Bmx Bandits

So the Mail did get it right.

Don’t normally believe everything I read in the Mail but it does seem likely, especially with the increasing pressure from some car manufacturers and with JLR after a massive government loan.

From the BBC News Website yesterday, “The congestion charge for people driving into central London will be reintroduced on Monday under the terms of a £1.6bn government bailout. It follows a deal in which Transport for London (TfL) secured emergency funding to keep Tube and bus services going until September. From 22 June, the congestion charge will also rise from £11.50 to £15. Downing Street defended the changes saying it "only applied to a small area of central London".”

I think it goes to show how deep the problems are within the economy. Go to work, get the county going but don’t use public transport, we’ll then have to tax car drivers harder to keep public transport alive, as in the future we’ll be telling you all to ditch the car and use public transport again.

Thanks, really enjoyed the podcasts, Nick is a good lad but I was really surprised when he said he didn’t offer a warranty. We’ve only ever used an underwritten warranty and we have never been great at up-selling it. It’s when you look at what I’ve spent over the years, it’s really surprised me. I’ve never used Lawgistics, are they a good company to get involved with? do you use their managed warranty service or administer yourself?

I think it will be hard in the current circumstances to see the government launching a new scrappage scheme, we have huge problems growing within the economy, consumer confidence is at an all time low, the potential for massive increases in the level of unemployment, and the retired (with ££££) under house arrest, to name just a few of the likely issues. Who is going to be buying the cars? Its true that some of the car manufacturers have had very high factory gate profits but most have continually increased their costs on the back of these large profits. The perfect example is JLR they had one of the highest factory gate profits in the industry - making av £20k+ for every car that left the factory gate but they used this profit to increase their head count/spending substantially. They had already tried to rectify this in Jan 2020 when the CEO stood down and they announced £1.1bn in spending cuts, things will have got a whole lot worse for them since. I think the manufacturers will have a very hard time and we will likely see further consolidation and cost cutting at a time when they will be massive pressure on them to prop up their dealer networks. The franchise dealer network is going to really struggle, the franchise model hasn’t worked for years and was one of the main reasons I got out of it. I do feel for some of the smaller family dealer groups who have been finding it more difficult to trade successful over recent years and for many it’s likely to be the final nail in their coffin. I’m sure the car supermarkets will survive on the back of buying some very cheap cars from rental firms, ex demo’s and nearly new cars repossessed from franchise dealers and manufacturers directly. I wouldn’t swap my used car business for any of the above!

It’s going to interesting times!

I had this last year with a Auris I’d had for ages, kept reducing the price and couldn’t shift it, I then took in part exchange a last of the old shape Corolla and marked it up £300 less than the Auris, (the auris was cleaner, 18 months newer and with 15k less miles). I thought it would make the Auris look so cheap. Guess which one I sold first....... the Corolla?!!!!

With the news that Estate Agents and being allowed to reopen, is there a chance we could also be opening again soon?

I don’t think they can operate properly until we get a vaccine. The last auction I went to before lockdown was a nightmare, all the cars went through the hall had their doors locked and the windows up. You could’nt check interiors, keys, clutch, gearbox etc. Traders where all trying not to get near each other while trying to check a car/bid. It just really did it work. Mad as it sounds i’d almost rather take my chance online and try and claim against an incorrect appraisal. I think that if auctions find they can survive just by being online and with proper appraisals/resolution they might never need us back in.

Some trades must be really hurting by now. Do you think van sales will be as badly hit as car sales post lockdown? Forgot about them being closed, I’m sure they will be back soon and hitting people properly hard! The question is how hard to kick them? Its hard when you know them and some are going to be in proper trouble.

Today, I’ve found the phone has been much busier with enquiries than its been in the last week or so. But what I found was more significant, was that I had two old customers asking “Do you buy cars?” I didn’t go into detail, but both customers where needing to sell their cars for financial reasons. Just wondered if people were experiencing similar and if so what’s it going to be like when we actually re-open?

I would recommend that people research the value of any part exchange they may have, many customers seem to massively over value their current car and under value the car they are looking at, dealers can’t work miracles and it can make it almost impossible to do a deal, as their budgets simply will not stretch. I’d also recommended that prospective customers be honest about there credit history, if looking to purchase a car on finance. Car dealers/staff will not be judgmental and it save everyone considerably time and effort. Finance companies are very good at uncovering every minor missed payment, defaults and CCJ’s so there is no point not telling the truth! The majority of dealers have specialist brokers/lenders that can help them get the best finance deal on the market for their credit profile. Prospective customers also need to find/check their Driving License and then bring it with them. You are unlikely to get a test drive with out it and you will need it you take out dealer finance (it needs to be in their current address) The salesperson will take you more seriously if you come prepared and put your cards in the table (I like your car but can you move a little on the price) is making their job much more straight forward. Your the more likely to get a better deal.

Not only that but even if the dealer does manage to keep up stocking loan payments and sells the car, they still come back to you to buy another one with the auctions/stocking fees and so the cycle continues. It really is ingenious

that’s if I can remember which car I left it.........2 months ago

And having stood for two months are now likely to also need a battery, brake caliper or two + pads and disks after you got them nice and red hot on the drive back to the site

Easy tiger!! Slow and steady wins the race. I’d like nothing more than to see the uk get rolling again but there is little point rushing into a second wave of this shocking disease.

I must say I’m surprised that they are taking such a hard line with you at this time. As you say it’s no one’s fault and you are doing the right thing by closing. What does grate on me that if you had a 1.5m buy to let mortgages you could apply for the 3 month mortgage payment holiday but as car dealer with a similar size loan there is no specific guidance/help.

I know of a couple of dealers around me (main dealers to smaller ones) that have all been caught by similar scams. They all got theirs cars back, but was an incredibly stressful time. Glad you and your business survived!!

It’s a good insight into the direction the market could take but I am surprised Derren Martin didn’t mention Finance Houses. I think they have the potential to cause considerable damage to used car prices. If they act like they have in every recession so far, they will be quick to repossess stock from dealers and private customers in financial distress and just as quick to dump them into market and take what they can get for them. To compound this, these are the very same institutions that will then become risk adverse and make it harder for the dealers to obtain finance for stocking and customers to purchase cars, increasing the likelihood of further price erosion. It would be really interesting to hear his view on this.

That so good to hear, it must really help having your brother and his wife staying with your parents!

Arse! Can you tell I haven’t been out for 7 weeks? I just imagined that as I have had Eurocarparts ring me three times in lockdown, to tell me they are open, that some of the dealer parts departments would also be taking calls.

Both my parents are in their mid 70’s and I worry, Alzheimer’s and dementia adds a whole extra level!! You do really well, and always sound so positive on here. It must be so hard for everyone especially you and your mum.

If you’ve got a Vauxhall dealer near you, you could ask the parts department for help/deal/advise or even better one of those Vauxhall Trade Parts dealers. I’ve always found them to be really helpful to the trade.

We’ve had quite a time of it to be honest, my poor mother-in law felt poorly while having cancer treatment and was tested for Coronavirus, long story short she tested positive, was kept in insolation and then a Coronavirus ward for 2 weeks. She was ones of the lucky ones and survived, having said that even now she still gets breathless at times and struggles to walk far. I can’t explain how hard it was for my wife as there is nothing she could do to help and was almost impossible to get information/updates from the hospital staff. I was glad to have the kids around to keep me busy. I hope that you and your family are all well and surviving this terrible time.