Part ex deal agreed with dealer but another offer received

[daemon]

InitialDave said:

daemon said:

In that scenario, the dealer still gets the car, so why would the dealer want to give away a car for £1K profit, when theres probably £5K in it for them if they retail it (plus all the profit on the other cars traded in against the original deal down the line?

Well, that's for them to decide. But it would be gone instantly, no need to clean/prep it, sort out advertising, deal with potential buyers, or (and, as I said, this is my assumption about a trader-to-trader sale) have the hassle that may come from a private buyer of the car having a problem with it.

I'm not saying it's what would make anyone the most money, but it's an option that would eliminate most of the pitfalls people have rightly pointed out over trying to change the deal.

Speaking as an ex trader its unlikely if they've previously been happy to stock it, they would suddenly be happy to give away a retailable car in at a good price to another trader. Although not in the same league, i would never have traded on a retail car. Good stock at a good price is just too hard to get.

I reckon if they're stocking it - which is what your proposal would mean - they'll not trade it out again.

And thats before you get in to the VAT implications for them of taking a £2K gross markup on the car.

BUT, as you say, its a possible option.

Edited by daemon on Wednesday 7th December 22:12

[InitialDave]

Yeah, that's fair enough, I was just struggling to think of ways to do this that wouldn't leave the OP stuck if the second dealer didn't come through.

[loskie]

I havent read all the posts so this may have been mentioned: surely the issue is not the px but that the car sounds like it was registered before it left the factory.

[Dimebars]

loskie said:

I havent read all the posts so this may have been mentioned: surely the issue is not the px but that the car sounds like it was registered before it left the factory.

Happens all the time at month/quarter end. Dealers have targets to meet...............

In this case, the OP seems to have been fully aware of the fact that his car was being registered early and has signed all the relevant documentation to allow this to happen

[MDMA .]

Dimebars said:

loskie said:

I havent read all the posts so this may have been mentioned: surely the issue is not the px but that the car sounds like it was registered before it left the factory.

Happens all the time at month/quarter end. Dealers have targets to meet...............

In this case, the OP seems to have been fully aware of the fact that his car was being registered early and has signed all the relevant documentation to allow this to happen

yes to the above. we have vans on site pre-registered. sit for so long, when they are due for delivery to the end user, some have the plates changed ( April/September time ).

[ajh38]

Could be that the dealer isn't even that fussed about taking your part exchange in. They might be happy with somebody else taking the part exchange.

[R8Steve]

I've done this before.

The deal was arranged and was getting 15k part ex value against a 45k car so 30k balance to pay. My friend was surprised when i told him the part ex amount and offered to buy the car for 16.5k

I simply called the dealer and said i would give them the 15k in cash instead of the part ex.

The dealer said that was fine and that the part ex was just going to auction anyway so it probably worked out better for him anyway.

It meant an extra 1.5k to me and i gave the salesman £100 for any hassle so everyone was happy.

It's certainly worth asking.

[hyphen]

Crazy4557 said:

Bear with me on this but I have a slight predicament.
Ordered new stock (at factory) car 10 days ago and agreed price on my current car in part ex.

Did you pay exactly the full Retail Price on the new car minus your part ex? Or was this a negotiated deal down from the list price.

If the former, then unethical as you shook on it a long time ago, but again may have been low balled so horses for courses.

If it is the latter then you have no predicament and instead, you just need to post here.

Edited by hyphen on Thursday 8th December 13:36

[Dimebars]

hyphen said:

Did you pay exactly the full Retail Price on the new car minus your part ex? Or was this a negotiated deal down from the list price.

If the former, then unethical as you shook on it a long time ago, but again may have been low balled so horses for courses.

If it is the latter then you have no predicament and instead, you just need to post here.

Edited by hyphen on Thursday 8th December 13:36

Does it really matter? Any dealer would rather have £15k cash than have it tied up in a PX and the risks associated with retailing it

[TooMany2cvs]

loskie said:

I havent read all the posts so this may have been mentioned: surely the issue is not the px but that the car sounds like it was registered before it left the factory.

Nah, it was almost certainly at the distribution depot and due to arrive at the dealer in time. It's just that they've been busy repairing the damage from where it was biffed putting it on the transporter...

[oldnbold]

Dimebars said:

Does it really matter? Any dealer would rather have £15k cash than have it tied up in a PX and the risks associated with retailing it

I don't think you quiet understand the business model for a car dealer, the idea is to sell cars and make profit, not sit back and count cash. The key to making good profit is to buy quality stock cheaply, it sounds like that's just what the dealer is hoping to achieve with the OPs PX.

Generally far more profit for the dealer in used than in new car sales.

[Dimebars]

oldnbold said:

I don't think you quiet understand the business model for a car dealer, the idea is to sell cars and make profit, not sit back and count cash. The key to making good profit is to buy quality stock cheaply, it sounds like that's just what the dealer is hoping to achieve with the OPs PX.

Generally far more profit for the dealer in used than in new car sales.

I think I understand it enough to know that he wont care one bit about missing out on the OP's PX. Unless it's the only car he's ever going to have to retail (which is unlikely)

[oldnbold]

Dimebars said:

I think I understand it enough to know that he wont care one bit about missing out on the OP's PX. Unless it's the only car he's ever going to have to retail (which is unlikely)

It's a £60k Range Rover so the dealer may have already taken an underwrite on it, unless he's a RR dealer. Projected profit on the RR sale may well have influenced any discount that the OP was given on the new car.

Having spent a few years working at main dealers in car sales I know there's a lot of different elements taken into consideration when stacking a deal.

[hyphen]

Dimebars said:

Does it really matter? Any dealer would rather have £15k cash than have it tied up in a PX and the risks associated with retailing it

Depends if OP haggled and the profit on the px was a significant input into the overall deal.

If the Indy is buying it at 2k more and is unable to sell it for the higher Main dealer retail prices then it indicates its a winner for the Main dealer.

Say indy can retail it at cost + lets say 3k. Main dealer prices are higher, so the main dealer having bought is at 2k less already will also price it at more. So lets say they sell it at cost + 6k. So the 'risks of retailing' it are worth their while.

if the OP haggled hard, and the salesman did 'the walk' to his managers office, than that profit was taken into account into the deal offered to the OP. Without this the OP would have not got the price he did.

All hypothetical off course.

[hyphen]

oldnbold said:

I don't think you quiet understand the business model for a car dealer, the idea is to sell cars and make profit, not sit back and count cash. The key to making good profit is to buy quality stock cheaply, it sounds like that's just what the dealer is hoping to achieve with the OPs PX.

Generally far more profit for the dealer in used than in new car sales.

[Piersman2]

People are way over-complicating this.

Get over to the 'new' dealer and check his offer is good, and sell the RR to him for £59500. Get the money into your bank account.

Then ring the existing dealer and tell him you will debit card him the £57500 instead of the PX when you come in to collect your new car.

[oldnbold]

Piersman2 said:

People are way over-complicating this.

Get over to the 'new' dealer and check his offer is good, and sell the RR to him for £59500. Get the money into your bank account.

Then ring the existing dealer and tell him you will debit card him the £57500 instead of the PX when you come in to collect your new car.

Does the OP still actually own the Car? He has signed a contract agreeing to sell the car to the dealer and on the basis of that contract the dealer has paid off the outstanding finance.

[750turbo]

oldnbold said:

Does the OP still actually own the Car? He has signed a contract agreeing to sell the car to the dealer and on the basis of that contract the dealer has paid off the outstanding finance.

Has he signed any paperwork though? (Apologies if I missed a response)

OP - Have you signed anything ref Finance etc?

[oldnbold]

750turbo said:

Has he signed any paperwork though? (Apologies if I missed a response)

OP - Have you signed anything ref Finance etc?

Pretty sure he will have signed the order forms for the new car which should have included his agreement to sell ( PX ) his current vehicle to the dealer at the price agreed.

I'd be amazed if the dealer had settled his finance without having signed paperwork for the new finance, which I suspect has already been paid to the dealer. So in effect by what I'm reading the deal has already happened, with the exception that the OP hasn't picked his new car up.

[OddCat]

oldnbold said:

I'd be amazed if the dealer had settled his finance without having signed paperwork for the new finance, which I suspect has already been paid to the dealer. So in effect by what I'm reading the deal has already happened, with the exception that the OP hasn't picked his new car up.

100% this. The deal is already done......