Merlin Auctions - Joe Duffy 2014 cars why??

Casati

Ive noticed that Merlin auctions have a lot of year or two year old cars coming up for auction from Joe Duffy motors http://www.merlin.ie/carlist/#/?minYearManufactured=2014&pageSize=10&sortBy=make_asc&page=1

Why would they auction off a 141 520d with 30km on the clock? Surely they would get more cash selling off the forecourt and cutting out Merlin as the middle man?> they have range of cars up for auction that are currently advertised on their website

This appears to the same car planned for auction tomorrow morning http://www.joeduffy.ie/used-cars/8752/bmw-5-series/

Anybody shed a light on what they are doing - is business so good that they are moving to a model that they only sell new cars or ex lease current year cars?

bf

The Joe Duffy Group would hold a large amount of stock, I'm sure they have a few 2014 F10s in stock - once a car is in stock 90 days it is a drag on cash flow depending on the terms of stocking facility.

Plus add to this fact the shortage of second hand stock at the moment, good auction stock is making near retail prices.

Say for arguments sake that car was €40k on the forecourt, they would have to pay the salesman a commission & also provide a 2 year premium BMW warranty. At a guess the reserve on that will be about €35k so the cash flow to the business won't be massively different

Atlantic Dawn

Would Joe Duffy honour the 2 year warranty or would that be BMW?

bazz26

BMW honour the warranty if the cars are sold through their dealer network. Since they are being sold through an auction the 2 year warranty doesn't apply. They would only have the remaining original BMW warranty.

Casati

Thats the thing, as many of these cars are only a year or maybe 18 months old, the manufacturers warranty would still be valid - they have few Seat Leon's which if you bought retail would only come with remaining manufacturers warranty so selling retail would see a warranty cost

I guess its just down to the working capital and maybe with a lot of stock after the 152 sales they just need to free up some cash.

Still though a 35k+ 520d is an expensive car for somebody to buy at auction without having a test drive, plus with limited finance options available etc.

bazz26

They will probably be snapped up by the trade if the price is right rather than joe public, they are easy sellers on dealer forecourts. They will appeal to smaller dealers who don't have to put too much if any money into them while they still have the manufacturer's warranty.

bf

Out of interest did anyone see what it went for in the end?

macjohn

Whilst that car does have the auto box other than that it is the very entry level spec in jet black (non metallic) which might hint why the dealership choose that particular car to go to auction

bazz26

Maybe they didn't want a 518d on their forecourt. :pac:

Car might also not meet BMW's Premium Used Car standards, bodywork might not be in great shape, etc or the dealer already has enough 14 reg F10s on their forecourts.

George Dalton

There's always a reason...

Hopefully for the new owner it is as simple as over-stock, poor spec etc...