Vertu Motors Share Discussion Threads

[blackhorse23] 09/11/2022 10:39

My concern is , They have millions of car in stocks with finance facilities , if not sell or slow sell then interest rates would be significant & take out all profits

[buffalobillnuts] 09/11/2022 10:38

Hunting!!

hxxps://www.helstongarages.co.uk

[rabiddog] 09/11/2022 10:34

Hunting….

[woodwards26] 09/11/2022 09:29

3 yrs ago manufactures were supporting the PCP deals

[santangello] 08/11/2022 17:31

Let the trend be your friend.Starting to look like a breakout.....long overdue i.m.h.o

[microscope] 08/11/2022 16:53

And an even bigger buyer this afternoon, 72k+ shares at over 50p.

Good to see someone backing their opinion in a major way.

[blackhorse23] 08/11/2022 14:06

early Black Friday deals at CURY (LSE) , need something like that lol https://www.eurogamer.net/early-currys-black-friday-deals-2022

[sunshine today] 08/11/2022 13:15

danmart28 Nov '22 - 11:15 - 167912 of 167922
0
Car sales are interesting

Just as most companies have now recovered from the shortages (Land Rover and Ford still catching up), car prices are now considered expensive even for modest wheels.

The cheapest car in the UK is now £12,595 where most vehicles are now in excess of £20k with little discounts.

What compounds matters is the PCP rates doubling if not trebling across the board.
Car companies like the current situation, the shortages has enabled most of them for the first time to get RRP price for their vehicles.
The manufacturers are making profits, the dealerships are making profits, it’s cosy when you have limited supply across the board.

But the perfect storm is in play for a price correction.

New model cars are now so expensive even on PCP forcing a large portion of buyers to utilise the used market just as new car supply is meeting demand and in some instances back to exceeding demand.
Finance providers are aware that supply is back and as such car retention values (how much it will be worth in 3 years) are being adjusted down.

Where is demand being exceeded?

Mainly in the areas/vehicles manufacturers decided to focus on during Covid shortages due to their profitability and simplicity, namely commercial vehicles (vans).

Prices are softening on new vans and competition between manufacturers and dealerships is starting to grow.
Vans cost considerably less to manufacture than cars (parts and assembly), hence why they are more profitable.

Achieving list price for vans was the perfect scenario for manufacturers but it looks like those days ended a few months ago and competition is back.

Back to cars, something will have to give.
As PCP rates rise, car prices remain high, consumers can’t afford cash or the PCP, the market will have to correct.

One of Arnold Clark’s senior sales managers reckons manufacturers will have to share some of the profits with consumers and start offering significant (4 figure) deposit contributions against PCPs to lower the cost.
The example given was the new shape Vauxhall Astra.
The cheapest new model they sell is £22,500 which includes a general discount all dealers get of the RRP.
He reckons within the next 6 months Stellantis the new owners of Vauxhall will have to offer £4000 deposit contributions as the current PCP of £349 down and £349 a month is getting no interest.
The example included a recent customer who’s PCP was up on an old shape Vauxhall Astra that ran out at the end of October.
The customer had been paying £169 deposit and £169 a month over 3 years.
Now with all the cost of living challenges the same model (new version but same car type) is £349 down and £349 over 4 years.
No wonder the new car sales manager can’t retain previously loyal customers

[clive7878] 08/11/2022 09:39

Maybe this is a permament breakout period from 40p and upwards we go from here on ?

[blackhorse23] 08/11/2022 08:30

Ups & downs between 40-50p from last few months

[clive7878] 08/11/2022 08:14

I have noticed on Autotrzder that Arnold Clarkev in some case price rating for their cars as 'higher than average' sometimes quite a bit higher than the market price.
VTU deserves the price re-rating though.

[woodwards26] 07/11/2022 22:59

Only in the opinion of Autotrader

[clive7878] 07/11/2022 22:31

I have noticed on Autotrzder that Arnold Clarkev in some case price rating for their cars as 'higher than average' sometimes quite a bit higher than the market price.
VTU deserves the price re-rating though.

[buffalobillnuts] 07/11/2022 20:01

Vertu is buying or being bought. Hunter/Hunted.
hxxps://cardealermagazine.co.uk/publish/arnold-clark-rumoured-to-have-snapped-up-car-dealer-group-cars-2/274261

[woodwards26] 07/11/2022 18:17

Yes I'd be betting substantially at 40p that's the price that over the years the share has struggled to stay above but now with share buybacks it should be more.At 40 I would be very tempted having bought originally at 28 many years ago

[microscope] 07/11/2022 16:53

Someone paying 50.33p this afternoon for over 23,000. Very bullish signal imho. :)And still no buyback, as you mentioned. More news in the ether I suspect. They talked at interims of how much firepower the powerhouse balance sheet gives them in a fragmented sector.Exciting times ahead I sense, whether as hunter and/or hunted.

[purplepelmets] 07/11/2022 07:42

Best wait and buy back sub 40p

[robmcelf2] 07/11/2022 07:37

Still not started share buybacks....

[sunshine today] 06/11/2022 10:28

From another thread.

Investors might do well to take note.

It’s exactly what I would expect in the early days of a recession/ Depression.





Danmart25 Nov '22 - 00:12 - 167791 of 167839

Interesting chat with a new car salesman, increasingly difficult to get people into PCP deals who are on less than £30k.
Previously could get ‘anyone’ on a PCP for a new BMW 1 series, now they need a far bigger deposit and most customers balking at the monthly fees almost double their previous monthly cost.

Around 50% renew despite near double costs, the other 50% go for cheaper brands (he said Kia are picking up a lot of their customers) or a used car (he mentioned Cazoo being popular).
Previously they had a PCP customer retention renewal of 92%.
A big loss of customers

[mortimer7] 04/11/2022 16:14

Total for new car registrations for month of October in UK released by SMMT this morning was 134,344. A 26% increase on October 2021 figure of 106,265.
Most substantial increase was in the Fleet sector. Perhaps the backlog of orders is starting to flow through now?

[clive7878] 02/11/2022 19:49

A buy of 509,000 today

[santangello] 02/11/2022 12:27

After strong support @40p, we look to be in a hurry to close the gap back to 60p.....barring influential announcements.

Volume and buy/sell ratios certainly supporting this, and of course there is the possibility of a bid approach.

All pleasant for proper holders here.....

[microscope] 02/11/2022 10:38

Awkward things, Facts ;) , for some, as is way on advfn, it seems!

Shares up c 20 percent in October and as for NAV and cash

From interims:

"Free Cash Flow of GBP23.2m in the Period and Net Cash(2) of GBP17.8m (28 February 2022: GBP16.2m)

-- Net tangible assets per share of 71.2p (28 February 2022: 66.8p) reflecting strong asset base and cashflow generation"

[tresham] 02/11/2022 09:13

relief at small purchase and share price ready to recover

[cb7] 02/11/2022 08:27

on paper it looks cheap and results usually well received by brokers and the press, but shareprice declines, as does NAV and cash...