The effects of the virus on machinery dealers.

[Clive]

I agree, its good these companies have masses of cash to throw away so people can have cars at less than cost price.

They can buy a LOT better than we do so they pay less, they can also buy nett of vat ....... that 20% makes a big difference

 

[Clive]

Probably boils down to what age of car you want

Exactly - people try too compare buying an old cheap car to a new expensive one ....... not really a valid comparison is it !

I rent some cars and buy others, the ones I try to to own are ones that have low or zero depreciation. What would anyone want to own a asset that depreciates ?

 

[quattro]

Old lorries will be running around ATM as no techs or part's to keep modern lorries going and with no mot needed it time for the classics to roll again

Testing of a lorry shouldn’t really make ant difference,they still need to be 6 weekly inspections
at which point they should be in a condition to through a test

 

[Clive]

You aren't comparing apples with apples.

Anything remotely exotic normally has inflated repair and parts prices.

'Excuse me, Mr parts manufacturer, can I buy a clutch for my Lamborghini directly from you?'

'No, Signore, you must speak to Mr Lamborghini, grazie...'

I‘m talking about daily drive family cars and farm pickups, mundane depreciating tin boxes etc , the exotic stuff is better owned, in the past its even been investable ....... appreciation not depreciation !

 

[Cowabunga]

It has taken a long time for "these kind of events" to come round, to support the theory that renting a car is the only sensible option...

I agree. It doesn't happen often but it is the case currently if you can actually do without the vehicle.

 

[Lincsman]

Exactly - people try too compare buying an old cheap car to a new expensive one ....... not really a valid comparison is it !

I rent some cars and buy others, the ones I try to to own are ones that have low or zero depreciation. What would anyone want to own a asset that depreciates ?

I find people cost their cars on full retail comparing to auto trader at 3 years to calculate depreciation, even Farmers who never pay full retail for a tractor. 15% is always available on a new car, and usually more... my last one was 28% off... Pre reg and no finance available.

 

[Clive]

Understanding finance deals and hire , cash is more important for a farmer than knowing how to grow wheat these days, its amazes me how many clearly just don't understand how to best use their most important input .......... money

 

[Clive]

I find people cost their cars on full retail comparing to auto trader at 3 years to calculate depreciation, even Farmers who never pay full retail for a tractor. 15% is always available on a new car, and usually more... my last one was 28% off... Pre reg and no finance available.

Discounts depend on the car and climate , 3 years ago you wouldn’t have got a lot out of a land rover dealer ....... today they will give you shares ion the business if you take a car off their hands !

 

[ollie989898]

an even wiser tale .................

3 years ago a man wanted a new rage rover for his family to do 20k miles a year in, the car was £100,000............ some may think that excessive and say why not buy a 10k old car but a new Range Rover was his choice and something he could afford though hard work and wise investments

he had cash so could have bought it outright but he also ran a business where his capital was earining him 15-20% on his money. Using than money in his business for the next few years could make him 15-20k a year (45-50k total) ......... “opportunity cost”:

but he could still buy it cash and do his 20k miles for 3 years - today that car would be worth 40k ....... pre C19, Today though who know but I reckon 30K maybe ? So its cost him 60-70k depreciation to have use of that car for 3 years 60k miles. Plus serving at £800 pa. road tax at £500 pas and a set of tyres or 2 so lest say another £4K. Total cost of opening =. 65-75k !! .................. plus. The opportunity cost of that money ........ another 30-60k. ........ in effect its cost the thick end of 100k !!!


or he could have hired it for £1000 per month inc, tyres tax and service x3 years at £36000 total, next month he gives it back and doesn’t give a dam what it might be worth ! If he uses it fro work as well he can even recover a % of the VAT he’s paid on his rent


Comparing like for like (ie not a old cheap car vs a new expensive one, can buying be better ?

Buying for 100,000 or paying 36000 quid for the opportunity to drive it is all bloody madness in my book.

 

[Clive]

Buying for 100,000 or paying 36000 quid for the opportunity to drive it is all bloody madness in my book.

Your prerogative, but if you earned more and could afford it or were a wealthier man I suspect your attitude may change ? At the end of the day we could all get from A-B in a £500 car and live in a caravan if we are talking about NEED vs WANT

The example however is equally valid on a 30k car as it is a 100K one ............ the numbers are just a little less dramatic

 

[ollie989898]

Your prerogative, but if you earned more or were a wealthier man I suspect your attitude may change ?

The example however is equally valid on a 30k car as it is a 100K one ............ the numbers are just a little less dramatic

Nope, why the fudge would I want to waste near 40K to drive a Range Rover?

 

[Clive]

Nope, why the fudge would I want to waste near 40K to drive a Range Rover?

If you can afford to and want to then why not ? You are a LONG time dead !

It‘s all relative to what you earn etc ...... to some people burning a couple of million a year running their yacht is no big deal and good on them IMO if they earn it whyt the hell shouldn't they spend it ? Does no one any good in a bank accounts

 

[Clive]

Nope, why the fudge would I want to waste near 40K to drive a Range Rover?

So you win euro million you are telling me you wont move house, change car or change your life at all ? Nothing will change but you will keep a load off cash in the bank ? .................. how sad ........... maybe you shoulhd reevaluate what life is about ?

fancy cars are not everyone’s thing but the hire vs buy works regardless of price in relative terms IF the hire deal is right

I’m looking at options on hire vs buy on my next car right now and hire actually looks the more expensive option this time so will probably buys

 

[Drillman]

Exactly - people try too compare buying an old cheap car to a new expensive one ....... not really a valid comparison is it !

I rent some cars and buy others, the ones I try to to own are ones that have low or zero depreciation. What would anyone want to own a asset that depreciates ?

Thing is though 99% of people don’t “need” a shiny paint vehicle. A lot of it is oneupmanship on friends neighbors etc....


Edit although I for one am glad there are plenty of wanters in this world or There won’t be plenty dull rusty paint to filter down to peasants like me!

 

[Drillman]

So you win euro million you are telling me you wont move house, change car or change your life at all ? Nothing will change but you will keep a load off cash in the bank ? .................. how sad ........... maybe you shoulhd reevaluate what life is about ?

fancy cars are not everyone’s thing but the hire vs buy works regardless of price in relative terms IF the hire deal is right

I’m looking at options on hire vs buy on my next car right now and hire actually looks the more expensive option this time so will probably buys

I know a wealthy chap, he revels in running old cheap tractors and cars. Has a yard full of them. Doubt the lot would add up to the price of one new item but he likes the challenge of running the old stuff. Downtime is never an issue either all he does is go get another one out of the shed to keep him going and fixes the broken one wen he gets round to it.

 

[ollie989898]

So you win euro million you are telling me you wont move house, change car or change your life at all ? Nothing will change but you will keep a load off cash in the bank ? .................. how sad ........... maybe you shoulhd reevaluate what life is about ?

fancy cars are not everyone’s thing but the hire vs buy works regardless of price in relative terms IF the hire deal is right

I’m looking at options on hire vs buy on my next car right now and hire actually looks the more expensive option this time so will probably buys

I wouldn't change my house. I would change myself in a lot of ways.

 

[ridger]

I'm driving a merc that cost £1000 around 18 months ago, cant see the point spending a heap of money on a car, I'm glad I haven't to find £1000 a month for a car now, when my income is almost gone because of this virus

 

[Hooby Farmer]

There are always bottom feeders, hoping for some Domesday scenario, that they personally can profit from other poor people's misfortune; waiting for land, rents, houses, car prices, tractor prices, etc to crash. Such individuals seldom come to much good, when opportunities do present, they always think it has still got further to fall...
I hope Karma exists.

I really disagree with that statement, its only when the tide goes out you know who's been swimming with no shorts. I do not personally wish harm or misfortune on anyone. I bought property in the 2008 downturn off banks for very little, which were from large property developers it wasn't a personal thing. A good example would be a farm locally was going to auction by the bank. My father and another farmer went to the agent to enquire about it, they were asked not to bid on it as the family were trying to buy it back....fair enough no problem they did the decent thing. Said farmer today got the farm back and would hold you under the heel of his boot if he could. Some people count on karma for vengeance, “He done wronged me, and he’ll get his comeuppance when karma bites him in the ass.” The very principle of it doesn't work like that it's not a universal justice. People dont get what the deserve, they get what they attract.

 

[Johnnyboxer]

an even wiser tale .................

3 years ago a man wanted a new rage rover for his family to do 20k miles a year in, the car was £100,000............ some may think that excessive and say why not buy a 10k old car but a new Range Rover was his choice and something he could afford though hard work and wise investments, The example below therefore compares buying vs hire of THAT car and not a pointless comparison of a 100k RR to a 10K used discovery etc !

He had cash so could have bought it outright but he also ran a business where his capital was earining him 15-20% on his money. Using than money in his business for the next few years could make him 15-20k a year (45-50k total) ......... “opportunity cost”: whilst keeping his 100K capital safe and not depreciating

BUT he could still buy it cash and do his 20k miles for 3 years - today that car would be worth 40k ....... pre C19, Today though who knows but I reckon 30K maybe ? So its cost him 60-70k depreciation to have use of that car for 3 years 60k miles. Plus serving at £800 pa. road tax at £500 each year and a set of tyres or 2 so lest say another £4K. Total cost of opening =. 65-75k !! .................. plus. The opportunity cost of that money ........ another 30-60k. ........ in effect its cost the thick end of 100k !!!


or he could have hired it for £1000 per month inc, tyres tax and service x3 years at £36000 total, next month he gives it back and doesn’t give a dam what it might be worth ! If he uses it for work as well he can even recover a % of the VAT he’s paid on his rent


Comparing like for like (ie not a old cheap car vs a new expensive one, can buying be better ?

I wasn’t talking about a £100k R
That is excessive and simply garish - to most folk
I was talking about mr Normal with a £10k 3 year old family car
You must move in different circles, to most here ...where image is more important than common sense

 

[Lincsman]

They can buy a LOT better than we do so they pay less, they can also buy nett of vat ....... that 20% makes a big difference

They will pay VAT on the sale price when its auctioned.