Car dealers who use WBAC for PX values

[TheAngryDog]

I'm surprised more aren't doing this tbh. Maximise profit as dealers know what you'd get from WBAC, so where is the incentive for them to offer more?

[BIRMA]

I think you're right, a while ago I had a look at an ISF at a Lexus garage £30K+ I asked what they would give me for my RS60 Boxster and they came back with £13K which was exactly what WBAC quoted. I sold the Boxster on here a few weeks later for £24K so it does pay to ignore both main dealers and WBAC if you have anything a bit specialised.

[stargazer30]

lol I should be so lucky. Dealer's up here (in particular one with the initials EH) offer less than WBAC and when I show them the price, still won't budge.

[wack]

Surely that applies to anything you sell, you can try and sell it privately which could take weeks or take it on the chin and accept what they offer.

I've never PX'd a car because mine have always been in the under 10k bracket so finding a cash buyer isn't impossible.

If you have something exotic or desirable you're probably OK above that but trying to get 18k for a 12 month old mondeo would be difficult privately

[Crush]

hora said:

(This isn't a dealer/salesman dig by the way as I'm dealing with one dealership who are spot-on currently, as were the ones who I bought my current car from)

Its the ones who want full book price on a main dealer car yet will only give WBAC valuations for any PX.

The car(s) in question aren't that cheap- circa 10k. Yet I've had a few now who have offered a good 1k under PX value of the others yet they still want full book-whack. Its not a case of 'look we don't want this car/it'll go to auction'- its been explained to me that thats the way things are now in the industry/suck it up.

You could always do a WBAC valuation on the vehicle you're looking to purchase and say you won't pay a penny more

[Sheepshanks]

It felt like an insult when a Honda dealer used WBAC to value daughter's p/x.

They offered £50 more and I suppose WBAC would have charged a fee and possibly tried to knock the value down.

In percentage terms it was still a lot less than felt the car was "worth", but in £ it didn't seem worth the hassle of selling it privately and it was carrying a couple of issues that would have put me off selling to anyone I knew.

[anonymous-user]

TheAngryDog said:

I'm surprised more aren't doing this tbh. Maximise profit as dealers know what you'd get from WBAC, so where is the incentive for them to offer more?

Part Exs aren't necessarily about off loading a car as quickly and easily as possible. They are often bargaining chips that can make or break a sale and are a significant factor in the 'Cost to change' figure that should be one of the primary figures to look at when changing cars.

Take the guy with the Boxster looking at the ISF. I'm sure he wasn't looking for book/private price, but something not insulting it could have swung the deal. A "generous" offer of £20k makes a cost to change of £10k rather £17k and at that point, the customer is far more likely to take up the deal. As the dealer the ISF is gone and you've still got profit to be made on the Boxster and as the customer he has gotten a new car without the hassle of selling the old one.

Offer the WBAC value and the guys goes and sells privately and gets £23k, he could go back to the dealer, but he's already out the door with cash burning a hole in his pocket. He is likely to go back to the dealer that offered him £10k below what his car was worth? I doubt it.

Bizarre practice to me, but I suppose people must take them up on it (or not if its a case of dealers just not wanting to take on Part exchange stock?)

[ORD]

'Cost to change' is dealer nonsense. Each car has a market value. Beyond that it's just horse trading - giving more for the PX is just a price reduction.

[Sheepshanks]

279 said:

Bizarre practice to me, but I suppose people must take them up on it (or not if its a case of dealers just not wanting to take on Part exchange stock?)

Franchise dealers often just send everything non-franchise or over a certain age straight to auction.

So the £13K offered by the Lexus dealer for the Porsche could well be what they think it will go through auction at.

I think it was on here that someone said the big dealer groups (that I thought should have their own old-banger outlets) frequently won't even sell to local traders now for fear of back-handers being involved.

[laters]

When I was looking to change my car earlier this year I always asked the dealer the "cost to change" or "cost to swap" & I already knew what they were expecting for the car I wanted plus I had already priced and printed the wbac value so roughly knew where I wanted things to be.

In fairness to the majority of dealers most were happy to offer above the wbac value. The ones who said that's all we pay I switched to ok how much for a cash deal then as I will expect a discount for cash & no part exchange. Only the odd dealer wouldn't move on the price after that question.

The thing I found strange buying my car this time is the number of dealers (mostly smaller dealers) who wanted to thrash out the bartering and part exchange value etc before the car was test driven. Sadly on more than a few occasions the cars simply didn't live up to the faultless drive the dealers described.

[UK345]

When a dealer says that to me i just walk out or of course i will say right okay put the details of the car you are selling in and ill give you that figure.

[TonyF55]

To be honest this is why I have taken to leasing for the family hack.

All this horseplay/dealer BS/wasting my weekends, whatever you wanna call it is just crap in my book.

I just order on the net, car delivered to door, use, give back and repeat.

It's not for everyone I know, but suits me.

[daemon]

UK345 said:

When a dealer says that to me i just walk out or of course i will say right okay put the details of the car you are selling in and ill give you that figure.

At which point i'd be saying dont let the door hit your ass on the way out.

You do grasp the difference between trade prices and retail prices, overheads and margins dont you?

[daemon]

I can see why dealers have started to use it, cheaper than a Glass's or CAP subscription and pitches low so gives them a good starting point.

Strategically its quite smart too because its "well they're only giving you £X, so how can i give you more?"

Doesnt mean i'd accept it though.

[battered]

Stop using those dealers then. It's easy enough. You've got legs, so walk out.

I'll use a dealer if he offers me a fair deal. That includes the convenience factor of driving my old snotter in and driving out in a newer snotter.

I've come across idiot dealers. "You have to pay £10 for a test drive, refundable if you buy it, covers cleaning cost after you've driven it see?"
"What if I don't like it?"
"Well, if you find something wrong wiv it, then you get the fee back. If you just don't like it, then you pay £10"
"No thanks. I'll be off somewhere else, buy a car there."

Unless you are buying the last available birdcage Maserati or a 1973 Porsche RSR, leave them to die. It's not as if you can't find a BMW 320D anywhere else.

[SteveS Cup]

I don't understand the issues people have with companies (any industry) making a profit when you're using a service to make your life easier.

If you don't want to pay the premium do it yourself.

[PositronicRay]

hora said:

SteveS Cup said:

I don't understand the issues people have with companies (any industry) making a profit when you're using a service to make your life easier.

If you don't want to pay the premium do it yourself.

Agree but WBAC's model isnt an industry standard is it? So when companies decide to use it to low-ball a person who wants to do business with them why dont they also lower their sell prices below industry book values?

Actually it kinda is. Dealers often glance in GG, then "knock a bit off" or use CAP which is a bit more up to date for mainstream stuff. Kit that's harder to value they sometimes phone to get the car underwritten in the trade. Book values are a guide, and just that, often out of date. The value of anything can only be determined by what someone is willing to pay. Occasionally a dealer will pay over book, if he think's it's desirable, few refurb costs and thinks he can move it through quickly.

I'm not defending traders, many lazy ones out there. But a trader doesn't know if he's made a profit until the PX is disposed of. So they'll always try to "buy high, sell low". (or is it the other way round)

Edited by PositronicRay on Wednesday 29th July 08:53

[PositronicRay]

anonymous said:

[redacted]

Very clumsy. Sometimes a salesman will take details of the car to his manager, he'll think, "I've a few of those in stock" so lowball it. Smartarse salesman then "lowballs it again" to give himself some wriggle room. You wind up with a ridiculous offer.

[confused_buyer]

WBAC are BCA so these days everything goes to auction. Therefore WBAC's price modelling is quite sophisticated in terms of what they reckon the car will fetch at auction, and almost certainly more "on the button" than CAP or Glasses.

It is quite a good guide for a dealer on an unfamiliar car that if they punt it to auction they are unlikely to make a whopping loss on it if they've paid the WBAC price.

[Wacky Racer]

Can't see a problem.

If you don't like what the dealer is offering for your P/x.... walk....

It's not rocket science.

I suspect most dealers actually don't want part exchanges, unless it's something they can turn over quickly and make a few bob on.

Most just go straight on to auction, so WBAC is about right.

Obviously not talking about dearer stuff such as two years old Porsches or Mercs though....

Also, cost to change is relevant....I would not mind paying 2k over list providing the dealer offered me 2k more than my car was worth. They are just numbers....