Like it says, really. If a small garage buys part-ex motors from a main dealer, and sells them for £500; £1000; £2000, what have they paid for them - typically?
|
When I tried to trade a Vauxhall Cavalier about five years ago the dealer offered me what the small garage offered him -- £10.
These garages give absolute rock-bottom rates for these cars -- I'd be surprised if a £500 one was bought for more than £100.
Markups are therefore potentially massive if an old car is in good nick.
The Cavalier in question was high mileage but in good condition with service history and recent cambelt change.
I sold it back to my dad, who had sold it to me, for more or less what I'd paid for it (I'd paid for some work in the meantime so it was fair).
Edited by jase1 on 10/09/2008 at 19:43
|
|
The problem for garages now (small and large) is that they have to offer a warranty, which can wipe out the profit pretty easily. Hence better bargains on Ebay or privately, as long as you know what you're doing, but at least you have time to inspect properly - they don't.
|
In all honesty, with scrap yards now offering around £50 a car (depending on area), most dealers of low end stuf will offer £10 to a dealer, just to keep the offers coming along of the better cars and scrap it , so a potential profit of £ 40. That of course doesnt allow for the time and effort and paperwork involved.
I doubt if any dealer is going to sell a car less than £ 750 if any sort of warranty has to be attached. To cope with repairs needed, adverts etc, he is only going to offer around £ 100 , maybe £150 for a really good example.
Even then it will probably only clear £ 300 - £ 400. Would many of you bother trying to sell a bottom end car to make that sort of money? Probably take around a month to move it too at the moment. So a margin of around £ 300 for a stake of £100 that takes a month (and a lot of tyre kickers expecting a brand new car for the same price) .
Margins only really begin to get sensible at around a sale price of £ 2000 +. But then any comebacks can make them futile!
Its not all roses down here !
Just an aside, but how much effort would you make to get a return of £ 300 ?
|
|
|
|
|
I think it will be hard to find any dealers with a 'forecourt' except at rock bottom offering cars for much under 4 figures, so that is about the mark-up they hope to get, covering any warranty, any work needed, and any mark-downs they have to make if it doesn't sell.
|
|
The last time I traded a car in, I got £200 for a dented, mega miles Peugeot 306 dt. The garage scrapped it (last date of liability was one week after I sold it, per DVLA), so they don't win all the time. Of course this was a few years ago, when scrap wasn't so valuable.
|
|
|
|
![2021 Land Rover Discovery Sport 2.0 D200 R-Dynamic S Plus 5dr Auto [5 Seat]](http://images.honestjohn.co.uk/imagecache/url/crop/90x60/https/assets.heycar.co.uk/t_default-export/f_auto/application_assets/vehicles/pictures/152e741c27121757b10686e271ca7bb0/1a731c33ea1b97df4ee3e965c64b65ff.jpg)
