Why might a main dealer have a car for months before selling

[daemon]

8V085 said:

Did you miss the "if" ? Or are you one of those who believe in one version of the truth as long it's based on their opinions (rhetorical question)?

I'm quite happy that other people have views, as long as they are reasoned and based on a semblance of fact.

Also, theres a big difference between saying "i think finance companies are drip feeding cars on to the used market" - ie an opinion -
and actually saying its a FACT - "One of the things sustaining the current lease-cycle is that the cars coming back in are being stockpiled and drip-fed back into the used market to prevent a glut and preserve final values."

That is an unsubstantiated opinion being presented as a fact.

[4941cc]

BTW, it's quite possible for new cars to be years old before being registered. They go fully paid with the dealer usually 180 days after being consigned, sometimes 365 days for lumpier stuff (daily stocking charges are paid until then).

The aim is to retail them before the dealer has to buy the car from the manufacturer. Once they do however, having already sat in a (usually off-site) storage compound for 6-12 months, they get forgotten about through changes of dealer staff/managers etc.

Then it's not just a case of PDI and plate it for handover, you usually need a new battery, discs and pads all round as they'll have corroded, all fluids changed and any amount of paint correction needed from fading/tree sap/industrial fallout as well as moss etc. plus electrical gremlins as mice like to make nests in looms.

Easily done if your accounts and management is a bit slack/inept. Seen it often...

[daemon]

4941cc said:

BTW, it's quite possible for new cars to be years old before being registered. They go fully paid with the dealer usually 180 days after being consigned, sometimes 365 days for lumpier stuff (daily stocking charges are paid until then).

The aim is to retail them before the dealer has to buy the car from the manufacturer. Once they do however, having already sat in a (usually off-site) storage compound for 6-12 months, they get forgotten about through changes of dealer staff/managers etc.

Then it's not just a case of PDI and plate it for handover, you usually need a new battery, discs and pads all round as they'll have corroded, all fluids changed and any amount of paint correction needed from fading/tree sap/industrial fallout as well as moss etc. plus electrical gremlins as mice like to make nests in looms.

Easily done if your accounts and management is a bit slack/inept. Seen it often...

Yup. I saw it often too. Quite often brand new cars will sit 6+ months.

Never saw cars forgot about, personally in a new dealers (sounds like awful bad management / accounting as you say).

Edited by daemon on Wednesday 22 November 15:02

[PenelopaPitstop]

Glasgowrob said:

StrNge things do happen in the motortrade the other half bought a ford eco sport a couple of years ago brand new but built over 12 months previously

I found that one strange a couple of months yes but over a year in storage

In July I made a deal on A8, it had to be registered by end of quarter so I said I will collect it on 30/09, because I don't need it earlier. Then, I discovered it was produced at the beginning of the year and PDI was done in Northern Ireland in February. I got car from Liverpool. So it was sitting somewhere in stock for couple of months and then for another 2 before I collected it. Discs were a bit corroded and door cards started rattling after 200 miles but it was fixed on warranty. I'm still pleased with the deal I got, didn't see better since then.

Also seen some SLK55s with 1 year gap before manufacturing and registration. It would not stop me from getting it, considering that first owner put some miles on it and probably fixed any issues under warranty. Record I saw, was Brabus SLK which was 3 years old at first registration. I think it was show car before it went for sale in London.

[8V085]

daemon said:

8V085 said:

Did you miss the "if" ? Or are you one of those who believe in one version of the truth as long it's based on their opinions (rhetorical question)?

I'm quite happy that other people have views, as long as they are reasoned and based on a semblance of fact.

Also, theres a big difference between saying "i think finance companies are drip feeding cars on to the used market" - ie an opinion -
and actually saying its a FACT - "One of the things sustaining the current lease-cycle is that the cars coming back in are being stockpiled and drip-fed back into the used market to prevent a glut and preserve final values."

That is an unsubstantiated opinion being presented as a fact.

Tell you what, I totally agree. And since you're so in the know ask your friends in trade (those powerfully built who deal with cars that are max 3 to 4 yeas old not the ones who are employees) what their DIO is and how it's been on a quarterly basis over the last 10 years. It's a standard KPI and should be easy to obtain. Let's talk some facts shall we boy?

[8V085]

PenelopaPitstop said:

Glasgowrob said:

StrNge things do happen in the motortrade the other half bought a ford eco sport a couple of years ago brand new but built over 12 months previously

I found that one strange a couple of months yes but over a year in storage

In July I made a deal on A8, it had to be registered by end of quarter so I said I will collect it on 30/09, because I don't need it earlier. Then, I discovered it was produced at the beginning of the year and PDI was done in Northern Ireland in February. I got car from Liverpool. So it was sitting somewhere in stock for couple of months and then for another 2 before I collected it. Discs were a bit corroded and door cards started rattling after 200 miles but it was fixed on warranty. I'm still pleased with the deal I got, didn't see better since then.

Also seen some SLK55s with 1 year gap before manufacturing and registration. It would not stop me from getting it, considering that first owner put some miles on it and probably fixed any issues under warranty. Record I saw, was Brabus SLK which was 3 years old at first registration. I think it was show car before it went for sale in London.

It's not unusual for less popular models like e.g. Vauxhall Ampera to sit unregistered for years. Most 15 plate Amperas are actually MY12 and possibly older.

[Gareth79]

M4cruiser said:

I had the same thought about a Nissan Leaf which has done only 5 miles since March. Not 5K, but just 5.

Mot in March - mileage 24764.

On sale now: Mileage 24769.

NX14WFP, Red Acenta, on sale at £9,200 on Autotrader.

Any suggestions as to what's happened to this one?

I handed a PCP'd Leaf back in May, I have checked Autotrader now and then and it's only just appeared for sale, £12k. GFV to keep it was £13,500ish.... It's in Fife too, which is interesting, I'm down Farnborough.

[daemon]

8V085 said:

daemon said:

8V085 said:

Did you miss the "if" ? Or are you one of those who believe in one version of the truth as long it's based on their opinions (rhetorical question)?

I'm quite happy that other people have views, as long as they are reasoned and based on a semblance of fact.

Also, theres a big difference between saying "i think finance companies are drip feeding cars on to the used market" - ie an opinion -
and actually saying its a FACT - "One of the things sustaining the current lease-cycle is that the cars coming back in are being stockpiled and drip-fed back into the used market to prevent a glut and preserve final values."

That is an unsubstantiated opinion being presented as a fact.

Tell you what, I totally agree. And since you're so in the know ask your friends in trade (those powerfully built who deal with cars that are max 3 to 4 yeas old not the ones who are employees) what their DIO is and how it's been on a quarterly basis over the last 10 years. It's a standard KPI and should be easy to obtain. Let's talk some facts shall we boy?

"boy"

Yeah I'll go round ringing people and asking them for all that "because someone is wrong on the internet". That'll go down well.

How about you instead maybe prove this big conspiracy does happen with some actual evidence?

Edited by daemon on Wednesday 22 November 15:25

[Richard-390a0]

8V085 said:

The ststorm that would unleash if these speculations were found out to be true would be immense. Therefore if these things were true it's obviously in everyone's interest to keep it on the DL until the st hits the fan.

Absolute pony & trap fella. Remember the last scrappage scheme pictures everywhere of airfields full of cars including classics & people up in arms about these being scrapped along with the run of the mill dross. Fast forward to the current scrappage scheme & people are up in arms again about the Ford dealer that was going to scrap iirc a Standard Ten & yet with the rise in popularity of flying drones / social media no one has posted a single picture showing the huge stockpile of PCP returned Golf R's etc etc that you claim some mystery cartel has stock piled / drip feeding back into the market?... I think your tin foil hat is on too tight!!!.

[Richard-390a0]

Glasgowrob said:

StrNge things do happen in the motortrade the other half bought a ford eco sport a couple of years ago brand new but built over 12 months previously

I found that one strange a couple of months yes but over a year in storage

Or it spent a year in the training centre being ripped apart multiple times by techies & apprentices on courses...

[8V085]

daemon said:

8V085 said:

daemon said:

8V085 said:

Did you miss the "if" ? Or are you one of those who believe in one version of the truth as long it's based on their opinions (rhetorical question)?

I'm quite happy that other people have views, as long as they are reasoned and based on a semblance of fact.

Also, theres a big difference between saying "i think finance companies are drip feeding cars on to the used market" - ie an opinion -
and actually saying its a FACT - "One of the things sustaining the current lease-cycle is that the cars coming back in are being stockpiled and drip-fed back into the used market to prevent a glut and preserve final values."

That is an unsubstantiated opinion being presented as a fact.

Tell you what, I totally agree. And since you're so in the know ask your friends in trade (those powerfully built who deal with cars that are max 3 to 4 yeas old not the ones who are employees) what their DIO is and how it's been on a quarterly basis over the last 10 years. It's a standard KPI and should be easy to obtain. Let's talk some facts shall we boy?

"boy"

Yeah I'll go round ringing people and asking them for all that "because someone is wrong on the internet". That'll go down well.

How about you instead maybe prove this big conspiracy does happen with some actual evidence?

Hahahaha. It wasn't me who claimed to have sussed out all the hard facts, was it darling... And so it's not up to me to prove anything.

PS you might at least want to ask your mates what the difference between cars sold/registered and vehicles sold/registered is? This might help you during the future thorough 2 minute analysis on google that debunks all them internet car sales myths.

[daemon]

8V085 said:

Hahahaha. It wasn't me who claimed to have sussed out all the hard facts, was it darling... And so it's not up to me to prove anything.

PS you might at least want to ask your mates what the difference between cars sold/registered and vehicles sold/registered is? This might help you during the future thorough 2 minute analysis on google that debunks all them internet car sales myths.

At least you're admitting they're myths now, that's progress.

And her, I'm not the only one thinks your tinfoil hat is too tight.

So come on then, let's have a drone picture of a field full of used Golf Rs?

OR any evidence to support what you're saying.....

[8V085]

daemon said:

8V085 said:

Hahahaha. It wasn't me who claimed to have sussed out all the hard facts, was it darling... And so it's not up to me to prove anything.

PS you might at least want to ask your mates what the difference between cars sold/registered and vehicles sold/registered is? This might help you during the future thorough 2 minute analysis on google that debunks all them internet car sales myths.

I'm not the only one thinks your tinfoil hat is too tight.

So come on then, let's have a drone picture of a field full of used Golf Rs?

OR any evidence to support what you're saying.....

Hehehehehe indeed.

Richard-390a0 said:

8V085 said:

The ststorm that would unleash if these speculations were found out to be true would be immense. Therefore if these things were true it's obviously in everyone's interest to keep it on the DL until the st hits the fan.

Absolute pony & trap fella. Remember the last scrappage scheme pictures everywhere of airfields full of cars including classics & people up in arms about these being scrapped along with the run of the mill dross. Fast forward to the current scrappage scheme & people are up in arms again about the Ford dealer that was going to scrap iirc a Standard Ten & yet with the rise in popularity of flying drones / social media no one has posted a single picture showing the huge stockpile of PCP returned Golf R's etc etc that you claim some mystery cartel has stock piled / drip feeding back into the market?... I think your tin foil hat is on too tight!!!.

Absolute unrelated cock and balls blud.

Quick result of google search (mototrade's favourite research tool)

http://www.thurleighairfieldbusinesspark.co.uk/new...

I'm sure those in the trade are aware of further such "investments". As an outsider and layman I'm looking forward to their helpful submissions and to learning.

[daemon]

8V085 said:

Absolute unrelated cock and balls blud.

Quick result of google search (mototrade's favourite research tool)

http://www.thurleighairfieldbusinesspark.co.uk/new...

I'm sure those in the trade are aware of further such "investments". As an outsider and layman I'm looking forward to their helpful submissions and to learning.

You do know that's a refurb centre not a storage site??

I'm cringing now....

[8V085]

daemon said:

8V085 said:

Absolute unrelated cock and balls blud.

Quick result of google search (mototrade's favourite research tool)

http://www.thurleighairfieldbusinesspark.co.uk/new...

I'm sure those in the trade are aware of further such "investments". As an outsider and layman I'm looking forward to their helpful submissions and to learning.

You do know that's a refurb centre not a storage site??

I'm cringing now....

That's a storage site mate, or shall I say it's an expansion of an existing storage site.

Talking about cringe have you checked the difference between a car and vehicle?

[daemon]

8V085 said:

That's a storage site mate, or shall I say it's an expansion of an existing storage site.

Ah... is this one of these "non disclosure" things you were talking about, where in actual fact its not what it says it is, but its a "storage facility"

You, see, call me old fashioned, but i kind of took it at face value. Even the title "A new Workshop Facility and Jobs for Thurleigh". Not a storage facility.

Then we have "St. Modwen has gained planning consent for the development of a new 40,000 sq ft workshop and office facility creating 200 new jobs for SMH Fleet Solutions Ltd". Not a storage facility.

and "The new workshop/b] will provide SMH Fleet Solutions Ltd, [b]a specialist vehicle management and logistics firm, with a new modern facility to replace its existing workspaces [b]for the inspection, repair and refurbishment of vehicles.". Not a storage facility.

and "the company is now looking to expand its operations at Thurleigh which will become the central hub for its business in Bedfordshire and the rest of the UK." And their central hub is a storage compound is it?

and “This exciting new development will provide SMH with [b]an industry-leading facility and create high value employment opportunities in the local area.”

And 200 jobs? Just to patrol a storage facility? You're right - they must be going very covert.

Its a REFURBISHMENT SITE. Cars come in off lease, hire and finance deals, and they perform smart repairs, etc on them prepping them for auction and / or resale to dealer groups.

Heres more on it from Motor Trade News.

https://www.motortradenews.com/14-news/automotive-...

"The firm states that the completed project will deliver one of most advanced refurbishment centres in Europe. "

[GrandAndrew]

In my experience with Peugeot the finance company will look to dispose of the vehicle as soon as possible, often through smaller auction sites. PSA Finance in our area deal with a relatively local and smaller auction house who dispose of their vehicles on a weekly basis, the auctioneers are even responsible for collection some of the time.

I'd say the cost of keeping a car sitting about, potential faults occurring, space, cars being damaged etc far out weigh any benefit in hanging on to them.

My experience is only with Peugeot but as far as I'm concerned they dispose of them as soon as possible, they will pass a devaluing item onto the dealer network or wider world as soon as possible.

[daemon]

8V085 said:

That's a storage site mate, or shall I say it's an expansion of an existing storage site.

I've found some other pics and i thought i'd better flag them first in case you find them and get confused again....

This is NOT a storage site for ex lease Golf Rs. Its an owners club meeting



This is NOT a storage site for ex lease cars. Its an NCP car park



This is NOT an image of cars stored in a field so leasing companies can drip feed them on to the market. Its cars parked at the Glastonbury Festival



Hope That Helps

[daemon]

GrandAndrew said:

In my experience with Peugeot the finance company will look to dispose of the vehicle as soon as possible, often through smaller auction sites. PSA Finance in our area deal with a relatively local and smaller auction house who dispose of their vehicles on a weekly basis, the auctioneers are even responsible for collection some of the time.

I'd say the cost of keeping a car sitting about, potential faults occurring, space, cars being damaged etc far out weigh any benefit in hanging on to them.

My experience is only with Peugeot but as far as I'm concerned they dispose of them as soon as possible, they will pass a devaluing item onto the dealer network or wider world as soon as possible.

[4941cc]

Leasing companies and dealerships have to have somewhere to store return cars whilst they go through the remarketing process - cars aren't handed back at a dealership by a customer and on a forecourt fully prepped the next day. There's always lag.

Dealers also block buy and do deals on ex-lease stock so they can buy for example 20 320d M Sport autos in a variety of colours and mileages, for a total overall price. You wouldn't put all of them on the forecourt at once, especially where you've got half a dozen all the same colour - you prep and park one on site and store the duplicates, replenishing when the car on site sells, or sell directly from storage on spec, then prep it for handover.

Such cars will be in stock at least 90 days and will likely never leave the compound until they are either retailed or returned to auction for trade disposal, when the BCA transporter comes and collects them.

That's what lease companies do when they have large blocks of a particular model coming off lease at once, volume deals with dealerships and the dealers manage the trickle back into used market - overall having bought each unit cheaper than they would have got it by sourcing each car individually, made a profit on the first half sold, broke even on some and lost on a few others, so the average profit-per-unit of that transaction makes sense.

Standard business practice I imagine in most forms of retail of physical goods. Do supermarkets put all their inventory on the shelves at once? Or replenish as required from held stock, bulk bought to increase profitability?

Every single dealership you see has a storage compound and vehicles in it, either held, arriving from or going to trade auction/scrap. The new unregistered cars that you see out the back on dealership sites are usually customer sold units awaiting PDI and handover. Some may hold showroom replenishment vehicles on site too. But the bulk is offsite in places like the link above, farms, industrial units/compounds, airfields, other land that can't be sold for residential development. Cars are kind of large, so not easy to hide. They aren't hidden anywhere.