Aberdeen and Leased Cars

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Aberdeen and Leased Cars

Postby drumtochty » Sun Nov 29, 2015 4:33 pm

As you may have heard the Oil Price is down and a lot of people have lost their well paid jobs.

One large dealer in Aberdeen has in the past few months has around 230 cars returned that were on lease and the keys handed over by people who cannot keep up their payments.

On the other hand the dealers that are selling the cheaper cars are still quite busy.

Changed days in Aberdeen I'm afraid.

The guy who built my garage extension 2 years ago was building a new house for an oil worker and has subcontractors working at the site.

This week the client turned up at the site and said "I have lost my job, stop working now".
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Re: Aberdeen and Leased Cars

Postby OldSpice » Sun Nov 29, 2015 4:47 pm

:(
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Re: Aberdeen and Leased Cars

Postby Telly Addict » Sun Nov 29, 2015 7:48 pm

I had heard this from friends in the motor trade not too long ago, it's just as bad in Moray... :?
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Re: Aberdeen and Leased Cars

Postby drumtochty » Sun Nov 29, 2015 8:31 pm

I heard one of the garages a bit north that sell upmarket newish cars was having similar problems but no doubt it was similar down south in 2008 / 2009.
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Re: Aberdeen and Leased Cars

Postby CaptainNorth » Mon Nov 30, 2015 11:26 am

Yeah it's bad, I've survived two rounds of redundancies in 12 months but some pals have not been so lucky. The business cycle stinks - companies make money hand over fist at $120/bbl but none is put aside for a rainy day; they're whores to the investment community and would rather sack good people than build a sustainable business. Many of these companies are global entities with no real allegiance to the area or its people and you can bet that in 9 put of 10 cases senior management still get their new car....
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Re: Aberdeen and Leased Cars

Postby iainf » Mon Nov 30, 2015 3:27 pm

Been happening steadily over the past 2 years - but now after a long period of head in the sand, I think the penny has finally dropped in Aberdeen that they can't keep carrying on like the good old days. Things needed reset as they were getting out of control, a lot of the industry knows that, they might not like it but I agree where was the future proofing so short sighted.

I am sorry for folk who have lost jobs, a lot of my friends have and they are all off to other places across the world now.
But as you highlight the the bubble burst at the top will have a lot of implications down the line and it's this domino effect that is going to take much longer to play out and will be much harder on the smaller businesses out there.
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Re: Aberdeen and Leased Cars

Postby drumtochty » Mon Nov 30, 2015 4:17 pm

One of the major accounting firms that do receivership work has said they have been contacted by a lot of companies in Aberdeen and they are expecting a large number of small to medium sized businesses to close their doors in th next few months.

The PPC leases did not help here but a lot of Aberdeen car parks these days have a large number of £75k to £120k cars, especially in Oil Company car parks, not say 4 or 5 but nearer 50 to 60.

Finding a base line Polo or Fiesta or Golf that were the main stock of these car parks 6 years ago was the exception, rather than the rule.

When we drive up from the borders when you are 10 miles above Perth it is if the next 40 miles is the entry to expensive car land.

In saying that up to now the main people to loose their jobs were the people from the central belt and the industrial areas in England who were the main stay of the offshore construction and maintenance crews.

They have been hit since 2014.

The Aberdeen people have really started to feel it from the Spring 2015.

Those traveling people will find other work and in 2017 when we need people again up here they will say sorry got another job mate!
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Re: Aberdeen and Leased Cars

Postby iainf » Mon Nov 30, 2015 4:31 pm

yeah but if you read the press, there will never be any jobs in it again- especially SNP pot shot articles will have you believe that's it... desolate wasteland from now. Oil? what oil? none of that left there...
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Re: Aberdeen and Leased Cars

Postby CaptainNorth » Mon Nov 30, 2015 4:55 pm

Easy to overlook London and the SE. A more diversified economy might make it easier to find another job but there's a hell of a lot of jobs gone supporting new projects.
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Re: Aberdeen and Leased Cars

Postby iain cooper » Mon Nov 30, 2015 9:35 pm

hopefully your average oil worker has during the good times put enough away to see them through these lean times.

at least until things pick up.

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Re: Aberdeen and Leased Cars

Postby liathach » Mon Nov 30, 2015 10:56 pm

Wishful thinking Iain. You would be surprised how many folk fully live up to the money they are earning.......
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Re: Aberdeen and Leased Cars

Postby IanH » Tue Dec 01, 2015 8:40 am

There's this misconception that everyone is earning superstar salaries which isn't actually true, people in support roles probably earn very similar amounts to those in the Central belt, certainly in my discipline salaries on offer in Edinburgh/Glasgow at the moment are very close to up here.

Some engineering disciplines which are specific to O&G have enjoyed day rates that are out of proportion with engineering disciplines in other parts of the UK.

What you do get though is the 'me too' factor where the availability of cheap credit, personal lease deals etc has distorted the market and people have likely over extended themselves.

Normal financial advice suggests having 3 months salary as cash savings to give you time to find another role, that may be a realistic timetable in other parts of the UK, not sure it is up here.

I know quite a few whose contracts are ending or are being made redundant, a reasonable proportion of those with transferable skills are leaving or working away and commuting in some way shape or form.

Industries go up and down, some do better than others, people move/migrate, what the NE of Scotland lacks is any volume alternative employment to Oil and Gas. No public body has been interested or able to invest in building an alternative and has been happy to take the considerable tax revenue that O&G has generated.
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Re: Aberdeen and Leased Cars

Postby liathach » Tue Dec 01, 2015 12:54 pm

Totally agree Ian.
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Re: Aberdeen and Leased Cars

Postby OldSpice » Tue Dec 01, 2015 1:12 pm

Industries do indeed go up and down.
In my capacity as a Divisional Manager for a major company from the mid-70's for 18 years, Aberdeenshire, as I prefer to call it, was in it's boom time infancy.
One day, I went out to the Don Airport, where they were already flogging oil related tat in an adjoining cafe/shop, I bought a small perspex cube containing perhaps a teaspoon of crude. Still have it to this day. It passed my mind then that it would not & could not, last forever.
Back then, I could get a B&B in Lang Stracht for buttons.

A few years later my expenses shot through the roof for the same room, but the company knew what the situation was and played the game. The owners were also playing the game taking business advantages of supply & demand, so fair play.
What we see now is what many including me anticipated in the decades to come of the bubble bursting, and key top 200 companies raking it while the going was good.
At the end of the day, the area benefitted massively for these decades..Union Street in some places beginning to look like Oxford Street, with prices to match.
What I did not see was serious financial long term investment that would last for the indigenous population, but equally long term unemployment was very low in comparison with Lowland areas following the destruction of our steel, coal, and manufacturing industries.

I do not think the area will be a repeat "tumbleweed" Lowlands situation, but I also think thousands of well paid/secure (?) employees will rue the day they bought that bigger house, the boat on Loch Lomond, and all the other trappings of superficial "wealth"...and did not set aside for the rainy days ahead. But that's human nature, we've all done it from time to time and some still do. It would not surprise me to see "England style" negative mortgaged equities. Nor do I believe the current situation of dwindling (?) resources to be price-brokered off shore before it hits the mainland should be allowed to continue.I think, love or loath, the SNP Government needs to take immediate action to strike political deals with those involved...but then the risk of them in hte long term withdrawing from "our share" would deepen.

I always felt Scotland would loose out long term for not being allowed to harvest that which has made Norway for example, a Scandinavian "Kuwait". So saying, their National Debt is eye watering too, so I wonder what's been going on there given their tiny population of just over 5 million.
The lion's share of the UK revenues, historically, was used to pay massive 2nd world war debts, and the(then) huge IMF interest & debts, will always remain a reason for the UK to hang it's head in shame. Nothing new there then.
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Re: Aberdeen and Leased Cars

Postby CaptainNorth » Tue Dec 01, 2015 3:32 pm

Picking up on Ian H's point on the lack of an alternative I can remember going to conferences 5-10 years ago when offshore renewables was being trumpeted as the next big thing. Of course, due to an absence of co-ordinated effort and funding nothing but hot air was blown about and now Govt subsidies have been almost entirtely pulled the economics of investment don't stack up and investor confidence is destroyed. What an opportunity missed.

A few weeks ago I wrote to my MSP to ask what plans SNP has for the diversification of the economy here and what plans it has to assist those who are out of work. He responded that he has passed the query to Fergus Ewing, the relevant minister; be interesting to see what he has to say.
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Re: Aberdeen and Leased Cars

Postby liathach » Tue Dec 01, 2015 3:40 pm

Don't hold your breath Dave.
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Re: Aberdeen and Leased Cars

Postby IanH » Tue Dec 01, 2015 8:07 pm

I was actually thinking of writing to Soapy Salmond since we now have the pleasure of him as our MP to ask something similar!
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Re: Aberdeen and Leased Cars

Postby Rustbuyer » Sat Dec 05, 2015 3:15 pm

All is not lost, at least the North Sea oil industry has the "broad shoulders of the UK economy" standing behind it... :roll:
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