General questions on part exchange figures
Discussion
It doesn’t pertain to my car so I hope this thread is not deleted. When I have part exchanged cars in the past some dealers have gone by what they called the ‘CAP’ value.
I get most are not interested in offering the best rate as they want to mark up their profit.
It has left me confused though. Even when I have used seven different valuation sites and come up with a higher figure based on an average of part exchange figures, the part exchange offer from the dealer has been no where near that.
I am not trying to sell or buy anything at the moment but is there a reliable source of information or how to conduct my research into part exchange figures?
I have used one app which provides four different figures: good condition, average, poor and, part exchange.
In the past two dealers have gone for the part exchange figure and refused to go higher - filling out BCA paperwork. Recently, on a part exchange the amount we received fell between good and average. That tells me that there is room for manoeuvre.
I have tried popular instant buy car places where you take it in for valuation... Yes, I could make more selling private but I have had bad experiences.
Why is So much information witheld from the public? Is it because dealers don’t want the headache? It’s like some have forgotten how to do business. Without even looking at the car they quickly quote the lowest figure and go on about how there is nothing in it for them.
Any advice or guidance appreciated.
I get most are not interested in offering the best rate as they want to mark up their profit.
It has left me confused though. Even when I have used seven different valuation sites and come up with a higher figure based on an average of part exchange figures, the part exchange offer from the dealer has been no where near that.
I am not trying to sell or buy anything at the moment but is there a reliable source of information or how to conduct my research into part exchange figures?
I have used one app which provides four different figures: good condition, average, poor and, part exchange.
In the past two dealers have gone for the part exchange figure and refused to go higher - filling out BCA paperwork. Recently, on a part exchange the amount we received fell between good and average. That tells me that there is room for manoeuvre.
I have tried popular instant buy car places where you take it in for valuation... Yes, I could make more selling private but I have had bad experiences.
Why is So much information witheld from the public? Is it because dealers don’t want the headache? It’s like some have forgotten how to do business. Without even looking at the car they quickly quote the lowest figure and go on about how there is nothing in it for them.
Any advice or guidance appreciated.
Edited by Super_G on Sunday 10th February 07:38
A low offer is them telling you they don’t really want your trade in. It’s probably not something they can retail so they will have to trade on to someone else or send to auction. If your car is in their target market you’ll be more likely to get a decent offer.
P/X prices are irrelevant really, it’s cost to change that matters. People get excited by a good P/X valuation but end up paying the same or more in the end because the P/X value is inflated by taking margin out of the car you’re buying.
If you can get more than the P/X offer at WBAC or similar then do that and focus on getting the best deal on the car you’re buying.
P/X prices are irrelevant really, it’s cost to change that matters. People get excited by a good P/X valuation but end up paying the same or more in the end because the P/X value is inflated by taking margin out of the car you’re buying.
If you can get more than the P/X offer at WBAC or similar then do that and focus on getting the best deal on the car you’re buying.
Totally dependent on how desirable that part exchange is to the dealer.
Why pay stupid money for a part exchange, when the dealer could quite easily buy the exact same car at auction cheaper?
Some cars are simply more desirable to have as stock than others.
CAP is purely a guide, it's not gospel.
If the dealer already has in stock a similar car to yours, that has been in stock 60/90 days without turning a wheel, then why would he want to invest good money into another one?
That tells the dealer that that particular model is not selling as it is overpriced or undesirable, hence CAP valuation is useless.
The dealer may prefer to keep the vehicle he has rather than end up with a far less desirable exchange, that he knows from past experience is going to be hard work.
Too many variables to answer your questions, but that is why the dealer is the expert and you are not.
He will know what that car is worth to him, not what you think or consider it to be worth.
Why pay stupid money for a part exchange, when the dealer could quite easily buy the exact same car at auction cheaper?
Some cars are simply more desirable to have as stock than others.
CAP is purely a guide, it's not gospel.
If the dealer already has in stock a similar car to yours, that has been in stock 60/90 days without turning a wheel, then why would he want to invest good money into another one?
That tells the dealer that that particular model is not selling as it is overpriced or undesirable, hence CAP valuation is useless.
The dealer may prefer to keep the vehicle he has rather than end up with a far less desirable exchange, that he knows from past experience is going to be hard work.
Too many variables to answer your questions, but that is why the dealer is the expert and you are not.
He will know what that car is worth to him, not what you think or consider it to be worth.
Mexman said:
Totally dependent on how desirable that part exchange is to the dealer.
Why pay stupid money for a part exchange, when the dealer could quite easily buy the exact same car at auction cheaper?
Some cars are simply more desirable to have as stock than others.
CAP is purely a guide, it's not gospel.
If the dealer already has in stock a similar car to yours, that has been in stock 60/90 days without turning a wheel, then why would he want to invest good money into another one?
That tells the dealer that that particular model is not selling as it is overpriced or undesirable, hence CAP valuation is useless.
The dealer may prefer to keep the vehicle he has rather than end up with a far less desirable exchange, that he knows from past experience is going to be hard work.
Too many variables to answer your questions, but that is why the dealer is the expert and you are not.
He will know what that car is worth to him, not what you think or consider it to be worth.
Pretty much spot on. Why pay stupid money for a part exchange, when the dealer could quite easily buy the exact same car at auction cheaper?
Some cars are simply more desirable to have as stock than others.
CAP is purely a guide, it's not gospel.
If the dealer already has in stock a similar car to yours, that has been in stock 60/90 days without turning a wheel, then why would he want to invest good money into another one?
That tells the dealer that that particular model is not selling as it is overpriced or undesirable, hence CAP valuation is useless.
The dealer may prefer to keep the vehicle he has rather than end up with a far less desirable exchange, that he knows from past experience is going to be hard work.
Too many variables to answer your questions, but that is why the dealer is the expert and you are not.
He will know what that car is worth to him, not what you think or consider it to be worth.
Frustrates me as car valuation guides are just that; "guides", yet people don't seem to get that, there are so many other variables to take into account to obtain a value of a car.
Example:
I have just yesterday sold a Fiesta Zetec S, in stunning condition, all the history, not.a mark on it, but 70k miles for £600 OVER CAP retail valuation.
The car sold for £4495 and the phone melted on it, could quite easily have sold 3 times over.
Conversely, I am taking in part exchange a 3 door Citroen C1, done 67k that has a CAP retail valuation of £3k.
I know for a fact , that I will never sell it for that kind of money, purely from experience, more like I will have to price it at £2495 to generate any interest in it at all, and to be honest, I don't really want the thing, I always struggle with them, unless they are dirt cheap.
So that car, to gain any interest will be pitch priced at £500 UNDER CAP retail Valuation.
Contrary to popular belief, a seasoned car dealer knows what he is doing, simply because if he didn't, he would not be in business very long at all.
Many have tried, many have failed.
I have just yesterday sold a Fiesta Zetec S, in stunning condition, all the history, not.a mark on it, but 70k miles for £600 OVER CAP retail valuation.
The car sold for £4495 and the phone melted on it, could quite easily have sold 3 times over.
Conversely, I am taking in part exchange a 3 door Citroen C1, done 67k that has a CAP retail valuation of £3k.
I know for a fact , that I will never sell it for that kind of money, purely from experience, more like I will have to price it at £2495 to generate any interest in it at all, and to be honest, I don't really want the thing, I always struggle with them, unless they are dirt cheap.
So that car, to gain any interest will be pitch priced at £500 UNDER CAP retail Valuation.
Contrary to popular belief, a seasoned car dealer knows what he is doing, simply because if he didn't, he would not be in business very long at all.
Many have tried, many have failed.
Your welcome.
Just take any Glasses, CAP, Honest John, Parker's guides figures with a pinch of salt.
These guides are there to purely give you and the dealer an idea of the cars worth based on correlated data from various auction houses and registered dealers forecourts.
But in the material world, a car is only ever worth what someone is prepared to pay.
With so many different models, trim levels, engines, limited editions, 'personalised' vehicles such as DS3, 500, Adam etc a lot of the pricing is down to the individual desirability of colour coding, engine choice, etc.
No two of these type of cars are ever the same, be it can be an absolute nightmare to get right.
I have found the easiest way to value a car, is to say to myself when appraising it, 'what would I be happy to pay for it with my own cash, not my employers money?'
Give me details of an average car via a description, model, age, mileage etc and without even looking at a guide like CAP etc, I would 8 times out of 10 be able to value that car off the top of my head, and know that I would be within a couple of hundred quid either side of what a guide says.
It's all about experience of buying and selling, it's not really something that can be taught, it just 'comes' to you naturally if that makes sense?
Just take any Glasses, CAP, Honest John, Parker's guides figures with a pinch of salt.
These guides are there to purely give you and the dealer an idea of the cars worth based on correlated data from various auction houses and registered dealers forecourts.
But in the material world, a car is only ever worth what someone is prepared to pay.
With so many different models, trim levels, engines, limited editions, 'personalised' vehicles such as DS3, 500, Adam etc a lot of the pricing is down to the individual desirability of colour coding, engine choice, etc.
No two of these type of cars are ever the same, be it can be an absolute nightmare to get right.
I have found the easiest way to value a car, is to say to myself when appraising it, 'what would I be happy to pay for it with my own cash, not my employers money?'
Give me details of an average car via a description, model, age, mileage etc and without even looking at a guide like CAP etc, I would 8 times out of 10 be able to value that car off the top of my head, and know that I would be within a couple of hundred quid either side of what a guide says.
It's all about experience of buying and selling, it's not really something that can be taught, it just 'comes' to you naturally if that makes sense?
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