Dealer spreads
Discussion
Anybody else find themselves hanging onto cars as long as possible because the cost of changing usually involves paying a huge dealer spread?
I’ve nothing against car salespeople making a living, and for sure the shiny showrooms and free coffee don’t come cheap; I’d just like to avoid a massive loss driving out the showroom in my next car. Perhaps I should look at auctions / private sales but it just increases the risk profile in my experience.
The higher up the chain you go, it seems the wider the spreads tend to get. Regular volume cars have thin margins but not too many of those interest me these days.
If you get past the 60-80k mark can you get in and out for a minimal loss ? I’d expect probably not unless you have a buyer lined up or can get a limited edition GT car to flip (some chance). Classics? I admire the enthusiasm of cmoose for his latest ‘2000 986 but I prefer my cars to be reasonably up to date and also under warranty.
Or should the strategy for minimal £ loss be to spec poverty (no options) as all options immediately lose value?
Expensive hobbies eh...
I’ve nothing against car salespeople making a living, and for sure the shiny showrooms and free coffee don’t come cheap; I’d just like to avoid a massive loss driving out the showroom in my next car. Perhaps I should look at auctions / private sales but it just increases the risk profile in my experience.
The higher up the chain you go, it seems the wider the spreads tend to get. Regular volume cars have thin margins but not too many of those interest me these days.
If you get past the 60-80k mark can you get in and out for a minimal loss ? I’d expect probably not unless you have a buyer lined up or can get a limited edition GT car to flip (some chance). Classics? I admire the enthusiasm of cmoose for his latest ‘2000 986 but I prefer my cars to be reasonably up to date and also under warranty.
Or should the strategy for minimal £ loss be to spec poverty (no options) as all options immediately lose value?
Expensive hobbies eh...
“Bid/Offer” I.e. dealer margins seem to be in the 5 to 20% area. The former being SoR if you have a very good relationship with a dealer and the car is mint...20% if you’re looking to sell your car back to a dealer and they’re writing a cheque.
Mate of mine bought himself a Conti GT as a 50th present to himself...specced it nicely and what looked like a good spec for resale. Went to all the high end dealers two years later. They were all keen to buy the car but we’re pretty blunt/honest that they wouldn’t but the car for less than a 20% margin.
Maybe that % gets smaller once you’re over £200k.
My guess is OPC’s want a minimum of £10k on a 911.
Mate of mine bought himself a Conti GT as a 50th present to himself...specced it nicely and what looked like a good spec for resale. Went to all the high end dealers two years later. They were all keen to buy the car but we’re pretty blunt/honest that they wouldn’t but the car for less than a 20% margin.
Maybe that % gets smaller once you’re over £200k.
My guess is OPC’s want a minimum of £10k on a 911.
5to1 said:
BarrySt said:
Correct, my dealer confirmed they want £10k mark up to resale on basic 981 boxster
It is worth remembering 1/6th of the markup actually realised goes to HMRCIts certainly painful but the reality is its some of these cars can need a lot of prepping for dealer resale (whether they do it or not is another matter!)
I sold my old 997 C2S to a trader a few years ago and got a good 'trade' price - but in reality the car needed new tyres, a clutch, brakes and a major service! That little lot would have eroded pretty all the markup he then slapped on before advertising on his website
I sold my old 997 C2S to a trader a few years ago and got a good 'trade' price - but in reality the car needed new tyres, a clutch, brakes and a major service! That little lot would have eroded pretty all the markup he then slapped on before advertising on his website
R5YUP said:
Its certainly painful but the reality is its some of these cars can need a lot of prepping for dealer resale (whether they do it or not is another matter!)
I sold my old 997 C2S to a trader a few years ago and got a good 'trade' price - but in reality the car needed new tyres, a clutch, brakes and a major service! That little lot would have eroded pretty all the markup he then slapped on before advertising on his website
they know this when bidding, most new cars don't need anything.I sold my old 997 C2S to a trader a few years ago and got a good 'trade' price - but in reality the car needed new tyres, a clutch, brakes and a major service! That little lot would have eroded pretty all the markup he then slapped on before advertising on his website
R5YUP said:
Its certainly painful but the reality is its some of these cars can need a lot of prepping for dealer resale (whether they do it or not is another matter!)
I sold my old 997 C2S to a trader a few years ago and got a good 'trade' price - but in reality the car needed new tyres, a clutch, brakes and a major service! That little lot would have eroded pretty all the markup he then slapped on before advertising on his website
Money for old rope I'd call it - they didn't even check the oil on my 1yr old Macan - just chucked it at the valet guy for a slapdash wash and a £8k hike.. Oil lamp came on after 3 weeks and thought I'd bought a 2 stroke lemon! I sold my old 997 C2S to a trader a few years ago and got a good 'trade' price - but in reality the car needed new tyres, a clutch, brakes and a major service! That little lot would have eroded pretty all the markup he then slapped on before advertising on his website
my sales guy explained their process a few years back
they take in a car in PX
they then spend 1100 in workshop fixed cost ( this covers anything that needs doing but is fixed to average out over the year, doesn't help if your trading in a mint condition car that needs nowt doing but they work on averages )
warranty is 1500 quid ish
most cars usually get a blow over on the front bumper etc which is about 500 squid
then the rest is profit,
he told me most 981 cars are 8 grand difference between trade in and retail, 10k for 911 and 12k for cayennes
so theres always a few grand to play with when haggling, a lot more on cayennes
they take in a car in PX
they then spend 1100 in workshop fixed cost ( this covers anything that needs doing but is fixed to average out over the year, doesn't help if your trading in a mint condition car that needs nowt doing but they work on averages )
warranty is 1500 quid ish
most cars usually get a blow over on the front bumper etc which is about 500 squid
then the rest is profit,
he told me most 981 cars are 8 grand difference between trade in and retail, 10k for 911 and 12k for cayennes
so theres always a few grand to play with when haggling, a lot more on cayennes
EL77 said:
Essential said:
Piece of cake then.
£8k margin.
Sell 30 cars a month
£3million profit a year.
Simple
??
I can tell you it doesn't look like that at all. £8k margin.
Sell 30 cars a month
£3million profit a year.
Simple
??
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