Dealer Profit Margins?
Discussion
http://cgi.ebay.co.uk/ws/eBayISAPI.dll?ViewItem&am...
http://www.carandclassic.co.uk/car/C215564/
I was thinking about buying this car when it was listed on ebay a few weeks ago. Wish I had, this dealer obviously thought it was a bargain.
I wonder how much actual profit the dealer will make after deducting costs etc. Am I in the wrong game?!
http://www.carandclassic.co.uk/car/C215564/
I was thinking about buying this car when it was listed on ebay a few weeks ago. Wish I had, this dealer obviously thought it was a bargain.
I wonder how much actual profit the dealer will make after deducting costs etc. Am I in the wrong game?!
5K difference
VAT on difference assuming dealer VAT registered, approx £850, down to £4150 profit now
Transport to garage, preparation and advertising for sale over the period that he has the car, a few hundred quid to say £1000, lets call it £750 so now profit = £3400.
Seller knocks a grand off ticket price (reasonable) profit now £2400
Out of which the delaer has to cover overheads, and cover warranty for say 3 months.
Given the fact that the car isn't exotic and isn't a 1.6HF, it could be kicking around the with dealer fo many months. He might make a couple of grand, he might not.
davidy
VAT on difference assuming dealer VAT registered, approx £850, down to £4150 profit now
Transport to garage, preparation and advertising for sale over the period that he has the car, a few hundred quid to say £1000, lets call it £750 so now profit = £3400.
Seller knocks a grand off ticket price (reasonable) profit now £2400
Out of which the delaer has to cover overheads, and cover warranty for say 3 months.
Given the fact that the car isn't exotic and isn't a 1.6HF, it could be kicking around the with dealer fo many months. He might make a couple of grand, he might not.
davidy
If those are the typical dealer costs then he bought badly. £6k was a good price for a private buy, £7.5k would have been a good price for the seller. The dealer is highly unlikely to sell this for £11k (this is getting into reasonable 1600 territory), and if he does want to he'll have it awhile. With some kind of guarantee and a following wind he may get £8 - £8.5 tops. Good 1300's (and this does look good, if not the most desirable spec) have changed hands for less than that recently.
I reckon if his direct costs are in the order of £1500 plus warranty, overheads and cost of finance on his stock he'll be lucky to clear £1k.
I reckon if his direct costs are in the order of £1500 plus warranty, overheads and cost of finance on his stock he'll be lucky to clear £1k.
Don't get me wrong, I certainly don't begrudge anyone making a profit - after all, I do run my own (very small!) business and it's hard work finding good stock that will make me a decent living. It seems to me that in this case the dealer has bought a car at what the market determines is a fair price, whacked on a figure and will hope that "a fool and his money" (IMHO) will turn up - fair play to him I suppose and maybe that's just how the classic car dealing game works.
It may have had a few faults that he had to repair.
But otherwise, some people like the comfort of a warranty on purchasing their vehicles. I used to buy and do a quick respray and tidy up and sell it on for a bit of coin but at the end of the day it was a false economy.
Dealing in restored classic cars usually puts you in touch with the well to do gents. The ones I dealt with got to where they are financially by being a certain type of person I could never be. You could almost take bets of when the first call would be after they took it home and got buyers remorse or just wanted to see if they could score some money or free labour. The more expensive the car, the longer the list of issues.
One guy claimed the MGB I sold him had no brakes although it did in the inspection. Accused me of somehow swapping them. I picked him up from the station in it and off he went. What he didnt know is my missus picked me up and we followed him about 10kms where we turned off. Anyway, rings up a few days later saying the brakes didnt work and he almost had a crash at the first round about and got it towed home and wanted money for new brakes and money for the tow. Im not sure how "not as advertised" is plastered all over some solictors letter when it was already inspected.
I have so many cars now that I need to sell but am simply not ready to deal with guys like that again. It was a case of 2 out of 3 cars sold would be a PITA.
But otherwise, some people like the comfort of a warranty on purchasing their vehicles. I used to buy and do a quick respray and tidy up and sell it on for a bit of coin but at the end of the day it was a false economy.
Dealing in restored classic cars usually puts you in touch with the well to do gents. The ones I dealt with got to where they are financially by being a certain type of person I could never be. You could almost take bets of when the first call would be after they took it home and got buyers remorse or just wanted to see if they could score some money or free labour. The more expensive the car, the longer the list of issues.
One guy claimed the MGB I sold him had no brakes although it did in the inspection. Accused me of somehow swapping them. I picked him up from the station in it and off he went. What he didnt know is my missus picked me up and we followed him about 10kms where we turned off. Anyway, rings up a few days later saying the brakes didnt work and he almost had a crash at the first round about and got it towed home and wanted money for new brakes and money for the tow. Im not sure how "not as advertised" is plastered all over some solictors letter when it was already inspected.
I have so many cars now that I need to sell but am simply not ready to deal with guys like that again. It was a case of 2 out of 3 cars sold would be a PITA.
http://cgi.ebay.co.uk/200590266513
This Capri GT4 was for sale on here for 2500 the other week Someone going to make a good return
This Capri GT4 was for sale on here for 2500 the other week Someone going to make a good return
GT Kevin said:
http://cgi.ebay.co.uk/200590266513
This Capri GT4 was for sale on here for 2500 the other week Someone going to make a good return
Really tidy condition that, shame it's only the 1600 engine, but then I guess that's part of what makes it so rare. I don't think that they're going to make a good return if the bidding stops at 3100 though as they've done some preparation work including some paintwork, so £600 isn't all profit. I'll have to remember to check on this in 6 days time to see if it goes any higher.This Capri GT4 was for sale on here for 2500 the other week Someone going to make a good return
Those decals remind me of an old Scalextric car I had once...
Captain Cadillac said:
Slade Alive said:
Does it matter? Try selling for £36000 then seeing the same car advertised 6 months later for £70000. s
t happens. Or, all's fair in love and war. You takes your chances......
Try selling a car for $25,000 and seeing it sell a few years later for $85,000.t happens. Or, all's fair in love and war. You takes your chances......Gassing Station | Classic Cars and Yesterday's Heroes | Top of Page | What's New | My Stuff