The price of 2nd hand cars

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screenman

Legendary Member
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?

It is I was quoting the vat on the grand people were suggesting the dealer had as profit.
 

screenman

Legendary Member
£500 for what??
Leaved = left presumably

Service, valet, mot, dents, paint, trim etc, it is the trade average at the moment with main dealers having even higher recon costs, not forgetting warranty to take out later maybe.
 

vickster

Legendary Member
Service, valet, mot, dents, paint, trim etc, it is the trade average at the moment with main dealers having even higher recon costs, not forgetting warranty to take out later maybe.
Does a main dealer really spend £500 doing up a car that they are going to sell for £3500 max. Maybe a hoover and a wash would be sensible, even an MOT, but dent removal, a full service...? That's mad!
Do main dealers even usually sell £3500 10 year old 70k mile cars that they've taken in P/ex for a grand?
Never seen round here. I think they just stick them in an auction for 'dishonest' John to buy and stick at the side of the road with a price in the window :rolleyes: I assume main dealers make their profits on newer cars from fleets, PCP, motability or whatever plus all the extras they add on
 

Jody

Stubborn git
Does a main dealer really spend £500 doing up a car that they are going to sell for £3500 max. Maybe a hoover and a wash would be sensible, even an MOT, but dent removal, a full service...? That's mad!
Do main dealers even usually sell £3500 10 year old 70k mile cars that they've taken in P/ex for a grand?
Never seen round here. I think they just stick them in an auction for 'dishonest' John to buy and stick at the side of the road with a price in the window :rolleyes: I assume main dealers make their profits on newer cars from fleets, PCP, motability or whatever plus all the extras they add on

You are right in respect of main dealers not selling £3,500 cars. Even trade in's have to be sub 5 year old and of a high standard to go back on the forecourt.

Irrelevant of main or independent dealers they all have costs associated to retailing a car. You think dent removal is mad but how often does a buyer think they have leverage over the sale due to small cosmetic imperfections. Never thinking that the condition is commensurate with age and mileage. Most have dent removal, smart repairs, interior plastic/upholstery repairs, wheel smart repairs. They can't sell a car having never checked brake condition, suspension etc so a minor service is common place for peace of mind.

Cars don't just have a hoover and wash either. They are almost all washed, machine polished and then re polished, engine bay detailed, interior shampoo, glass detailed at a minimum.

That's why most part exchange go off to the block for someone else who will accept less meat on the bone when selling.

Main dealer profits come from finance (not many people buy a car new from the dealer any more), warranty work which keeps the workshop afloat, "paint protection" systems :whistle:, gap insurance etc.

Although a dealer may handle fleet some cars (for a small percentage) they are usually bought direct from the manufacturer with rebaits going straight to the purchaser depending on volume agreed.
 

screenman

Legendary Member
Does a main dealer really spend £500 doing up a car that they are going to sell for £3500 max. Maybe a hoover and a wash would be sensible, even an MOT, but dent removal, a full service...? That's mad!
Do main dealers even usually sell £3500 10 year old 70k mile cars that they've taken in P/ex for a grand?
Never seen round here. I think they just stick them in an auction for 'dishonest' John to buy and stick at the side of the road with a price in the window :rolleyes: I assume main dealers make their profits on newer cars from fleets, PCP, motability or whatever plus all the extras they add on

I was pointing out the average recon costs for main dealers, obviously as you and me know they seldom sell of old vehicles although it is certainly not unknown in these parts. That Skoda of your comes in p/ex it need two tyres, discs and pads all round, a service, a bumper scuff, dents of two panels, small scratch on door, price that lot up and tell me i am wrong. I am in the trade have owned car sites and know the business very well, if you doubt me so be it. I could certainly tell you how mush average margin my local Audi dealer had in each car after sale last year but you would never believe me. I doubt it is 35% of what you would think.
 

screenman

Legendary Member
Main dealers are paid around £250 for supplying a new vehicle to Motability or were last year, not a lot in it and no p/ex in most cases.
 

vickster

Legendary Member
I was pointing out the average recon costs for main dealers, obviously as you and me know they seldom sell of old vehicles although it is certainly not unknown in these parts. That Skoda of your comes in p/ex it need two tyres, discs and pads all round, a service, a bumper scuff, dents of two panels, small scratch on door, price that lot up and tell me i am wrong. I am in the trade have owned car sites and know the business very well, if you doubt me so be it. I could certainly tell you how mush average margin my local Audi dealer had in each car after sale last year but you would never believe me. I doubt it is 35% of what you would think.
I've never seen a de-dented fully valeted, de-wheel scuffed and mopped 10 year old 70k focus (or similar) on a reputable looking dealer forecourt in these parts for 3.5k.
Maybe the OP would be getting a bargain and fleecing the poor dealer, but that didn;t seem to be consensus up thread.

Presumably you made good money selling second hand cars or you wouldn't have been able to do it sustainably for 25 years ?

No dealer is going to be selling my 26k mile 7 year old Skoda for £3.5k though (not that I'm selling)...I'll confess the wheels would need a refurb and there's a bumper scuff :laugh:
 

screenman

Legendary Member
I've never seen a de-dented fully valeted, de-wheel scuffed and mopped 10 year old 70k focus (or similar) on a reputable looking dealer forecourt in these parts for 3.5k.
Maybe the OP would be getting a bargain and fleecing the poor dealer, but that didn;t seem to be consensus up thread.

Presumably you made good money selling second hand cars or you wouldn't have been able to do it sustainably for 25 years ?

No dealer is going to be selling my 26k mile 7 year old Skoda for £3.5k though (not that I'm selling)...I'll confess the wheels would need a refurb and there's a bumper scuff :laugh:

Well that is in those parts, if I still had my sites which were down your way you would have seen them on mine, anyways, 4 alloys at £240 and a bumper scuff at £75 a full valet if the job goes out at £75 in house more, service, MOT etc. Back in the eighties the margins in some cases were not a lot differento now, cars were making good money and overheads were low, even taking inflation into consideration. The UK's largest dealership lost £129,000,000 in the first 6 months of this year, things are not all roses in the motor trade.
 

vickster

Legendary Member
Well that is in those parts, if I still had my sites which were down your way you would have seen them on mine, anyways, 4 alloys at £240 and a bumper scuff at £75 a full valet if the job goes out at £75 in house more, service, MOT etc. Back in the eighties the margins in some cases were not a lot differento now, cars were making good money and overheads were low, even taking inflation into consideration. The UK's largest dealership lost £129,000,000 in the first 6 months of this year, things are not all roses in the motor trade.
How have they made those losses? And how much profit have they made say in total over the last 20 years?

As said, I don't think the OP is considering buying his 3.5k 10 year old 70k Focus from whichever the UK's largest dealership is
 

vickster

Legendary Member
Women driv...

Jesus, that was close :blink:
Because you and no other man has ever scuffed an alloy wheel on low profile tyres? Bollocks ;) Otherwise no dealer would be spending all this dosh tarting up cars for sale...men make up a higher % of regular UK drivers than women so how does that work then?
 
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