Absurd Trade in Offers

Absurd Trade in Offers

Author
Discussion

FrancisA

Original Poster:

97 posts

16 months

Tuesday 5th November
quotequote all
I recently enquired about a car I was thinking of buying.

I was offered 47K for my 991.1 C2S Cab with 13,500 on the clock and with a 1 year warranty with Porsche. I know traders are in this game for a profit but this offer was derisory. The cheapest equivalent on auto trader is selling for 58K. Of course I can place my car on auto trader and simply sell directly.

I started this topic to find out from others if this derisory trade in offer was par the course. In effect the dealer is looking at making nearly 10K profit when he resells my car. That raises the question about how much mark up traders have in their cars?

Mankers

619 posts

176 months

Tuesday 5th November
quotequote all
I know of a few occasions where OPC look to pay £30k less than the sticker price they eventually put on the car to sell it. Of course they will need prep, warranty, and may get haggled down.

bridggar1

99 posts

48 months

Tuesday 5th November
quotequote all
OPC usually go £12-15K margin in my experience. Not unusual given their overheads

TownIdiot

1,591 posts

6 months

Tuesday 5th November
quotequote all
Doesn't seem that bad to me.

Appreciate you'd want more but by the time costs are accounted for it doesn't seem an outrageous profit.

marcus34789

99 posts

3 months

Tuesday 5th November
quotequote all
Yep cars incurring big depreciation recently, be thankful it wasn’t a Lotus Emira or Taycan.

FrancisA

Original Poster:

97 posts

16 months

Tuesday 5th November
quotequote all
TownIdiot said:
Doesn't seem that bad to me.

Appreciate you'd want more but by the time costs are accounted for it doesn't seem an outrageous profit.
I can understand an OPC offering 10-12K below the market value given the prep work and warranty but an independent dealer who offers nothing.......that is what I am referring to as derisory. I also believe it is dependent on the independent dealer. If they are a Porsche specialist they obviously understand the market better than a general all make car dealer.


Edited by FrancisA on Tuesday 5th November 20:09

TownIdiot

1,591 posts

6 months

Tuesday 5th November
quotequote all
FrancisA said:
I can understand an OPC offering 10-12K below the market value given the prep work and warranty but an independent dealer who offers nothing.......that is what I am referring to as derisory.
In effect the consumer rights situation means the dealer is offering a warranty on the vehicle

NDA

22,326 posts

232 months

Tuesday 5th November
quotequote all
That is a ridiculously low offer - silly really when the market price for any 911 is pretty clear. Dealers are entitled to make a profit, but there are limits.

Might they take it on a sale or return basis?

FrancisA

Original Poster:

97 posts

16 months

Tuesday 5th November
quotequote all
TownIdiot said:
FrancisA said:
I can understand an OPC offering 10-12K below the market value given the prep work and warranty but an independent dealer who offers nothing.......that is what I am referring to as derisory.
In effect the consumer rights situation means the dealer is offering a warranty on the vehicle
Maybe I was not clear - the Porsche warranty is what comes with my car which the dealer will be able to add as a mark up when selling the car on.

TownIdiot

1,591 posts

6 months

Tuesday 5th November
quotequote all
Maybe it's just me but I don't think paying out the best part of 50k in the hope of making around 10k is that outrageous.


av185

19,430 posts

134 months

Tuesday 5th November
quotequote all
Nothing new really especially given the time of year heading towards Christmas the cost of borrowing and economic headwinds adverse budget making folks poorer and depreciation hit on the vast majority of cars including most Porsches btw.

Depreciation has returned but many think their cars are still worth top money.

Dealer spreads are increasing and reflecting their reduced appetite for risk and taking a loss on any particular car.

Good example is a 3 month old 24 mile high spec GTRS CS new price £170k include first year road tax has a current trade in value of around just £128k from an OPC them selling it on at mid to top £140ks.

In contrast one of the first flipped 4RS costing c £135k sold for £227k plus fees on CC early 2023.

Edited by av185 on Tuesday 5th November 20:21

FrancisA

Original Poster:

97 posts

16 months

Tuesday 5th November
quotequote all
NDA said:
That is a ridiculously low offer - silly really when the market price for any 911 is pretty clear. Dealers are entitled to make a profit, but there are limits.

Might they take it on a sale or return basis?
I agree it is an absurd offer. TBH I would rather just sell it myself. I don’t see the benefit of having someone else sell it for a significant mark up.

ChocolateFrog

28,614 posts

180 months

Tuesday 5th November
quotequote all
I guess by the time they've got it out the door themselves the profit margin maybe in the 10% range on their 'investment' which doesn't sound outrageous.

FrancisA

Original Poster:

97 posts

16 months

Tuesday 5th November
quotequote all
av185 said:
Nothing new really especially given the time of year heading towards Christmas the cost of borrowing and economic headwinds adverse budget making folks poorer and depreciation hit on the vast majority of cars including most Porsches btw.

Depreciation has returned but many think their cars are still worth top money.

Dealer spreads are increasing and reflecting their reduced appetite for risk and taking a loss on any particular car.

Good example is a 3 month old 24 mile high spec GTRS CS new price £170k include first year road tax has a current trade in value of around just £128k from an OPC them selling it on at mid to top £140ks.
Ouch. It would seem one should just be grateful to own a Porsche and sit tight.

Discombobulate

5,113 posts

193 months

Tuesday 5th November
quotequote all
FrancisA said:
Maybe I was not clear - the Porsche warranty is what comes with my car which the dealer will be able to add as a mark up when selling the car on.
My understanding is the warranty is only transferable when sold to a private buyer OR to an OPC. So no mark up / added value to independent?

UpTheIron

4,017 posts

275 months

Tuesday 5th November
quotequote all
Why would an independent "offer nothing" - they prep and warranty cars too, plus might find it even harder to get warranty work done.

What do you think would be a fair offer?

CloudStuff

3,848 posts

111 months

Tuesday 5th November
quotequote all
av185 said:
Nothing new really especially given the time of year heading towards Christmas the cost of borrowing and economic headwinds adverse budget making folks poorer and depreciation hit on the vast majority of cars including most Porsches btw.

Depreciation has returned but many think their cars are still worth top money.

Dealer spreads are increasing and reflecting their reduced appetite for risk and taking a loss on any particular car.

Good example is a 3 month old 24 mile high spec GTRS CS new price £170k include first year road tax has a current trade in value of around just £128k from an OPC them selling it on at mid to top £140ks.

In contrast one of the first flipped 4RS costing c £135k sold for £227k plus fees on CC early 2023.

Edited by av185 on Tuesday 5th November 20:21
What the t!!ty f!!k is a “GTRS CS”?

av185

19,430 posts

134 months

Tuesday 5th November
quotequote all
This gives you an idea the spread required on a similar value car to yours.

This Emira obtained a trade bid of just £41500 earlier this year. Car was top £80ks new. Likely retail value £60k.

Discombobulate

5,113 posts

193 months

Tuesday 5th November
quotequote all
CloudStuff said:
What the t!!ty f!!k is a “GTRS CS”?
Two down from a GT3 RS CS WP DS* wink

  • deviated stitching

FrancisA

Original Poster:

97 posts

16 months

Tuesday 5th November
quotequote all
UpTheIron said:
Why would an independent "offer nothing" - they prep and warranty cars too, plus might find it even harder to get warranty work done.

What do you think would be a fair offer?
What prep work is going to be due on a car with 13,500 miles on it. It was serviced a year ago. The cost of any warranty for a dealer cannot exceed 1-1.5K so you are still talking about a substantial profit margin. Independent (non Porsche specialist) dealers do not do any mechanical work outside of a service. At most they may do some cosmetic work which is usually a polish to tidy up the presentation.