The IPO in May this year was £2.00, hitting a high of £2.45. According to the HL website tonight, after a profits warning, the selling price tonight was £1.24.
Ouch
Glad I don't hold any of their shares, and I'm not brave enough to buy on weakness this time
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Motorpoint have upped their prices whilst others are mopping up former MP customers.
This week the MP website now leads with PCP/HP Prices, you hav to opt for the car price on the first page.
It is said 80% of new cars are PCP/Leasing - with PCP /Leasing the most important figures are BUY price, GMFV & the Interest rate.
7/8 mths ago
A friend was looking at a new BMW, £400 down, £400 per month for the car over 4 years, 10K per year.
The best deal he could find was
List was £35K, Manufacturer support was £6K so a Net Price of £29K
GFMV was £12K & Interest rate was under 5%. Other BMW dealers were more expensive by about £3,000 over the 4 years.
Similar car @ Motorpoint, 6/9 mths old 10K miles was £25K. I cannot remember the full story but with £1,000 or maybe £2,000 deposit the payments were some £440 or £450 / month -
The buy price was less, the GMFV was about £10K & the Interest rate was 7.5%Flat which is roughly 15%APR. - Interest rate was the killer!!!
What deal would you take? New @ £400 per month or a 2nd hand ex day rent for £50 more per month.
The exact calc is a bit shaky as it is from memory but the £400 deal is what he pays currently to BMW Finance.
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MP have been a bit creative with their pricing for some time.
They always advertise a massive saving against the new list price, but this ignores any discount / manufacturer incentives. Their finance is expensive so if you are not paying cash then they look dear
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4 years ago they tried to load my invoice with £100 for brining the car North, ignoring the fact that their system delivered the wrong car weeks before.
They wanted £100 admin fee IIRC and had kept me waiting 2 hours as their paperwork was incorrect & then top top it off £100 for cleaning the car - it was not clean enough for me & I was not going to pay £100 for a spray wash.
Valeted @ my door for £60 by a local man - cleaned inside & out & a coating of wax.
Car is great, never missed a beat in 4 years 16 days.
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I always enjoyed browsing Motorpoint, window shopping I suppose. But they have started to look greedy.
What might be termed repositioning by Motorpoint? The big problem with that is always the risk that you lose your old customer base, and fail to build the new one.
Any ideas about where Motorpoint's more savvy buyers might be defecting to?
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For anyone wanting a more detailed analysis I recommend ( it's free) today's Stockopedia, Paul Scotts Small Cap Value Report , which includes Motorpoint ( amongst a few others).
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>>Any ideas about where Motorpoint's more savvy buyers might be defecting to?
With most sales PCP - the question most buyers ask is "How much per month?"
The cash sticker price is less relevant & with the falling £ there will be fewer opportunities for MP to sell grey imports (BIG fan of MP imports - bought 2 imports, 2 x sons bought 1 each).
With Manufacturer subsidising Zero & Low % PCP deals alongside "Manufacturer Money Off" a Brand new car can be the same or less than Motorpoint 6/12 month old car & 15%.
Zero or at least keen interest. especially over 3/4 years as many manufacturers do from time to time.
Maybe many buyers are doing what "Soap Powder Buyers" did of old - Buy the soap powder on offer this month = Buy the Astra on Special Offer this month @ Vauxhall. If I buy next month it could be Ford or Hyundai.
If you are a true Private Buyer doing 10/12K per year (with some exceptions) most main line car makers will build a car that will last the warranty period because parts failure costs them bigtime - the punter does not worry about failing at year 5 because they hand back the car after say 36 months.
For New/Nearly new Car buyers PCP maybe force the changes in the car market just as 30 years ago people rented their TV for £15 / month - there was a DER on every High S - Is Motorpoint going to be a DER?
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MOTORPOINT X1 = 4 yrs PCP £471 per month, £2,700 down, 6,000 miles/year for a low mileage car with under 2k miles APR 12.9%
Similar config on BMW site cannot say cars are twins but definitely brothers with MP car being a 16 Reg with 2k & BMW 66Reg 0 miles.
Brand new 66 Reg, same deposit £2,700, £492 for 8,000 miles/year (lowest sample mileage allowed) APR 4.9%
£21 / mth difference, so about £1000 over 4 years difference - would you MP it or BMW Main Dealer it?
Obviously there could be T/I values to be discussed, your milegae needs may be much more, horse trading for freebies / buying a showroom car rather than special order etc, lower APRs, drop in asking prices.
BUT at a desktop comparison level there is not a lot "ON a PCP" basis between a Brand Spanker & a "6 month old" car with 2K on the clock.
If this is your "new car" well worth chatting to both sides - then make up your mind.
Last edited by: Falkirk Bairn on Thu 20 Oct 16 at 08:08
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5% bounce currently... Buying price £1.30
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>> BUT at a desktop comparison level there is not a lot "ON a PCP" basis
>> between a Brand Spanker & a "6 month old" car with 2K on the clock.
>>
>>
>> If this is your "new car" well worth chatting to both sides - then make
>> up your mind.
>>
Also remember the little extras that you might get from a dealer, but not from MP like a cheap service plan to cover the first few years plus goodwill if something goes bang just out of warranty
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BMW 7 Series mentioned above started at £32,999, come down every few weeks, last week £29,999 NOW £29,599 - not bad for a 3 litre 7 series with around 5,000 mls on the clock.
There were 6 last week & 6 today.........one of these days punters will see "a bargain" & buy them quickly.
Too big for me, but a nice buy for someone.
Last edited by: Falkirk Bairn on Mon 24 Oct 16 at 14:31
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Strangely enough my next door neighbour has just bought an Avensis saloon from them. His Volvo estate, a mid sized one, V50? was 4 yo, needed 4 new tyres and I was told a further years extended warranty was circa £550. And it wasn't particularly loved.
There's a Seat Leon ST Cupra 290 on the website. Been hanging around at £19k for a while. Lovely colour. Manual. Wonder if that will drop in price soon?
Shame it doesn't have a sunroof
And I don't have any money
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>>There's a Seat Leon ST Cupra 290 on the website. Been hanging around at £19k for a while. Lovely colour. Manual
New Leon due 2017 - may be "Deals to be done" @ your local Seat Emporium
www.honestjohn.co.uk/news/new-cars/2016-10/seat-updates-leon-for-2017/
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>> BMW 7 Series mentioned above started at £32,999, come down every few weeks, last week
>> £29,999 NOW £29,599 - not bad for a 3 litre 7 series with around 5,000
>> mls on the clock.
>>
Now £28,999.........................watch for next week's price
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Motorpoint share price - Falkirk Bairn
