TRA - Turners Automotive Group [previously TNR - Turners Limited]

[blackcap]

US not in lock down. Some states doing a bit of lock down, others are happy virus breeders and spreaders.

Yeah exactly that is why their figures were down 60 odd percent and not 100% like its going to be for the applicable month in NZ.

[Snoopy]

Yeah exactly that is why their figures were down 60 odd percent and not 100% like its going to be for the applicable month in NZ.

From a buyers perspective, buying a car is not a 'monthly thing'. The chances are that if your old car was not worth fixing up a month ago, then it is still not worth fixing up. The need for a newer car has not gone away, COVID or no COVID. It seems more likely that sales at TRA 'lost' under the lock down are sales deferred. That is more than you can say about takeaways from the local fish and chip shop!

SNOOPY

[BlackPeter]

Yeah exactly that is why their figures were down 60 odd percent and not 100% like its going to be for the applicable month in NZ.

Pretty cheap and nonsensical comment. NZ is closing its doors to the virus while the US is breeding it. Closing the doors means an initial investment, but lets compare in a year who did better, shall we?

[Cyclical]

From a buyers perspective, buying a car is not a 'monthly thing'. The chances are that if your old car was not worth fixing up a month ago, then it is still not worth fixing up. The need for a newer car has not gone away, COVID or no COVID. It seems more likely that sales at TRA 'lost' under the lock down are sales deferred. That is more than you can say about takeaways from the local fish and chip shop!

SNOOPY

Needing to replace the old car not worth fixing is only going to make up a certain percentage of TRA's sales though isn't it? I'd suggest a much higher proportion of sales would be more the discretionary want buys, which would surely take a huge hit when the realities of a recession take hold.

[Snoopy]

Needing to replace the old car not worth fixing is only going to make up a certain percentage of TRA's sales though isn't it? I'd suggest a much higher proportion of sales would be more the discretionary want buys, which would surely take a huge hit when the realities of a recession take hold.

Fair point Cyclical. But 'zoom out' and the macro picture of the NZ car market has not changed. The average car is old and getting older. At some point the need to de-age the fleet must come. And in a recession a 3-4 year old used car is more likely way to do that than buying new. I am not saying the next few months won't be tough. But I don't see the big picture has been derailed by Covid-19. In fact with the need for 'spatial distancing', some who can afford it may choose to buy their own car rather than 'risk' public transport.

SNOOPY

[freddagg]

Pretty cheap and nonsensical comment. NZ is closing its doors to the virus while the US is breeding it. Closing the doors means an initial investment, but lets compare in a year who did better, shall we?

The country doing better in a year will be the one that allows " herd immunity" to develop the fastest, because then it can get on with life

[blackcap]

Pretty cheap and nonsensical comment. NZ is closing its doors to the virus while the US is breeding it. Closing the doors means an initial investment, but lets compare in a year who did better, shall we?

I did not imply that NZ or the US is better. I was merely pointing out to the alarmist that US sales have plummeted then that is due to the initial lock downs. Ie sales are not plummeting because people do not want to or cannot afford to buy cars. Its because they physically cannot. Once lockdowns reverse those figures will be back to even or thereabouts.

[Cyclical]

The country doing better in a year will be the one that allows " herd immunity" to develop the fastest, because then it can get on with life

There is that concern. The cynical might suggest Trump's apparent hopelessness in handling this thing might be by design...

[waterboy]

The country doing better in a year will be the one that allows " herd immunity" to develop the fastest, because then it can get on with life

Really, those countries will be in lockdowns and economic issues longer than anybody, NZ will have it under control until either a cure or vaccine is invented with minimal disruption compared to those that didnt.
Back to the topic turners also generate revenue from insurance which is ongoing during lockdowns and finance which is also ongoing. New sales I suspect will take a hit but will not show up on the financials for a while yet.

[freddagg]

Really, those countries will be in lockdowns and economic issues longer than anybody, NZ will have it under control until either a cure or vaccine is invented with minimal disruption compared to those that didnt.
Back to the topic turners also generate revenue from insurance which is ongoing during lockdowns and finance which is also ongoing. New sales I suspect will take a hit but will not show up on the financials for a while yet.

My understanding is that this is just a new strain of the cold virus and there has never been a vaccine developed for any cold virus and there are over 200 strains.
If we are successful in stopping C19 spreading I can see a scenario where the bulk of the worlds population will have immunity through being exposed to the virus and NZ will be stuck in a time warp for years to come, still waiting in "hope" for a vaccine.
Still wrong thread so suggest moving discussion to:Potential adverse effects from coronavirus on NZ economy