Dealer margins

[sharkfan]

A quick question about dealer margins. Is there a general rule of thumb for these? I am thinking in terms of working out whether to accept an offer or not. Does the margin vary for part-ex at the same time as against a straight cash buy?

Any help appreciated.

Thanks

[paoloh]

BMW dealers get 8% up front margin and a further 6% if they hit sales targets.

Your part ex makes no difference to those figures

[clived]

Working on margin calculations doesn't really tell you what sort of discount to expect. You have to think about the opportunity cost to the dealer. If it's a car that's selling well and they can clear their allocation at low or no discount, it makes no sense for them to offer you one....

[sharkfan]

clived said:

Working on margin calculations doesn't really tell you what sort of discount to expect. You have to think about the opportunity cost to the dealer. If it's a car that's selling well and they can clear their allocation at low or no discount, it makes no sense for them to offer you one....

My op was entirely unclear about the fact that I am selling not buying! I'm trying to work out whether to accept an offer for my car which seems pretty low...

[pgilc1]

sharkfan said:

clived said:

Working on margin calculations doesn't really tell you what sort of discount to expect. You have to think about the opportunity cost to the dealer. If it's a car that's selling well and they can clear their allocation at low or no discount, it makes no sense for them to offer you one....

My op was entirely unclear about the fact that I am selling not buying! I'm trying to work out whether to accept an offer for my car which seems pretty low...

Depending on the age of the car, BMW dealers will expect a £3000 to £5000 gross markup on your car.

[sharkfan]

pgilc1 said:

sharkfan said:

clived said:

Working on margin calculations doesn't really tell you what sort of discount to expect. You have to think about the opportunity cost to the dealer. If it's a car that's selling well and they can clear their allocation at low or no discount, it makes no sense for them to offer you one....

My op was entirely unclear about the fact that I am selling not buying! I'm trying to work out whether to accept an offer for my car which seems pretty low...

Depending on the age of the car, BMW dealers will expect a £3000 to £5000 gross markup on your car.

Thanks - that's the info I was after!

[AlexE46]

pgilc1 said:

sharkfan said:

clived said:

Working on margin calculations doesn't really tell you what sort of discount to expect. You have to think about the opportunity cost to the dealer. If it's a car that's selling well and they can clear their allocation at low or no discount, it makes no sense for them to offer you one....

My op was entirely unclear about the fact that I am selling not buying! I'm trying to work out whether to accept an offer for my car which seems pretty low...

Depending on the age of the car, BMW dealers will expect a £3000 to £5000 gross markup on your car.

I didnt realise they made that much!

[Mustard]

AlexE46 said:

pgilc1 said:

sharkfan said:

clived said:

Working on margin calculations doesn't really tell you what sort of discount to expect. You have to think about the opportunity cost to the dealer. If it's a car that's selling well and they can clear their allocation at low or no discount, it makes no sense for them to offer you one....

My op was entirely unclear about the fact that I am selling not buying! I'm trying to work out whether to accept an offer for my car which seems pretty low...

Depending on the age of the car, BMW dealers will expect a £3000 to £5000 gross markup on your car.

I didnt realise they made that much!

less costs!

Prep. (Servicing, tyres, Wheel refurbs, Paintwork, AUC Inspection etc.... that fked stereo you the owner didnt tell you about!), Warranty, Over Allowance, Finance Stocking, Advertising, VAT on the difference between retail selling price and original purchase price

Before you know it you your left with £800-£2000, put that as a % of turnover and it sucks!

Edited by Mustard on Wednesday 5th March 08:44