How long does a car typically stay on a forecourt?
Discussion
How long does a (second hand) car typically stay on a forecourt? Or is that a "how long is a piece of string" type of question?
The reason I ask is because I looked at a car 8 or 9 months ago and made an offer on it that was rejected. Outright I might add, but there you go. Before I went to have a look at it I was told by a friend that the car had been there for at least a couple of months.
So I'd guess it's been up for sale - for the same price, as far as I can see - for a year or so. Is that unusual? Or a sign of the times? I should add I'm talking about a Clio here.
The reason I ask is because I looked at a car 8 or 9 months ago and made an offer on it that was rejected. Outright I might add, but there you go. Before I went to have a look at it I was told by a friend that the car had been there for at least a couple of months.
So I'd guess it's been up for sale - for the same price, as far as I can see - for a year or so. Is that unusual? Or a sign of the times? I should add I'm talking about a Clio here.
No idea but surely longer than a few weeks must be bad for business. I would have thought after a month at a price the dealer would need to do something different be it price reduction or whatever. Whilst it is sitting there not selling its depreciating in value and taking up space for something you might be able to sell.
Back in 1999 I part-exchanged my Range Rover 4.0 for a new Discovery at a LR dealership. Every time I took the Disco back in for warranty repairs (often!) the RR was still on the forecourt. This went on for 16 months and then the garage gave up and sent it to auction.
Edited by isv on Tuesday 16th December 22:31
Sometimes the garage has too much money owed to them by that particular vehicle and so refuse to let it go at a loss as a matter of pride rather than just getting rid and putting the money back in the system. Also, a few just make over optimistic calls on the value of a vehicle. There's a place a mile down the road to me that I always go to if I want a laugh: Hesketh cars. I don't think this contravenes any name and shame rules as they're doing nothing illegal- just laughable.
As an example- 2002 Zafira 2.0DTi. Parkers= £3545. Heskeths= £5395.
And this is in the North West of England, in a retirement area near Blackpool, where even the local locksmith has told me that the reason his prices are half that of those in Blackpool is because the resident wrinklies won't pay anything over a farthing!
As an example- 2002 Zafira 2.0DTi. Parkers= £3545. Heskeths= £5395.
And this is in the North West of England, in a retirement area near Blackpool, where even the local locksmith has told me that the reason his prices are half that of those in Blackpool is because the resident wrinklies won't pay anything over a farthing!
look up UK sports cars
700% over book
some of their esprits and stuff have been there since the dawn of man
as i undersatnd it, when you buy a car from then it usually goes very seriously wrong before you've even got it home and after the AA have got you home etc.. you call them up to find out that the collosal mark up you paid didn't actually inculde anything like a warranty or them checking the car over properly
happy days [+]
700% over book
some of their esprits and stuff have been there since the dawn of man
as i undersatnd it, when you buy a car from then it usually goes very seriously wrong before you've even got it home and after the AA have got you home etc.. you call them up to find out that the collosal mark up you paid didn't actually inculde anything like a warranty or them checking the car over properly
happy days [+]
Edited by jackal on Tuesday 16th December 22:48
http://users.autoexposure.co.uk/smgrover/search.cf...
Those prices ARE up to date. Well, you know what I mean......
Those prices ARE up to date. Well, you know what I mean......
J500ANT said:
http://users.autoexposure.co.uk/smgrover/search.cf...
Those prices ARE up to date. Well, you know what I mean......
Good luck with the gold rover 25! I've have £2,500 would be a struggle. Those prices ARE up to date. Well, you know what I mean......
Edited by richyb on Tuesday 16th December 22:56
J500ANT said:
http://users.autoexposure.co.uk/smgrover/search.cf...
Those prices ARE up to date. Well, you know what I mean......
That's some SERIOUS optimism...Those prices ARE up to date. Well, you know what I mean......
BB-Q said:
J500ANT said:
http://users.autoexposure.co.uk/smgrover/search.cf...
Those prices ARE up to date. Well, you know what I mean......
That's some SERIOUS optimism...Those prices ARE up to date. Well, you know what I mean......
The longer a car is on the forecourt, the more it is costing the dealer.
Cars cost money (even if not run) and are depreciating at the same time.
Properly successful dealers will have no problem riding out the current storm, the key will be turning over stock even at minimal profit. One may make, for example, £100 per car just to keep stock turning over and end up selling 50 in a month. That's £5000 profit. Another may sell 1 car with £5000 profit but that's unlikely and what if they don't sell it, that's then ZERO profit (a loss actually as car will have depreciated). OK, not exact example but you get the idea I'm getting at.
Also, in turn, high stock turnover is good for business too. If I see a dealer that has the same stock all the time, I'm thinking what's wrong with their cars, either dodgy or overpriced and thus won't entertain them at all. So even when people spend more again, they'll be the last dealers they visit.
I once knew a mk1 golf convertible that was at a local dealer forecourt for THREE years. It was always overpriced. I once saw a price reduction on it once from £4500 to £4395
Same/similar cars were going for £3k absolute tops, most at £2k or so. Business folded a few years ago (in the middle of the boom ironically!).
Anyway, I may know of a 5 year old Passat estate up at well over £7k that may be on the forecourt for a rather long time
Cars cost money (even if not run) and are depreciating at the same time.
Properly successful dealers will have no problem riding out the current storm, the key will be turning over stock even at minimal profit. One may make, for example, £100 per car just to keep stock turning over and end up selling 50 in a month. That's £5000 profit. Another may sell 1 car with £5000 profit but that's unlikely and what if they don't sell it, that's then ZERO profit (a loss actually as car will have depreciated). OK, not exact example but you get the idea I'm getting at.
Also, in turn, high stock turnover is good for business too. If I see a dealer that has the same stock all the time, I'm thinking what's wrong with their cars, either dodgy or overpriced and thus won't entertain them at all. So even when people spend more again, they'll be the last dealers they visit.
I once knew a mk1 golf convertible that was at a local dealer forecourt for THREE years. It was always overpriced. I once saw a price reduction on it once from £4500 to £4395
Same/similar cars were going for £3k absolute tops, most at £2k or so. Business folded a few years ago (in the middle of the boom ironically!).Anyway, I may know of a 5 year old Passat estate up at well over £7k that may be on the forecourt for a rather long time
Edited by Dracoro on Tuesday 16th December 23:02
If you'd like to see more optimistic pricing - their sister company http://users.autoexposure.co.uk/hursleyhillgarage/...
J500ANT said:
http://users.autoexposure.co.uk/smgrover/search.cf...
Those prices ARE up to date. Well, you know what I mean......
Nice to know the credit crunch and all that dosent effect all the dealers, these people clearly know what they are doing and deffinetly wont be going down under in the near future.Those prices ARE up to date. Well, you know what I mean......
I went and viewed this car in 1999 and didnt buy it. http://www.gcminis.co.uk/products/mini-era-turbo
At the time it was up for £7995. I then went and viewed the same car in November this year still unsold since 1999 and offered £8000 for it which I thought was a reasonable offer. The offer was refused without negotiation. I wonder if I will be going back and making an offer in another 10 years time!
At the time it was up for £7995. I then went and viewed the same car in November this year still unsold since 1999 and offered £8000 for it which I thought was a reasonable offer. The offer was refused without negotiation. I wonder if I will be going back and making an offer in another 10 years time!
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