Who actually buys a brand new car for above list?
Discussion
A topic of curiousity - a friend is having his Range Rover delivered towards the end of the year and mentioned that he could immediately sell it for a £30-40k premium.
I scoffed at the notion but later had a look on Autotrader and he is right - cars that retail for £110k are on the market with £140k +.
Do people actually pay over the odds like that? I could justify a few £k to avoid a 12 month waiting list but this seems a little daft to me.
I scoffed at the notion but later had a look on Autotrader and he is right - cars that retail for £110k are on the market with £140k +.
Do people actually pay over the odds like that? I could justify a few £k to avoid a 12 month waiting list but this seems a little daft to me.
TallTony said:
A topic of curiousity - a friend is having his Range Rover delivered towards the end of the year and mentioned that he could immediately sell it for a £30-40k premium.
I scoffed at the notion but later had a look on Autotrader and he is right - cars that retail for £110k are on the market with £140k +.
Do people actually pay over the odds like that? I could justify a few £k to avoid a 12 month waiting list but this seems a little daft to me.
Simple supply and demand, if you want one now, or at all, then you pay a premium. Refuse to pay the premium then in many cases, e.g. the various Porsche unobtaniums, youll not be getting one for years, if at all.I scoffed at the notion but later had a look on Autotrader and he is right - cars that retail for £110k are on the market with £140k +.
Do people actually pay over the odds like that? I could justify a few £k to avoid a 12 month waiting list but this seems a little daft to me.
At the moment people need cars and many Britishers won't entertain the notion of a lesser car, so there is constant demand above supply. Add to the fact that cars still get written off and the need is always there. Some people will think nothing of paying x thousand above list, some may baulk at tens of thousands above list, but others will think nothing of it, especially if the cost is being absorbed via a business.
I think it only really happens at the top of the market, with Porsche unless you have a strong purchase history you won't ever get something like a GT3 RS from a main dealer new.
Landrover products, especially Rangerover are fairly unique in that the people who want them won't buy anything else so despite their reliability issues there's strong demand for them and the people buying them want to be seen often in the latest version and have the financial ability to pay overs for it.
Landrover products, especially Rangerover are fairly unique in that the people who want them won't buy anything else so despite their reliability issues there's strong demand for them and the people buying them want to be seen often in the latest version and have the financial ability to pay overs for it.
You also have to remember, that if you have paid a 20% premium on your new car, when you come to sell it in a years time, it should also command a 20% premium all things being equal.
So you might be tying up more capital, but the overall cost of owning the car for X months will be pretty much the same as if you paid normal price.
So you might be tying up more capital, but the overall cost of owning the car for X months will be pretty much the same as if you paid normal price.
It's not something I can get my head round but if it helps transfer money from people with more money than sense to people with more sense than money then it's no bad thing. There was a thread recently where 'flippers' (i.e. people who put their name down for an in-demand thing as soon as the order books open then re-sell it above list straight away), were getting some stick. Whereas I really couldn't care less. It's not like they're profiteering off the necessities of life - they're gouging the well-off and impatient who always have the option to wait for their luxury trinkets - so let them be gouged.
Roger Irrelevant said:
It's not something I can get my head round but if it helps transfer money from people with more money than sense to people with more sense than money then it's no bad thing. There was a thread recently where 'flippers' (i.e. people who put their name down for an in-demand thing as soon as the order books open then re-sell it above list straight away), were getting some stick. Whereas I really couldn't care less. It's not like they're profiteering off the necessities of life - they're gouging the well-off and impatient who always have the option to wait for their luxury trinkets - so let them be gouged.
Pretty much how I see it. In the case of LR products supposedly intelligent people paying £40k over for a thirsty high tax SUV lol. Daft enough at list let alone over. It's redistribution of wealth. Anyone buying a new car is providing a public service out of their own pocket. The £20k VAT on that new Range pays a few peoples benefits for a while. I know people who have so much money that they think nothing of casually spending a million here and there. These are the people who buy £1000 bottles of champagne like I buy bottles of cola. When you have hundreds of millions, spending an extra £50k for a Range Rover is a triviality if it means you don't have to join a waiting list. People in this category of wealth aren't used to joining queues or waiting lists and they can get whatever they want when they want just by paying more than someone else. Their vast wealth gives them the ability to operate outside of the normal rules which helps them gain wealth much more quickly than average people.
My father was involved in the construction of some hotels in the middle east in the 1950s. One of his business associates, an Arab Sheikh, was so worried that my father would hurt himself in his new Arnolt-Bristol sports car that he offered to buy it from him. My father was very reluctant to sell his pride and joy so the Sheikh kept increasing his offer until my father agreed to sell at about double the car's value. As soon as the transaction was complete, the Sheikh had the car pushed into a ravine, destroying it. I still don't understand the logic, since my father could just buy another sports car. But who knows? Perhaps the Sheikh's actions prevented my father from suffering an untimely death, which would have meant I'd never have been born about 20 years later!
My father was involved in the construction of some hotels in the middle east in the 1950s. One of his business associates, an Arab Sheikh, was so worried that my father would hurt himself in his new Arnolt-Bristol sports car that he offered to buy it from him. My father was very reluctant to sell his pride and joy so the Sheikh kept increasing his offer until my father agreed to sell at about double the car's value. As soon as the transaction was complete, the Sheikh had the car pushed into a ravine, destroying it. I still don't understand the logic, since my father could just buy another sports car. But who knows? Perhaps the Sheikh's actions prevented my father from suffering an untimely death, which would have meant I'd never have been born about 20 years later!
Olivergt said:
You also have to remember, that if you have paid a 20% premium on your new car, when you come to sell it in a years time, it should also command a 20% premium all things being equal.
So you might be tying up more capital, but the overall cost of owning the car for X months will be pretty much the same as if you paid normal price.
This is not true at all. Someone would be paying a 20% premium to get a brand new car, now. When you come to sell it in a years time, it'll just be another secondhand one like all the others on the market.So you might be tying up more capital, but the overall cost of owning the car for X months will be pretty much the same as if you paid normal price.
CrippsCorner said:
Olivergt said:
You also have to remember, that if you have paid a 20% premium on your new car, when you come to sell it in a years time, it should also command a 20% premium all things being equal.
So you might be tying up more capital, but the overall cost of owning the car for X months will be pretty much the same as if you paid normal price.
This is not true at all. Someone would be paying a 20% premium to get a brand new car, now. When you come to sell it in a years time, it'll just be another secondhand one like all the others on the market.So you might be tying up more capital, but the overall cost of owning the car for X months will be pretty much the same as if you paid normal price.
Arguably on anything limited ( and I mean limited ) then even with those caveats in a years time that still might make reasonable sense.
Paying overs for a car without a limited production run is a gamble though surely and given the OP’s RR example don’t see that one working out.
But I guess only time will tell who’s right.
Paying overs for a car without a limited production run is a gamble though surely and given the OP’s RR example don’t see that one working out.
But I guess only time will tell who’s right.
We sold both our Taycans back to the supplying dealer for a little over list. (just didn't work out for us for a number of reasons)
They has no difficulty selling them on almost immediately and +£10k and +£20K over list respectively.
It's simply a supply and demand situation.
I've just bought something to replace mine and I'm knowingly overpaying for it (not over list though as it's a few years old) but they are few and far between, it's the spec I like and intend to keep it.
They has no difficulty selling them on almost immediately and +£10k and +£20K over list respectively.
It's simply a supply and demand situation.
I've just bought something to replace mine and I'm knowingly overpaying for it (not over list though as it's a few years old) but they are few and far between, it's the spec I like and intend to keep it.
Olivergt said:
You also have to remember, that if you have paid a 20% premium on your new car, when you come to sell it in a years time, it should also command a 20% premium all things being equal.
So you might be tying up more capital, but the overall cost of owning the car for X months will be pretty much the same as if you paid normal price.
Yes all things being equal, but for most of us it's too much of a risk to take, especially with a gas guzzling RR where prices could really take a hit in a few years as its all about image when you drive / own a top of the range RR. If it's suddenly not cool to own an ICE RR and all those who can afford to are switching to some electric or other cleaner RR then suddenly the image of an ICE version will take an hammering. So you might be tying up more capital, but the overall cost of owning the car for X months will be pretty much the same as if you paid normal price.
Like I say too much of risk for most of us paying that much over book price but those who do, they can afford to right off that kind of money and having the latest model is more important to them.
Background: I have a new Range Rover 530 V8 LWB Autobiography due mid August. I put the deposit down during the launch 10 months ago but had to wait until last month for the dealer to get a demonstrator. The demo car was a D350 HSE and I was given it for the weekend. Obviously performance between the 350D and the 530 V8 would not be the same but I could still experience the build quality and ride. Overall it was an impressive vehicle and it appeared to be well built and was beautifully finished inside. I have had several Range Rovers over the years but had unfortunately forgotten just how boaty the ride can be especially compared with my current Porsche Cayenne. I tried hard to convince myself it would be OK and I would get used to it but even my wife complained of feeling a bit sick after an hours drive on some bendy country roads (which is most of the roads in my location).
Anyway after a lot of deliberation I have decided that I don't want the Range Rover. However this leaves me with a bit of a dilemma, do I simply cancel the purchase and lose my deposit (£2500) or attempt to flip the car and take advantage of the price some people are willing to pay over list to avoid the wait. I have never flipped a car before so I am not really sure the best way to go about it. I imagine as a private individual trying to sell on a car of this value without any finance facilities would limit the market and prove difficult so it would probably have to be sold on to a dealer.
Any advice would be appreciated.
Anyway after a lot of deliberation I have decided that I don't want the Range Rover. However this leaves me with a bit of a dilemma, do I simply cancel the purchase and lose my deposit (£2500) or attempt to flip the car and take advantage of the price some people are willing to pay over list to avoid the wait. I have never flipped a car before so I am not really sure the best way to go about it. I imagine as a private individual trying to sell on a car of this value without any finance facilities would limit the market and prove difficult so it would probably have to be sold on to a dealer.
Any advice would be appreciated.
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