Motorpoint - Bet some dealer wish the same margins

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Wed 26 Oct 2016 14:27
Motorpoint - Bet some dealer wish the same margins - oldroverboy.

From the telegraph

www.telegraph.co.uk/investing/shares/questor-profi.../

Motorpoint, which began trading in 1998, has been growing steadily. Average annual growth in sales has been 9pc over the past five years, while pre-tax profits have increased by 17pc annually over the same period, and earnings per share by 20pc.

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Wed 26 Oct 2016 17:31
Motorpoint - Bet some dealer wish the same margins - concrete

I don't know how they do it. Whenever I have looked at their stock I have been disappointed. Nice desirable cars but nearly all have starship mileages for their age. I wouldn't really touch them for that reason. Cheers Concrete

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Wed 26 Oct 2016 18:21
Motorpoint - Bet some dealer wish the same margins - RobJP

I don't know how they do it. Whenever I have looked at their stock I have been disappointed. Nice desirable cars but nearly all have starship mileages for their age. I wouldn't really touch them for that reason. Cheers Concrete

Quite simple. They are a finance company, really.

They sell a 'dream' at £xx per week.

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Wed 26 Oct 2016 18:37
Motorpoint - Bet some dealer wish the same margins - Falkirk Bairn

>>Quite simple. They are a finance company, really.

Quite simply they are a disposal outlet for "ex day rent cars"

Prices are usually less than main dealer outlets selling the same ex day rent cars - 80%+ of all cars sold under 12 months old with 12,000 miles are day rent cars.

They Buy day rent cars, modestly refurbed & sell large volumes through "low cost showrooms" - "Not a Glass Palaces" but perfectly adequate premises.

There is no attempt to hide the fact they were from Avis/ Europcar etc etc UNLIKE the local MB/FORD /Vx/VW dealers who are selling ex-demo"1 owner cars" that are 6 mth old & have 12,000 miles on the clock.

MP seem to be struggling of late - share price has halved!

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Thu 27 Oct 2016 07:08
Motorpoint - Bet some dealer wish the same margins - Cluedo
The article does not mention anything about margins, just sales and profit growth which can be easily achieved. One way would be to pay the sales team minimum wage and just shift coo,use at very low margins.
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Thu 27 Oct 2016 20:05
Motorpoint - Bet some dealer wish the same margins - Engineer Andy

Brexit (at least at the moment) hasn't done them any favours, as they often sell a reasonable number of Euro-import delivery milage cars, so the £ depreciating by 10%+ against the Euro means their 'bids' to take surplus stock from over the way isn't so good a price any more.

An example (just looked - only one available) is that they're selling a used UK-spec (lower the the imports - only std A/C, no C/C aircon) VW Golf 1.4Tsi 150 GT 5dr for £16.8k with ~10k miles on the clock. Earlier in the year they were giving away loads of brand new, del miles only Euro imports of the same (with C/C aircon) in metalic colours for £17k. They had at one point around 900 VWs for sale, now only 148.

They seem to have spells of selling high volumes of such Euro-imports, possibly when the £ is higher in value. That's what happened when I bought my Mazda3 (brand new, del miles only) from them back in 2006 - it was one of many Euro imports for sale for silly money (I paid £10.3k for a mid-range model, £2k cheaper than any UK broker site and £3.5k cheaper than the UK list price.

Hopefully when the £ eventually appreciates again, they and other similar dealers will have more clout with their wallets when looking to take surplus Euro car stock. In the meantime, they may have slim pickings and reduced sales.

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Sat 29 Oct 2016 22:46
Motorpoint - Bet some dealer wish the same margins - Cluedo
I agree with Andy, They do get many of their cars from Eire.

Edited by Cluedo on 29/10/2016 at 22:46

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Fri 28 Oct 2016 11:19
Motorpoint - Bet some dealer wish the same margins - Ian_SW

It's down to the simple fact that they are far more efficient at selling cars than most dealers.

Everything from the design of the site to the pricing of the cars is oriented around minimising the time the staff have to talk to the customer.

For many people, myself included, it's much nicer to be let into several cars, and left alone for as long as you like to look inside, find whether the seat is comfortable etc. Then if you do want the car, there's no messing around with overheated coffee, sales staff going in and out to see the 'managers' and all the other 'negiotiation' charade while you get them to reduce the price to what it should have been anyway, as they've already set the price at a competitive level.

This approach has the added benefit to the company that they can shift each car in about 15 minutes of sales staff time, instead of the two hours or more this can take at a main dealer.

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Sun 30 Oct 2016 18:55
Motorpoint - Bet some dealer wish the same margins - NAthan smith

I got a cracking deal on a merc today over £90 cheaper a month than other merchants such as car shop . Fair play , I can see how they profits are booming!

Edited by Avant on 31/10/2016 at 00:39

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