Residuals, of any model, are a function of the degree of unsatisfied demand.
So in the past when Morgan lead times for new models were the legendary 'years' then residuals were high. If you could not get an new one you purchased old or restored (old Morgans never die they just get rebuilt).
Absolutely true..but that is only part of it.
Nowadays lead times are much less and hence secondhand models depreciate. Logical
Yes..though some models are beginning to build up lead times again..and if it continues I imagine (hope) their residuals will rise concurrently.
BUT dealers were screaming this year that there were no used cars on the market. As Simon will testify this applies to good Mk1 Aero's as well.So why are residuals still heading south??
You are asking me to speculate further? (A dangerous habit!);)
Only basic principles are easy..everything that flows from them gets progressively more complicated. (wry smile) The tenet above relies on supply and demand. Let's examine these two factors with the above.
Many here have stated that Morgans never get junked. Rather they get repaired or restored (often opulently). Ergo, the MMC is not the largest supplier/stocker of Morgans, owners are by far. We create demand (new and used) and contribute to supply (used).
So what are reasons that residuals would drop if owners have a reluctance to sell? There is a simple answer. Only if the same owners have had an even greater reluctance to buy.
After all, they bought with the expectation they could not lose, yet they have seen falling residuals caused by 3 years of "Specials", "Series" cars, Anniversary Cars" and so many changes. Not a good time to sell.
Yet waiting times are rising again for some models and that is the sign the market for these is recovering. Give it another year or two. (Knock on ash)
I think that the trend started earlier, in the 90s, and the reasons are more basic. Will this trend stop where it has appeared or continue and spread elsewhere?
So what are you thinking of?? Give us a clue then...
Later. Better half has arrived. Wine time.
Lorne
P.S. I would be interested to know more of Simon's and Roderich's selling experiences, though I would completely understand if they chose to keep these things to themselves.
