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kwhelan

ex Rental Cars for sale

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read an article yesterday that said there were over 5000 rental cars in Queenstown. Thinking there could be a flood of late model cars appearing on the sale yards which could affect sale prices, might be some cheap campers for those that are looking.

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My Mrs wants a 7 seater, but I'm holding off until the last quarter of this year for this reason. I really can't see prices heading upwards for some time.

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Yes, the rental fleets in NZ are now very much over stocked for the level of demand (unless you are Jucy...) but that won't necessarily result in a massive flood of dirt cheap cars hitting the market. The rental company will have worked out a price it needs for the sale of the cars when they are no longer required, whist they might let them go for slightly under that value due to corona, etc. they are not going to drop their pants and lose heaps on each one. they have other options to either keep them on for a longer period or other places they can sell them, i.e. the top level (new car) rental companies will pass them on to the second level (not quite so new) fleets, and so on.

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Do we rent anything good (BMW) in New Zealand? 

Rather ironically I arrived back at the office this week to my new Hertz Gold Status card or whatever it is. Not that I will be using that any time soon! 

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Yep, plenty of BMW rentals around Avis have X5s, Aerodrive have a number of 3 and 4 series. And I'm sure there are other companies do them

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A vast majority of rental cars are on lease contracts. 
 

mitsubishi have taken back well over 2000 cars back from rental companies breaking leases, and I believe Toyota are doing the same. 
 

there are multiple rental companies who are selling bulk lots off through auctions. There was like 300 ex rentals up for auction in manheim last week. 
 

so, In short..... yes the car market is going to be flooded very shortly. I don’t think they will be “dirt cheap” but they are definitely going to be cheaper than the majority of the same cars on the current market 
 

 

we deal with several car yards down here in chch and they have all said they are expecting huge numbers of cars coming up forsale in the next months. And some have even been approached by Toyota and Mitsubishi to buy ex lease cars 

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What an interesting predicament. Hadn't thought about this one.

Although makes sense, I saw a huge industrial zone near the motorway filled with camper vans, so many lease / rent type vehicles would be impacted by this economic shutdown. 

Will be interesting to see what does come on the market for sale! 

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7 hours ago, NZ BMW said:

Do we rent anything good (BMW) in New Zealand? 

Rather ironically I arrived back at the office this week to my new Hertz Gold Status card or whatever it is. Not that I will be using that any time soon! 

I often hire through Hertz, mainly because they have some decent stuff with unlimited km - Mustang, Audi SQ5, Q7, Golf GTi.

I was suppose to be in Perth in the first week of the lockdown and had booked an Audi Q7. 
It was cheaper to book it outside of my Hertz Gold membership and do it unregistered through one of their specials. 
 

Although I did see last week Hertz is on the brink of folding. 

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I saw Fb ad with a Marlborough rental company selling off what seemed to mostly Ducati Scrambler's (various types)... so if you're in the market for a Desert Sled or similar you could be quids in!

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13 hours ago, Arron said:

there are multiple rental companies who are selling bulk lots off through auctions. There was like 300 ex rentals up for auction in manheim last week. 

so, In short..... yes the car market is going to be flooded very shortly. I don’t think they will be “dirt cheap” but they are definitely going to be cheaper than the majority of the same cars on the current market 

How many of those 300 Mannheim rentals actually had bids on them or even sold?

I take it you are referring to one of the Mannheim dealer only auctions, not public auctions? Not many used car dealers out there feeling flush and buying up cars at the moment that’s for sure.

One ex-rental auction in the recent past sold one car, with very few bids on anything. It’s one thing to try and sell but another to find a buyer that will meet the reserve.

The fact that these cars pass through a number of sets of hands before ending up with someone driving it away also delays the supply into the market, and every one is trying to make a dollar on the way through. 

Longer the cars sit, with money tied up in them, then the asking price will slowly drop as people want them shifted, but takes time.

The area of the market trying to move cars on right now are the direct importers from Japan, as they had cars on the yard and on the way when lockdown hit, so they are well over stocked. Lots of “Sales” and offers in this part of the market.

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2 hours ago, SmithyInWelly said:

I saw Fb ad with a Marlborough rental company selling off what seemed to mostly Ducati Scrambler's (various types)... so if you're in the market for a Desert Sled or similar you could be quids in!

Link?

 

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2 hours ago, E30 325i Rag-Top said:

The area of the market trying to move cars on right now are the direct importers from Japan, as they had cars on the yard and on the way when lockdown hit, so they are well over stocked. Lots of “Sales” and offers in this part of the market.

Interesting story I heard from a neighbour (car dealership owner) is that they have sold 50 cars on paper during lockdown (waiting to be collected after lockdown) and all their new incoming stock has been held up in Japan so they have very few cars left to sell. Complete opposite end of the spectrum!

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Interesting... the situation will obviously vary from dealer to dealer and depend on how good their stock control has been, and whereabouts in the market they are selling

When NZ went into lockdown there were plenty of car transporters on their way from Japan, and a few more left after, I think the stoppage in Japan happened a bit later, I thought the auctions were still running - so maybe it's the ports? The Vehicle Importers Association was asking for port fees and custom charges to be deferred as their members didn't have the cash coming in to pay for the bills.

Like all businesses, some run hand-to-mouth, others have good cash reserves and well managed stock. 50 sold during lockdown is a good effort, they could be one of the lucky few that are in a position to take advantage of cars coming through auctions now.

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3 hours ago, E30 325i Rag-Top said:

How many of those 300 Mannheim rentals actually had bids on them or even sold?

I take it you are referring to one of the Mannheim dealer only auctions, not public auctions? Not many used car dealers out there feeling flush and buying up cars at the moment that’s for sure.

One ex-rental auction in the recent past sold one car, with very few bids on anything. It’s one thing to try and sell but another to find a buyer that will meet the reserve.

The fact that these cars pass through a number of sets of hands before ending up with someone driving it away also delays the supply into the market, and every one is trying to make a dollar on the way through. 

Longer the cars sit, with money tied up in them, then the asking price will slowly drop as people want them shifted, but takes time.

The area of the market trying to move cars on right now are the direct importers from Japan, as they had cars on the yard and on the way when lockdown hit, so they are well over stocked. Lots of “Sales” and offers in this part of the market.

believe it or not, some of the yards we deal with have had issues getting cars. Those shipments that were en route from japan have all been delayed and/or canceled! a couple of the yards are screaming for cars as they are nearly sold dry currently. you can say this is about "stock control" as above, but when the main source of stuck gets cut off from the rest of the world uhhh yeah, things begin to slow down! hence the reason why i'm not totally convinced that all these rental cars are going to have a "massive effect" on the prices, but will certainly influence it to some degree. Another thing to be thinking about, is those car yards that are importing from japan are generally importing cars that are in a different market to those that the rental companies have. in search of a better term, but those cars that are being imported from japan are *generally speaking*  more of a "not your standard toyota yaris" kind of car

 

As for the Mannheim auction, it was a dealers only auction and a fair amount of them actually sold! People still need cars, yet dealers are having trouble sourcing cars so they will buy whatever they can at the moment. 

 

there are so many different variable that different car yards are going to be dealing with, but generally speaking it sounds like there has been pretty slim pickings on what they've been able to get their hands on for a few months now

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Yeah I can imagine it’s a hard life being a non-franchise dealer right now. 

I get the feeling that a lot of them finance the stock and rely on a constant roll-over on thin margins to make a living. 

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does this mean that the dealers will start potato hunting on  Facebook?

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4 hours ago, Arron said:

there are so many different variable that different car yards are going to be dealing with, but generally speaking it sounds like there has been pretty slim pickings on what they've been able to get their hands on for a few months now

Yup, very true, every dealer is different so can’t say the same applies to all or many or most.

The registrations and sales statistics for May will be very interesting reading.

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6 hours ago, gjm said:

Link?

 

There has also been a few Land Rover Defenders and Discos listed for sale from Central Otago tour operators. 

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I was literally about to post this. Having a bunch of Defenders listed all at once will definitely make prices drop. Not many to choose from in the sub $35k price range. Some good deals to be had in the coming months!

Edited by E30 325i Rag-Top
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Defenders are like E30s.
Most are over-priced. They sell, because the kool-aid has got to people.

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A car yard here in Christchurch just landed 19 ex rental ford rangers 

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