Why are car dealers so greedy...?

[CRA1G]

vikingaero said:

I agree that it is a strange thing to say. Maybe the OP is making these remarks because there is a vested emotional interest in his car hobby?

The OP either:
(1) Works for a business that generates profit
(2) Works for an organisation that is funded and he derives a salary
(3) Derives an income from financial or property investment

Either way he too "profits" unless he has zero income.

You are only assuming he "Works" He could be claiming benefits that are been paid for by all the Taxes received by Car Dealers....

[popeyewhite]

CRA1G said:

vikingaero said:

I agree that it is a strange thing to say. Maybe the OP is making these remarks because there is a vested emotional interest in his car hobby?

The OP either:
(1) Works for a business that generates profit
(2) Works for an organisation that is funded and he derives a salary
(3) Derives an income from financial or property investment

Either way he too "profits" unless he has zero income.

You are only assuming he "Works" He could be claiming benefits that are been paid for by all the Taxes received by Car Dealers....

Either way the OP is quite entitled to his opinion. It does seem a huge markup though, regardless of the attempted justification by some. There's no doubt dealers can be 'disingenous' (being kind). "Look Sir, £6k is all I can offer for your car as px, it'll go straight to auction and I'll very probably lose money on it." - Three days later my px on his forecourt for £7.5k

[Dan W.]

popeyewhite said:

CRA1G said:

vikingaero said:

I agree that it is a strange thing to say. Maybe the OP is making these remarks because there is a vested emotional interest in his car hobby?

The OP either:
(1) Works for a business that generates profit
(2) Works for an organisation that is funded and he derives a salary
(3) Derives an income from financial or property investment

Either way he too "profits" unless he has zero income.

You are only assuming he "Works" He could be claiming benefits that are been paid for by all the Taxes received by Car Dealers....

Either way the OP is quite entitled to his opinion. It does seem a huge markup though, regardless of the attempted justification by some. There's no doubt dealers can be 'disingenous' (being kind). "Look Sir, £6k is all I can offer for your car as px, it'll go straight to auction and I'll very probably lose money on it." - Three days later my px on his forecourt for £7.5k

Higher end cars have always had these sorts of mark ups, same way £3K Sh*tters have a low margain, Its worth what someone is prepared to give.

Just because they have priced it at that doesnt mean it will sell.

Deffo a sellers market right now, Lack of stock and strong prices

[popeyewhite]

Dan W. said:

Higher end cars have always had these sorts of mark ups, same way £3K Sh*tters have a low margain, Its worth what someone is prepared to give.

No, that's what someone might pay. 'Worth' of something includes a number of other variables.

Dan W. said:

Just because they have priced it at that doesnt mean it will sell.

Despite the "It'll go straight to auction" lie, sure, it's the obvious dishonesty that grates a bit though.

Dan W. said:

a sellers market right now, Lack of stock and strong prices

Yes, I recently sold a Clio for exactly what I'd paid 12 months previously.

[Mastiff]

Dingu said:

Another ridiculous thread. Excellent.

Indeed.

Kaptain slow said:

Unscrupulous and untrustworthy, typical car salesman

Kaptain slow said:

“Prep, servicing, reconditioning, warranty “. Or just take a pic against a white background lol

Kaptain slow said:

Or more like OP isn’t a greedy shyster? There’s good reason car dealers have such a bad rep after all lol

What a well balanced individual you are - with a chip on BOTH shoulders!

[Ziplobb]

amgmcqueen said:

£26,990 mark up.....!

https://collectingcars.com/for-sale/2018-lotus-3-e...

https://www.ebay.co.uk/itm/125110367447?_trkparms=...

if you are that concerned why did you not win the auction ?

[popeyewhite]

Mastiff said:

Dingu said:

Another ridiculous thread. Excellent.

Indeed.

And here you both are posting on it.

[Dingu]

popeyewhite said:

Mastiff said:

Dingu said:

Another ridiculous thread. Excellent.

Indeed.

And here you both are posting on it.

Bit like you and the GR Yaris then?

Isn’t self awareness wonderful.

Edited by Dingu on Sunday 30th January 13:51

[ChrisH72]

I was thinking if you knocked a zero off the numbers then it would seem perfectly acceptable.

Dealer buys car at auction for 7800 which is actually 8300 with fees. Goes on the forecourt at 10400 which is probably more than it'll sell for.

This dealer has seen an opportunity in a high end car. But there's also big risk involved. The market could crash before that car sells.

Best of luck to them I say.

It's the modern British way anyway. Everyone wants more money for less work these days.

[donkmeister]

OP have you been to the press? I can see the headlines now... "British business engaged in 'trying to make a profit' shocker."

I bought a used car recently, I'm going straight down to the forecourt on Monday to demand answers. Did he charge me more than he paid for the car he sold me? He better not have done.

With something like that I can't imagine they come up for sale very often. Anyone interested in the £104k Lotus may well have been looking at the £78k Lotus already... The dealer might find a tough sell on his hands, or find he has some stock that isn't going to shift for a while.

(BTW OP, thank you for posting this - for some reason the 3-eleven had totally past me by and I didn't know it existed. I can't believe they made something even more mad than the 340R!)

[Countdown]

It works out to something like a 35% gross profit margin. That's less than what a pizza takeaway makes.

[Alex Z]

amgmcqueen said:

£26,990 mark up.....!

https://collectingcars.com/for-sale/2018-lotus-3-e...

https://www.ebay.co.uk/itm/125110367447?_trkparms=...

So go and buy one from an auction and save yourself £27k?

[PH User]

Countdown said:

It works out to something like a 35% gross profit margin. That's less than what a pizza takeaway makes.

A pizza takeaway makes 35% +?!

[fflump]

foxsasha said:

He didn't buy it for 78k though, there's 5k buyers fee on top.

So that's down to 22k. Then prep costs. Then repayments on the stocking loan, then vat on the margin, then overheads, then the obligation to fix any after sale issues...

..not to mention the opportunity cost of having cash tied up in that car. It's a niche car that won't fly off the shelf in days.

Honestly, making money buying and selling cars strikes me as a tricky business these days. The market is so efficient due to the internet. I used to dabble in watch trading-a damn sight easier to make a living in that game IMO.

[MiseryStreak]

If it wasn’t worth that to somebody, nobody would buy it. If you can’t understand this exceptionally basic concept of business then please don’t post on a public forum about it. It’s embarrassing.

[Earl of Petrol]

It’s a case of buyer beware. If you want something rare, a bit special, you will have to pay. It’s up to you to verify whether that’s a good deal for you. Do all the normal diligence stuff as with any used car, then evaluate what’s being asked and what you’re getting for the money. You can’t moan about dealer mark-ups. If it’s not right, or you feel you’re getting stitched up, walk away. You’ll know when you’re stood in front of the ‘right’ car.