- Original Poster
- #1
I understand I have self-interest in this area, but I also have some knowledge. I will say:
BE VERY CAREFUL WHAT CARS YOU BUY WITH YOUR/BORROWED MONEY
As many people are doing, best buy none at the moment.
Reasons? - Well, due to current market, many manufacturers are bleeding and are THROWING hidden subsidies to move cars. One example is Land Rover. 57% down on new sales comparing Aug 07 with Aug 08. Now throwing buckets of hidden money. Cars being built and stacking up in compounds. Dealers cannot afford to call down stock on these heavy cars, and are refusing trade ins in many cases. I have reduced monthly rentals on my Discoveries by £100 this week due to these subsidies.
Great in short term. Now, in a month or two, residuals start to fall. Massively. Even more massively than they have been affecting every Land Rover owner. Look at USA, this is following, here. This will have impact on whole market. Wholesale panic is taking place. Pity poor people who own Discos - SELL THEM NOW! Take your loss, now.
Great for me and renters, bad for dealers and owners. One customer yesterday in Leeds (office in that Angel's Wing opposite Guy Salmon Land Rover) worked out a £6500 cost saving renting at my prices, than doing it through the dealer.
Why? - Fixed dealer overheads and 57% downturn in sales forcing a massive recovery rate through car margin, or else bleeding cash. Imagine how energy heating/aircon and fuel prices have affected these massive glass palaces. Car dealerships are extremely expensive to run. Why are showroom ceilings 10m high? They do not stack the cars vertically, surely?
I predict lots of dealers going bust, soon. For instance, in August ( the year's quietest month), me myself I did more new cars than the whole of the Subaru dealer network, and I equalled the whole of the Lexus dealer network. Look at a Lexus dealer and ask how they can survive on those slim pickings divided by ALL the Lexus dealers. (and that includes Lexus self-reg cars and dealer demos)
Be cautious about lodging deposits or having business exposure to car dealers!!! September bad weather and financial gloom will mean administration for many car dealers, costs never stop.
Here are some stats showing blood on the showroom carpet in August:
New car sales August 2008 Compared to August 2007
Alfa down 32%
Aston down 67%
BMW down 39%
Cadillac down 89%
Chrysler down 66%
Citroen down 18%
Dodge down 41%
Honda down 31%
Jaguar down 41%
Jeep down 58%
Land Rover down 58%
Lexus down 59%
Mercedes down 35% ... need I go on?
(me? I'm up
My model seems to work well in this climate.)
Either rent, or buy cheap secondhand and make do.
Ling
BE VERY CAREFUL WHAT CARS YOU BUY WITH YOUR/BORROWED MONEY
As many people are doing, best buy none at the moment.
Reasons? - Well, due to current market, many manufacturers are bleeding and are THROWING hidden subsidies to move cars. One example is Land Rover. 57% down on new sales comparing Aug 07 with Aug 08. Now throwing buckets of hidden money. Cars being built and stacking up in compounds. Dealers cannot afford to call down stock on these heavy cars, and are refusing trade ins in many cases. I have reduced monthly rentals on my Discoveries by £100 this week due to these subsidies.
Great in short term. Now, in a month or two, residuals start to fall. Massively. Even more massively than they have been affecting every Land Rover owner. Look at USA, this is following, here. This will have impact on whole market. Wholesale panic is taking place. Pity poor people who own Discos - SELL THEM NOW! Take your loss, now.
Great for me and renters, bad for dealers and owners. One customer yesterday in Leeds (office in that Angel's Wing opposite Guy Salmon Land Rover) worked out a £6500 cost saving renting at my prices, than doing it through the dealer.
Why? - Fixed dealer overheads and 57% downturn in sales forcing a massive recovery rate through car margin, or else bleeding cash. Imagine how energy heating/aircon and fuel prices have affected these massive glass palaces. Car dealerships are extremely expensive to run. Why are showroom ceilings 10m high? They do not stack the cars vertically, surely?
I predict lots of dealers going bust, soon. For instance, in August ( the year's quietest month), me myself I did more new cars than the whole of the Subaru dealer network, and I equalled the whole of the Lexus dealer network. Look at a Lexus dealer and ask how they can survive on those slim pickings divided by ALL the Lexus dealers. (and that includes Lexus self-reg cars and dealer demos)
Be cautious about lodging deposits or having business exposure to car dealers!!! September bad weather and financial gloom will mean administration for many car dealers, costs never stop.
Here are some stats showing blood on the showroom carpet in August:
New car sales August 2008 Compared to August 2007
Alfa down 32%
Aston down 67%
BMW down 39%
Cadillac down 89%
Chrysler down 66%
Citroen down 18%
Dodge down 41%
Honda down 31%
Jaguar down 41%
Jeep down 58%
Land Rover down 58%
Lexus down 59%
Mercedes down 35% ... need I go on?
(me? I'm up
My model seems to work well in this climate.)Either rent, or buy cheap secondhand and make do.
Ling
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