debt and to also put a deposit on finance or put towards a loan for a car.

I know it would be difficult to give an answer/predict due to all of the factors involved but with the news today that we’ve entered a recession I’m wondering if I could get any advice on the best course of action. 

I’m planning on getting something for around 10-15k and I’m either going to get a loan or through car finance.

With the news today of the recession, and I understand it’s probably difficult to say given all the factors involved. Would it be better to buy something sooner or later, as in is there a trend of prices rising or falling during a recession? Also does the cost of finance/loans change much during a period like this?

Any advice is appreciated. 

Thanks 

Mickey666

The 'news' today of the recession is not exactly news is it. 

Economic forecasting is notoriously difficult and even the so-called experts often get it wrong but if any country is locked-down in the way we've recently seen was there anyone who was honestly expecting that there wouldn't be a recession as a result?

This recession (and remember it's a technical definition), unlike previous recessions, has nothing to do with underlying economic conditions.  It's a purely 'artificial' thing brought about by government closing down the country and consequently it's economic activity.  A 'recession' was always going to happen as a result and should be no surprise to anyone.

The good news is that as the brakes are removed it's reasonable to expect the underlying economic condition to reassert themselves and we can probably expect to see some record month-on-month growth figures as the economy recovers.  But again, they will be no real reflection of the underlying economy because these events really are unprecedented.

The real risk for recovery is whether too many businesses have been permanently damaged, but only time will tell.

The_Rainmaker

Why are you spending £10-£15k on a car, when you have been struggling to pay off debt.  If you need need a car at the moment buy a banger and see where the country is in a year or so's time.

AdrianC

Mickey666 said:

The 'news' today of the recession is not exactly news is it. 

Quite. Anybody even mildly surprised by this must have been hiding in a cave for months.

burlingtonfl6

Prices are sky high, stock is low and demand is high. 
I'd wait

Dr_Crypto

Nobody knows. I’m in the same position - I want to get a new car but no huge pressure.
Some people say the economy is basically in a coma and will wake up again and quickly get back to normal. I’m not so sure. 

MinuteNoodles

Like all the previous recessions I've experienced since the early 1980s the impact on the majority of people is negligible to nothing and it tends to be those who try to make loads of money out of thin air or those who do things society can function happily without who suffer the worst. I do agency work in haulage and I'm on holiday next week. The recession is having such an impact that I got a text today that read "you chose the worst time to have a holiday, it's as busy as hell on days next week". I'm not worried, I haven't been in any recession.

We're in recession because people haven't been able to spend money, not because they don't have money to spend. You don't say what you do for a living but if you've not been furloughed or were only furloughed until the first batch of places that were allowed to re-open opened I'd not be overly worried.

anotheruser

Also seen on other forums that prices are high as people haven't been buying new cars, so they're not filtering down the used ladder.
Next year could be a boom year as I would guess many businesses are looking at "working from home" options, so many people may get rid of one car meaning there will be loads around.
The fact the dealership I was looking at doesn't take card has sealed the fate of this decision for me - wait until next year.

anto135

Just to clarify I’m not struggling to pay off the debt I have, I never said that. It’s debt that doesn’t necessarily need to be paid off anytime soon as but I’ve worked harder to get in paid off sooner to try to get my credit in the best possible place so I can get get the loan/finance at a good rate when I do decide to get a car. 

Also, funnily enough, I work for BCA and I’m no longer furloughed. Judging by my current workload I’m not worried about my job security but I also don’t work in any relation to the sales side so I’m not educated enough to make a decision on current markets.

I also understand that the announcement today is more of them just declaring it rather than it being new news but surely them declaring that is going to have a follow on effect.

I’ve got a car for the moment so based on what people have said so far I think I’ll bide my time for now.

The_Rainmaker

anto135 said:

Also, funnily enough, I work for BCA and I’m no longer furloughed.

I would have thought you are perfectly placed to get an idea as to the prices cars are making at auction (might need to chat someone up in the office) pick a few models of interest and watch how prices are going.  Keep notes.

From comments on here prices seem quite high at the moment for whatever reason, pent up demand, folk not wanting to catch the bus etc.  But how long can that last once the furlough scheme ends.

My comment about debt was more to suggest taking on unneeded debt at this time may not be wise.

molerat

I commented on prices on another thread a month or so ago so I have just had another look on Autotrader. Prices are now higher than they were then and it would cost more to buy my car at 9 months old and 3K miles than I paid last December at 2 weeks old with 10 miles on the clock.  My son in law knows a salesman and he says prices are high and rising as there is a limited supply of quality used stock and they are shifting what they get pretty quickly so no shortage of buyers, old bangers are still 10 a penny though.

As for a recession, lots of doom and gloom in the press but much of that had already been factored in and the markets rose.  Dr Martens announced they will pay back the furlough money and are looking at opening new shops.  There are many out there to take the place of those that failed to adapt.