dealer mark ups
Discussion
bought c4s from afn reading 1 month ago for 65k. put 300 miles on it. want to trade in for gt2 from afn chiswick. what do they offer for my car???? 59k. muttering on about having to go through preparation to justify the markup. nothing like customer relations... this would be my third purchase from afn in as many years. are they trying to bleed me dry???? any ideas on how to negoaitate a better deal????
future job...)Have you registered it in your name yet?
If you have overlooked it then there wont be an extra keeper on the log book so that should negate any depreciation regarding extra owners.
On cheaper (!) cars, usual margin seem to be 20% gross. That’s not their Net, they probably do have some prep work and vat / warranty to take care of but they buy all that at cost! e.g. I traded in my old M3, got 22K from main dealer for it, forecourt price at the time similar car was about 27k. Been offered 26.5 for my Boxster S now, forecourt price at OPCs for very similar spec is approx 32k - both about 20%.
Main thing you have in your favour is the fact that you are supplying them with a product (your part ex) that hey can re-sell for a profit plus you are buying something (the GT2) that gives them a profit. So negotiate hard especially if the car you want is a used one - you at least know their margin.
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If you have overlooked it then there wont be an extra keeper on the log book so that should negate any depreciation regarding extra owners.
On cheaper (!) cars, usual margin seem to be 20% gross. That’s not their Net, they probably do have some prep work and vat / warranty to take care of but they buy all that at cost! e.g. I traded in my old M3, got 22K from main dealer for it, forecourt price at the time similar car was about 27k. Been offered 26.5 for my Boxster S now, forecourt price at OPCs for very similar spec is approx 32k - both about 20%.
Main thing you have in your favour is the fact that you are supplying them with a product (your part ex) that hey can re-sell for a profit plus you are buying something (the GT2) that gives them a profit. So negotiate hard especially if the car you want is a used one - you at least know their margin.
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Dealers tend on used cars not to work to % profir margins as such.....salesmen are judged on the amount of cars they sell but als o on P.P.U (profit per unit)....this is usually a net figure after preperation and warranty costs and VAT..................the salesman will be paid a % of this retained P.P.U.
So on a run of the mill £40K used car most main dealers would be looking for a £4K net profit.
With such big margins its vital you negotiate hard when buying to minimize that initial hit when you leave the showroom.
911nutter said:
bought c4s from afn reading 1 month ago for 65k. put 300 miles on it. want to trade in for gt2 from afn chiswick. what do they offer for my car???? 59k. muttering on about having to go through preparation to justify the markup. nothing like customer relations... this would be my third purchase from afn in as many years. are they trying to bleed me dry???? any ideas on how to negoaitate a better deal????
Truthfully - I am surprised they offered you as much as £59k. Some OPC's would look at more like £55k - there are unsold new 996 in the system, lots of supply, and a 997 on the way.
It pays to have eyes wide open when dealing with OPCs'. Those steel and glass palaces need paying for, and the margins they insist on when trading cars are HUGE!
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