How come car dealers stock doesn't suffer depreciation?
Discussion
I've been looking for a Lotus Evora for some time now, and as the pickings are very slim, and there's only ever about 40 cars up, I know all the adverts very well, over 4 months almost nothing new has come on and not much has sold, but not one single price has been reduced. Notice it with lots of other cars, they can remain on a forecourt for years but the price stays locked in. Does the forecourt have some magical property I don't know about, if so I think I will start parking my car on one, could save a fortune 
I asked the very same question to a dealer last week, they had an 8 month old pre-reg 14 plate motor asking for strong money and wondered why they were offering me bottom book for my 18 month old car when the car they were selling was a grand too dear...I got know where so I walked out.
StottyEvo said:
They do suffer depreciation.
I don't know about the Evora, but my mate bought an Exige S last year and they've risen in price. If the Evora's values are similar this would explain why the prices haven't been dropping.
I bought an Exige in April 2011 and they are still the same price, if not a bit more, now!I don't know about the Evora, but my mate bought an Exige S last year and they've risen in price. If the Evora's values are similar this would explain why the prices haven't been dropping.
Could've had 3+ years depreciation free motoring....
Interesting subject. How does this apply to new, unregistered vehicles that cover miles and miles of disused runways all over the world?
Many years ago, (early 80's) I had a short stint in new car sales at a large Vauxhall/Opel dealership in Leeds.
They had a field full of ex-works Cavaliers, Carltons and Royales (less so, Asconas, Mantas and Monzas) that they had in inventory for so long that 1) they were starting to rust and 2) had one or more price rises in them. So for all intents and purposes, these decaying cars were actually appreciating in value, while standing up to their door sills in muddy water, somewhere in Hunslet, West Yorks.
Probably not the case anymore, but this company had an enormous amount of dead stock on their books, however the commission paid on these cars was great, because it was based on what the dealer had in the car, which was a lot if the retail price had risen twice since it was delivered to them.
Many years ago, (early 80's) I had a short stint in new car sales at a large Vauxhall/Opel dealership in Leeds.
They had a field full of ex-works Cavaliers, Carltons and Royales (less so, Asconas, Mantas and Monzas) that they had in inventory for so long that 1) they were starting to rust and 2) had one or more price rises in them. So for all intents and purposes, these decaying cars were actually appreciating in value, while standing up to their door sills in muddy water, somewhere in Hunslet, West Yorks.
Probably not the case anymore, but this company had an enormous amount of dead stock on their books, however the commission paid on these cars was great, because it was based on what the dealer had in the car, which was a lot if the retail price had risen twice since it was delivered to them.
Matt Harper said:
Interesting subject. How does this apply to new, unregistered vehicles that cover miles and miles of disused runways all over the world?
Many years ago, (early 80's) I had a short stint in new car sales at a large Vauxhall/Opel dealership in Leeds.
They had a field full of ex-works Cavaliers, Carltons and Royales (less so, Asconas, Mantas and Monzas) that they had in inventory for so long that 1) they were starting to rust and 2) had one or more price rises in them. So for all intents and purposes, these decaying cars were actually appreciating in value, while standing up to their door sills in muddy water, somewhere in Hunslet, West Yorks.
Probably not the case anymore, but this company had an enormous amount of dead stock on their books, however the commission paid on these cars was great, because it was based on what the dealer had in the car, which was a lot if the retail price had risen twice since it was delivered to them.
Doesn't happen these days. End of...Many years ago, (early 80's) I had a short stint in new car sales at a large Vauxhall/Opel dealership in Leeds.
They had a field full of ex-works Cavaliers, Carltons and Royales (less so, Asconas, Mantas and Monzas) that they had in inventory for so long that 1) they were starting to rust and 2) had one or more price rises in them. So for all intents and purposes, these decaying cars were actually appreciating in value, while standing up to their door sills in muddy water, somewhere in Hunslet, West Yorks.
Probably not the case anymore, but this company had an enormous amount of dead stock on their books, however the commission paid on these cars was great, because it was based on what the dealer had in the car, which was a lot if the retail price had risen twice since it was delivered to them.
CarlT said:
Doesn't happen these days. End of...
Oh - end of. That sounds pretty emphatic.What about all these?
I've no doubt they are not on dealer's balance sheets just yet - but I suspect they sit around on that runway and many others for some time before they find their way onto the driveways of the UK - not long enough for a price increase or two?
Matt Harper said:
Oh - end of. That sounds pretty emphatic.
What about all these?
I've no doubt they are not on dealer's balance sheets just yet - but I suspect they sit around on that runway and many others for some time before they find their way onto the driveways of the UK - not long enough for a price increase or two?
Are they vauxhalls? What about all these?
I've no doubt they are not on dealer's balance sheets just yet - but I suspect they sit around on that runway and many others for some time before they find their way onto the driveways of the UK - not long enough for a price increase or two?
Matt Harper said:
CarlT said:
Doesn't happen these days. End of...
Oh - end of. That sounds pretty emphatic.What about all these?
I've no doubt they are not on dealer's balance sheets just yet - but I suspect they sit around on that runway and many others for some time before they find their way onto the driveways of the UK - not long enough for a price increase or two?
http://www.dailymail.co.uk/news/article-1263548/No...
Matt Harper said:
CarlT said:
Doesn't happen these days. End of...
Oh - end of. That sounds pretty emphatic.What about all these?
I've no doubt they are not on dealer's balance sheets just yet - but I suspect they sit around on that runway and many others for some time before they find their way onto the driveways of the UK - not long enough for a price increase or two?
THOSE WERE SCRAPPAGE CARS WAITING TO BE SCRAPPED
http://www.dailymail.co.uk/news/article-1263548/No...
Please, get your facts right before posting.
Zyp said:
Driving over the Avonmouth bridge by Portbury Docks you can see 1000's of cars sitting around.
That appears to be one massive storage compound.
Depending on the brand, some for export, some are imported. I often see F Type R's, XJR, RRS's Evo X's, Focus/Fiesta ST's all lined up to be exported.That appears to be one massive storage compound.
I think I even saw the new Mondeo (all be it in camo) the other week. Everyone looked at me odd when I said it.
Edited by JakeThePeg on Thursday 30th October 08:03
Zyp said:
Driving over the Avonmouth bridge by Portbury Docks you can see 1000's of cars sitting around.
That appears to be one massive storage compound.
Given how many new cars are sold in the UK, it surely shouldnt come as a surprise that they're stored somewhere before sale / being prepared for sale?That appears to be one massive storage compound.
daemon said:
Matt Harper said:
CarlT said:
Doesn't happen these days. End of...
Oh - end of. That sounds pretty emphatic.What about all these?
I've no doubt they are not on dealer's balance sheets just yet - but I suspect they sit around on that runway and many others for some time before they find their way onto the driveways of the UK - not long enough for a price increase or two?
THOSE WERE SCRAPPAGE CARS WAITING TO BE SCRAPPED
http://www.dailymail.co.uk/news/article-1263548/No...
Please, get your facts right before posting.
https://www.google.co.uk/maps/place/Corby,+Northam...
daemon said:
Matt Harper said:
CarlT said:
Doesn't happen these days. End of...
Oh - end of. That sounds pretty emphatic.What about all these?
I've no doubt they are not on dealer's balance sheets just yet - but I suspect they sit around on that runway and many others for some time before they find their way onto the driveways of the UK - not long enough for a price increase or two?
THOSE WERE SCRAPPAGE CARS WAITING TO BE SCRAPPED
http://www.dailymail.co.uk/news/article-1263548/No...
Please, get your facts right before posting.
daemon said:
Zyp said:
Driving over the Avonmouth bridge by Portbury Docks you can see 1000's of cars sitting around.
That appears to be one massive storage compound.
Given how many new cars are sold in the UK, it surely shouldnt come as a surprise that they're stored somewhere before sale / being prepared for sale?That appears to be one massive storage compound.
But how long do those cars sit there?
A day, month, 6 months before finding a home?
matjk said:
I've been looking for a Lotus Evora for some time now, and as the pickings are very slim, and there's only ever about 40 cars up, I know all the adverts very well, over 4 months almost nothing new has come on and not much has sold, but not one single price has been reduced. Notice it with lots of other cars, they can remain on a forecourt for years but the price stays locked in. Does the forecourt have some magical property I don't know about, if so I think I will start parking my car on one, could save a fortune
It's the car. had mine 2 years and 20,000 miles, and has only lost around 10%/15% based on current prices. Supply and demandGassing Station | General Gassing | Top of Page | What's New | My Stuff