M8 AND 8 SERIES
BMW Garage BMW Meets Register Search Today's Posts Mark Forums Read
BIMMERPOST Universal Forums General Automotive (non-BMW) Talk + Photos/Videos Will the pandemic economy cause a drop in new car prices?

Post Reply
 
Thread Tools Search this Thread
      04-02-2020, 12:31 PM   #67
Alfisti
Brigadier General
6453
Rep
3,009
Posts

Drives: 2008 Saab 9-3 Combi
Join Date: Nov 2014
Location: Toronto, Canada

iTrader: (0)

So for new car prices, i guess they only drop significantly if things are catastrophic and any revenue is better than no revenue given the cars were made already.
Appreciate 0
      04-02-2020, 12:36 PM   #68
PoorLurker
Custom User Title
PoorLurker's Avatar
No_Country
1135
Rep
675
Posts

Drives: a bicycle
Join Date: May 2015
Location: Orange County, CA

iTrader: (0)

Quote:
Originally Posted by secretsquirrel View Post
Something that cannot be discounted is the loss of appeal of luxury items the longer we stay in social distancing mode. The longer we stay like this, the more likely people are to reset their priorities. High priced luxury items are going to see a big hit even after we return to normal from social distancing. Some people will always want them, but I think you'll see less people stretching and making as many financial sacrifices for them.
I can see that but quarantine life and flossing designer stuff is still easily hashtagged and "flexed" for people on social media.

Today's day and age - do people really buy fancy things for their immediate friends or for their "followers" and potential followers?

Fake it till you make it has never been so real.

Personally, I care less about designer stuff right now. As I get older my priorities start to shift to other areas.
Appreciate 1
Rmtt8206.00
      04-02-2020, 06:49 PM   #69
TorontoGambler
Second Lieutenant
156
Rep
247
Posts

Drives: Volvo XC90 Inscription
Join Date: Feb 2020
Location: Toronto

iTrader: (0)

Quote:
Originally Posted by Alfisti View Post
Still stunned by the positivity here. Despite the "church and guns" feel of this place most are well educated and bright but i see a ... i dunno ... a failure to realise the monumental shit we are in economically.

This will be bad.
You and I are fully aligned. I assume there are a few people in here who have taken economics, but maybe not. This isn’t a part of the economy that’s gone bad in a single country, this is a global recession, but hey I could be wrong.
Appreciate 0
      04-02-2020, 07:06 PM   #70
TorontoGambler
Second Lieutenant
156
Rep
247
Posts

Drives: Volvo XC90 Inscription
Join Date: Feb 2020
Location: Toronto

iTrader: (0)

Quote:
Originally Posted by JamesNoBrakes View Post
Things cost money to make. They won't be selling them at a loss, unless we are talking a few that are on-hand at a dealer, but they, just like everyone else, are going to do everything they possibly can to not do this, most likely it'll be the models that no one wants, like some ugly BMW GTs and 4cyl cayman. The manufacturer will right-size with demand, so instead of producing current-demand amount, it'll be right-sized to the amount of demand that actually exists. Prices may go up due to this, but as long as they can streamline manufacturing, by laying off people, selling assets, heck, going into bankruptcy, then that's what they'll do. They won't sit around and sell a car for 40K that costs 50K to make. Ain't going to happen.
Sorry but yes it will. I’ve worked fir a few of the biggest companies in the world. WE DO NOT PREP FOR THIS! Our fixed costs are enormous, and although we have a ridiculously healthy balance sheet we’re hoarding cash because revenue is 100% going to go down. We’ll do our best to sell our products on strategy but after 3 weeks we’ve already seen our margins drop. As this goes on we’ll fully abondon margin altogether to protect top line sales and share of market with the hope that we can get back to where we were before this happened but in the meantime we’ll reduce prices as much as is required to keep the lights on. Price increases are coming wherever the market thinks they can sustain them but that’s not today or anytime soon. The optimism is strange, people ge really think the worst, the time fir that is now and everyone thinks the best!! It may not effect any of you, I hope it douesn’t but this will have a negative impact globally for a tonne of people. Stay safe and for the love of god stay away from others.
Appreciate 0
      04-02-2020, 08:13 PM   #71
surge98
Private
37
Rep
65
Posts

Drives: 2021 BMW m240i
Join Date: Aug 2019
Location: Pittsburgh, PA

iTrader: (0)

For what it's worth, I bought my 1 series at the peak of the last recession. The best deal I could get was $500 over invoice plus the year-end $1000 off through BMW, financing 50% of the total cost at 4.5%. I also got a $500 tax credit for buying a car that year. Before all this hit, the standard $3750 in incentives was already a much better deal than what I could get back then. I have cash set aside for a new 2 series, I'll be very interested in seeing what incentives are offered next week. I doubt the deals will be as good on an ordered car, but maybe I can get 9-10% off MSRP instead of 7-8%.

I see one person saying that things will be back to normal in six months and one person saying it will take 3-5 years. The truth is probably somewhere in between, but this is so much scarier than 2008 for the simple reason that we are not dealing with a man-made crisis. Ben Bernanke went on 60 Minutes in March of 2009 and pledged to do whatever was necessary to prevent another major bank from failing. Once that was off the table, the recession was officially over within three months.

I think this has the potential to permanently alter our way of life. The economy will bounce back, but how many people will want to go to a movie, concert, or sporting event when this is all over? How about going on a cruise, stuffing yourself into a middle airplane seat between two people who are coughing, or going to a business conference with thousands of other people who have been traveling? Travel, hospitality, and entertainment are going to get crushed, and no amount of government bailout money is going to bring customers back to those industries for a very long time.
Appreciate 0
      04-02-2020, 09:25 PM   #72
flybigjet
Remove Before Flight
flybigjet's Avatar
United_States
6618
Rep
1,598
Posts

Drives: M2C & Boeing's light twin
Join Date: Dec 2019
Location: Littleton (Denver), CO

iTrader: (1)

Quote:
Originally Posted by surge98 View Post
For what it's worth, I bought my 1 series at the peak of the last recession. The best deal I could get was $500 over invoice plus the year-end $1000 off through BMW, financing 50% of the total cost at 4.5%. I also got a $500 tax credit for buying a car that year. Before all this hit, the standard $3750 in incentives was already a much better deal than what I could get back then. I have cash set aside for a new 2 series, I'll be very interested in seeing what incentives are offered next week. I doubt the deals will be as good on an ordered car, but maybe I can get 9-10% off MSRP instead of 7-8%.

I see one person saying that things will be back to normal in six months and one person saying it will take 3-5 years. The truth is probably somewhere in between, but this is so much scarier than 2008 for the simple reason that we are not dealing with a man-made crisis. Ben Bernanke went on 60 Minutes in March of 2009 and pledged to do whatever was necessary to prevent another major bank from failing. Once that was off the table, the recession was officially over within three months.

I think this has the potential to permanently alter our way of life. The economy will bounce back, but how many people will want to go to a movie, concert, or sporting event when this is all over? How about going on a cruise, stuffing yourself into a middle airplane seat between two people who are coughing, or going to a business conference with thousands of other people who have been traveling? Travel, hospitality, and entertainment are going to get crushed, and no amount of government bailout money is going to bring customers back to those industries for a very long time.
The key is a VACCINE. How often do you avoid concerts, movies, flying simply because it's flu season?

With a vaccine, this CV critter gets more or less taken out of the equation.

And, if it takes out the anti-vax crowd..... well, that's why they call it natural selection.

Just my 0.03.

R.
Appreciate 1
      04-02-2020, 11:13 PM   #73
EarnestineJohnson
Registered
EarnestineJohnson's Avatar
United_States
0
Rep
1
Posts

Drives: BMW X3
Join Date: Apr 2020
Location: 4137 Frum Street, Nashville, Tennessee(TN)

iTrader: (0)

Yes, Price will go down because those who wanted to buy car in 2020 is going to face trouble while purchasing any liability, They will only focus on purchasing assets..
So, I think auto prices will automatically goes down.

cps test

Last edited by EarnestineJohnson; 04-03-2020 at 07:41 AM..
Appreciate 0
      04-03-2020, 01:25 AM   #74
RM7
Brigadier General
RM7's Avatar
2870
Rep
3,445
Posts

Drives: Camaro SS 1LE
Join Date: May 2015
Location: Alaska

iTrader: (0)

Quote:
Originally Posted by flybigjet View Post
The key is a VACCINE. How often do you avoid concerts, movies, flying simply because it's flu season?

With a vaccine, this CV critter gets more or less taken out of the equation.

And, if it takes out the anti-vax crowd..... well, that's why they call it natural selection.

Just my 0.03.

R.
Yeah, people, as a whole, have a memory of about 5 seconds.
__________________
Current: 2018 Camaro SS 1LE, 2023 Colorado ZR2. Former: BMW 428i Gran Coupe.
Appreciate 0
      04-03-2020, 01:42 AM   #75
chris719
Major General
7273
Rep
7,252
Posts

Drives: '08 M Roadster
Join Date: Oct 2007
Location: NJ

iTrader: (0)

Quote:
Originally Posted by EarnestineJohnson View Post
Yes, Price will go down because those who wanted to buy car in 2020 is going to face trouble while purchasing any liability, They will only focus on purchasing assets..
So, I think auto prices will automatically goes down.
Especially on cars that are considered luxuries. I got my Z4M in 2008 for around 15k off. It wasn't a hot seller anyway and there was "trunk money", but they just could not move it between the manual transmission and demand for a roadster in a recession. It was in the showroom for months.
Appreciate 0
      04-03-2020, 10:55 AM   #76
Flacht3
Not Enough Garage Space
Flacht3's Avatar
1135
Rep
721
Posts

Drives: STO /765LTS/ Macan
Join Date: May 2016
Location: Yay Area

iTrader: (0)

Quote:
Originally Posted by TorontoGambler View Post
You and I are fully aligned. I assume there are a few people in here who have taken economics, but maybe not. This isn’t a part of the economy that’s gone bad in a single country, this is a global recession, but hey I could be wrong.
For what it's worth, you rarely get a massive recession in a "single country" at this point without it impacting other countries. Global markets are too intertwined.

Lot's of opinions in this thread, but the truth is no one has the answer. We can only take educated guesses and prepare ourselves for what's coming (really, already here).

But we have NEVER seen a cause like this. We essentially had to pull the plug on the economy (shut down businesses, yank jobs from the market, etc.) overnight. And once the curves flatten, we'll gradually start bringing them back online. This is very different than systematic recessions of the past.


I think of it like this:

We just unplugged the router (massive exponential unemployment), and need to keep it off (unemployment won't get better) but will plug it back in soon, once the system boots back up (jobs will come back online) we'll gradually return to normal. Yes there will be pain and it will still be a recovery, but it's very different vs. in the 2008, the router was broken and it took us a long time to decide how to fix it and find the right replacement parts.
__________________
Appreciate 3
jamesinaz1627.00
chassis6373.50
      04-03-2020, 10:58 AM   #77
jamesinaz
First Lieutenant
1627
Rep
360
Posts

Drives: 2013 X3 2017 540i
Join Date: Feb 2020
Location: Arizona

iTrader: (0)

Garage List
Quote:
Originally Posted by Flacht3 View Post
For what it's worth, you rarely get a massive recession in a "single country" at this point without it impacting other countries. Global markets are too intertwined.

Lot's of opinions in this thread, but the truth is no one has the answer. We can only take educated guesses and prepare ourselves for what's coming (really, already here).

But we have NEVER seen a cause like this. We essentially had to pull the plug on the economy (shut down businesses, yank jobs from the market, etc.) overnight. And once the curves flatten, we'll gradually start bringing them back online. This is very different than systematic recessions of the past.


I think of it like this:

We just unplugged the router (massive exponential unemployment), and need to keep it off (unemployment won't get better) but will plug it back in soon, once the system boots back up (jobs will come back online) we'll gradually return to normal. Yes there will be pain and it will still be a recovery, but it's very different vs. in the 2008, the router was broken and it took us a long time to decide how to fix it and find the right replacement parts.
Interesting analogy. Time will tell how deep this goes. My concern would be mild if most nations had minimal debt. But I wonder how this will play out with most nations printing money and kicking the financial can down the road for years.

Well short term I am wondering if I'll get a good deal on a car in June. My lease is up then.
Appreciate 1
Flacht31135.00
      04-03-2020, 07:09 PM   #78
TorontoGambler
Second Lieutenant
156
Rep
247
Posts

Drives: Volvo XC90 Inscription
Join Date: Feb 2020
Location: Toronto

iTrader: (0)

Quote:
Originally Posted by Flacht3 View Post
For what it's worth, you rarely get a massive recession in a "single country" at this point without it impacting other countries. Global markets are too intertwined.

Lot's of opinions in this thread, but the truth is no one has the answer. We can only take educated guesses and prepare ourselves for what's coming (really, already here).

But we have NEVER seen a cause like this. We essentially had to pull the plug on the economy (shut down businesses, yank jobs from the market, etc.) overnight. And once the curves flatten, we'll gradually start bringing them back online. This is very different than systematic recessions of the past.


I think of it like this:

We just unplugged the router (massive exponential unemployment), and need to keep it off (unemployment won't get better) but will plug it back in soon, once the system boots back up (jobs will come back online) we'll gradually return to normal. Yes there will be pain and it will still be a recovery, but it's very different vs. in the 2008, the router was broken and it took us a long time to decide how to fix it and find the right replacement parts.
Agreed. To be clear I didn’t say a single country recession, I said this isn’t stemming from an economic issue in a single country. As in how US banking impacted the world, this is exponentially worse as multiple countries have economic issues and as you’ve said we’re all intertwined. It’s not about having the answers at this point its about coming together and understanding this is real and everyone doing their part. Just shocks me that on a forum essentially for the elite there seems to be 50% with their head in the sand thinking this was goi g to last a week or two. I assume more are waking up to reality now but I thought that 3 weeks ago.
Appreciate 0
      04-06-2020, 08:01 AM   #79
Alfisti
Brigadier General
6453
Rep
3,009
Posts

Drives: 2008 Saab 9-3 Combi
Join Date: Nov 2014
Location: Toronto, Canada

iTrader: (0)

One of my wife's business partners is STILL saying all good within a few weeks. We were on the phone and tried to hammer down on the realities but he still sys it'll all be fine soon enough. Like really?
Appreciate 0
      04-06-2020, 11:10 AM   #80
383vett
Major
383vett's Avatar
United_States
626
Rep
1,044
Posts

Drives: 2018 X3 M40i, 2012 X3 Xdrive35
Join Date: Aug 2012
Location: Moraga, California

iTrader: (0)

This is supposed to be the week with the worst number of cases. Spain and NY showing slight improvements. Hopefully will continue...
__________________
2016 Z06 Vette, 10.53@132
1984 Vette, 406, 10.23@131
2021 SQ5
Appreciate 0
      04-06-2020, 07:58 PM   #81
damnitBobby
Major
991
Rep
1,370
Posts

Drives: 2018 M3 ZCP
Join Date: Jan 2014
Location: Houston

iTrader: (0)

I’m looking for a daily beater and have the ‘20 Mazda CX-5 at the top of my list. Gonna wait till May or June before I start emailing stealerships lowball offers.
Appreciate 0
      04-08-2020, 09:58 PM   #82
lilMichael5
Registered
2
Rep
4
Posts

Drives: Mustang
Join Date: Apr 2020
Location: New York

iTrader: (0)

Quote:
Originally Posted by surge98 View Post
For what it's worth, I bought my 1 series at the peak of the last recession. The best deal I could get was $500 over invoice plus the year-end $1000 off through BMW, financing 50% of the total cost at 4.5%. I also got a $500 tax credit for buying a car that year. Before all this hit, the standard $3750 in incentives was already a much better deal than what I could get back then. I have cash set aside for a new 2 series, I'll be very interested in seeing what incentives are offered next week. I doubt the deals will be as good on an ordered car, but maybe I can get 9-10% off MSRP instead of 7-8%.

I see one person saying that things will be back to normal in six months and one person saying it will take 3-5 years. The truth is probably somewhere in between, but this is so much scarier than 2008 for the simple reason that we are not dealing with a man-made crisis. Ben Bernanke went on 60 Minutes in March of 2009 and pledged to do whatever was necessary to prevent another major bank from failing. Once that was off the table, the recession was officially over within three months.

I think this has the potential to permanently alter our way of life. The economy will bounce back, but how many people will want to go to a movie, concert, or sporting event when this is all over? How about going on a cruise, stuffing yourself into a middle airplane seat between two people who are coughing, or going to a business conference with thousands of other people who have been traveling? Travel, hospitality, and entertainment are going to get crushed, and no amount of government bailout money is going to bring customers back to those industries for a very long time.
How often do you avoid concerts, movies, flying simply because it's flu season?With a vaccine, this CV critter gets more or less taken out of the equation.

Last edited by lilMichael5; 04-26-2020 at 09:15 AM..
Appreciate 0
      04-19-2020, 06:46 AM   #83
advrider6510
Banned
advrider6510's Avatar
United_States
71
Rep
52
Posts

Drives: E36 M3, F80 M3, Ford Mustang
Join Date: Apr 2020
Location: Ne Jersey, USA

iTrader: (0)

The COVID-19 crisis could cause U.S. new vehicle sales to fall by as many as 2.4 million units from 2019. In the event of the situation lasting much longer, the effects would likely be much more severe. It all means reduced foot traffic into dealerships, which is likely to result in fewer sales. Even before the crisis was designated a pandemic, dealers already had a negative view of the market. It's not clear if anyone will be there to actually buy the cars ..
Appreciate 0
      04-19-2020, 08:53 AM   #84
gatorfast
Major General
gatorfast's Avatar
United_States
4969
Rep
6,854
Posts

Drives: 718 Cayman
Join Date: Jan 2008
Location: SoFla

iTrader: (4)

Seems like most of the dealerships around me are offering complete service at your home and at your convenience. If you want to purchase or even test drive a vehicle they will bring it to you. This sounds like something that can stay in place even after covid goes away so people can avoid the awful dealership experience and test/purchase at their convenience.
Appreciate 0
      04-19-2020, 10:37 AM   #85
RM7
Brigadier General
RM7's Avatar
2870
Rep
3,445
Posts

Drives: Camaro SS 1LE
Join Date: May 2015
Location: Alaska

iTrader: (0)

Quote:
Originally Posted by gatorfast View Post
Seems like most of the dealerships around me are offering complete service at your home and at your convenience. If you want to purchase or even test drive a vehicle they will bring it to you. This sounds like something that can stay in place even after covid goes away so people can avoid the awful dealership experience and test/purchase at their convenience.
Maybe this will fundamentally change the dealer system, which is long overdue for modernization. IMO, there are way too many of them.
__________________
Current: 2018 Camaro SS 1LE, 2023 Colorado ZR2. Former: BMW 428i Gran Coupe.

Last edited by RM7; 04-19-2020 at 11:19 PM..
Appreciate 3
chassis6373.50
ASAP10052.50
chris7197273.00
      04-19-2020, 11:25 AM   #86
gatorfast
Major General
gatorfast's Avatar
United_States
4969
Rep
6,854
Posts

Drives: 718 Cayman
Join Date: Jan 2008
Location: SoFla

iTrader: (4)

Quote:
Originally Posted by JamesNoBrakes View Post
Quote:
Originally Posted by gatorfast View Post
Seems like most of the dealerships around me are offering complete service at your home and at your convenience. If you want to purchase or even test drive a vehicle they will bring it to you. This sounds like something that can stay in place even after covid goes away so people can avoid the awful dealership experience and test/purchase at their convenience.
Maybe, this will fundamentally change the dealer system, which is long overdue for modernization. IMO, there are way too many of them.
Agreed. Most people hate the car buying experience because you sit for hours at the dealership waiting and waiting. Wait for the "finance guy" or the "manager" or whatever. Takes 4+ hours just to buy a damn car.
Appreciate 1
RM72870.00
      04-19-2020, 01:46 PM   #87
advrider6510
Banned
advrider6510's Avatar
United_States
71
Rep
52
Posts

Drives: E36 M3, F80 M3, Ford Mustang
Join Date: Apr 2020
Location: Ne Jersey, USA

iTrader: (0)

I am getting promotional emails for new and used cars!!!
Appreciate 0
      04-19-2020, 05:50 PM   #88
jamesinaz
First Lieutenant
1627
Rep
360
Posts

Drives: 2013 X3 2017 540i
Join Date: Feb 2020
Location: Arizona

iTrader: (0)

Garage List
Quote:
Originally Posted by advrider6510 View Post
I am getting promotional emails for new and used cars!!!
Still waiting here. Well getting like 0% interest promotions. Looking for some real discount offers.
Appreciate 1
Post Reply

Bookmarks

Thread Tools Search this Thread
Search this Thread:

Advanced Search

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off



All times are GMT -5. The time now is 02:10 PM.




m8
Powered by vBulletin® Version 3.8.11
Copyright ©2000 - 2024, vBulletin Solutions Inc.
1Addicts.com, BIMMERPOST.com, E90Post.com, F30Post.com, M3Post.com, ZPost.com, 5Post.com, 6Post.com, 7Post.com, XBimmers.com logo and trademark are properties of BIMMERPOST