Are there too many classic car dealers now?

[LotusOmega375D]

The private sale classified ads sections in most classic car mags seem shorter than ever these days, whereas there seem to be plenty of new and established dealers with glossy adverts. In fact almost to a man, these dealers are always moaning about how hard it is to find good quality stock. All of them will tell you that mint examples of their chosen marques continue to be in demand, whereas average cars are very difficult to shift. Maybe there are just too many dealers now? There also seems to be more auctions than before, which also appear to supply the dealer network, as much as they do private buyers (rather like the regular second-hand car trade). Despite this the dealers always complain that auction sale prices often give private sellers over-inflated ideas of their car's value (not that this seems to be a problem when they put their stock up for sale!)

Back in the dark days before the internet our family used to souce most of our varied classics from the small ads at the back of the local paper!

[spoodler]

We're considering selling the other half's Herald at the moment. The most likely selling place is eBay. We were wondering whether to go auction or classified ad' but the idea of an ad' in a classic car mag' hadn't even come up, the other options were on the various forums that we use - with internet selling being virtually instant I can see why so few private sales are done through magazine ad's (month's delay before publishing, doesn't sell, repeat until it does etc.). It's a totally different situation as a dealer. I've only once used an ad' in a "glossy" to sell a car (I've had about forty so far), that was my Bristol which I considered too specialised to sell locally.
As for too many dealers - I believe "natural selection" will come into play when that happens...

[esso]

I subscribe to `Classic & Sportscar` magazine and have done for many years.It amazes me,more so than ever recently how many cars are for sale in dealers and the inflated prices currently being advertised for them.I would say that at least 33% of the magazine(as good as it is)is devoted to dealers advertisements.What makes me smile is that auction results are printed and then you can find in the back of the magazine a dealers advert offering a car that sold in an auction at a vastly inflated price.Long live the private `for-sale` adverts!

[Pistom]

I can't see myself buying from a dealer but thy have a place in the industry and good ones offer a service for those that don't want the hassle of searching around for their car of choice.

[POORCARDEALER]

Lots of dealers buy their stock through the private ads.

[esso]

POORCARDEALER said:

Lots of dealers buy their stock through the private ads.

.....and then take the piss by advertising them at vastly inflated prices.I appreciate that they have to maybe service the car,offer a warranty etc but does this really add 5k plus onto the car?

[4rephill]

esso said:

.....and then take the piss by advertising them at vastly inflated prices.I appreciate that they have to maybe service the car,offer a warranty etc but does this really add 5k plus onto the car?

Regardless of whom is selling them , the cars are only worth what someone is prepared to pay for them.

If the buyers feel that the cars are over priced so badly, don't buy them and the prices will eventually come down!

As for the Classic car dealers buying from the private ads, where else are they supposed to buy them from? - other dealers?

The thing is, when a classic car dealer buys a classic from the private ads and re-sells it through their business (with their sometimes extortionate mark up), they are putting their reputation on the line with those cars. If they get a reputation for selling over-priced shonky ste, then they don't tend to stay in business too long, because word tends to travel fast around the classic car World and bad reputations are quickly acquired (and are hard to loose!)

[Pistom]

A major benefit of buying from a specialist dealer is that they know the marque they specialise in and know what to look for when buying. They prepare the cars so the buyer can drive away and use it with no comeback.

I don't think there are too many dealers and the market decides what is too many anyway.

I recently saw a GT6 that I could have had for £10k and is now at a dealers for £14K. The dealer needs to make a living and I don't think that mark up will be realised anyway.

[POORCARDEALER]

esso said:

POORCARDEALER said:

Lots of dealers buy their stock through the private ads.

.....and then take the piss by advertising them at vastly inflated prices.I appreciate that they have to maybe service the car,offer a warranty etc but does this really add 5k plus onto the car?

What a stupid comment.

If they price them too expensive they wont sell, then they wont be in business.

[4rephill]

POORCARDEALER said:

What a stupid comment.

If they price them too expensive they wont sell, then they wont be in business.

To be fair, some of the prices asked by some dealers (mostly top end dealers it has to be said), can be pushing the boundaries of urine extraction!

Take a look at some of the prices asked by dealers in Classic and Sportscar magazine for pretty mundane cars. You can't tell Me that some of those asking prices aren't a bit OTT!