The profit of any came from the manufacturer, or I expect the dealer wanting to clear some heavy stock they were committed to buying from the manufacturer, dealer max starting point in any new vehicle is 15% after that they are selling below cost and sometimes need to do so. Profit as you know is what comes at the very end after all tax etc is paid, dealers are losing money and cutting staff everywhere, it is sad to see youngsters with families being given their cards.
Chris Boardman has sold the car
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The profit of any came from the manufacturer, or I expect the dealer wanting to clear some heavy stock they were committed to buying from the manufacturer, dealer max starting point in any new vehicle is 15% after that they are selling below cost and sometimes need to do so. Profit as you know is what comes at the very end after all tax etc is paid, dealers are losing money and cutting staff everywhere, it is sad to see youngsters with families being given their cards.
raleighnut
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Yep, totally overpriced.
BTW I never originally mentioned car sales but that is a minefield too'
Bobario
Veteran
That's my local Halfords. I don't go in there very often but if I do I'll keep a eye out for him and say hello. Good on the lad for putting his money where his mouth is. I've been thinking of ditching the car for a while, but I would miss my mountain biking days out so have kept hold of it for now. And I've no idea how he gets from Heswall to Manchester on the train without it being a pain in the arse. It means at least one change of trains and a bike ride. Or two changes and a shorter ride.
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We are paying for the cost of living in the UK, where people want high wages and quality services, profits for many businesses are not huge, but margins need to be.
raleighnut
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Yep it's a strange artificial world we live in these days, 'key workers' are often underpaid and overworked whilst fat overpaid eejits in suits exhort us to 'work harder'
As Roger Waters succinctly said 'This Species Has Amused Itself To Death'
View: https://youtu.be/Gv-yZ6sVeyw
raleighnut
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The people doing the (often horrible) hard work
The people doing the (often horrible) hard work
Surely that makes them less clever than the eejits, I have never got the boss is an idiot bit from people being paid less who think they do more, just my way I suppose. 44 years in business has taught me many thnings that some not in business for themselves will ever understand or maybe want to.
raleighnut
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I'm not talking/posting about business owners here, they generally work very hard, more about 'managers' and other non productive leeches who often look down on 'workers'
But surely they must have done something clever to become a manager, the managers I know work harder and longer hours than those they manage, but that is the motor trade for you.
Drago
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- Suburban Poshshire
I am 51 though
Oh, and that's with legal cover, NCB protected, loan car, and £100 compulsory excess, £0 voluntary excess. Hastings Premium, if anyone is intestrested, although I do shop around every year.
@screenman Whaddya mean manufacturer profit? Lets keep the maths simple - a new car costs £100,000, but a dealer sells it for only £50,00 without making a loss. Who is deprived of the difference? And that's only on new cars. The fact that the dealer was selling used models for more that Dad was able to source them new suggests that there is an extremely healthy profit in the nearly new used market if they're able to do that.
And what about dealer bonus from the manufacturer for hitting sales targets, and the commission from selling finance?
A lot of dealers lose sympathy from the public for refusing to pay a penny more than book for a car, or even less, and then punting it out a great mark up. There's ,making an honest buck, and there's taking the wee wee. Now, at the very bottom of the market the margins are slight, but even the next step up from that a car they bought for £2k is liable to have a sticker price of at least 50% more than that when it goes on the pitch, and prep and admin won't cost a grand. Dealers aren't daft - if the margin on a vehicle looks too tight they punt it up the block.
I've a close family member who's run their own used car sale business since back when I was in the Army and I know exactly how it works - not everyone wins every time, but generally speaking they're doing ok for themselves (virus situation notwithstanding). He's a one man band with a part time mechanic and a part time admin lass, and he's doing very pleasantly. He's playing the same game in the same marketplace as everyone else, and if others are pleading poverty it's simply because they aren't very good at what they do, not because it's impossible to make good money in car sales (once again, virus situation notwithstanding).
Not all, but a noteworthy number of cars sales types have extracted the urine out of the public for too long, and now the gravy train is floundering for some I'm afraid the public they've been pillaging for decades don't have any sympathy.
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D
Deleted member 26715
Guest
Not necessarily, I presume you have heard of the Peter Principle? You may not have come across is as a self employed employer on a small scale (no insult intended) but if you have worked with any major company or Government body then your paths must have crossed. Whilst working for BT many years ago I saw it in evidence on numerous occasions, your kids work in education, I bet they have experienced it & mentioned it to you?
I know we're way off topic but £800 a month on a car to me is a huge of money, a person working 37.5 hours a week on minimum wage will bring home each month £1250 2/3's of what he splashes on just a car. His choice I know & good luck to him for being able to afford it, I could never bring myself to do that, even if I could afford it.
D
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I would love to go car-free, but it's not practical currently and besides my wife would never go for it
I didn't own a car for over thirty years, but there were a couple of places I worked where i was driving vans and small lorries as part of my job, with one of them I had access to the pool car as long as I didn't ask to borrow it too often. if you don't have a car but have a license there's always the option to hire a car, we used to do that for holidays. These days I'm retired and own a car, as my Good Lady has mobility issues the car makes life a lot easier.
I am 51 though
Oh, and that's with legal cover, NCB protected, loan car, and £100 compulsory excess, £0 voluntary excess. Hastings Premium, if anyone is intestrested, although I do shop around every year.
@screenman Whaddya mean manufacturer profit? Lets keep the maths simple - a new car costs £100,000, but a dealer sells it for only £50,00 without making a loss. Who is deprived of the difference? And that's only on new cars. The fact that the dealer was selling used models for more that Dad was able to source them new suggests that there is an extremely healthy profit in the nearly new used market if they're able to do that.
And what about dealer bonus from the manufacturer for hitting sales targets, and the commission from selling finance?
A lot of dealers lose sympathy from the public for refusing to pay a penny more than book for a car, or even less, and then punting it out a great mark up. There's ,making an honest buck, and there's taking the wee wee. Now, at the very bottom of the market the margins are slight, but even the next step up from that a car they bought for £2k is liable to have a sticker price of at least 50% more than that when it goes on the pitch, and prep and admin won't cost a grand. Dealers aren't daft - if the margin on a vehicle looks too tight they punt it up the block.
I've a close family member who's run their own used car sale business since back when I was in the Army and I know exactly how it works - not everyone wins every time, but generally speaking they're doing ok for themselves (virus situation notwithstanding). He's a one man band with a part time mechanic and a part time admin lass, and he's doing very pleasantly. He's playing the same game in the same marketplace as everyone else, and if others are pleading poverty it's simply because they aren't very good at what they do, not because it's impossible to make good money in car sales (once again, virus situation notwithstanding).
Not all, but a noteworthy number of cars sales types have extracted the urine out of the public for too long, and now the gravy train is floundering for some I'm afraid the public they've been pillaging for decades don't have any sympathy.
If only it was that easy, this time next year we would all be millionaires. Not paying more than book. are you kidding.
Drago
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- Suburban Poshshire
Nope, it's alive and well.
