And the dealers do more than just add a few grand?????
Discussion
P.S. I am not the OP, he got all shy and deleted his post!!!
His beef was that a dealer stuck a £3.5k margin on a car
Come on then, how much should they be charging to cover:
- premises / storage
- insurance
- cost of money / depreciation
- anything required to bring car up to standard
- etc
Before they actually take a profit (on which they pay tax)?
His beef was that a dealer stuck a £3.5k margin on a car
Come on then, how much should they be charging to cover:
- premises / storage
- insurance
- cost of money / depreciation
- anything required to bring car up to standard
- etc
Before they actually take a profit (on which they pay tax)?
Edited by UpTheIron on Thursday 29th March 20:50
I've bought all three of my TVR's from specialist dealers as I feel that I have more comeback with them. After all it only takes one dissatisfied customer on a forum such as this to totally upset their business. A private seller on the other hand can take your money and disappear. If the car turns out to have any sort of problem you may well find it difficult to get them to take any notice.
I am guessing that when the seller is stating "with the remaining waaranty" they are talking about the TVr warranty the car came with when new. But due to the state of TVR at the moment these are null and void and worthless, so effectively no warranty.
At least a dealer will put a proper 12 month warranty on it for you. Got to be worht a fair bit along with their time and effort to take care of anything that needs fixing.
At least a dealer will put a proper 12 month warranty on it for you. Got to be worht a fair bit along with their time and effort to take care of anything that needs fixing.
I would hazard a guess that the OP has never run a business.
Rum Runner said:
I noticed a green Chimaera 4.5 think 98' low mileage in autotrader on at £10,990 ono private it came on in the classifieds with a certain dealer in the same(last) week at £13995!. Wonder how much the owner got off the dealer ?.
So lets say the dealer paid 10k and you chip him to 13k (assuming he hasn't got to take your p/x of you). So he makes 3k, out of which he has to pay £450 VAT. he has to put a years ticket on it, service it, take car of any niggles and put a warranty on it. If he sits on it for a few months it will be costing him on the finance and may also depreciate.
To be honest I don't know how they can work on such small margins. Amazed any of them make any money.
Next time you buy a pair of trousers for say £80 bear in mind that the retailer paid no more than £30 and then maybe you'll think about it and realise that mark ups on cars are very marginal indeed.
unrepentant said:
Rum Runner said:
I noticed a green Chimaera 4.5 think 98' low mileage in autotrader on at £10,990 ono private it came on in the classifieds with a certain dealer in the same(last) week at £13995!. Wonder how much the owner got off the dealer ?.
So lets say the dealer paid 10k and you chip him to 13k (assuming he hasn't got to take your p/x of you). So he makes 3k, out of which he has to pay £450 VAT. he has to put a years ticket on it, service it, take car of any niggles and put a warranty on it. If he sits on it for a few months it will be costing him on the finance and may also depreciate.
To be honest I don't know how they can work on such small margins. Amazed any of them make any money.
Next time you buy a pair of trousers for say £80 bear in mind that the retailer paid no more than £30 and then maybe you'll think about it and realise that mark ups on cars are very marginal indeed.
For a start a purchase trousers for Tesco or Asda as there cheap as chips and I don't like being stung and particularly don't like brand snobbery. Secondly i was brought up in the trade my father had 2 garages , I worked as a paint repair and the mechanic and then Sales manager all at different places not my fathers . My wife is also a manager of 7 new car dealerships . So in all i have some knowledge of what goes on in the motor trade, even if a little out of date directly .Now i work within the marine trade which is our own business so money does not arrive on regular pattern / amount or in some cases at all.
The point i am making is that it is quite a margin for what most motor traders have to survive on , on a reasonable low cost vehicle. Also there is very little depreciation on Chims and we are coming up to a more sell able season for sportscars .
The other point i was trying to make was that it was unfortunate that the vehicle was advertised at the same time for two very different prices.
I would also think that the dealer will have given him less than 10k ,unless he bought another from him which will in turn have little discount , as it easier to get the deal if the owner feels he is getting a good price for his old car , but will in- turn receive a small discount on the new unless he had no trade in.
Dealers in Wales used to give high trade in prices on vehicles , people from the North West used to buy cars in Wales as they though they where getting better deals but you payed near enough screen price .But it worked for these dealers and the customers went away feeling happy .
Again Knowing the dealer knocking a grand off is not in there nature .
Some dealership make next to no money on cars sales there profit comes from manufactures bonuses(If new cars) and service / warranty / insurance repair work which will mainly come from cars sold.
Years ago we sold hundreds of new fords to a major international hire company and made on average £25 a car !.
Its also tricky on repeat business if you have just been given 9.5k for your Chim and you buy another off the dealer and then see your old cars sold for 14K. You have to ask yourself how much is the car really worth that i now have just bought from them that is sitting in my drive , and am i going to go back to the same dealer in the future for another good tannning. If the car needed work that is fine but in the case otherwise its unlikey you will see the punter a second time .
This just happened to a good friend of mine with his Porsche , the dealer will not be seeing him again.
Edited by Rum Runner on Wednesday 28th March 23:24
Rum Runner said:
Some dealership make next to no money on new cars sales there profit comes from manufactures bonuses and service / warranty / insurance repair work which will mainly come from cars sold.
Years ago we sold hundreds of new fords to a major international hire company and made on average £25 a car !.
We're not talking new cars though. We're talking used cars sold on margin scheme where the dealer has to fork out for warranties, any rectification work etc.. No bonuses or other manufactureres incentives there.
unrepentant said:
Rum Runner said:
Some dealership make next to no money on new cars sales there profit comes from manufactures bonuses and service / warranty / insurance repair work which will mainly come from cars sold.
Years ago we sold hundreds of new fords to a major international hire company and made on average £25 a car !.
We're not talking new cars though. We're talking used cars sold on margin scheme where the dealer has to fork out for warranties, any rectification work etc.. No bonuses or other manufactureres incentives there.
This is were good skills are involved to not bring in dogs,if you do yes it causes problems.I am also talking about dealers who do other things then sell used TVR's.
Anyway again the point i was making is having the same car advertised at 2 prices with over 3k difference at the same time is not good for business which ever way you want to dress it up !.
Edited by Rum Runner on Wednesday 28th March 23:03
Stand and fight! 
we have a car sales which holds about 200 cars,with 8 staff, it costs about 23k per month to run,
you only need a quiet month or two to go backwards quickly,
plus the fact of warranty repairs,at any one time we are covering about 350-400 cars under our own warranty,any of which could go bang.
in the last month we have had a run of faulty autoboxes,merc slk ,206cc, galaxy, freelander.these alone have cost around 4k to sort.
Also as a car dealer you pay vat on the difference between purchase and sale,regardless of how much it`s cost to prepare or repair for sale
so if you pay 5k spend 2k on it and sell it for 8k you still pay the vat on the 4k difference.
you prehaps can see now why the dealer is dearer.
you only need a quiet month or two to go backwards quickly,
plus the fact of warranty repairs,at any one time we are covering about 350-400 cars under our own warranty,any of which could go bang.
in the last month we have had a run of faulty autoboxes,merc slk ,206cc, galaxy, freelander.these alone have cost around 4k to sort.
Also as a car dealer you pay vat on the difference between purchase and sale,regardless of how much it`s cost to prepare or repair for sale
so if you pay 5k spend 2k on it and sell it for 8k you still pay the vat on the 4k difference.
you prehaps can see now why the dealer is dearer.
Gassing Station | General TVR Stuff & Gossip | Top of Page | What's New | My Stuff