Any type of finance costs it has too there is no such thing as free money.
If we can buy a car with so called zero rate finance or PCP then the cost is in the initial purchase. No really low competitively priced cars will be zero rate no matter how the sales bods wrap it up.
I would rather have an old cheap MX5 like the one I have than any flash new car unless I had the coin in the bank to pay for it.
Of course rates are low but I think that’s about to change. Borrowers have had it cushy for to long it’s about time savers got a bit…
Lol, I wasn’t drawing a power comparison, I was talking about how no one buys a Five and doesn’t modify it in the same way you don’t buy a bike to not modify it Also, Open-air thrills
I always find MX5 is like a supermoto. It doesn’t do crazy 1/4 mile times or have a good top speed, but it’s light and you can go at it and have fun, even in the city. Better to ride a slow bike fast than a fast bike slow. By supermoto I mean a single cylinder pop pop SMCR 690 etc
Upper Heyford airfield has long been used as a used car storage facility.
The latest one is Rockingham Raceway, which went bust. They took down most of the stands already, and the track is now an enormous carpark, with capacity for 50,000 cars.
Saw this on another forum a few weeks back… Loads of hatchbacks, SUVs and a few estates, “ordinary” cars"!, PCP hand-backs and ex-lease… Bet there isn’t one MX-5 in there…!
Fingers crossed the Mk1 prices keep rising, about to spend some money to get it through the MOT so would be useful if the price went up and covered the bill.
Probably be selling mine next summer as despite being great fun. I bought it specifically as we had this model 22 years ago, and thought it would be good to relive our youth! my wife doesn’t share the enthusiasm and is not enjoying as much as my previous Boxster. Think she’s got used to the creature comforts of the newer cars
Not sure what I’d get next. Porsche was nice, but expensive to maintain, especially compared to the mx5. Needs to be a convertible so looking at newer mx5’s as well as they are such great value for money
If your a large scale trader, lease company or a manufacturer it makes perfect sense to withhold stock
lack of stock means higher prices for available stock (which is exactly what is happening on a large scale)
higher prices on second hand cars and lack of stock means more people will consider new cars.
Once everything gets back to normal you continue to drip feed stock back to continue the artificial shortage but you made most of the profit during the higher prices…
Those pictures are amazing. Are we saying that the industry is stock piling used motors to support prices on the second hand market? Who on earth can afford to fund this ? Also has to be a very high risk strategy, cars parked up don’t tend to do anything except depreciate.
Its more lease and end of pcp I think, trouble is if you throw all of the available stock into the market place then you start to get massive price fluctuations the other way and cars get cheaper, you lose money on what your settlement figure or px figure was etc.
At the moment cars are fetching about 15-20% above average at BCA so what you do sell gives you far more profit (usually around 1500-2000 more on a decent car) so you make money.
Also the sales figures are well down so it makes no sense to flood the market with cars people have handed back etc because of the pandemic, catch them all on the other side with your already inflated second hand values and the lack of deals on new cars…
I think some of those airfields are also being used to store new cars not yet shipped because they have had no demand
The cars are mostly ex-lease/PCP. Some of them are brand new.
Some insight; demand exceeds the rate they can get cars from these storage depots. Coronavirus public health measures may be having an impact (not enough delivery drivers). On the other hand, demand may collapse when the furlough schemes end, coupled with a fresh glut of near new cars as people decide they no longer can afford the payments. The rise in value of late model MX5s might be artificial in a market of overall rising values.
Car Finance has been pointed to as the next financial disaster.
I can see problems ahead similar to the sub prime mortgage debacle a few years ago.
Once the furlough scheme ends there will be a huge rise in unemployment, and all of a sudden that £50k prestige (?) car sitting on the drive costing £500 a month won’t be so attractive for many.
Not to forget long term open air element storage cannot best for complex leccies, brake systems or much else. Judging by rows of unregistered Suzukis near me…complete with cobwebs & window seal mould galore. A local multi franchise Main Dealer works with a couple of Repo companies, and there are a couple of dozen stacked there just now instead of the usual 1 or 2.
It does not all bode well at all.
I think what will happen is as soon as you’re allowed to test drive properly (and not the inconvenient dealer deliver model that’s legal at the moment) mid-April there will be a spike in demand & prices. Don’t think that will last too long as at the same time lots of private sellers will feel more confident in selling again (the ones that have been putting off selling during lockdown) Hopefully after a few weeks it will go back to normal.
With MX5’s there are lots of people who sell one to buy another which as far as the supply&demand curve goes it keeps in neutral.
My BMW averages 12500 miles a year or so. I haven’t worked since the start of the pandemic, and haven’t commuted or travelled much, so my car has done about 2000 miles in the last year.
How many people who are part of that anticipated pent up demand are in a similar position and wondering if they need a new car, or indeed if a remote working change of usage profile changes completely how they think about car ownership?
My current “company” car sat in a field for 6 months during lockdown as my mileage hadn’t got high enough to warrant a change. My next one has been doing the same. It’ll probably take the next 6 months for my change cycle to get back to normal timescales.
SMH’s storage facility is currently well loaded with MX-30 waiting to go out, they’re not being stock plied, Mazda want them registered as soon as possible.
There could be all sorts of reasons that cars are in storage.
Also, Open-air thrills
