Dealer margins in "remote" areas
Discussion
Wondering if this is a "Cornwall Thing", or does it happen in other areas?
All car dealers, new and used, seem to be asking top prices for their stock, while paying well below WBAC for trade-ins and straight purchases.
The same used cars get cheaper the further up country you look.
New cars rarely get offered at less than list, unless it's a direct manufacturer offer.
Main dealers offer rock-bottom prices for px, even worse if it's their brand.
Just as bad with private sellers. Cars being advertised at what would be dealer prices in the Midlands. They seem to sell too.
I've just sold my third Kia through an online auction platform (two via Cazoo, the latest through Carwow).
All three were offered as px or straight sale to local dealers, before being bought for substantially more by Kia dealers in the Midlands or East Anglia.
Latest one, an EV3, sold for £4.5k more than the local Kia and Cupra dealers offered, and £1.5k more than the local Honda dealer (after a lot of haggling).
Similar percentage on the previous two - Sportage and Picanto turbo.
Seems crazy that an up country dealer can pay more for stock, pay a trade plate driver for a 700 mile round trip, and then sell the car for less money than the local dealer would ask.
Seems like the margins in Cornwall are way higher.
All car dealers, new and used, seem to be asking top prices for their stock, while paying well below WBAC for trade-ins and straight purchases.
The same used cars get cheaper the further up country you look.
New cars rarely get offered at less than list, unless it's a direct manufacturer offer.
Main dealers offer rock-bottom prices for px, even worse if it's their brand.
Just as bad with private sellers. Cars being advertised at what would be dealer prices in the Midlands. They seem to sell too.
I've just sold my third Kia through an online auction platform (two via Cazoo, the latest through Carwow).
All three were offered as px or straight sale to local dealers, before being bought for substantially more by Kia dealers in the Midlands or East Anglia.
Latest one, an EV3, sold for £4.5k more than the local Kia and Cupra dealers offered, and £1.5k more than the local Honda dealer (after a lot of haggling).
Similar percentage on the previous two - Sportage and Picanto turbo.
Seems crazy that an up country dealer can pay more for stock, pay a trade plate driver for a 700 mile round trip, and then sell the car for less money than the local dealer would ask.
Seems like the margins in Cornwall are way higher.
I used to sell campervans.
People would drive over 5 hours to buy one, then 5hours back, or even come back another day to collect.
On asking them they said the dealers down there charge a fortune.
And nowadays I'm often down there buying cars, so rings true the local dealers offer peanuts.
People would drive over 5 hours to buy one, then 5hours back, or even come back another day to collect.
On asking them they said the dealers down there charge a fortune.
And nowadays I'm often down there buying cars, so rings true the local dealers offer peanuts.
I bought an e34 M5 from Scotland (about 30 miles from Inverness airport) for about 1/2 the price of a similar one (mileage, age, spec) in Essex.
The couple I bought it from were both company directors who were selling up and retiring properly. They had about a dozen cars in their garage and they said they were just going to keep whatever was left after advertising them all. Even came to pick me up from the airport in the car.
Including the return flight (just in case it was a dog) the car cost £4000 vs just under £8000 for the one in Chelmsford...and it was in much better condition than I'd expected for the price/age/mileage.
Was quite a long drive back though, and I think I spent more on petrol than the return flight cost - but did have some lovely roads for the first 3-4 hours (before I hit the M8, M74, M6)
The couple I bought it from were both company directors who were selling up and retiring properly. They had about a dozen cars in their garage and they said they were just going to keep whatever was left after advertising them all. Even came to pick me up from the airport in the car.
Including the return flight (just in case it was a dog) the car cost £4000 vs just under £8000 for the one in Chelmsford...and it was in much better condition than I'd expected for the price/age/mileage.
Was quite a long drive back though, and I think I spent more on petrol than the return flight cost - but did have some lovely roads for the first 3-4 hours (before I hit the M8, M74, M6)
Edited by mmm-five on Friday 2nd October 14:33
Looking at who actually owns the main dealer franchises in Cornwall, 5 dealer groups seem to have the market stitched up. If you want a specific brand, the only "competition" is different locations owned by the same group.
The only exception that I can think of is a single local Ford dealership (Flora) that's competing against Vospers.
The only exception that I can think of is a single local Ford dealership (Flora) that's competing against Vospers.
I had the opposite experience from a Skoda dealer down south, their prices were less than others and the cars in real great condition. When I got chatting over the phone about where I was located and would be travelling to see the car as the price and condition seemed better than anything local they said most their customers were from many miles away, they had to do that as unlike other franchises they don't get much passing trade, they are out of the way and so rely on competitive prices and good quality cars that all lead to people prepared to travel, returning customers and good reviews. So don't think they had a problem with turnover of cars, just keeping those prices competitive, also where they were located probably had lower business rates, employment costs etc.
Although they were tight on part ex, can't have it all I suppose.
Although they were tight on part ex, can't have it all I suppose.
Edited by Theoldguard on Friday 2nd October 16:20
Theoldguard said:
I had the opposite experience from a Skoda dealer down south, their prices were less than others and the cars in real great condition. When I got chatting over the phone about where I was located and would be travelling to see the car as the price and condition seemed better than anything local they said most their customers were from many miles away, they had to do that as unlike other franchises they don't get much passing trade, they are out of the way and so rely on competitive prices and good quality cars that all lead to people prepared to travel, returning customers and good reviews. So don't think they had a problem with turnover of cars, just keeping those prices competitive, also where they were located probably had lower business rates, employment costs etc.
Although they were tight on part ex, can't have it all I suppose.
Was that in Cornwall?Although they were tight on part ex, can't have it all I suppose.
Edited by Theoldguard on Friday 2nd October 16:20
Some costs are higher too, collecting cars from 'up country'.
Some local cars have hard lives in Devon and Cornwall, poor roads and all that.
Some cars like estates seem to be in high demand relative to supply.
Generally more choice and better value if you are prepared to travel.
It's very annoying when Ebay, AT etc search by distance and half the 'nearest' cars are in South Bloody Wales.
Some local cars have hard lives in Devon and Cornwall, poor roads and all that.
Some cars like estates seem to be in high demand relative to supply.
Generally more choice and better value if you are prepared to travel.
It's very annoying when Ebay, AT etc search by distance and half the 'nearest' cars are in South Bloody Wales.
OutInTheShed said:
Some costs are higher too, collecting cars from 'up country'.
Some local cars have hard lives in Devon and Cornwall, poor roads and all that.
Some cars like estates seem to be in high demand relative to supply.
Generally more choice and better value if you are prepared to travel.
It's very annoying when Ebay, AT etc search by distance and half the 'nearest' cars are in South Bloody Wales.
You'd think that Cornish dealers would be happy to buy 2 year old Cornish cars for up-country prices and save on the transport costs.Some local cars have hard lives in Devon and Cornwall, poor roads and all that.
Some cars like estates seem to be in high demand relative to supply.
Generally more choice and better value if you are prepared to travel.
It's very annoying when Ebay, AT etc search by distance and half the 'nearest' cars are in South Bloody Wales.
Maybe Cornish buyers just don't want nearly-new cars, so dealers don't need to buy them?
The "as the crow flies" distance thing is really annoying!
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