The effects of the virus on machinery dealers.

Clive

Staff Member
Arable Farmer
Location
Lichfield
@Clive reckons 80% is going to be tight

for an employee I think in many case it will be, I actually said it “ was about right”. When I disagreed with your idea it was too much

for a business though it could be good if the business wasn’t over profitable then having no costs but everyone ( inc directors ). Could be. better than the previously tight or even loss making situation they were in pre c19 !
 

Clive

Staff Member
Arable Farmer
Location
Lichfield
Everyone goes on about pcp,s/leases, i think I’d sooner have a vehicle on finance what’s worth less than is outstanding on it
Rather than one I had bought and was worth less than you’d paid for it

only an idiot would rather own a car than be rentIng it right now ! I have cars on contract hire and cars that I own ........ wish they were all on contract hire as at least 25% has been wiped off the value in the last month

its exactly these kind of events that makes renting a good idea
 
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Drillman

Member
Mixed Farmer
only an idiot would rather own a car than be rentIng it right now ! I have cars on contract hire and cars that I own ........ wish they were all on contract hire as at least 25% has been wiped off the value in the last month

its exactly these kind of events that makes renting a good idea
I disagree. 3 vehicles here all owned only one of them is likely to have dropped in value due to recent events.And even that ones value will have dropped by no more than a couple payments on a premium vehicle PCP scheme. So not a lot really. No payments either while there sat on the drive unusable either.
And I will guarantee the finance companies will look to recover costs on future arrangements on PCP lease etc. It will be done by upping the payment then disguising them by making payments weekly rather than monthly, lowering mileage limits etc etc. The drip drip drip of cash leaving accounts will be a bit more frequent.

In normal times it really doesn’t cost a lot to actually own a car eBay, FB and the auctions etc are fully of motors you can own outright for little more than a handful (or less) of payments. If shiny paint isn’t a priority in your life it’s the way to go!
 

Sid

Member
Livestock Farmer
Location
South Molton
only an idiot would rather own a car than be rentIng it right now ! I have cars on contract hire and cars that I own ........ wish they were all on contract hire as at least 25% has been wiped off the value in the last month

its exactly these kind of events that makes renting a good idea
Is that the same for property as well?
 
I was told used prices of everything, including cars could be extremely solid post crisis due to to factory closures, waiting times and those who would rather buy a three year old car and save 45% the cost of new. It may be Horlicks. Or it could have an element of truth.

Whoever told you that is a blithering idiot to be blunt. Thousands of business’s are going to fail and even the business’s who are using the 80% wage grant will will be at record levels when this is done and dusted.

Whos going to be buying these used cars etc when living off universal credit.


And nobodies mentioned the housing market yet. That’s completely rolloxed. Easily we could see 50% drop in values because there won’t be any buyers.
 
for an employee I think in many case it will be, I actually said it “ was about right”. When I disagreed with your idea it was too much

for a business though it could be good if the business wasn’t over profitable then having no costs but everyone ( inc directors ). Could be. better than the previously tight or even loss making situation they were in pre c19 !

80% is only tight if you made it so.

Why the fudge private individuals have cars on lease and massive loans I will never know. I hate having to pay the paltry amount on my credit card every month.
 

Johnnyboxer

Member
Location
Yorkshire
That depends on the value of the car and whether you can make the repayments.
A wise tale

So if you have made £10,000 worth of repayments/deposits on a shiny new car, you find yourself on universal credit and no means to repay any monthly payments.
They take it away, bill you for any shortfall in equity value (well before the GMFV falls due)
So, you have spent £10,000 are are left with nothing to show for it

If you had spent £10,000 on a good used car, you could SORN it and cancel the insurance (on your driveway) and still have a car, to use or sell later

How can PCP or Contract Hire be better???

When the music stops, depends where you are sitting...........on a chair or in mid air

I cannot forsee the World recovering financially from Covid, can you ?.......................for a good long time
 
I have never bought a brand new car and never will. It is utterly pointless. I do not enjoy/value cars to the extent that I would willingly watch hundreds of pounds a month disappear from my bank account in exchange for the privilege of new car smell.

I, in common with other family members, have run cars to high mileages before and in my experience I have never had a big repair bill that came close to the cost of finance payments on a vehicle I could not buy outright. New clutches, cambelts, water pumps or suspension components are dirt cheap compared to shelling out hundreds of pounds monthly and the age and mileage of cars makes depreciation a non-issue. It's almost like the car industry dreams up expensive horror stories to justify selling new cars.

Come the era of electric cars vehicle reliability will become such that buying new will become even more nonsensical.

The instances where PCP, hire/lease and buying cars are the ideal option are for businesses where tax is a consideration.
 

Clive

Staff Member
Arable Farmer
Location
Lichfield
Do you mean this event that has never happened before...and let’s pray to god it never happens again.
I will continue to buy second hand motors and let someone else take the depreciation

I mean economics game changing events have happened many times before and will happen again yes, wars, recession. terrorists all have happened in my life time and have caused fundamental shifts in economics

depreciation or runIng costs ...... take you pick I bet I’ve run new fancy cars that have e cost me less than a used buy in the past
 

kill

Member
Livestock Farmer
Location
South West
There’s apparently hundreds of lorry’s coming back of contract hire/lease agreements which are way over the top valued and no buyers

Old lorries will be running around ATM as no techs or part's to keep modern lorries going and with no mot needed it's time for the classics to roll again
 
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I mean economics game changing events have happened many times before and will happen again yes, wars, recession. terrorists all have happened in my life time and have caused fundamental shifts in economics

depreciation or runIng costs ...... take you pick I bet I’ve run new fancy cars that have e cost me less than a used buy in the past

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...'
 

Lincsman

Member
Arable Farmer
Location
Lincolnshire
only an idiot would rather own a car than be rentIng it right now ! I have cars on contract hire and cars that I own ........ wish they were all on contract hire as at least 25% has been wiped off the value in the last month

its exactly these kind of events that makes renting a good idea

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

Clive

Staff Member
Arable Farmer
Location
Lichfield
How can PCP or Contract Hire be better???

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 services at £800 pa. road tax at £500 each year and a set of tyres or 2 so lest say another £4K. Total cost of ownership =. 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 ?
 
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SFI - What % were you taking out of production?

  • 0 %

    Votes: 77 43.5%
  • Up to 25%

    Votes: 62 35.0%
  • 25-50%

    Votes: 28 15.8%
  • 50-75%

    Votes: 3 1.7%
  • 75-100%

    Votes: 3 1.7%
  • 100% I’ve had enough of farming!

    Votes: 4 2.3%

Red Tractor drops launch of green farming scheme amid anger from farmers

  • 1,284
  • 1
As reported in Independent


quote: “Red Tractor has confirmed it is dropping plans to launch its green farming assurance standard in April“

read the TFF thread here: https://thefarmingforum.co.uk/index.php?threads/gfc-was-to-go-ahead-now-not-going-ahead.405234/
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