Going to be a lot of cars on the yard worldwide ....
https://www.marketwatch.com/story/he...wsviewer_click
Going to be a lot of cars on the yard worldwide ....
https://www.marketwatch.com/story/he...wsviewer_click
Definitely a buyers market. Turners might pick up a few car yards going under stock as well.
Be interesting, but the US late-model prices have dropped 17 -18%.
I am guessing it will depend on how many yards, rental companies, lease vehicles we have that are in trouble. If they can absorb the bubble for a while it may not have as much impact. Or if enough Kiwis decide it is time to grab an upgrade bargain.
The difficulty being the lag time with imports. We were still unloading boat-fulls of cars during April so car yards will be over-stocked without the rentals etc.
Holden will be pleased they were ahead of the game with their pull out.
Just talked with a used car dealer contact - he sold a grand total of 2 cars in the last 2 months. Advertising the existing used cars on his yard at heavily discounted prices - a tsunami of used cars is going to hit the market in a months' time.
Rental car companies are stuck with the contract they have with the car companies (not allowed to sell until certain mileage are reached) which are being re-negotiated. There are several thousand new(ish) cars which are sitting in car-parks which will rust away unless sold.
Big losses ahead, I would say, from car dealers in the year ahead.
I think it might take a couple of months for car dealers in general to get real with their pricing. I would think by July / August the market will be finding a new lower pricing level.
As we know Turners were ahead of the field clearing stock before the lock down.
Doubt it as they are sourcing very little from Japan.
Sourcing most stock with in NZ.
Doubt they will have room for all the consignment stock they are being offered.
Expect consignment stock will go from 50% to well over 60%.Maybe even higher in the next few months.70% perhaps.?
At least saints Aaron and Todd sing from the same hymn book