The price of 2nd hand cars

[Deleted member 26715]

I am talking about a trade sale. There is nothing stopping a member of the public claiming to be a small trader asking for a direct sale with no warranty conditions. Whether the dealer obliges is another question but it does happen and isn't illegal.

I beg to differ, a trading car dealer cannot sell a car to the member of the public without warranty, whether they claim to be a trader or not, if they fail to do due diligence that is their problem if something goes wrong, they could open themselves up to legal action. A trader writing "Sold as Seen, no warranty offered or implied" means square root of bugger all in the eyes of the law. But we both know it goes on.

 

[Levo-Lon]

Car sales are low atm on new cars.
This has a knock on effect on second hand.

I just got 10k trade in for our 2016 kia ceed 4tech top of range model against a new kia exceed.
I'd expect our old car to retail around 13k at the main dealership with 4yr warranty on it as it was a kia approved car with 2.5k on the clock and 7 month old when we bought the car. So kia give you an extra yr so 8 yr warranty in total.

Whoever buys that car will have a superb car and 20quid rfl a yr

10 yr old cars can be ticking time bombs with a single fault costing more than you paid for it , ie ABS failure, air bags engine..
All good fun

 

[Jody]

I don't work in the retail side of the trade currently so would have to text someone to get an accurate glasses price but

For a fairly popular spec of 1.6 petrol Zetec S 5 door (not mileage adjusted) reckons private sale £1600 £1800 trade in and £3,500 for a franchise dealer (£2800 for non franchise) to sell.

A 1.8 petrol will fetch less and a diesel will typically fetch more. Each price will vary based on vehicle spec, colour and optional extras fitted.

 

[Jody]

But we both know it goes on.

I know it goes on. My previous car was bought in the same way and I am neither a business owner or trader. I signed the waiver and took the car.

 

[Drago]

A small dealer would be making little to nothing at a grand under screen price.

He'll have paid minimum book, or else picked it up at the block. He'll have the thick end of 2 large profit in that Focus if it were to sell at the asking price. Even a grand off gives him a bag of sand in profit. The used car sellers at that end of the market takes the pees.

 

[Jody]

He'll have paid minimum book, or else picked it up at the block. He'll have the thick end of 2 large profit in that Focus if it were to sell at the asking price. Even a grand off gives him a bag of sand in profit. The used car sellers at that end of the market takes the pees.

That's how people view it but that is not the case. Even if he has a grand in it then it isn't pure profit. Overheads take a huge chunk from the margin, not to mention depreciation whilst on the forecourt, agreed things like a service/vallet before sale, some margin towards problems if it comes back to them.

Imagine a 100-200% cleared profit on every vehicle traded in. It doesn't happen (often)

 

[Deleted member 26715]

Calculating the profit on any traded car is very difficult, due to the many factors that have to be taken into account, you're not just looking at the sticker price, it's not about a single car, as you have to look at the car that was sold to get that car on the lot, there may have been a large profit on that one, then the potential profit again on the car that's coming in. The only way that it is clear is if it's bought at either auction or cash & then sold with no PX other than than it might be spread over a 10 car deal.

 

[vickster]

He'll have paid minimum book, or else picked it up at the block. He'll have the thick end of 2 large profit in that Focus if it were to sell at the asking price. Even a grand off gives him a bag of sand in profit. The used car sellers at that end of the market takes the pees.

Are you practising for an audition for a part as Phil and Grant Mitchell's long-lost brother in Eastenders?

 

[screenman]

A £3.5k car is very unlikely to have been traded in for a grand unless the dealer is a shark. The only way you would knock a grand off the screen price is ask for a trade sale. Sold as seen. Dealer to dealer. They will take a small mark up and move it on knowing there is no come back.

I have a good idea how it works as I have spent the last 25 years working in the car trade.

Only 25 try 47 years 44 running my own business, people often think dealers are making huge money on every deal, makes feel quite angry as I know only a few are and many at the moment are losing big money and laying off staff.

 

[screenman]

He'll have paid minimum book, or else picked it up at the block. He'll have the thick end of 2 large profit in that Focus if it were to sell at the asking price. Even a grand off gives him a bag of sand in profit. The used car sellers at that end of the market takes the pees.

I think profit and margin are getting mixed up here, from the mystery grand there is £200 vat, £500 recon costs £85 Auto trader add and the list goes on. Blimey that only leaved £215.

 

[Jody]

Only 25 try 47 years 44 running my own business, people often think dealers are making huge money on every deal, makes feel quite angry as I know only a few are and many at the moment are losing big money and laying off staff.

Still feels like every day is a school day after 25 years

You're right about the current state of the car trade.

 

[Deleted member 26715]

I think profit and margin are getting mixed up here, from the mystery grand there is £200 vat, £500 recon costs £85 Auto trader add and the list goes on. Blimey that only leaved £215.

You should know better than I, but I thought the VAT on a used car was on the profit not the ticket price? Car bought £800, sold £1000, VAT is only 20% of £200, £40?

 

[vickster]

I think profit and margin are getting mixed up here, from the mystery grand there is £200 vat, £500 recon costs £85 Auto trader add and the list goes on. Blimey that only leaved £215.

£500 for what??
Leaved = left presumably

 

[Jody]

£500 for what??Leaved = left presumably

Delivery inspection/costs, servicing and valeting. Maybe the trade in (or auction car) needs a couple of tyres £100-200 for a fresh MOT, a service £100, MOT cost £50, valet cost, £10-20 fuel so people can go on test drives. It soon adds up.

A car isn't just driven onto the forecourt with a mark up and sold.

 

[Jody]

You should know better than I, but I thought the VAT on a used car was on the profit not the ticket price? Car bought £800, sold £1000, VAT is only 20% of £200, £40?

We are talking about the elusive £1000 profit margin (on the £3500 forecourt car). So £200 is vat