SOR Fees - what is considered reasonable
Discussion
Surely the easiest way is to just agree a drop dead figure you need back from the sale, then leave the rest up to them, knowing that if it sells you'll get £x.
Remember that the dealer will make on any finance too, plus other than square footage it's not costing them anything to have it or sell it. Obviously you need to factor in any remedial work that needs doing, whether it needs a service and also the warranty they will need to put on it.
Depending on what needs doing, you might find that you won't get that much more on SOR compared to a straight buy, as the dealer will probably be expecting you to pay the consumer price for work needed, whereas if it's their car it's obviously cost only.
For instance, it doesn't cost a dealer £1500 for a warranty, but it does cost you and I.
Remember that the dealer will make on any finance too, plus other than square footage it's not costing them anything to have it or sell it. Obviously you need to factor in any remedial work that needs doing, whether it needs a service and also the warranty they will need to put on it.
Depending on what needs doing, you might find that you won't get that much more on SOR compared to a straight buy, as the dealer will probably be expecting you to pay the consumer price for work needed, whereas if it's their car it's obviously cost only.
For instance, it doesn't cost a dealer £1500 for a warranty, but it does cost you and I.
Around £3000 I would say would be the norm at that level, but it all depends on what level of relationship you have with said dealer. That would be their pure commission and on top of that you would have to pay any warrenty, service work, VAT etc...
When you add say £1500 for a warrenty, £1k in service costs, £2-3k sales haggling space, depreciation if it doesn't sell quickly, its easy to see how a dealer quickly gets to a £10k margin over what they offer on a car in this price range and what they then advertise it at. All depends on the car, the age and the market conditions of course...
When you add say £1500 for a warrenty, £1k in service costs, £2-3k sales haggling space, depreciation if it doesn't sell quickly, its easy to see how a dealer quickly gets to a £10k margin over what they offer on a car in this price range and what they then advertise it at. All depends on the car, the age and the market conditions of course...
AdamV12V said:
Around £3000 I would say would be the norm at that level, but it all depends on what level of relationship you have with said dealer. That would be their pure commission and on top of that you would have to pay any warrenty, service work, VAT etc...
When you add say £1500 for a warrenty, £1k in service costs, £2-3k sales haggling space, depreciation if it doesn't sell quickly, its easy to see how a dealer quickly gets to a £10k margin over what they offer on a car in this price range and what they then advertise it at. All depends on the car, the age and the market conditions of course...
Nail on the head I'd say, pretty much sums up my last experience of SORWhen you add say £1500 for a warrenty, £1k in service costs, £2-3k sales haggling space, depreciation if it doesn't sell quickly, its easy to see how a dealer quickly gets to a £10k margin over what they offer on a car in this price range and what they then advertise it at. All depends on the car, the age and the market conditions of course...
Car mad enthusiast said:
Market your car yourself and cut out the middle man.
Certainly an option....in my experience the more expensive the car the more the buyer is looking for the security of dealer facility's ie warranty, finance, expensive coffee etc, so at 90k it might not be easy to sell privately imoI sold my Scud via SOR, the last thing I wanted was test pilots and tyre kickers...
Edited by kbooker on Wednesday 19th April 15:19
kbooker said:
Certainly an option....in my experience the more expensive the car the more the buyer is looking for the security of dealer facility's ie warranty, finance, expensive coffee etc, so at 90k it might not be easy to sell privately imo
I sold my Scud via SOR, the last thing I wanted was test pilots and tyre kickers...
It's a good point, I did 300 miles in my DB9V last year as I always use the Vanquish now. But don't want to sell it privately for the reasons above, now it just sits around and cost me insurance, tax and servicing..... Might be worth the SOR option I suppose. I sold my Scud via SOR, the last thing I wanted was test pilots and tyre kickers...
Edited by kbooker on Wednesday 19th April 15:19
OP would be interested to know how you get on if you do put it on SOR
Sold my V12V Carbon Black via SOR. Here's how the conversation went. So how much will this cost me? Dont you worry, you want £X and we will sell it and give you that much.
Turns out the market fell away and it did not sell as quickly as anticipated. When the sale price needed to be dropped I was asked to drop my expected return, so I did need to worry. But if they achieved a higher price than they anticipated, we would have seen none of the extra bunce.
So my advise would be to get complete clarification of the fee the dealer takes under all circumstances and to do this you will need proof of the sales price.
Whilst this element of the negotiation irked me and I would be a lot more focused on the detail next time, I have to say the dealer did respray the front and put new tyres on (all agreed at the outset) without coming to me for the funds upfront although these costs were taken, as agreed, from the final payment. Other dealers had stated that we would have to pay in advance for such work.
As others have said the more expensive a car and the newer the buyer is to the mark the more they will want to buy it from a dealer although the premium you pay would pay for a warranty and extensive inspection and leave you with a healthy surplus in most cases.
One last point made by a dealer to me was that if the new owner drives off the forecourt and the clutch goes, then the new owner will expect the dealer to replace it and they said they would. Dont know where this kind of unidentifiable wear and tear dealer liability starts and finishes, not for long and not too high a value and still probably covered by the saving you will have made buying privately I imagine.
Turns out the market fell away and it did not sell as quickly as anticipated. When the sale price needed to be dropped I was asked to drop my expected return, so I did need to worry. But if they achieved a higher price than they anticipated, we would have seen none of the extra bunce.
So my advise would be to get complete clarification of the fee the dealer takes under all circumstances and to do this you will need proof of the sales price.
Whilst this element of the negotiation irked me and I would be a lot more focused on the detail next time, I have to say the dealer did respray the front and put new tyres on (all agreed at the outset) without coming to me for the funds upfront although these costs were taken, as agreed, from the final payment. Other dealers had stated that we would have to pay in advance for such work.
As others have said the more expensive a car and the newer the buyer is to the mark the more they will want to buy it from a dealer although the premium you pay would pay for a warranty and extensive inspection and leave you with a healthy surplus in most cases.
One last point made by a dealer to me was that if the new owner drives off the forecourt and the clutch goes, then the new owner will expect the dealer to replace it and they said they would. Dont know where this kind of unidentifiable wear and tear dealer liability starts and finishes, not for long and not too high a value and still probably covered by the saving you will have made buying privately I imagine.
Edited by CraigV12V on Thursday 20th April 13:23
Whilst it takes time & effort, not only does it save cash, but selling yourself gives you control of the whole process (time wasters, tyre-kickers etc etc).
I've sold my last 4 cars (BMW Z1 (wish I hadn't
), Golf, V8V & Boxster) via PH & I've been able to able to filter the f**kwits, & fully market the car in my own way.
A realistic price is the key differentiator between trade & private; If the car's been looked after, a warranty doesn't really come into it!
I would much rather buy a pre-owned AM from a private buyer than a non-franchised 'dealer', whose warranty isn't worth the paper it's written on!
I've sold my last 4 cars (BMW Z1 (wish I hadn't
), Golf, V8V & Boxster) via PH & I've been able to able to filter the f**kwits, & fully market the car in my own way. A realistic price is the key differentiator between trade & private; If the car's been looked after, a warranty doesn't really come into it!
I would much rather buy a pre-owned AM from a private buyer than a non-franchised 'dealer', whose warranty isn't worth the paper it's written on!
Edited by HBradley on Thursday 20th April 14:04
HBradley said:
Whilst it takes time & effort, not only does it save cash, but selling yourself gives you control of the whole process (time wasters, tyre-kickers etc etc).
I've sold my last 4 cars (BMW Z1 (wish I hadn't), Golf, V8V & Boxster) via PH & I've been able to able to filter the f**kwits, & fully market the car in my own way.
A realistic price is the key differentiator between trade & private; If the car's been looked after, a warranty doesn't really come into it!
I agree . I bought my V12V privately.I've sold my last 4 cars (BMW Z1 (wish I hadn't
), Golf, V8V & Boxster) via PH & I've been able to able to filter the f**kwits, & fully market the car in my own way. A realistic price is the key differentiator between trade & private; If the car's been looked after, a warranty doesn't really come into it!
HBradley said:
Whilst it takes time & effort, not only does it save cash, but selling yourself gives you control of the whole process (time wasters, tyre-kickers etc etc).
I've sold my last 4 cars (BMW Z1 (wish I hadn't), Golf, V8V & Boxster) via PH & I've been able to able to filter the f**kwits, & fully market the car in my own way.
A realistic price is the key differentiator between trade & private; If the car's been looked after, a warranty doesn't really come into it!
I would much rather buy a pre-owned AM from a private buyer than a non-franchised 'dealer', whose warranty isn't worth the paper it's written on!
+1. I've sold my last 4 cars (BMW Z1 (wish I hadn't
), Golf, V8V & Boxster) via PH & I've been able to able to filter the f**kwits, & fully market the car in my own way. A realistic price is the key differentiator between trade & private; If the car's been looked after, a warranty doesn't really come into it!
I would much rather buy a pre-owned AM from a private buyer than a non-franchised 'dealer', whose warranty isn't worth the paper it's written on!
Edited by HBradley on Thursday 20th April 14:04
SOR is a scam. Either you sell it outright to the dealer for cash or not at all. The idea that you finance their inventory and give away all the upside to the dealer seems to me to be a free option for him to use your car as barter. What happens if the dealer goes bust. What happens if your car is subject to damage whilst at the dealer's premises etc etc. I am being slightly sarcastic but you catch the drift....
Edited by hornbaek on Friday 21st April 14:26
CraigV12V said:
Sold my V12V Carbon Black via SOR. Here's how the conversation went. So how much will this cost me? Dont you worry, you want £X and we will sell it and give you that much.
I'd prefer a straight commision basis - what's the motivation to get or give you anything above your bottom line figure otherwise? Its not how they operate with their own stock after all... They start high and creep the price down if it sits.Gassing Station | Aston Martin | Top of Page | What's New | My Stuff