The effects of the virus on machinery dealers.

[tepapa]

savings are a REALLY bad thing to have right now ! Most people’s savings are worth a fraction of what they were ..........you really think they are a good idea ???

I disagree. Right now savings are a good thing to have. Last month they were probably very bad as you point out.
If you have savings now you have some ability to survive the current crisis and possibly have some left to capitalise on an investment that may come along due to the situation.

On the other hand you may have invested that in the stock market which just crashed. You'd take a big hit now if you tried to cash out maybe because you need the money for cashflow or to just survive. You may have invested it in some business that was generating that 15-20% return but has now been forced to stop trading and is in limbo with an uncertain future. All of a sudden those crap savings don't look so bad.
Today's situation is a lot different to last month's.

 

[Clive]

I disagree. Right now savings are a good thing to have. Last month they were probably very bad as you point out.
If you have savings now you have some ability to survive the current crisis and possibly have some left to capitalise on an investment that may come along due to the situation.

On the other hand you may have invested that in the stock market which just crashed. You'd take a big hit now if you tried to cash out maybe because you need the money for cashflow or to just survive. You may have invested it in some business that was generating that 15-20% return but has now been forced to stop trading and is in limbo with an uncertain future. All of a sudden those crap savings don't look so bad.
Today's situation is a lot different to last month's.

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 !)

 

[Clive]

Not to worried if the value of my cars drop by even 50% added up they don't even come to 1K even before cv19 . Money tied up in cars depresses me .

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

 

[ridger]

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

Surely you lose that every month paying for it?

 

[Drillman]

the point is finance / pcp / hire etc isn’t always for “people that can’t afford it”.

it’s a financial tool that even if you have the cash might get you use of the asset at a cost lower than buying it



the only people who can’t afford finance are those that default on payments ......... most don’t so by definition “can” afford the asset and are cutting their cloth accordingly

lenders are not stupid - they tend not to offer credit to anyone who can’t afford it !

Oh there’s a place for finance I will admit and on occasion we do use it to our benefit. However having had our fingers burnt in the past with a turn of events that no one could have foreseen I’m extremely cautious of anything going on the drip!

 

[Moorlands]

M

 

[tepapa]

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 !)

But income has gone out of the Window for many people.

I agree savings are depreciating as we speak but not significantly or by the amount your implying. Inflation isnt that much currently and in the last month your £10k savings haven't fanished into thin air. So what if it's only worth £9600 by the end of the year but you still have a deposit to put on a house that's halved in value as opposed to waiting 5 years for the stock market to kick start.
We're talking about savings available in the middle of a crisis not on any normal day with the economy ticking along nicely.

 

[Clive]

Surely you lose that every month paying for it?

that’s the cost of running a expensive car - if i couldn’t afford it i would run a cheaper one

but the discussion was about finance as a tool not the right or wrongs of cheap cars vs expensive ones

 

[tepapa]

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

If you can't make your £500/month, or what ever it is, payment you lose the use of the car.

 

[Drillman]

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

Dont lose a penny till the day you come to sell!

Surely you lose that every month paying for it?

lose a wad of wonga from your account every month!

 

[tepapa]

but the discussion was about finance as a tool not the right or wrongs of cheap cars vs expensive ones

The discussion is about the effect of the virus on dealership's that side tracked to PCP cars, Not about the benefits of lease cars in a normal year but this one currently under lockdown.

 

[glasshouse]

The thing I noticed is that nobody is making money but then nobody is spending money , so you don’t need as much when you can’t spend it. Some people will be worse off after this and some will be better off after this . All in all most will survive , one of the first casualties gone is the local golf club , a very good mature course , has been set to a farmer today for grass . Over near you fiat 9090

How much?

 

[Johnnyboxer]

you have been loosing 3-4% on that cash under your mattress for years now

maybe you should have bought a classic car and pretended you have a big dick instead !

I don't need a flashy car, as I already have a larger dick

 

[Johnnyboxer]

One could end up defaulting for first time ever due to no cashflow because of current situation

Many will default and then have bad credit ratings

 

[Johnnyboxer]

The lump of cash in my Sipp pension has come in very useful in the last week or so, the shares it bought 2 weeks ago are now about 30% up, and when the shares get to where they were in due course that "useless cash" will have grown 200%

There you go Clive

Available cash, leads to options and opportunities

Just going to ask the missus to lift the mattress, before bed, so we can have a count up

Could be some opportunities ahead,for those quick on their feet, to move

 

[kiwi pom]

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

This discussion was about machinery dealers and went off topic.
Whilst I'm sure finance, pcp, lease etc is good for business and those with money, many people use the cheap deals to run a private car if they cant make the $500 (sorry no pound sign) they lose the car, the problem then is most people have no savings so now have no money and no car.
Someone sold them the idea that monthly payments were fine, they never mentioned what would happen if you couldn't make them.

 

[DeeGee]

Interesting though car finance is, and the debate will inevitably go on for many aeons: the thread was created to discuss the effect of this crisis on machinery dealerships.
Can we get back to the title please?

And then if needs be, perhaps we could create another thread about the cost of motor cars and the supposed converse relation of their size to that of the male genitalia?

Thank you all so much,

Biggus Dickus (Miss)
Bentley House,
Rolls Road,
Royceton.
RR1 XJ6

 

[tw15]

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

I get that but people are paying that a month for the contract hire better to put that towards buying land in the future . As long as a car gets you from a to b reliably that's all they were designed to do . There are those that look at them as a symbol of wealth whether owned or hired . We all have different ways of living .

 

[ColinV6]

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.

 

[Robt]

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.

Best post on the last three pages.... now back to topic please