2CC - 2 Cheap Cars Group

[Buzz]

Yes are caught overstocked with hybrids.
That would explain why their stock level has not reduced as I thought it would,and why their margin is lower as they try to clear the hybrid stock.
Of the 763 total number of cars listed for sale 388 are Hybrids.So some way to go yet.
I expect they are concentrating on getting their stock balance under control.What level that will be I would  guess down from just over 50% to between 20% and 25%.Therefore the number they hold needs to be halved. ie sell about 32 a month,compared with 700  cars they will sell a month over the next 6 months.
Achievable?.Yes.
I must admit if I was looking to replace my Nissan I would buy a hybrid.

Other posters references to the EV market and massive discounts etc is true for the EV market (new or used), but it's not relevant to 2CC who have NO EV's for sale. They do have 368 Hybrids for sale nationwide and many of them are discounted around $300-$500.

I don't think it is relevant to compare the wider EV market with 2CC's electric assisted vehicles that are focused solely on Hybrids, with NO EV's in stock.

[lorraina]

I am having a lot of fun watching 2CC's site and noting all vehicles for sale and EVs for sale.

On 15th they had all vehicles 763..Today 706.

Evs they had 388 today 368

When they bring on their 2 new sites [70 and 150] they should have 220 extra cars for sale.

That is over 25% more cars for sale..I expect the super site will enjoy super sales.

If they can attract more finance and insurance add ons, the net profit should improve substantially,as their head office and compliance/logistics should not increase a lot,as servicing extra Auckland branches will  not come at a great cost..

[Fisherman11]

Hey all, long time lurker, so long overdue contributing!

From 9th April 2025, and to meet their commitment of zero emmisions by 2040, Uber NZ are disqualifying all hybrids from "green" trip eligibility. Will only be able to operate as Uber X.

I suspect this may have a small impact on uptake of hybrids for use on the Uber platform at least. Nice of them to give a whole 5 months notice, with 14 years left to run to their self imposed deadline!! 

[Basil]

Other posters references to the EV market and massive discounts etc is true for the EV market (new or used), but it's not relevant to 2CC who have NO EV's for sale. They do have 368 Hybrids for sale nationwide and many of them are discounted around $300-$500.

Fair comment apart from the trickledown effect.  Complete bloodbath in EV's and PHEV's means some trickledown market effect / price pressure on hybrids.

[lorraina]

I am having a lot of fun watching 2CC's site and noting all vehicles for sale and EVs for sale.

On 15th they had all vehicles 763..Today 706.

Evs they had 388 today 368

When they bring on their 2 new sites [70 and 150] they should have 220 extra cars for sale.

That is over 25% more cars for sale..I expect the super site will enjoy super sales.

If they can attract more finance and insurance add ons, the net profit should improve substantially,as their head office and compliance/logistics should not increase a lot,as servicing extra Auckland branches will  not come at a great cost..

I have spent most of the week watching 2CC trying to build up their number of cars for sale.
Monday morning they had 736 cars for sale.The highest number was 790 at lunch time today.
Trouble is people buying cars makes it hard for them to build up the number for sale............[lol].

[lorraina]

From TRA today;
Q3 Update

• Auto retail: Vehicle pricing strengthening and vehicle margins improving.


I expect 2CC will be seeing the market improving too.

[Basil]

Turners October report showed dealer to public sales across all second hand dealerships up 11%

[lorraina]

Granddaughter recently had her car stolen.
The insurance company wrote it off.
I sent her details of cars Turners and 2CC had for sale.
She decided on a Subaru hybrid at 2CC.
Christchurch manager Kaz was very helpful.
The presentation of car was excellent.
Drives like a new car.
Granddaughter is happy,and so am I as a shareholder. 

[lorraina]

Things moving in the right direction....

2 Cheap Cars secures new finance facility with ANZ Bank


2 Cheap Cars Group Limited (NZX:2CC) is pleased to announce the execution of a new finance facility with its primary transactional banking partner, ANZ Bank.

Under this facility agreement, the Company has secured competitively priced working capital finance, including a new NZD$5.0 million trade finance loan and a NZD$1.0 million commercial flexi facility.

CEO David Sena described these arrangements as a significant milestone for the Company, supporting both inventory purchases and operational growth.

"This new finance arrangement with ANZ strengthens our banking relationships and provides access to well-priced capital. Importantly, it positions us to confidently drive our operational expansion," he said.

Trading update

The sustained economic downturn, including persistent market volatility, has continued to impact profitability into the fourth quarter of FY25. While the company is still projecting FY25 net profit after tax (NPAT) to exceed NZ$3m, it notes that the favourable impact of carbon credits carried forward from prior years will contribute to that result.

"While the trading environment remains challenging, there are plenty of reasons for optimism, including our strong financial position. We have optimal stock levels, our prominent new site at Greenlane is set to open soon, and we are hopeful that declining interest rates will improve customers' access to finance," Mr. Sena said.

[lorraina]

2CC has been thinly traded,so I am pleased to see some good buying support ahead of their result later this month.
Buyers
Buy Quantity
Prices
15   195,445   $0.720
4   3,249   $0.710
3   6,103   $0.700
1   20   $0.600
1   20   $0.550
       
       
24   204,837   
Prices
Sell Quantity
Sellers
$0.740   19,578   1
$0.750   2,652   2
$0.770   36,102   1
$0.800   481   1
$0.890   349   1
$0.900   1,076   1
$1.000   6,878   3
67,116   10

[lorraina]

And so it came to pass that it was a fun day for 2CC shareholders today.Up 5 cents with good buyer demand .

Last
Change
Buy
Sell
Open
High
Low
VWAP
Volume
Turnover
$0.770
5*  6.9%   
$0.770
$0.800
$0.740
$0.770
$0.740
$0.759
58,388
$44,316
Buyers
Buy Quantity
Prices
1   78,682   $0.770
2   50,013   $0.730
1   21   $0.720
4   2,834   $0.710
3   6,103   $0.700
1   20   $0.600
1   20   $0.550
13   137,693   
Prices
Sell Quantity
Sellers
$0.800   481   1
$0.890   349   1
$0.900   1,076   1
$1.000   6,878   3

[winner (n)]

And so it came to pass that it was a fun day for 2CC shareholders today.Up 5 cents with good buyer demand

Were you the buyer?

[lorraina]

No.I am currently neither a buyer nor a seller.

[lorraina]

Big lack of sellers.
Buyers
Buy Quantity
Prices
2   72,862   $0.770
2   50,013   $0.730
1   21   $0.720
4   2,834   $0.710
2   3,603   $0.700
1   20   $0.600
1   20   $0.550
13   129,373   
Prices
Sell Quantity
Sellers
$0.770   3   1
$0.800   481   1
$0.860   850   1
$0.890   349   1
$0.900   1,076   1
$1.000   6,878   3
       
9,637   8

[Basil]

Mate, we can all see the depth for ourselves. Can you share some insights on where you see eps this year and next year ?