Using a dealer to sell your car
Discussion
Hi,
Does anyone have any experience of selling their car via a commission sale at a classic dealer (i.e Munich legends, 4 star classics etc).
Id imagine for a commission based sale they could sell the car for alot more than I could privately, just curious to know whether its something worth looking in to, or whether their share of the sale is so ridiculous that it's not worth thinking about.
Cheers,
Iain
Does anyone have any experience of selling their car via a commission sale at a classic dealer (i.e Munich legends, 4 star classics etc).
Id imagine for a commission based sale they could sell the car for alot more than I could privately, just curious to know whether its something worth looking in to, or whether their share of the sale is so ridiculous that it's not worth thinking about.
Cheers,
Iain
Dunno about selling on commision but when I sold my 205 GTI earlier this year, I just rang some dealers who placed wanted ads for hot hatches on the usual websites. The dealer came to view my car, we did a deal and it all went through very smoothly. And I made a profit as well!
One thing I can say is that the car has to be one of the best, i.e. mine was low ownership, low mileage and with impecable history. So, if you want a quick sale and are not fussed about getting top, top money, but don't want hassle of time wasters, then try it.
One thing I can say is that the car has to be one of the best, i.e. mine was low ownership, low mileage and with impecable history. So, if you want a quick sale and are not fussed about getting top, top money, but don't want hassle of time wasters, then try it.
Absolutely no experience of this personally. Mate of mine enquired about a car advertised on PH Classifieds recently the "dealer" didn't own the car or any of the cars they had. Their terms were 10% of sale price plus a charge to store the car whilst they had it.....staggering to me that anyone would use them. Their cars are in the £50k to £250k range.
In my experience it can work really well with the right dealer, particularly if you bought the car from them in the first place.
It probably works better when the dealer is a specialist in your make of car. I sold a 308 this way last year and I think I got more for it even after commission than I could have achieved privately. As stated before, the car has to be a really good example of its type or dealers won't be interested.
Many years ago I also sold an E-type this way. Again it was a very good car (possibly the best available) and it made quite a bit more than I was expecting or had agreed with the dealer.
In my view this is a much safer route than trying your luck at an auction where you are dependent on at least two people wanting your car.
It probably works better when the dealer is a specialist in your make of car. I sold a 308 this way last year and I think I got more for it even after commission than I could have achieved privately. As stated before, the car has to be a really good example of its type or dealers won't be interested.
Many years ago I also sold an E-type this way. Again it was a very good car (possibly the best available) and it made quite a bit more than I was expecting or had agreed with the dealer.
In my view this is a much safer route than trying your luck at an auction where you are dependent on at least two people wanting your car.
I think it depends on the value of he vehicle. There has to be a profit in it for the dealer to cover showroom space and advertising costs. If it's a good example A dealer will take it on, but expect to earn out of it.
Doesn't work for a £5k car, but over say £15k, it probably does, which conveniently ties in with the prices at which people might be wary handing over to a stranger in a Private sale. Even if it is sold without a warranty, many people feel 'safer' not buying at the road side.
So for the right car it can work. A dealer might also be able to sort out finance etc which can get a buyer in a way a private sale never could.
Another route to consider would be a 'proper' classic auction (by proper I mean where people can actually see the car, NOT Ebay)
Al
Doesn't work for a £5k car, but over say £15k, it probably does, which conveniently ties in with the prices at which people might be wary handing over to a stranger in a Private sale. Even if it is sold without a warranty, many people feel 'safer' not buying at the road side.
So for the right car it can work. A dealer might also be able to sort out finance etc which can get a buyer in a way a private sale never could.
Another route to consider would be a 'proper' classic auction (by proper I mean where people can actually see the car, NOT Ebay)
Al
Cheib said:
cptsideways said:
Just beware of the pitfalls should said dealer go under, you might be out of pocket big time & car less
Interesting. Surely as the V5 holder with a contract stating what it is doing on the dealer's premises you would be okay ? I've read of cases where the owner lost his car, and on top of that also had to repay balance of the outstanding loan to the bank.
Be careful who you deal with on SOR.
Cheib said:
Interesting. Surely as the V5 holder with a contract stating what it is doing on the dealer's premises you would be okay ?
V5 is not proof of ownership.If the dealer sells your car pockets the money and/or goes under you are not in good shape.
There is a thread somewhere in the Mercedes section of PH about this exact subject.
Similar with auction houses. The most notable example being when Coys went under some years ago and didn't pay out the sellers from their last auction sale.
Most of them have escrow accounts now I believe.
I've sold several cars through a dealer I trust. They charged 10% but acheived a much higher price than I would have privately and they also warranted the car avoiding any future hassle for me.
Just be careful who you choose to deal with.
We do a fair amount of business with cars on consignment we have a contract that states that the car remains the property of the owner till sold, that it does not leave the premises till sold( except test drives with our insurance) and we have been paid in full ( and this can be tricky for a private individual) and that there are no costs involved and we can ask the car to be removed by the owner at any time and also the owner may take it away at any time also if there are costs involved , such as the buyer wants new tyres fitted or MOT or whatever this is pre-approved with the owner. We also transfer funds the same day the buyers funds have been cleared by our bank. There is more but that is the gist of it and i would suggest a similar arrangment should be made with any dealer, although i do know some charge if the car is taken away, but we dont, and it has very rarely happened to us so is not really an issue.
The benifits for us are we have less capital tied up in cars for sale and can take on cars where the likey profit is small, or the sale time is long ( taking on a convertable before winter for instance) or the car is unusual and has a limited market so it may take a while to find the right buyer. The are lots of benifits for the seller as it is displayed much better in a heated showroom with passing traffic and visiting potential buyers, our advertising costs are lower as we have contracts with companys as special rates , we can do any work that a buyer may request and the owner is not bothered by timewasters and has a guarantee that he will be paid as we work with the bank to get special clearance for the funds. But we also have more contacts than most private sellers so often know of a potential buyer when we view the car.
Hope this helps and give u some pointers stephen
The benifits for us are we have less capital tied up in cars for sale and can take on cars where the likey profit is small, or the sale time is long ( taking on a convertable before winter for instance) or the car is unusual and has a limited market so it may take a while to find the right buyer. The are lots of benifits for the seller as it is displayed much better in a heated showroom with passing traffic and visiting potential buyers, our advertising costs are lower as we have contracts with companys as special rates , we can do any work that a buyer may request and the owner is not bothered by timewasters and has a guarantee that he will be paid as we work with the bank to get special clearance for the funds. But we also have more contacts than most private sellers so often know of a potential buyer when we view the car.
Hope this helps and give u some pointers stephen
My clients - many of whom have used us several times - tell me that avoiding all the hassle is the biggest benefit. No waiting in all weekend for buyers who don't turn up, no dodgy types on the doorstep and no 'wot will u take for it m8' texts. We advertise all over Europe and sell a high proportion to overseas buyers, dealing with all the paperwork along the way and even delivering if needed. I believe we consistently achieve higher prices than private sellers and at 10% commission we take much less out of the deal than the auction houses. We work really hard on the preparation and presentation of our stock and take customer service very seriously. A high proportion of my new clients come from word of mouth recommendation so I guess we must be doing something right.
singlecoil said:
A number of people are saying that dealers achieve better prices than privates sales could, and I have no reason to disbelieve that. It does, however, give me a very good reason not to buy from dealers.
This is a fair point! However, it assumes that the buyer has the knowledge to differentiate between a good car and a bad one. If you can't do this, buying through a dealer (or even better, a marque specialist) has to be the best option...the premium will normally be far less than the cost of trying to sort out a 'shed'. There are far more people who fit into this camp than there are knowledgeable enthusiasts. I guess that is why dealers have been around since the dawn of motoring.
singlecoil said:
A number of people are saying that dealers achieve better prices than privates sales could, and I have no reason to disbelieve that. It does, however, give me a very good reason not to buy from dealers.
You sound surprised that a dealer (who is providing more) should be charging more. Really?SpeckledJim said:
singlecoil said:
A number of people are saying that dealers achieve better prices than privates sales could, and I have no reason to disbelieve that. It does, however, give me a very good reason not to buy from dealers.
You sound surprised that a dealer (who is providing more) should be charging more. Really?singlecoil said:
What makes you think I am surprised? But the main reason that a dealer is charging more is not because he is providing more but because he needs to take profit from the transaction. He adds value, certainly, but not as much value as the premium because if he was he wouldn't be making any money.
I am sorry singlecall but your logic is fallacious with a car at a dealer for sale buyers can view it anytime that suits them ( costs dealer nothing as showroom is already open but big advantage to buyers) or even just the contact phone always gets answered ( cost dealer nothing but an advantage as i know only too well) and so on but also dealers have to abide by a code of conduct as per trading standards and the dealer has a reputation to uphold with a private seller there is no comeback and no guarantee and no reputation to lose all this is free in a way to the dealer but adds benifit to the buyer yes i know there are some rogue dealers but in general, if u buy a car from an individual at the side of the road at a motorway service station u have zip comeback but a dealer has premises and u know where they are and who they are ( directors on companys house website for instance) and if there is a problem they often have the resources and workshop and knowhow to make good. When u are buying a £500 banger it really doesnt matter but when u are spending some significant hardearned savings these things count. There are lots more, for instance we have special rates with transport companys so can transport cars a lot cheaper than an individual would be quoted, we can do any work required there and then, we have ramps available for an engineering inspection , we can help with shipping: all this is in a sense free( overheads are hopefully covered anyway) but offers value. Even the test drive is covered by insurance so we can offer test drives without asking potential buyers to get special insurance or put them through the 3rd degree. Of course its difficult to quantify this added value but most seem to think it is worthwhile . And his profit is justified by all these free services that an individual would not normally have. i could go on but the point i feel is made.I sold a car in this way and is was by far the biggest pain in the arse ever.
The car needed some bits doing which I agreed to but then the buyer wanted other bits doing, whole deal got very complicated as it ended up with the dealer taking for ever to do stuff and arguments over who was paying for what.
The car sold for strong money but I'd have got similar money back myself if I'd just sold it with a number of jobs needing doing.
The car needed some bits doing which I agreed to but then the buyer wanted other bits doing, whole deal got very complicated as it ended up with the dealer taking for ever to do stuff and arguments over who was paying for what.
The car sold for strong money but I'd have got similar money back myself if I'd just sold it with a number of jobs needing doing.
orangeLP400 said:
I am sorry singlecall but your logic is fallacious with a car at a dealer for sale buyers can view it anytime that suits them ( costs dealer nothing as showroom is already open but big advantage to buyers) or even just the contact phone always gets answered ( cost dealer nothing but an advantage as i know only too well) and so on but also dealers have to abide by a code of conduct as per trading standards and the dealer has a reputation to uphold with a private seller there is no comeback and no guarantee and no reputation to lose all this is free in a way to the dealer but adds benifit to the buyer yes i know there are some rogue dealers but in general, if u buy a car from an individual at the side of the road at a motorway service station u have zip comeback but a dealer has premises and u know where they are and who they are ( directors on companys house website for instance) and if there is a problem they often have the resources and workshop and knowhow to make good. When u are buying a £500 banger it really doesnt matter but when u are spending some significant hardearned savings these things count. There are lots more, for instance we have special rates with transport companys so can transport cars a lot cheaper than an individual would be quoted, we can do any work required there and then, we have ramps available for an engineering inspection , we can help with shipping: all this is in a sense free( overheads are hopefully covered anyway) but offers value. Even the test drive is covered by insurance so we can offer test drives without asking potential buyers to get special insurance or put them through the 3rd degree. Of course its difficult to quantify this added value but most seem to think it is worthwhile . And his profit is justified by all these free services that an individual would not normally have. i could go on but the point i feel is made.
To describe my logic as fallacious and then go on to say that a dealer's showroom costs him nothing is rather droll.The rest of your post was too difficult to read, line breaks make reading a bloick of text, especially on a computer screen, much easier.
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