Actual price achieved

irlrobins

Hey all,

Currently coming towards the end of my PCP, and leaning towards rolling into another one, same make and model. The price of the new car is obviously fixed, especially with supply and demand issues these days, so no wiggle room there I'm guessing. But I'm looking at the trade in value the dealer is offering for my current car. He's offering €17,750, but I'm seeing cars listed with dealers and private sellers of a similar age, engine, spec, mileage as my own being listed for €21-€24K.

But if a car is listed at say €23K by a dealer or private seller, what would they actually achieve as a sell price, given they've probably baked in some fat for negotiating. Or with the market the way it is today, cars are achieving their listed price, or close to it?

To me, there seems to be quite a gap between what I'm being offered for my car, and what it might actually be going for, so I want to push the dealer to up the trade in to reflect its sell price.

Any advice?

Buddy Bubs

I know a few that have bought and tried to buy recently and the listed price seems to be the price with no wiggle room at all. That said, I'm sure there are some things listed unrealistically too and won't sell. But anything in demand is selling for asking price.

bazz26

Shop around, never rely on just one dealer's offer for your car.

irlrobins

https://www.boards.ie/discussion/comment/118523643#Comment_118523643

Agree, this is just my first stab at it, will def call around the other dealers in the area.

irlrobins

Sorry, I should clarify that when I'm asking about selling price of cars, I'm referring to used cars. I'm not expecting any wiggle room in new cars vs their listed price.

Toyotafanboi

You know what the final amount owed is.

OP's "problem" is his car is worth more than his final amount owed, so they now want to make sure they achieve as much posotive equity as possible.

In my experience OP the used car market is as tight as the new car market. For whatever that may mean. On the one hand, used car prices are inflexable from a purchasers point of view, on the other hand you have a commodity that is in demand, a fresh used car.

bazz26

https://www.boards.ie/discussion/comment/118523682#Comment_118523682

What dealers actually sell them for doesn't mean that is close to what you should be aiming to get offered for as trade-in.

https://www.boards.ie/discussion/comment/118523725#Comment_118523725

I'm not sure I follow what you are saying in regards to what the OP is asking. The PCP GMFV figure set out at the beginning of the PCP term is the lump sum that the OP owes when the 3 years are up. It is not a reflection of the trade-in value or market value of the car after the 3 years.

If for some bizarre reason the trade-in value or market value of the car were less than the GMFV figure then the obvious thing to do in that situation would be to just hand the car back and walk away. That would only come about if used car values collapsed. But PCP is designed so that you roll over from one deal to the next.

Lantus

The dealer must build their profit into the price they offer you. If they offer 18k and sell for 22k they make 4k on that car.

Other dealers might close that gap to win business so shop around.

colm_mcm

Where a discount on the new car might have been used to artificially increase the trade in value, these days cars are going for list price. €3k between cost price (before servicing/prep etc)and asking price of the trade in would probably be on the low side, best advice is get as many quotes as you can and go with the guy who makes the mistake :)

irlrobins

https://www.boards.ie/discussion/comment/118523838#Comment_118523838

Of course, I’m not ignoring they have to make a margin. I’m guessing I’m asking if a used car is listed for sale at €23K, what will it actually go for these days? The €23K? €22k or less?

And then knowing what is a realistic sell price for the car, what is a reasonable margin for the dealer? Am I getting screwed on being offered €17750 for a car selling at €21k, or is that the norm in terms of margin?

irlrobins

https://www.boards.ie/discussion/comment/118524297#Comment_118524297

Also something I'm considering. I would probably get more for the car that way, but would have to balance having to deal with time wasters and managing the sale of old car and purchase of new car within a day of each other, as we're a 1 car family.

Lantus

https://www.boards.ie/discussion/comment/118524311#Comment_118524311

The market for a second hand sale of 20k+ with no comeback or guarantee is small. Could be a long gap between selling and buying unless timings are spot on. Like it's been said another dealer may offer 18 or 19k but car market is in a period of huge demand and not enough supply. They don't need to work too hard for your cash...

Casati

Think its clear that in the current market dealers are trying to make much larger profits per unit as they know supply is constrained- having said that the new price of every car is not fixed - e.g. I got €1900 discount buying a new VW Tiguan - a car that is in high demand and has a 9 month+ waiting list currently. Two years ago I would have expected €40000 discount so presumably that's extra €2000 profit for the dealer. I was offered similar discount on a new Hyundai Tucson too, Volvo dealer was giving €1500 off a XC40, Toyota offered €2000 off a Rav 4.

Used cars in some dealers are priced on the basis that they will drop the price €1000 - i.e. to ensure that buyers think they are getting a deal, even if a year ago that car might have been priced €3000 or €4000 cheaper but more and more dealers are actually getting their asking prices. If you see a main dealer advertising a car at €23000 it would be v unlikely they would take less than €22000 for it imo.

The best advice for you presuming you don't want to keep your old car, is to literally shop around with as many dealers as you can - ideally in person but also try doing it over the phone - texting photo's of your current car. If you have the appetite it might be worth trying to buy the new car without a trade in, and sell the car privately- I did this with my old car and got a lot of calls from dealers offering to buy it for cash and didn't actually get a single private person calling so it actually ended up being very easy and I didn't have to deal with any idiots.