The effects of the virus on machinery dealers.

holwellcourtfarm · Apr 6, 2020

Clive said:
the average car bought by the average guy costs more than 10k - plenary of new cars are sold every year

The example stands the sane for a 25k car as it does a 100k car

Actually the "average" car is second hand. They are only new once but usually sell 4 or 5 times before they are scrapped (although that's debatable with the most modern, technology crammed, ones that will often be uneconomic to repair at 7 years old because they need some now obsolete electronic part but are otherwise fine

). The majority of people buy a used car.

holwellcourtfarm · Apr 6, 2020

ColinV6 said:
I fall into the expensive PCP car category, however I’m shocked at how many on here assume it’s just a willy waving excersise.

Cars are my passion, also my Dads, I started reading autocar magazine when I was about 5 years old, and my shiny new model isn’t to impress the neighbours, it’s purely because I absolutely ADORE it, looking at it, and getting out there and driving it on some proper roads. Gives me a huge thrill and a buzz of joy every time.

There’s not a cat in hells chance I could have bought it cash, so I took a 0% apr pcp deal for 4 years.
However I love it so much I’m tempted to pay the balloon and keep it. I fear new cars from now on are becoming too dulled down, too many regulations.

In a car that's your prerogative. Sadly many have taken that same approach to tractors / combines / foragers etc for decades and then complain that their produce is too cheap.

bumkin · Apr 6, 2020

Clive said:
if car values drop 50% you loose £500 ........ on my contract hire car I loose nothing

the problem is if you have a car on contract and your income drops of you loose the car if you have your own car your ok till you need to find the insurance & road tax

bumkin · Apr 6, 2020

ColinV6 said:
I fall into the expensive PCP car category, however I’m shocked at how many on here assume it’s just a willy waving excersise.

Cars are my passion, also my Dads, I started reading autocar magazine when I was about 5 years old, and my shiny new model isn’t to impress the neighbours, it’s purely because I absolutely ADORE it, looking at it, and getting out there and driving it on some proper roads. Gives me a huge thrill and a buzz of joy every time.

There’s not a cat in hells chance I could have bought it cash, so I took a 0% apr pcp deal for 4 years.
However I love it so much I’m tempted to pay the balloon and keep it. I fear new cars from now on are becoming too dulled down, too many regulations.

i have had to work too hard for my money to waste it on new cars , mine have usually been 4 years old and ended up parked in the nettles, when i was young i bought write offs or mot failures and got them going , and got a great deal of satisfaction from it, but basically what i learnt was cars are just something that you buy and then it starts to fall apart if you buy a steer you have a chance you will have something to sell for more money

hally · Apr 6, 2020

ColinV6 said:
I fall into the expensive PCP car category, however I’m shocked at how many on here assume it’s just a willy waving excersise.

Cars are my passion, also my Dads, I started reading autocar magazine when I was about 5 years old, and my shiny new model isn’t to impress the neighbours, it’s purely because I absolutely ADORE it, looking at it, and getting out there and driving it on some proper roads. Gives me a huge thrill and a buzz of joy every time.

There’s not a cat in hells chance I could have bought it cash, so I took a 0% apr pcp deal for 4 years.
However I love it so much I’m tempted to pay the balloon and keep it. I fear new cars from now on are becoming too dulled down, too many regulations.

It’s not a waste of money if you enjoy it and it makes your life better, that goes for a lot of things including top line tractors, fancy houses or foreign holidays..... whatever floats your boat, we are all different.

Drillman · Apr 6, 2020

Ok just so we can all get back on topic I googled this-

Much cheaper than a Range Rover it seems???

I bet they would do a finance package as well for them so inclined??

Tarw Coch · Apr 6, 2020

Drillman said:
Ok just so we can all get back on topic I googled this-

View attachment 868687 View attachment 868686 View attachment 868687
Much cheaper than a Range Rover it seems???

I’m not sure wether that’s going to get things back on topic or send it speeding off at a new tangent.

You’ve got some explaining to do now if someone checks your search history though.???

Drillman · Apr 6, 2020

Tarw Coch said:
I’m not sure wether that’s going to get things back on topic or send it speeding off at a new tangent.

Mite give folks a chuckle though which at the moment is no bad thing?

Range Rover results for the cost of a used Ford Focus can’t be bad??

Hooby Farmer · Apr 6, 2020

Where do i sign up ???

D14 · Apr 6, 2020

Spoke to a friend who only deals in used stuff this morning and he's very quiet. 2 weeks ago he told me things were fairly slow but today very quiet sales wise. However hasn't got enough staff for all the repair work and is trying to find two new experienced fitters to join a team of 5 already.
He's being offered lots of tractors from dealers wanting to shift them but the prices are all far to high so he's not adding to his existing stock level. He did actually say he thinks we are now seeing the problem of the overinflated trade in values coming to fruition which the manufacturers are to blame for due to using the price of the new ones beyond most peoples ability to justify them. He said the average 5 year old 200hp tractor with 5000 hours is at least £15,000 to expensive in the trade.

Johnnyboxer · Apr 6, 2020

D14 said:
Spoke to a friend who only deals in used stuff this morning and he's very quiet.

2 weeks ago he told me things were fairly slow but today very quiet sales wise.

However hasn't got enough staff for all the repair work and is trying to find two new experienced fitters to join a team of 5 already.

He's being offered lots of tractors from dealers wanting to shift them but the prices are all far to high so he's not adding to his existing stock level.

He did actually say he thinks we are now seeing the problem of the overinflated trade in values coming to fruition which the manufacturers are to blame for due to using the price of the new ones beyond most peoples ability to justify them.

He said the average 5 year old 200hp tractor with 5000 hours is at least £15,000 to expensive in the trade.

That's going to smart on a Main dealer's stock inventory, in 3-4 months when their CV19 cashflow tightens and they have to sell at a big loss

D14 · Apr 6, 2020

Johnnyboxer said:
That's going to smart on a Main dealer's stock inventory, in 3-4 months when their CV19 cashflow tightens and they have to sell at a big loss

Yep and thats why he said there seems to be a panic to offload them at high prices ultimately shafting the likes of him that only deals with used which he has to sell on with some form of warranty. He can live off his repair work which just seems to get busier with people repairing rather than bothering to look to replace. He did say this has been the trend the last 18 months prior to the current worldwide situation. He's even had a lorry load of tractors in from Norway for a full gearbox repairs because over there apparently tractor prices are stupid expensive and dealers don't want to repair they just want to replace.

Johnnyboxer · Apr 6, 2020

D14 said:
Yep and thats why he said there seems to be a panic to offload them at high prices ultimately shafting the likes of him that only deals with used which he has to sell on with some form of warranty.

He can live off his repair work which just seems to get busier with people repairing rather than bothering to look to replace.

He did say this has been the trend the last 18 months prior to the current worldwide situation.

He's even had a lorry load of tractors in from Norway for a full gearbox repairs because over there apparently tractor prices are stupid expensive and dealers don't want to repair they just want to replace.

Sensible to keep cashflow going with repairs and pick & choose any tasty cheaper machines, offered...........in future months

Contrary to Clive's viewpoint, cash is king at present and he can name his price to get a bargain.......down the line

(btw way, just listening to a solicitor on the radio, that 'cash is king' in these troubled times, so seems like I am not the only one and everybody is preserving/conserving cash liquidity, right now)

D14 · Apr 6, 2020

Johnnyboxer said:
Sensible to keep cashflow going with repairs and pick & choose any tasty cheaper machines, offered...........in future months

Contrary to Clive's viewpoint, cash is king at present and he can name his price to get a bargain.......down the line

(btw way, just listening to a solicitor on the radio, that 'cash is king' in these troubled times, so seems like I am not the only one and everybody is preserving/conserving cash liquidity, right now)

Of course cash is king. In fact cash is king all the time!

ollandroverman · Apr 6, 2020

bumkin said:
the problem is if you have a car on contract and your income drops of you loose the car if you have your own car your ok till you need to find the insurance & road tax

With that statement you are taking the assumption that everybody who has finance of some sort on a vehicle is spending right up to, or beyond, the the limit of their income.

holwellcourtfarm · Apr 6, 2020

ollandroverman said:
With that statement you are taking the assumption that everybody who has finance of some sort on a vehicle is spending right up to, or beyond, the the limit of their income.

Spending is all discretionary until you lock it in. Once you sign a finance contract you do just that. A majority of folk these days live up to what they earn and a good deal of that will be locked in.

Mortgage
Credit cards
Bank loans
Car finance
Phone contracts
Tv/broadband subscriptions
Etc, etc.

For many it doesn't leave much discretion.

Very few folk I have worked with could stand missing one paycheck without their lives starting to crumble.

Martin Holden · Apr 6, 2020

Clive said:
income is what you live on

savings are depreciating right now and costing you in relative terms, savings and investments you might have today are worth significantly less than savings you had a month ago (as is any cash under your mattress !)

You won’t convince some folk. The notion of “cash under the bed” is a bit old hat now and even if the bed is a deposit account it ain’t growing!!

Treemover · Apr 6, 2020

Don't know if I agree with the sentiments above. I know plenty of people that have bought various things, tractors, land, putting some on the books and the rest in cash. In that fashion, I couldn't believe how much of a discount they got, but to some people CASH still is king.

I have some wealthy clients; and the richest of them dont have the latest cars every year or every 2 years. They put their money into better things. One guy I was moving trees for, owned a lot of property in Dublin; his country residence was half a mile from a range rover dealer. The dealer every now and then would throw him a demo car; he nearly bought one, but told me if he had 80k to blow on a whim hed buy a painting or something that wouldnt depreciate. So the next day he bought a painting for 120k. Still has the jap imported landcruiser as his main car.

Everyone has a different angle.

7610 super q · Apr 6, 2020

Nothing depreciates quite like a new car. Except maybe a new tractor. But at least tractors seem to have a dead cat bounce from a great height , and start appreciating again after 40 years.
Anyway, back to the OP..... new tractors and machinery have risen at an alarming rate over the last decade. I for one hope there'll be some bargains about over the next few months. If not, f**k it, I'll do without. I don't feel guilty about bottom feeding. After all, I sell all my produce at 1970's prices + discount.

holwellcourtfarm · Apr 6, 2020

7610 super q said:
Nothing depreciates quite like a new car. Except maybe a new tractor. But at least tractors seem to have a dead cat bounce from a great height , and start appreciating again after 40 years.
Anyway, back to the OP..... new tractors and machinery have risen at an alarming rate over the last decade. I for one hope there'll be some bargains about over the next few months. If not, fudge it, I'll do without. I don't feel guilty about bottom feeding. After all, I sell all my produce at 1970's prices + discount.

Combines drop faster!

Maybe after all this some manufacturers will start offering ranges with minimal electronics at sensible prices?

The effects of the virus on machinery dealers.

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