Main dealers selling off retail standard trade ins within the trade

goochy

used cars are an important part of most main dealers business .with many buying in used cars from uk as well as ireland however some of bigger main dealers seem to sell off almost all trade ins however recent !

does this not make it hard for a dealer to give a good trade in allowance ?
my local jaguar and land rover dealer keeps hardly any used stock .while they sell a decent no.of new cars they lose out on alot of sales to dealers all over the country
likely reason poor trade in allowance due to selling off cars to trade

the dealer does benefit from servicing/ warranty wk on these vehicles which could be more profitable

mickdw

I guess they must have a policy of shifting trade ins ASAP and are happy to get them gone at trade prices instead of retailing them with warranty etc and likely having them on their hands for ages.

unkel

Normal. Particularly prestige brand dealers don't want anything that is not prestige or over 5 years old on view in their premises. I.e. you'd be hard pressed to find BMWs older than 2010 on a main BMW dealer. As soon as they're taken in as trade in, they're shifted out to the trade.

knifey_spoonie

From the outside i would imagine what you see as a retail-able vehicle may be very different to what a dealer see's.

I know personally if i trade in say a 4/5year old VW with 120,000km i will probably spend €1000-15000 in preparation costs. By the time i do this work and then have the warranty liability for 12 months i am better of trading the car off for 300-500 quid profit than selling it for €750 profit to a punter.

The work done in a dealerships workshop is not done for free, in most cases sales departments pay retail rates(or above) for all jobs done, Also VAT is charged at 23% on sales work.

With regards to UK imports, i find i very hard to believe anyone is making money importing from the UK, Given the sterling rate & market prices, and the VAT implications of importing VAT Qualifying vehicles its very hard to see it working on a large scale.

vectra

Yes.
Was talking to a main dealer today and was told they sold a 131-c car off to the tradewith only 40k kms on it.
I was surprised.

ei9go

The issue with this is that they want the customer to take the hit and will tell you that they are giving you 2K less because it's being sold in the trade.

A while back, our local main VW dealer told me this straight out when I tried to buy a car from him.

Offered me 3K less for a perfect RAV4 than I eventually traded it for. Was sold within an hour of sitting on the other dealers forecourt.

If anyone tries this vote with your feet.

vectra

ei9go wrote: »

The issue with this is that they want the customer to take the hit and will tell you that they are giving you 2K less because it's being sold in the trade.

A while back, our local main VW dealer told me this straight out when I tried to buy a car from him.

Offered me 3K less for a perfect RAV4 than I eventually traded it for. Was sold within an hour of sitting on the other dealers forecourt.

If anyone tries this vote with your feet.

Well.
To put it in my situation.
I approached a dealer and was offered €2x.5 k as a trade in for my car.
I asked about cash discount with no trade in as I have my car provisionally sold, The cash price was a much better option taking into consideration that I was privately selling my car for 1.5k less than the trade in value.

When I was talking to him again yesterday he mentioned this trade sale thing they do and said to me not to go bargaining with my potential buyer as he would get the private sale price for my car, He made the phone call and described my car and price on it. They said to send it on when it comes in as they would buy it.

This is a much sweeter option for me.

mickdw

So he is giving you your private sale figure and then giving you straight sale price on the new car?

vectra

mickdw wrote: »

So he is giving you your private sale figure and then giving you straight sale price on the new car?

Correct.
But he is not actually buying my car himself.
it would be just passing through his dealership to the Trade guy.

Del2005

ei9go wrote: »

The issue with this is that they want the customer to take the hit and will tell you that they are giving you 2K less because it's being sold in the trade.

A while back, our local main VW dealer told me this straight out when I tried to buy a car from him.

Offered me 3K less for a perfect RAV4 than I eventually traded it for. Was sold within an hour of sitting on the other dealers forecourt.

If anyone tries this vote with your feet.

What was the cost of change with both dealers?

mickdw

vectra wrote: »

Correct.
But he is not actually buying my car himself.
it would be just passing through his dealership to the Trade guy.

You would have to assume you were under selling your old car if the trade were willing to offer that price unseen for it.

vectra

mickdw wrote: »

You would have to assume you were under selling your old car if the trade were willing to offer that price unseen for it.

Very probable
But,
It would be very hard to ask dealer price in a private sale.

You want to offer me more for it?? :pac:

mickdw

vectra wrote: »

Very probable
But,
It would be very hard to ask dealer price in a private sale.

You want to offer me more for it?? :pac:

No

vectra

mickdw wrote: »

You would have to assume you were under selling your old car if the trade were willing to offer that price unseen for it.

I actually read this wrong the first time.

The dealer rang the trade guy and told him what I was asking for my car and assured him it was worth every cent and more..
So basically he was not offering a price without seeing it as this dealer shifts a lot of cars to him "Over the phone"

But yes, I am certainly undervaluing my car.