Nice little earner
Discussion
Addicted to watching prices for Exiges for the last three months while waiting to sell my car. Have seen many come and go. Three of particular interest got snapped up by dealers. Two of them are now readvertised with a windscreen price of +£3000. One could argue preparation, repairs etc etc although I'm not convinced, and ofcourse a guarantee, but the margins represent a nice little profit nevertheless. It should also be added that the price difference is based on advertised price and doesn't take into account the price actually paid by the dealers. A third car has a staggering + £6500. Obviously dealers are there to make money and I have no issue with that. Nevertheless, potential buyers should perhaps realise that a £500 discount is far from hitting the pockets of these traders. All this despite an economic climate that is less than rosy. Buyer or sellers market? Also begs the question as to why a private buyer didn't get in there first.
Guess it's all down to confidence that the dealer might be sitting on it for a while.
Right now I'd say it's a buyer's market with supply outstripping demand. I'm sure you've noticed that some of them have been kicking around unsold for a fair while.
That said, seems some odd behaviour lately. I've got a VX Turbo up for sale right now. It's been on a few weeks with a constant flow of interest but no-one actually committing to buy. In the meantime I've seen one much cheaper stay unsold and one much dearer (generally agreed to be overpriced on the VX forum) sell quickly. Maybe I need to hike the price up
Right now I'd say it's a buyer's market with supply outstripping demand. I'm sure you've noticed that some of them have been kicking around unsold for a fair while.
That said, seems some odd behaviour lately. I've got a VX Turbo up for sale right now. It's been on a few weeks with a constant flow of interest but no-one actually committing to buy. In the meantime I've seen one much cheaper stay unsold and one much dearer (generally agreed to be overpriced on the VX forum) sell quickly. Maybe I need to hike the price up
Its pretty much the same with regards to Elise's too. Most noticeably the 111s. I am current in the market for a 111s in Ardent Red, However I have been thinking about opening up my colour choice as its been limiting my options. I have inquired about a few 111s (and the odd standard S2). Most of them which have been reasonably priced have been bought unseen by dealers a couple of hours after being advertised.
From the sellers point of view I cannot blame them, nice quick straight forward transaction, however frustrating for those of us who are work bound between 9-5 and want to look a car over before parting with our hard earned.
From the sellers point of view I cannot blame them, nice quick straight forward transaction, however frustrating for those of us who are work bound between 9-5 and want to look a car over before parting with our hard earned.
I just bought (within the last 6 weeks) a beautiful S2 (in lava orange!) and I had to move really quickly to secure it as there was loads of interest in it. Someone almost pretty much committed to buy it unseen from the other end of the country before I could get to see it.
I think nice examples with good maintenance history sell quickly and from what I can gather the seasonal situation appears to impact demand more than pricing.
I think nice examples with good maintenance history sell quickly and from what I can gather the seasonal situation appears to impact demand more than pricing.
so how much is a fair profit to make on a £30K car, if you have £30K tied up for 3 months and £1K of prep work, then 3 month warranty risk to provision...personally I wouldnt want about £4-5K profit to cover that inc hassle factor, otherwise would leave the cash in the bank and find an easier way to make money
that still not much more than 10-15% gross profit on a deal...
compared to typical retail products that often cost 20% of the RRP, why do we worry about a car dealer making a living ....
that still not much more than 10-15% gross profit on a deal...
compared to typical retail products that often cost 20% of the RRP, why do we worry about a car dealer making a living ....
Edited by bogie on Friday 4th October 13:32
Stig95 said:
Bogie, the margins I don't really have the issue with, its more buying them from the same classified section and re-listing them within a week on the same market place, with the margins attached and then refusing to negotiate on the price, or only at a reduced warranty.
+1. Couldn't agree more. It remains a strange world nevertheless. No 1 car, the +£6K car was up for sale by private seller 3 weeks. No takers. Obviously underpriced and seemed a bargain. Snapped up by a dealer. Sold within a week. Low mileage, I bet all he did was valet the car.
No 2 car +£3K up for sale for 3 weeks by private seller. Stll available at dealer.
No 3 car +£3K sold
To add to the story theres a 4th car 'traded on' by a non Lotus dealership. +£3.5K now its at a Lotus garage.
All prices are as advertised without any knowledge of actual prices paid.
It raises several issues for me. I find the margins 'comfortable' to say the least. However, why are private sellers not getting private buyers. Why are more than 70% of advertised cars sold by dealers.
Probably says more for how Lotus is perceived as a brand. Despite having a solid reputation for low running costs it still generates concerns that an expensive bill is just around the corner. Delers are laughing all the way to the bank with this.
simpo555 said:
It raises several issues for me. I find the margins 'comfortable' to say the least. However, why are private sellers not getting private buyers. Why are more than 70% of advertised cars sold by dealers.
Probably says more for how Lotus is perceived as a brand. Despite having a solid reputation for low running costs it still generates concerns that an expensive bill is just around the corner. Delers are laughing all the way to the bank with this.
Its hardly limited to Lotus. We sold our Fiesta recently and when looking for similar cars for sale in order to price the ratio of trade to private was about 8:1. Advertised trade prices were about 30% higher. This was on a 7 year old hatchback worth just over £2k and still trade sellers dominated!Probably says more for how Lotus is perceived as a brand. Despite having a solid reputation for low running costs it still generates concerns that an expensive bill is just around the corner. Delers are laughing all the way to the bank with this.
Likewise talk to anyone who's tried to sell something like a Boxster privately - know a few people who've found it VERY hard work.
Edited by Thorburn on Monday 7th October 09:34
Stig95 said:
Bogie, the margins I don't really have the issue with, its more buying them from the same classified section and re-listing them within a week on the same market place, with the margins attached and then refusing to negotiate on the price, or only at a reduced warranty.
ok, gotcha...dosent really seem like a good strategy to actually sell cars to savvy buyers 
My observation on the topic is as follows:
1, A dealer does it for a living
2, A private seller wants to sell a car.
3, A buyer wants to buy a car
No one is obliged to transact between 1,2 and 3 unless they want to. The scenario at the moment is that there are very few buyers so regardless of the price little is selling. If price were an issue then the phone would ring (sorry I mean email would ring, well you get the picture) and negotiation on price would take place. My summary is based on my total lack of response selling my exige which is now sold. Like most cars a certain car will appeal to a specific person at a given time thus because my car was not, say, Chrome orange it would have been overlooked.
So I see the real problem is few buyers added to the fact CCI wont insure anyone under 40 thus I forsee perhaps a difficult few months for the lotus market
1, A dealer does it for a living
2, A private seller wants to sell a car.
3, A buyer wants to buy a car
No one is obliged to transact between 1,2 and 3 unless they want to. The scenario at the moment is that there are very few buyers so regardless of the price little is selling. If price were an issue then the phone would ring (sorry I mean email would ring, well you get the picture) and negotiation on price would take place. My summary is based on my total lack of response selling my exige which is now sold. Like most cars a certain car will appeal to a specific person at a given time thus because my car was not, say, Chrome orange it would have been overlooked.
So I see the real problem is few buyers added to the fact CCI wont insure anyone under 40 thus I forsee perhaps a difficult few months for the lotus market
Thorburn said:
Likewise talk to anyone who's tried to sell something like a Boxster privately - know a few people who've found it VERY hard work.
I was in that situation.It was literally in perfect condition and the lowest priced nationally for that age/mileage/spec - right colour and wheels (with fresh tyres), AND it was just at the beginning of the hot spell - ZERO interest.
I dropped the price to about £500 above what dealers were offering me on PX - ZERO interest.
In fact the only people I got close with were a couple of chaps who were willing to swap their Elises with me.
Ended up PXing - SO much less hassle. And for £500 I figured that would be haggled down and timing is never perfect and I need a daily.
So - the dealer is offering: reassurance that you aren't buying a lemon, in-and-out swap on your car hassle free, probably a warranty of some sort, probably a fresh service and MOT.
On a £20k+ car a £3k margin to them (£2.5k less VAT) - seems about right.
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