Dealer Margins on used cars

[matg]

Seem quite high, so negotiate hard. I know they have to make a profit and have costs but still.

I know what this was sold to them for as it my old car:
http://www.stratstone.com/default.aspx?page=308&am...

[bentley01]

Go on then how much extra are they asking ??????

[SHIFTY]

Generally between £5K and £10K on sub £100k cars, but as you say they are in business.

Dealer has to prep car ready for sale and normally add some warranty etc, benefit in selling to dealer less hassle but always less ££.

[matg]

I'm not going to say as I think thats confidential between me and the dealer. I actually thought the dealer price to me was very good.

[avinalarf]

matg said:

Seem quite high, so negotiate hard. I know they have to make a profit and have costs but still.

I know what this was sold to them for as it my old car:
http://www.stratstone.com/default.aspx?page=308&am...

Not my business but this is a strange post.
You did a deal with the garage and then seem to wish to undermine the dealer.

[matg]

No, I'm just saying just because its a used AM does not mean you can't negotiate.

The dealer was great, I have no problem with them there service was fantastic and very straighforward and I'm sure the new owner will get the same treatment so I highly recommend using them.

[avinalarf]

matg said:

No, I'm just saying just because its a used AM does not mean you can't negotiate.

The dealer was great, I have no problem with them there service was fantastic and very straighforward and I'm sure the new owner will get the same treatment so I highly recommend using them.

No disrespect intended mat and thank you for your comment.
I just got off the phone ,offered them £25K, wouldn't take it,theiving swines.

[matg]

I'm not surprised they turned you down as that would of been a huge loss for them.

[whoami]

[crashley]

Interesting topic. I hit a dealer bid @ £27.5k back in October for my 2006 vehicle w/ 33k miles and a new clutch. Its screen price on the forecourt was £35k iirc, prob sold for £33.5k... i knew what i was doing and knew what they would sell it at. I particularly liked the dealership too, had great service, and would buy another from them. Doesn't mean i regret it any less mind, was an unnecessary sale!

[Laser Sag]

SHIFTY said:

Dealer has to prep car ready for sale and normally add some warranty etc, benefit in selling to dealer less hassle but always less ££.

Don't forget the VAT, covering the overheads of that lovely plate glass showroom

[gibbon]

I saw the margin on the Vantage i bought at the beginning of the year from a main dealer car. It was about £6k, however they then had to put a years warranty on it, 4 new tyres, a clutch, new pads, and a few other bits. I think they were roughly flat, i saw the in-house receipts for the work.

The sales guy was quite honest and open in regards to some cars you win on, some you struggle to break even, prep really can swallow quite a lot quite quickly. So a 5k margin on a 40k car? Im not sure thats greedy at all.

[jonby]

gibbon said:

I saw the margin on the Vantage i bought at the beginning of the year from a main dealer car. It was about £6k, however they then had to put a years warranty on it, 4 new tyres, a clutch, new pads, and a few other bits. I think they were roughly flat, i saw the in-house receipts for the work.

The sales guy was quite honest and open in regards to some cars you win on, some you struggle to break even, prep really can swallow quite a lot quite quickly. So a 5k margin on a 40k car? Im not sure thats greedy at all.

Fully agree - take into account the prep, the cost if the car sits there for a while, the risk, warranty, VAT on the margin, etc - it's not exactly unreasonable

Suspect they often make a smaller percentage on the higher value used cars but there has to be a minimum £s profit so in %age terms, margin (gross) will look higher on the lower (sub £50k) value used cars

[nw28840]

I sold my 55 plate V8V Coupe last year with 30k miles on for £31k.

It need a service in 3 months time and 2 new tyres in +- 3000 miles.

Even if the new owner had decided to put a warranty on the car, he would have been in for £34k tops.

I wouldn't pay £40k for an 06 plate.

You could buy my 08 plate V8V Roadster for that (Yep much higher mileage but it's under AM warranty and just had it's service).

<If it was for sale.....which it isn't>

[stimshady]

go on, tell us! what's the big secret?! (they will still only sell it at what they are comfortable with)

[avinalarf]

nw28840 said:

I sold my 55 plate V8V Coupe last year with 30k miles on for £31k.

It need a service in 3 months time and 2 new tyres in +- 3000 miles.

Even if the new owner had decided to put a warranty on the car, he would have been in for £34k tops.

I wouldn't pay £40k for an 06 plate.

You could buy my 08 plate V8V Roadster for that (Yep much higher mileage but it's under AM warranty and just had it's service).

<If it was for sale.....which it isn't>

If my aunt had balls she'd be my uncle.

[Mr Aston Martin]

The spread on my V8 MY11 turned out to be £10k which was around the level I had expected but more importantly reached the figure I had in my head.

Arguably I could have positioned the car between the two prices and gone private but dealers offer a professional service which is straightforward and hassle free.

[whoami]

Given that most people are merely trading their old car against a new one, who cares about the margin on the trade-in?

The price to change is the only important number.

[Jon39]

As I have mentioned recently, making decent profits in the motor sector is far form easy. I certainly would not allocate any capital to it.

Stratstones 2012 accounts.
Revenue £1,439 m
Operating Profit £25.9 m

You can work it out, but there is a lot of risk for just a 1.8% margin.
Pay to much for stock, and the dicky doos soon appear.

[stimshady]

Jon39 said:

Stratstones 2012 accounts.
Revenue £1,439 m
Operating Profit £25.9 m

Is that 1.4 BILLION you've written there!?