Trade in Values vs Sale Value

[kambites]

Roo said:

kambites said:

Roo said:

We pay VAT on the difference between the buying and selling prices irrespective of any expenditure.

But presumably you don't pay VAT on the expenditure required to get it ready for sale?

All expenditure, if carried out by a VAT registered business, goes through the accounts in exactly the same fashion as any other business.

Yeah, that's what I assumed.

[BettySwollocks2]

TA14 said:

BettySwollocks2 said:

yeah my bad, the VRs went quite quickly, this is an A3 TDI sport 2.0.. unfortunately mileage increase meant i needed a diesel.

Why sell the A3 in less than a year? What year and mileage is it? What do WBAC offer?

Had the A3 about 19 months, again, change in circumstance I want petrol and faster, so broed of Diesel chugging now I want to drive it into a tree. Its a different garage not the same one. Also I know they know what its worth to them, so do I its written in the screen of the car on the forecourt!

[kambites]

BettySwollocks2 said:

Had the A3 about 19 months, again, change in circumstance I want petrol and faster, so broed of Diesel chugging now I want to drive it into a tree. Its a different garage not the same one. Also I know they know what its worth to them, so do I its written in the screen of the car on the forecourt!

It's a very flawed assumption that it's worth the same to them as one already on their forecourt! If they really wont go higher than the number they've offered, then that's what they think it's worth to them. If they already have three diesel A3s on the forecourt, why would they want to pay significant amounts for a fourth?

Just sell the thing privately - it's perfectly possible, even with finance on it.

[anonymous-user]

kambites said:

Shocking isn't it. How dare they want to make a profit!

This response must be one of the most predictable on PH these days.

[kambites]

St John Smythe said:

kambites said:

Shocking isn't it. How dare they want to make a profit!

This response must be one of the most predictable on PH these days.

Perhaps because the original post was one of the most predictable questions.

[daemon]

S2Mike said:

Could be worth travelling to another dealer and play one off against the other.
A profit is one thing, hedging the bets with possible warranty claims . ok but £6k is a lot.

We're not being given all the facts here.

[hornetrider]

Why not sell it and use the sale funds to pay off the finance? As long as you're above board you should have no problems.

[TA14]

BettySwollocks2 said:

TA14 said:

BettySwollocks2 said:

yeah my bad, the VRs went quite quickly, this is an A3 TDI sport 2.0.. unfortunately mileage increase meant i needed a diesel.

Why sell the A3 in less than a year? What year and mileage is it? What do WBAC offer?

Had the A3 about 19 months, again, change in circumstance I want petrol and faster, so broed of Diesel chugging now I want to drive it into a tree. Its a different garage not the same one. Also I know they know what its worth to them, so do I its written in the screen of the car on the forecourt!

So what year and mileage is it and what do WBAC offer?

[Ari]

BettySwollocks2 said:

Also I know they know what its worth to them, so do I its written in the screen of the car on the forecourt!

Maybe it's their experience with that car that leads them to be cautious with yours. The fact that it is on the forecourt, not sold, means the number in the windscreen is no more than an asking price, it may bear little relation to what they eventually get for it.

It may also have "essentials" that yours lacks, lack of sat nav or leather can sometimes make a massive difference to a used car value.

[daemon]

TA14 said:

BettySwollocks2 said:

TA14 said:

BettySwollocks2 said:

yeah my bad, the VRs went quite quickly, this is an A3 TDI sport 2.0.. unfortunately mileage increase meant i needed a diesel.

Why sell the A3 in less than a year? What year and mileage is it? What do WBAC offer?

Had the A3 about 19 months, again, change in circumstance I want petrol and faster, so broed of Diesel chugging now I want to drive it into a tree. Its a different garage not the same one. Also I know they know what its worth to them, so do I its written in the screen of the car on the forecourt!

So what year and mileage is it and what do WBAC offer?

And is there a link to the one at the £14K or whatever.

[HTP99]

I hate it when customers come in and then moan that the "identical" car on the forecourt is £4k more than I am offering for their car and how dare I have a £4k margin in it.

What they aren't seeing is:

1. their's isn't as desirable a colour,
2. their's is a 1.6 petrol, not the diesel that is more desirable and thus commands a higher price, such as the one on the forecourt.
3. their "immaculate" car needs £600 worth of bodywork and or wheel prep.
4. their's needs a service and its possibly at the age that it'll need a set of pads and disks
5. their's is a less desirable spec and thus may well be with us a bit longer so we have to build in a higher margin for book drops.

The list is endless, however, as we know, the customer knows more than us!

[daemon]

Ari said:

BettySwollocks2 said:

Also I know they know what its worth to them, so do I its written in the screen of the car on the forecourt!

Maybe it's their experience with that car that leads them to be cautious with yours. The fact that it is on the forecourt, not sold, means the number in the windscreen is no more than an asking price, it may bear little relation to what they eventually get for it.

It may also have "essentials" that yours lacks, lack of sat nav or leather can sometimes make a massive difference to a used car value.

+1

I'd a 535d M Sport i went to trade in and was offered £33K for it. they'd an identical on their forecourt for £38995. I challenged them about it and they showed me how long they'd had it (ages) and they basically said they'd paid too much for it and couldnt sell it and that two wrongs didnt make a right.

[TA14]

kambites said:

It's a very flawed assumption that it's worth the same to them as one already on their forecourt! If they really wont go higher than the number they've offered, then that's what they think it's worth to them. If they already have three diesel A3s on the forecourt, why would they want to pay significant amounts for a fourth?

Quite. Basic economics: if they want one A3 they may offer £10K. If someone offers them a second they may want extra stock but would not be keen unless it was at a good deal so say £9K. If someone offers a third... 7.5K etc.

[daemon]

HTP99 said:

I hate it when customers come in and then moan that the car on the forecourt is £4k more than I am offering for their car and they are identical and how dare I have a £4k margin in it.

What they aren't seeing is their's:

1. isn't as desirable a colour,
2. their's is a 1.6 petrol, not the diesel that is more desirable and thus commands a higher price, such as the one on the forecourt.
3. their "immaculate" car needs £600 worth of bodywork and or wheel prep.
4. their's needs a service and its possibly at the age that it'll need a set of pads and disks
5. their's is a less desirable spec and thus may well be with us a bit longer so we have to build in a higher margin for book drops.

The list is endless, however, as we know, the customer knows more than us!

+1

I'd really like to see a link to the one the dealer is selling, the spec and a WBAC valuation for the O/P's.

[S2Mike]

daemon said:

HTP99 said:

I hate it when customers come in and then moan that the car on the forecourt is £4k more than I am offering for their car and they are identical and how dare I have a £4k margin in it.

What they aren't seeing is their's:

1. isn't as desirable a colour,
2. their's is a 1.6 petrol, not the diesel that is more desirable and thus commands a higher price, such as the one on the forecourt.
3. their "immaculate" car needs £600 worth of bodywork and or wheel prep.
4. their's needs a service and its possibly at the age that it'll need a set of pads and disks
5. their's is a less desirable spec and thus may well be with us a bit longer so we have to build in a higher margin for book drops.

The list is endless, however, as we know, the customer knows more than us!

+1

I'd really like to see a link to the one the dealer is selling, the spec and a WBAC valuation for the O/P's.

That would give us a better insight.
As said colour, spec and actual condition makes a lot of difference. £6k ??

[J4CKO]

Basically I have learnt,

If you want the most money for your car, prepare and advertise it well and sell it yourself.

Dont be offended by trade in prices, dont take it personally, they exist to make money, the more money the better and this involves buying cheaply as possible and selling for as much as possible.

If you want the car gone, and you can afford to take the hit, trade it in.

also,

Its an A3 diesel, the market goes mad for them, people are looking for them and expect to pay strong money to get one, get it as clean as possible, fix any niggles, take some good pictures (not in a demilitrazed zone) and write a straightforward, well worded and impecably spelt advert, price it somewhere around the others of same age, spec and mileage with a few hundred quid haggling room, sit back and wait for phone to ring.

[Snowboy]

BettySwollocks2 said:

Also I know they know what its worth to them, so do I its written in the screen of the car on the forecourt!

Nope.
Thats what yours might be priced at after being preped, and after the vat, warranty and profit margin are applied.
In a main dealer they will want every second hand car to he as new, so there's extea work to be put in.

The botton line is that nobody is forcing you to sell.

[S2Mike]

I have just traded up, not to new but similar diesel VW, I was shocked at the trade in valued offered, but realistically, by adding up the price to get it to how I would like it to be , plus a little for unseen problems, plus a reasonable amount for cost of advertising and some profit, it was not far from the figured we finally agreed on.

[BettySwollocks2]

HTP99 said:

I hate it when customers come in and then moan that the "identical" car on the forecourt is £4k more than I am offering for their car and how dare I have a £4k margin in it.

What they aren't seeing is:

1. their's isn't as desirable a colour,
2. their's is a 1.6 petrol, not the diesel that is more desirable and thus commands a higher price, such as the one on the forecourt.
3. their "immaculate" car needs £600 worth of bodywork and or wheel prep.
4. their's needs a service and its possibly at the age that it'll need a set of pads and disks
5. their's is a less desirable spec and thus may well be with us a bit longer so we have to build in a higher margin for book drops.

The list is endless, however, as we know, the customer knows more than us!

mines in re-sale grey as it has been called
it is a diesel
there is no body damage on my car or wheel damage, the salesperson checked it over completely
it was serviced a month ago with no advisorys other than 2 new front tyres, that have been replaced
it is very highly specced, heated seats, part leather, climate and cruise control, rear park sensors plus more but I cba to list all of them

[BettySwollocks2]

hornetrider said:

Why not sell it and use the sale funds to pay off the finance? As long as you're above board you should have no problems.

Its not that easy due to the untrustworthy state of britain these days, as soon as a HPI check flashes up financed, even if you tell someone you will pay it when they are standing there they are unwilling to trust you and find a car elsewhere.