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About poor-trader

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  1. Sadly the only way BCA and Manheim will stop offering cars online with zero assurance and (in some case at BCA) no proper condition report either is if people stop bidding on them. The day they notice inspected cars selling and non-inspected cars not selling will be the day they do something about it.
  2. Check planning permission. A lot of units only have B1/B8 permission or for Industrial use and car sales usually requires a "su generis" planning permission.
  3. Will be interesting to see how the auctions enforce any/many rules if they allow anyone in bearing in mind most of them still haven't managed to prevent people smoking.
  4. It is a fair comment but you could extend that to the landlord didn't put a gun to the head of a tenant who signed up for an expensive site, the bank didn't when signing for an overdraft, the employees didn't when you have them a job, the Council didn't when you committed to £5k rates a month etc. Like anything else it is a fixed overhead and it's fine when money is coming in. However, when £0 is coming in and it is not possible to liquidate assets, a due rent payment, due salaries or a big bunch of bank charges, a stocking loan payoff is just another thing to pay which runs down the liquidity.
  5. Depends on the RV of the premises. Under £15000 you get £10k, over (but below £51,000 in many cases) you get £25,000
  6. I've only dealt with NextGear and nothing like that amount of money. However, they've been brilliant thus far. No margin payments, cars automatically extended for 60 days when they become due, no audit fees, just the interest which they even offered to defer (I didn't). No idea on BCA but I've heard less positive things about them. My rep's view is that if they put everyone out of business then they'll have zero customer base afterwards so it is self defeating. Furthermore they'll have loads of cars to dispose of they don't want. To be honest I'm small fry and probably not their top priority and if I really had to could probably clear it but nonetheless they've been much better than I expected.
  7. A quick scan through buy-it-nows at Manheim Colchester reveals them all to be the cars which they couldn't get a bid on the week before lockdown in March. In fact of the cheaper cars I spotted at least 3 which failed to make it even through the 'ring on the last Thursday night (the very last auction they had). All yours for a bargain few hundred quid above March CAP Clean if you're tempted.... Take some jump leads and some K-Seal when you collect.
  8. Some cars have suddenly popped up on Manheim's site with buy-it-now and they seem to be scheduling auctions into the calendar again so something happening there despite them being "closed". As far as I can work out all the cars with buy-it-nows are left overs from the last few physical auctions which couldn't get bids or in a couple of cases I know couldn't even make it through the ring.
  9. Reference the comment on CAP and Glasses. It is a bit of a two-way thing, there is no doubt a drop in the guides makes buyers more cautious over what they pay but, yes, ultimately the market will decide. The bigger issue though is that banks, finance companies, stocking loans etc. use these guides to value stock held by a dealer. If 10-15% gets taken off the values then they depreciate that sock value by the same amount and businesses who had a positive balance sheet on Friday have a negative one on Monday. That makes banks nervous about overdrafts, makes it more difficult to borrow and makes stocking companies very worried. If you're a bank sitting on a stock loan book of £1bn, or a leasing company expecting 30,000 end of lease cars back in the next 6 months seeing 15% taken off the value of it all overnight in terms of book price is not good news. Of course what ultimately matters is what they actually realise in terms of cash but short term it makes the financials look suspect.
  10. Manheim (NextGear) are extending all cars out as they come near to due and cancelling all margin payments. They also seem to be waiving audit fees. They're still charging interest which they have reduced slightly. On the whole they've been quite decent.
  11. Remember the Government Furlough scheme only runs to 31/5/20 as it stands so, on the assumption no one will be re-opening to mid-May anyway you only really have about 2-3 weeks before you have to make the decision whether to bring people back onto the payroll or let them go anyway.
  12. In the 2-3 weeks running up to the lockdown the £0-£2.5k ish stuff was still selling easily. Basically anything which had some MOT and vaguely worked but was cheap still seemed to be flying out the door but everything else was dead. The "distress" car market will always have demand. People who simply need another car because their existing one has been stolen/crashed/failed MOT/clutch gone/died or whatever will still have to buy one so the low level of the market will come back quickly. Add in all the people who's leased 18-plate German thing has just been re-possessed and it could be boom time. However, the "Changing my car because I fancy a new one" market might take much longer if confidence and the economy has taken a big hit. I can't see the latter coming back strongly until Corona is seen as done and dusted (vaccine or whatever) and the economy has bounced back a bit. There will always be people with money but they need to confidence to spend it.
  13. poor-trader


    BCA claim to still be open, still selling cars via buy-it-now and open for collection at certain times. At least that's what it says on their website.
  14. poor-trader


    Not sure what planet BCA are on. They seem to be in denial about the current situation. They need to be planning for neither they or any of their dealers to sell a car for at least 3 months. It doesn't matter how strong a balance sheet any dealer has if most of it is in cars and it is impossible to turn a car into cash eventually they will hit a liquidity wall on a stocking loan. I think actually dealers have the upper hand - I mean are BCA going to turn up tomorrow and collect a load of cars on Tuesday and flog them at auction on Wednesday? No, they are not. And no matter how much they may bill for the balance it could take months/years/never chasing people if they simply can't/won't pay. They must realise eventually pretty much every dealer on their books will start defaulting on the stocking loans. I'm not sure how BCA are financed but maybe their financial position isn't as strong as we assume and, in fact, they can't afford to extend the loans as they themselves are running out of money. If garages could afford to pay off their entire stocking loan in one hit without selling a car then I guess they probably wouldn't have a stocking loan. On top of that they may have a nice healthy balance sheet but if all their money is in other cars they won't have the cash. I rarely deal with BCA (thankfully, by the sound of it) but they must know how the industry works?
  15. poor-trader


    NextGear are extending all vehicles due to expire by 60 days. They also seem to be cancelling most/all margin payments. In fact, when I looked at my bank schedule today there are no payments showing for the next 3 months. It is taking a while to do apparently as the software isn't working as they'd hoped and staff are having to change the payment schedule for each car with each dealer manually whilst working from home. I mean, frankly, if someone doesn't/can't pay what are they going to do? Take all the cars away and do what with them? They can't sell them and they'd just make a huge loss. On top of that if they put all their dealers out of business when this is over they're out of business and Manheim has far less customers to sell to as well. So they seem to have been sensible. I have no idea what BCA are up to. They seem to still be trying to flog cars by buy-it-now style methods and are encouraging purchasers to come and collect them. No one should be collecting anything. The law is pretty clear, they should be shut.