What's a fair margin these days?
Discussion
I live abroad, and I need to pop back over to deal with my father's affairs, which include selling a number of vehicles.
I don't have time to sell privately so am looking at a dealer option. With one vehicle I've had two offers and when compared to what examples of the same model / variant / year / mileage are for sale, the offer(s) seem low. Specifically it's a 10,000 mile Honda that sells at a dealers for 16k. The offers I've had are for 8k.
I know dealers have considerable overheads with the likes of warranties, tax, premises, staff, etc.. and am not questioning that but 100% margin seems more than I was expecting (on a 16k car I was thinking it would be nearer 4 - 5k).
I'll ask other places, but I'm trying to set my expectations here (especially as I have 5 things to sell, possibly 6 !)
Thanks
I don't have time to sell privately so am looking at a dealer option. With one vehicle I've had two offers and when compared to what examples of the same model / variant / year / mileage are for sale, the offer(s) seem low. Specifically it's a 10,000 mile Honda that sells at a dealers for 16k. The offers I've had are for 8k.
I know dealers have considerable overheads with the likes of warranties, tax, premises, staff, etc.. and am not questioning that but 100% margin seems more than I was expecting (on a 16k car I was thinking it would be nearer 4 - 5k).
I'll ask other places, but I'm trying to set my expectations here (especially as I have 5 things to sell, possibly 6 !)
Thanks
An average dealer margin is around £1,500, but, they have to pay for a warranty, pay vat at 20% on the difference between the price they bought and sold it for.They may also have to pay interest on a stocking loan if the car sits on their forcourt for a couple of months, then it may need a service, mot or other work done to get it up to snuff to retail. If £8,000 is what several places have valued it at,then that is what it is worth as a trade deal.Used car values are dropping currently so if you leave it it may drop a few hundred pounds from one month to the next.
What you may have seen at £16,000 is a car that has been in stock for several months that has dropped massively in value and the dealer is stuck with it but hasn't moved the price in the hope some mug will buy it.
Sometimes it is better to take the firm offer and move on.
What you may have seen at £16,000 is a car that has been in stock for several months that has dropped massively in value and the dealer is stuck with it but hasn't moved the price in the hope some mug will buy it.
Sometimes it is better to take the firm offer and move on.
Sold a relatives Kia to a dealer for £8k which matched WBAC but he collected as it was SORN
They retailed at between 11 and 13k and he advertised it at £11,750.
It needed a deep prep, but no mechanical work.
I always thought about 25% to cover prep, warranty, adverts, VAT and negotiations.
They retailed at between 11 and 13k and he advertised it at £11,750.
It needed a deep prep, but no mechanical work.
I always thought about 25% to cover prep, warranty, adverts, VAT and negotiations.
Back in June I sold my car into a large group for £62k. It then went up for sale at £65k.
I was shocked at how low the margin was, although it was right at the end of the peak of the silly used prices. I guess with so much uncertainty around the dealers won’t want to get burned now so trade prices are down.
I was shocked at how low the margin was, although it was right at the end of the peak of the silly used prices. I guess with so much uncertainty around the dealers won’t want to get burned now so trade prices are down.
What type of cars are they? Just thinking if you have some classics and modern stuff perhaps break them into lots and offer to different dealers who specialise in those types of cars.
I'm not sure what the 10k Honda is but if it's a "modern classic" it's the type of car that a dealer, who doesn't specialise in them, might take a punt on and have sitting in their showroom at a silly price for yonks as the market is small and even smaller for poor value dealer examples sold usually without warranty.
As for modern stuff the car buying platforms are probably best for you to get a "fair attainable value" to you given your position abroad and needing to dispose efficiently.
Have a look at places like "The Car Buying Shop" based near Milton Keynes for an alternative to WBAC. They seem to buy older stuf (modern classic and just older normal cars).
Good luck and keep as much info about your situation to yourself and stick to the facts - various cars to sell and am shopping around for the best deal.
I'm not sure what the 10k Honda is but if it's a "modern classic" it's the type of car that a dealer, who doesn't specialise in them, might take a punt on and have sitting in their showroom at a silly price for yonks as the market is small and even smaller for poor value dealer examples sold usually without warranty.
As for modern stuff the car buying platforms are probably best for you to get a "fair attainable value" to you given your position abroad and needing to dispose efficiently.
Have a look at places like "The Car Buying Shop" based near Milton Keynes for an alternative to WBAC. They seem to buy older stuf (modern classic and just older normal cars).
Good luck and keep as much info about your situation to yourself and stick to the facts - various cars to sell and am shopping around for the best deal.
said: Just to add a bit more, it's your typical old man's Honda. About 5 years old, bought from new, full service history, perfect inside & out, 8 months MOT. Dealer would only have to clean..
I have no idea why posters eek out the details when they ask these questions, just put the salient details up the model and version is pretty important when valuing a car, regardless of that once you have gone to the market and priced the car WBAC/Motorway and got prices directly from used dealers you have your answer, whether you like it or not. Wills2 said:
I have no idea why posters eek out the details when they ask these questions, just put the salient details up the model and version is pretty important when valuing a car, regardless of that once you have gone to the market and priced the car WBAC/Motorway and got prices directly from used dealers you have your answer, whether you like it or not.
Because I didn't want my question to come across as an advert ("Hey everyone, I have an XYZ car that I'm selling" and hope someone PM's me) and get shut down... my question was margin and what is normal these days. I've been out of touch for ~15 years.. last car I sold was a 997 where the dealer gave me 40 and resold it for 50k. As I have 5 more to sell I was trying to get my bearings. The actual value that comes in for the cars is what it is, but how much are they leaning on me as I'm abroad is a thoughtGassing Station | Car Buying | Top of Page | What's New | My Stuff