Chatting to one of my chaps in the trade - people that have bought cars at the inflated prices may soon be hit by negative equity - and the semi-conductor shortage won't be making a blindest bit of difference to sales or prices - because he reckons people are going to start keeping what they have because being blunt - they ain't going to have the money, and screen prices on forecourts are going to tumble so dealers can shift stock, and the expected happens where people are not going to be buying.Monkeybubbles wrote: ↑Fri Jun 24, 2022 10:46 am Are we expecting used car prices to start returning to normal in the next few months?
He reckons that the value of smaller, cheaper cars may well stay stable, because people are going to be looking to downgrade from their SUVs and posh saloons - and it's the prices of these that are likely to take the hit in the coming months where there becomes a glut of them in the market - especially around September time when people that wanted the latest reg on lease and PCP 3 - 4 years ago, start getting rid of their motors when their contracts expire and going to more economical types.
He reckons the fuel cost crisis and people having much less money in general is going to put a few independent dealers out of business - the little blokes who already still haven't recovered from no trading during Covid.
I think even the big ones may have to re-evaluate too, as I think Cazoo are bang in trouble already. They've already slashed jobs, closed vehicle preparation centres, and have had to drop their margins and restructure.