Alfa Romeo Forum banner

61 - 80 of 113 Posts

·
Registered
Joined
·
69 Posts
Its hard to say, but if you want to buy one you'll have to offer more than WBAC will. You'll have to also find someone who is selling because they want to buy something else now while the price is low. A lot of the current advertisers aren't going to sell for such a low price now, but they might do after a while if the economic landscape continues to deteriorate.

I wouldn't feel comfortable buying one now for the same sort of money they were 3 months ago, it'd have to be a good chunk less, because there is now a much bigger risk that the bottom is going to fall out of car prices in general, as so many are on PCP where people can hand them back, which will leave a glut of them on the market, and lots of people could be out of jobs in 6 months time. Even if they're not, in general people are going to take this shock as a reason to start saving more, clearing debts etc rather than purchasing consumer goods.
I would never offer what WBAC do for anything. I couldn’t look the seller in the face.

The car I’m interested has been for sale for a while.

I feel exactly as you say. I am just not comfortable paying what they were 3 months ago. I’m not a wealthy guy and I can’t afford to throw money away.

I totally agree about PCP too. Hopefully this will burst that bubble which has been killing residuals for years. M3/4 and M5 are a great example. M5’s were losing 50% in 6 months before this madness. Christ knows what they’re worth at the moment.

Im just trying to work out what would be a fair offer and really appreciate your advice being in the trade. I really think the market for cars like these will be heavily depressed for a long time.

Buyers in the 30k - 40k used car market are usually stretching themselves for something they could not afford new (me). Your average joe just goes to Audi/bmw/vw etc for something new and shiny they can hand back in 3 years, for another new shiny one. Cars have become like phones to many people.

I can’t see many people looking to buy a 3 year old Alfa Quad/M3/c63 etc in the next year or so. I think it is the area of the market that will be hit the hardest. Cheap cars will be ok and rich people will still be rich.

It is going to be the working person, at national average wage and 20% higher that get hit by this hardest as we tend to live above our means and get everything on credit.

Im really glad I went for a truck over a Q7 a year ago. The hit is nowhere near as bad.
 

·
Registered
Joined
·
69 Posts
They gave me a very fair price for my 335i, I may have got more selling private but not many people want to buy 10k+ car from a private seller. Then there is the issue of someone bringing the car back if it goes wrong...
I tried to do a deal on another car with it at a main dealer and their best price was almost 2k less than WBAC bought it from me for.
They are beneficial in normal circumstances for many people. I was tempted myself years ago when selling a 350z after dealing with too many idiots. Nice guy bought it in the end though.

They we’re only offering £28k for a 2017 quad before Christmas. But tbf they send them to auction so you can’t expect a great price.
 

·
Registered
Joined
·
33,710 Posts
They are part of BCA and they have a service of looking for cars available like the salesman’s book. A colleague had a car that they obviously were asked to look for so they chased him for a few weeks offering a bit more each time. If nobody on their system is after a car then it’ll go to auction.
 

·
Registered
Joined
·
69 Posts
They are part of BCA and they have a service of looking for cars available like the salesman’s book. A colleague had a car that they obviously were asked to look for so they chased him for a few weeks offering a bit more each time. If nobody on their system is after a car then it’ll go to auction.
That actually has happened one more than one occasion when I’ve used them in the past.

Wondered why they did for some cars and not others. Seemed random but that makes sense.
 

·
Registered
Joined
·
4,336 Posts
I think this is the shock that will change the PCP market.

PCP has always worked by sticking moderately optimistic end of contact values into the computer, leading to attractive monthly payments. The only way you can have a 60k car for 700 a month is if it sells for 35 - 40k at the end of 4 years.

Cost of car, 64k.
Cost of finance - 5K - someone is paying this, even if you don't see it. That's what the initial payment is for.....
You pay 700 x 48 over 4 years = 33k

So you hand your car back at the end - the "WBAC" price is 31k, and it will retail for 5k more than that because of requirements for dealer warranty etc.

It doesn't really matter what people think the car is worth. The only thing that matters is whether people will walk off the street and buy it. Actually, buy lots of them, because every manufacturer has been playing this game for years. If the economy does go to **** (and it is certainly looking that way), then someone is going to be carrying an awful lot of stock - and unlike houses, this stock devalues a little bit more each month. So the smart stock holder cuts deep to get rid.

This isn’t some moral argument about buying distressed assets, it’s about establishing a market price for those assets.
 

·
Registered
Joined
·
69 Posts
I think this is the shock that will change the PCP market.

PCP has always worked by sticking moderately optimistic end of contact values into the computer, leading to attractive monthly payments. The only way you can have a 60k car for 700 a month is if it sells for 35 - 40k at the end of 4 years.

Cost of car, 64k.
Cost of finance - 5K - someone is paying this, even if you don't see it. That's what the initial payment is for.....
You pay 700 x 48 over 4 years = 33k

So you hand your car back at the end - the "WBAC" price is 31k, and it will retail for 5k more than that because of requirements for dealer warranty etc.

It doesn't really matter what people think the car is worth. The only thing that matters is whether people will walk off the street and buy it. Actually, buy lots of them, because every manufacturer has been playing this game for years. If the economy does go to **** (and it is certainly looking that way), then someone is going to be carrying an awful lot of stock - and unlike houses, this stock devalues a little bit more each month. So the smart stock holder cuts deep to get rid.

This isn’t some moral argument about buying distressed assets, it’s about establishing a market price for those assets.
I agree 100%.
 

·
Registered
Joined
·
6,337 Posts
I had a Giulia sent closer to home and viewed it on Saturday.
The car was very poorly presented and i was not allowed to test drive it more than 1/2 a mile.
Staff were uninterested and knew they would be closing due to the virus.
Sales guys rang me after i had sent a strongly worded email about the whole experience, said sorry about blah blah blah and when i said i could only come to see it again this weekend ( obviously before knowing about the "lockdown") he said the auction markets had plummeted and may not be able to give me the agreed PX value of my car. I cancelled the deal there and then.
 

·
Vendor
Joined
·
45,454 Posts
They were taking advantage of desperate people at this bad time. The competition stopped buying. A more moral approach imo.

All the cars they buy are sent to BCA so they never offer a great price. And rarely pay what they offer.

My truck is not so bad, but performance cars are taking a battering.
It's not a more moral approach if you're a seller desperate for money. Better to have people making offers, even if they are low ones, IMO. That gives people options at least. Someone who's self employed and out of a job might need to sell an expensive asset like a car just to keep meeting mortgage payments and clear credit cards until work picks up again.
 

·
Registered
Joined
·
69 Posts
It's not a more moral approach if you're a seller desperate for money. Better to have people making offers, even if they are low ones, IMO. That gives people options at least. Someone who's self employed and out of a job might need to sell an expensive asset like a car just to keep meeting mortgage payments and clear credit cards until work picks up again.
I would agree but they were offering around £12k for a 2017 Alfa Quad a few days ago. That is robbery.

You would be better doing a open auction on eBay.

I think the government should be commended for paying self employed people 80% up to 2.5k and mortgage holidays are available.

We will see what happens with the one I’m interested in over the next few days.
 

·
Registered
Joined
·
33,710 Posts
I would agree but they were offering around £12k for a 2017 Alfa Quad a few days ago. That is robbery.

You would be better doing a open auction on eBay.

I think the government should be commended for paying self employed people 80% up to 2.5k and mortgage holidays are available.

We will see what happens with the one I’m interested in over the next few days.
Offering so little is one way of saying they’re not interested.
I worked with a guy who had a building business that took jobs to build house extensions in the east end of London where there was only access through the house and none from the back garden. Everybody put in really high quotes because they didn’t want to do their backs in carrying stuff through the houses. He took the work and after a while did his back in..
Luckily he’d got a full time job before it got really bad and he was able to take a lot of time off sick.
Getting stuck with interesting cars that are not a liquid asset is not BCAs style. They could just say “no”.
 

·
Premium Member
Joined
·
2,619 Posts
I still don't get why people give WBAC the time of day, we won't really know the true picture til this blows over, which I'm hoping is by Christmas,
 

·
Registered
Joined
·
7,162 Posts
I've always considered WBAC as almost the last resort for getting rid of a car; the last resort being scrapping it.
I find their website useful for giving a rough idea of what I might expect to receive as a part-exchange at a dealer.
Hopefully I'll never have to use their service.
 

·
Registered
Joined
·
1,932 Posts
There’s lots of cars that get sold to WBAC. At BCA we have, or had before the lockdown teams of trade plate drivers coming to the site 24/7 with cars all booked in under U.K. or CCTrade. The CCT cars usually are the lower end of the market cars. The top end cars get marketed as UK premium. We was selling 406 out of 430 each week on a Thursday morning sale


Sent from my iPhone using Tapatalk
 

·
Vendor
Joined
·
45,454 Posts
I would agree but they were offering around £12k for a 2017 Alfa Quad a few days ago. That is robbery.

You would be better doing a open auction on eBay.

I think the government should be commended for paying self employed people 80% up to 2.5k and mortgage holidays are available.

We will see what happens with the one I’m interested in over the next few days.
You might get £20k next week by doing an auction on ebay, but you might just get endless non-payers, which is no good if you need £12k today.

Its a **** situation, I know.
 

·
Registered
Joined
·
33,710 Posts
They provide a service. You don’t have to use it. A few years back, a friend had a Clio in England and he was working in Germany. His times back in the U.K. every other weekend were worth more than the difference he’d have earned by waiting for people to come round and kick tyres and probably try and haggle that margin away. Also, it had a cooling problem, not factored in by the WBAC man who was only interested in cosmetic things.
 

·
Registered
Joined
·
37,512 Posts
WBAC generally pay more than you would get as a trade in, and as you don't have the "Hassle" of a PX you can often also get a better deal on the car's replacement. It is also useful if you want to go from a more expensive car to a cheaper one as a dealer will bend you right over in that instance.

And as said, you don't have to use them...
 

·
Registered
Joined
·
33,710 Posts
The dealer offered to give me a lift from WBAC to the handover if it suited me. I didn’t take them up on it but the day after I had an increased offer from WBAC but I’d closed the deal. That was with my first Giulietta which was too old for the forecourt so it possibly went to them anyway.
 

·
Registered
Joined
·
821 Posts
Discussion Starter #80
WBAC generally pay more than you would get as a trade in, and as you don't have the "Hassle" of a PX you can often also get a better deal on the car's replacement. It is also useful if you want to go from a more expensive car to a cheaper one as a dealer will bend you right over in that instance.

And as said, you don't have to use them...
Are you actually Philip Schofield. :):)
 
61 - 80 of 113 Posts
Top