Nearly new cars at "wrong" franchise dealer - why?

[Sheepshanks]

Noticed this at local small town Kia dealer while looking at EVs - they've got a Hyundai Kona and BMW iX1 both 24 reg with a few hundred miles.

They told me the Kona was ex-Motability, didn't ask about the BMW. Both look to be similar prices as you'd expect in the correct franchise dealer.

I'm particularly bemused that a Kia dealer, with plenty of used Niros to sell, would take on a nealy-new Kona. And the BMW just looked out of place.

What gives? Are dealers able to buy used EVs so cheap that it's worth taking a punt?

[CrippsCorner]

Well remember Hyundai owns a big part of KIA so I'm sure they can share cars between dealerships. Not sure on the BMW though! Seems a bit weird but yes I've seen it too.

[SteBrown91]

Someone could have just decided they hated it and couldnt get on with it? Could have been bought as part of a short term rental fleet but surplus to requirements etc?

Ask them and they might tell you.

[alscar]

Could also be the dealer needed to shift a few more brand new cars to get a manufacturers bonus paid which would more than compensate for any used price movements.

[Sheepshanks]

You would think a relevant dealer would buy the car unless there’s some reason why it couldn’t be sold as Approved Used, but I can’t imagine why not at a few mths old.

Or relevant dealers are so swamped with nearly-new stock they don’t want any more - although the reason I saw these cars was that I was looking on Autotrader and there aren’t excessive numbers of them.

Personally I’d be put off buying from such a recent car from a different franchise - but the pricing wasn’t any lower.

[MitchT]

Sheepshanks said:

You would think a relevant dealer would buy the car unless there’s some reason why it couldn’t be sold as Approved Used...

Correct me if I'm wrong, but a nearly new car should have most of the original manufacturer's warranty remaining, so it doesn't really matter where you get it - it's going to have the same warranty as it would if it came from a main dealer for that brand of car.

[CLK-GTR]

Are they part of a chain and just swapping cars between sites?

At the higher end it's not uncommon for buyers to change cars like they change their underwear. Minimal cost to swap one lease deal for another so why not. Maybe that's what's going on here? They had the BMW for a few weeks then got offered something else they liked the look of more.

[Sheepshanks]

CLK-GTR said:

Are they part of a chain and just swapping cars between sites?

At the higher end it's not uncommon for buyers to change cars like they change their underwear. Minimal cost to swap one lease deal for another so why not. Maybe that's what's going on here? They had the BMW for a few weeks then got offered something else they liked the look of more.

It’s a regional group but they don’t have Hyundai or BMW.

They said the Kona was ex-Motability- fair enough, but doesn’t explain why they bought it. Didn’t ask on BMW - don’t know if they do Motability but even if they do, the upfront payment would be significant. Someone buying new then quickly reselling doesn’t bear thinking about, even the Kona is over £40K and the WBAC ‘value’ is mid £20’s.

[Auto810graphy]

Sheepshanks said:

It’s a regional group but they don’t have Hyundai or BMW.

They said the Kona was ex-Motability- fair enough, but doesn’t explain why they bought it. Didn’t ask on BMW - don’t know if they do Motability but even if they do, the upfront payment would be significant. Someone buying new then quickly reselling doesn’t bear thinking about, even the Kona is over £40K and the WBAC ‘value’ is mid £20’s.

Chances are they saw them on the Motability disposal
website and thought they looked good value compared to CAP. The EV’s have lower up front payments so you can get cars including Audi Q4 Etron, BMW I4, Ford Mustang etc

[Sheepshanks]

Auto810graphy said:

Chances are they saw them on the Motability disposal
website and thought they looked good value compared to CAP. The EV’s have lower up front payments so you can get cars including Audi Q4 Etron, BMW I4, Ford Mustang etc

Thanks. Bearing in mind how low CAP is on EV’s like Kona Ultimate, how low are Motability selling them for?

[Auto810graphy]

Sheepshanks said:

Thanks. Bearing in mind how low CAP is on EV’s like Kona Ultimate, how low are Motability selling them for?

Motabilty have a pricing team so cars are often priced over CAP and still sell as there are auction no charges and they have a condition standard.

I mentioned a few weeks ago on another thread that CAP prices for EVs have become a lot more stable and lots more dealers are getting confidence in buying them. In the past I have sold a new Polestar to a Jaguar franchise as they said it looked good value on the forecourt next to I-Paces.

[Deerfoot]

My local Skoda dealership had two 2023 '23 plate Seat Formentors last week, both had around 15 miles on them.

One has sold already. I'm pretty sure they aren't part of a group (Meadens in the new forest) that has a Seat franchise.

[Sheepshanks]

Auto810graphy said:

Motabilty have a pricing team so cars are often priced over CAP and still sell as there are auction no charges and they have a condition standard.

I mentioned a few weeks ago on another thread that CAP prices for EVs have become a lot more stable and lots more dealers are getting confidence in buying them. In the past I have sold a new Polestar to a Jaguar franchise as they said it looked good value on the forecourt next to I-Paces.

It seems particularly odd to put a Kona Ultimate alongside Niro though. And maybe they think they can sell the iX1 to EV buyers who are horrified by the list price of new Kia EVs!

I don't know if it's the same data, but someone on that thread posted up a link to CAP-HPI and everything I look at is several £K more expensive than they reckon. To be fair, some of the cars I've been keeping an eye on are selling.

The iX1 looks good but has a slightly bonkers red interior.