Perhaps the real question is will the market dominance of Trade Me continue to grow and how much market share will it take from traditional car dealers ?
LOL Couta1 - too funny.
Electrical vehicles are cheaper to produce (if produced in comparable volumes to vehicles with combustion engine), much cheaper to drive (cost of fuel) and much cheaper to maintain. Only reason for them to be still more expensive are still low volumes and battery costs - and battery cost come down every year.
Obviously - I don't know exactly when the electric car will be cheaper than a comparable ride on the combustion engine, but if history is a guide - it took roughly 20 years for in commercial quantities produced vehicles with combustion engine to replace horse and cart - and (in volumes produced) electrical vehicles are already around for two decades ...
All good stuff BP but you don’t mention execution risk (and that’s assuming strategy is robust)
Heck you have to think something is really wrong sonewhere - either the much touted ‘strategy’ is irrelevant or management (execution) is abysmal
Look at half performance across the business. Operating Profit by business -
- Automotive Retail DOWN 9%
- Finance DOWN 2%
- Collections DOWN 10%
- Insurance UP 14% plus property gain
And then they signal second half could be worse ...bloody heck
And the delusional Board thinks it share price should be north of $3
Company performance not reconciling with words / hype etc = declining share price
That’s how I see it anyway
[QUOTE=Beagle;745013]Perhaps the real question is will the market dominance of Trade Me continue to grow and how much market share will it take from traditional car dealers ?
Perhaps the answer is the tradional car dealers are the major beneficiaries of Trade Me.
Just another chanel Turners use to grow their market share.
Head of the giant Volkswagen group who currently produce EV's disagrees with you saying EV's will probably always be more expensive https://www.autocar.co.nz/autocar-ne...ccording-to-vw
and Hyundai who also currently produce a number of EV's also disagrees https://insideevs.com/hyundai-exec-t...ining-in-2020/
One thing I will agree with you on Percy is this. Turners is a quick and easy place to sell your vehicle, (no need to trade it in with a dealer as part of a dealer to dealer exchange), for those that choose to buy on Trade Me. Now that Trade Me has partnered with MTF to provide finance and Turners is such an easy place to sell one's old vehicle it is very easy to cut out the traditional dealer model so the market is wide open to low cost operators and private sellers.
One thing I will agree with you on Percy is this. Turners is a quick and easy place to sell your vehicle, (no need to trade it in with a dealer as part of a dealer to dealer exchange), for those that choose to buy on Trade Me. Now that Trade Me has partnered with MTF to provide finance and Turners is such an easy place to sell one's old vehicle it is very easy to cut out the traditional dealer model so the market is wide open to low cost operators and private sellers.[/QUOTE]
Yes selling their vehicle to Turners is proving very quick and easy for a great number of people and helps to account for Turners statement they are sourcing more cars in NZ.
Even easier is selling your car to Turners and buying your replacement car from them,using their helpful staff, who will arrange finance and insurance as well.
Private sellers/backyard dealers.Reminds me when I worked at Hutchinson Motors over 50 years ago, the best car dealers were a couple of guys who worked in the parts dept.We had a morning and an evening paper in those days.Every Saturday evening's paper one would advertise a Ford Anglia for sale.Very few details.This was because he relied on buying one to sell on Saturday morning.!!..And he often brought and sold two.!!...lol.
Yes selling their vehicle to Turners is proving very quick and easy for a great number of people and helps to account for Turners statement they are sourcing more cars in NZ.
Even easier is selling your car to Turners and buying your replacement car from them,using their helpful staff, who will arrange finance and insurance as well.
Private sellers/backyard dealers.Reminds me when I worked at Hutchinson Motors over 50 years ago, the best car dealers were a couple of guys who worked in the parts dept.We had a morning and an evening paper in those days.Every Saturday evening's paper one would advertise a Ford Anglia for sale.Very few details.This was because he relied on buying one to sell on Saturday morning.!!..And he often brought and sold two.!!...lol.[/QUOTE]
Yeh some of those car dealers were wizzes, reminds me of the time I was selling a car, had it in the Herald for a while when the phone went some 10 days after my last add and would you believe a dealer wanted to buy it, I thought I as lucky until I caught on , they went through the cars for sale adds only after they were 10 days old, needless to say we didn't do a deal at his price.
I bet the dealer scored many giveaways.!!!
Another story from Hutchinson Motors.
The sales manager told me Hutchinson Motors had so many Ford Prefects to sell in 1951 or 52 he learnt a good trick.Ring clients on the waiting list and tell them they had "a window of opportunity" to buy a new Prefect,either a blue one or a red one,but they had to let him know before 10am tomorrow morning.
They had Prefects of every colour.
Sold all the Prefects in record time.
Too many choices, and too long a time to decide,meant to many "I will think about" its.
ps.
Worked for me a good few years later when I went selling Lyttelton calendars business to business in Lyttelton.
Offer them a choice of two and often they brought both,offer a choice of three or more, confussed them, and they brought none.!!
I am in total agreement with the board.
ps.I think the board is made up more of finance/insurance/accountant/ people.No ex car dealers.[unfortunately]
pps.Keep an eye out for the following book when you are next at the dump:"Billiionaire;The Life and Times of Sir James Goldsmith".May alter your time frame for a good business model producing results.Sir James thought in years, rather than days and weeks [much like Warren Buffett] .The chapter on Cavendish Foods in particular.
Actually - both of them might have a vested interest to "manage expectations" to prevent people from believing that EV's might soon be cheaper. Both sell nearly exclusively cars with combustion engines which will fast loose value if & when EV's are cheaper.
Predicting what battery prices will do after 2020 is like predicting the 2021 summer - or forecasting the oil price in three years from now. While increased demand might be one fact pushing prices up - nobody knows what the supply side will do. Typically increased demand means increased supply. As well - batteries are particularly suitable for recycling ... i.e. we need to mine all these amazing elements only once and can use them again and again.