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Fairly Valuing Car

  • 31-01-2022 10:04pm
    #1
    redsheeps
    Registered Users, Registered Users 2 Posts: 100 ✭✭


    Have I got my math right on the below for a fair trade in value?

    • Bought a 191 car in January 2021 for €31,000.
    • Put 17,000 km on it in one year. Car now has 30,000 km (yes, km).
    • As a trade in I'm now being offered €27,000 to €28,000 from two main dealers and one indie. Consistent offers at least.
    • Carzone values it at €36,750. *I know there are questions about accuracy of Carzone valuations but just adding this for additional info.
    • Similar year versions on Carzone from dealers range from €34,000 to €38,000. The lowest km on these though is 52,000km (so mine has at least 22,000km less).

    The garage has to get their slice and pay VAT on a sale, so does it seems reasonable enough to offer €28,000 for a car they could sell for the best part of say €40,000 (given my car's better mileage)?

    • €40,000 sale price
    • €9,200 goes on VAT
    • €30,800 left for the garage
    • Profit of €2,800.


Comments

  • #2
    Atlantic Dawn
    Registered Users, Registered Users 2 Posts: 83,412 ✭✭✭✭Atlantic Dawn
    M


    Is the trade in value quoted against a brand new unregistered car or what? The car they are offering the price on could be pre-registered, demo car etc etc, devaluing it and making your car seem higher value than if you are comparing against a new factory order model of the car.



  • #3
    con747
    Registered Users, Registered Users 2 Posts: 6,937 ✭✭✭con747


    https://www.boards.ie/discussion/2058230705/fairly-valuing-car

    You bought a car for €31,000 and have an issue with getting 27-28k on a trade in? Am I missing something here? I know second hand cars have increased in price but by 9-10k??

    Don't expect anything from life, just be grateful to be alive.



  • #4
    mickdw
    Registered Users, Registered Users 2 Posts: 23,459 ✭✭✭✭mickdw


    I believe when dealing with a car that is out of the vat system ( not a business car), they only pay vat on the difference between buy in and sale price so your figures would be way off and they would have nowhere near the vat cost you include.

    What car is it? Any good selling model is worth more now retail versus retail than 1 year ago so you should be in a pretty good situation but given that you will be paying premium also on your next car, you need to get as much of that value as possible on the trade in.



  • #5
    CianRyan
    Registered Users, Registered Users 2 Posts: 14,721 ✭✭✭✭CianRyan


    It seems fair to me but you could potentially get more if you sold it privately. I imagine that would take a long time as most people spending €40k will want to buy from a dealer or on finance, with warranty.


    The lower price is the trade off of a trade on. It's not charity and they'd rather not have to put the work into moving a used car.



  • #6
    mickdw
    Registered Users, Registered Users 2 Posts: 23,459 ✭✭✭✭mickdw


    Dealers are crying out for used cars at the minute so it seems things are the opposite of what they were. They are preferring to do deals with trade ins to keep stock levels up.



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  • #7
    redsheeps
    Registered Users, Registered Users 2 Posts: 100 ✭✭redsheeps


    https://www.boards.ie/discussion/comment/118562257#Comment_118562257

    It's against a 201 car of the same make but slightly different model.


    https://www.boards.ie/discussion/comment/118562283#Comment_118562283

    Not sure where you're getting that I've some issue here. I'm just posting because I'm curious. Nowhere have I made some mad claim that I'm being fleeced or something.

    https://www.boards.ie/discussion/comment/118562295#Comment_118562295

    This is the biggest thing that I'm trying to find out. One salesperson claimed they had to pay VAT on the full sale price of my car when they sell it so that takes a massive chunk out of their profit.

    https://www.boards.ie/discussion/comment/118562298#Comment_118562298

    I agree. It does seem fair. If the VAT cost isn't accurate though I'd say they are getting a much bigger slice (but again they are entitled to make a profit as they aren't a charity so no issue there). Good point on the private sale. Because of covid I'm just not keen on private sale as I don't fancy god knows who jumping into the car for a test drive.



  • #8
    User1998
    Registered Users, Registered Users 2 Posts: 6,980 ✭✭✭User1998


    https://www.boards.ie/discussion/2058230705/fairly-valuing-car

    Just letting you know:

    €28,000 purchase price

    €40,000 sale price

    €12,000 profit margin

    23% of €12,000 = €2,250

    VAT = €2,250

    Profit = €9,750



  • #9
    Toyotafanboi
    Registered Users, Registered Users 2 Posts: 12,917 ✭✭✭✭Toyotafanboi


    The above is correct, if trading in a car against another used car, VAT is payable only on the difference between the buy in price and the selling price.


    Tell us the make, model and spec of your own car OP, you'll get a much better idea.



  • #10
    colm_mcm
    Registered Users, Registered Users 2 Posts: 73,477 ✭✭✭✭colm_mcm


    How much is it costing to go from 191 to 201



  • #11
    Casati
    Registered Users, Registered Users 2 Posts: 3,043 ✭✭✭Casati


    Seems like a poor trade in value whatever way you look at it, in current market where cars move fast off forecourts I think it’s unreasonable for a garage to expect anything above a 10% profit margin. The other poster correctly calculated the vat - the dealer was completely having you on saying they have to pay vat on the full sale amount.

    Could be well worth sticking your car up for sale privately for maybe 2k cheaper than the next cheapest similar car - I did this with a more expensive car than yours and sold quickly to a mail dealer



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