All this is confusing me!!! Lets say that I wanted to p/x a 2005/55 Audi A3 2.0 TDI with 27k miles on the clock. I want to p/x today. (as I would this time next year) Colour is liquid blue and there isn't a mark on it.
If you go on What car or Parkers they both give you a different price. Around 14k in p/x. Doesn't seem that bad to me- but most say they can't be counted on.
Who gives you a proper p/x price? Who do I trust to give me the proper value of my car?
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You are still looking at this the wrong way, you are still hung up on the trade in value of your car. There isnt a fixed price, there is no proper value of your car. for example
Second hand car A, New Car B costs £20K
I can give you trade in on A of 15K and sell you B at 20K gap 5k
I could discount B to 18K and still give you 13K on A Gap still 5K
The dealer is looking at the total amount of money in the whole deal, profit to be made form your car and new car. You shjould be looking at the same. The gap is the cost to change.
You car will have 4 values
1 Sell to dealer (that will be the Glass book price)
2 Auction (that will be close to Glass, may go more may go less)
3 Private sale, what someone is willing to pay. Less than dealer more than 1 or 2
4 Trade in. Its negotiable. It depends on the profit for the dealer on the whole deal.
Now when you are buying your new car, The cost to change is what counts, the gap. Nothing else. YOu get the gap as small as you can however you can. The dealer is trying to make it bigger.
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TourVanMan TM < Ex RF >
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In reply to tr7v8:
The VAT element will depend on whether the the car is a VAT qualifying car or not. If it is not a VAT qualifying car the dealer will pay VAT on the difference between the selling price and the purchase price of the car.
I haven't seen HJ's original comment but I would think that the £1,000 or 10% (whichever is greater) refers to the amount to deduct from the advertised prices of equivalent cars.
In sony's case this would give a trade-in price of £15,745 not £16,495.
In your example of a £60k this would give a trade-in price of £54k rather than £59k.
However, I agree that the more you try to get for your old car the less you are likely to get off the advertised price of the replacement car.
Going back to sony's case I think that a dealer may offer £14k for his trade-in but at the same time offer, say, £1,500 off the advertised price of the replacement car. If he pushes for £15,745 then the dealer may be reluctant to discount the advertised price of the replacement car.
As you say, the cost to change is the key figure
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Going back to sony's case I think that a dealer may offer £14k for his trade-in but at the same time offer say £1 500 off the advertised price of the replacement car. If he pushes for £15 745 then the dealer may be reluctant to discount the advertised price of the replacement car.
Surely though this is dependant on the price of the replacement car?
Say I was going for an ex demo again costing 18k?
Surely the dealer wouldn't give me £14k for my A3 plus up to £1500 off the ex demo car? This would only cost me £2.5k to change?
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Surely though this is dependant on the price of the replacement car? Say I was going for an ex demo again costing 18k? Surely the dealer wouldn't give me £14k for my A3 plus up to £1500 off the ex demo car? This would only cost me £2.5k to change?
In your original post you say that the dealer has equivalent cars on the forecourt for £17,495 so an ex-demo at £18k is going to be very similar to your current car. Therefore you will be paying £2.5k to change your current car for a very similar car.
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What i meant is that a 2 yr old car on the forecourt is selling for £17,495 (55 plate)
This time next year, my A3 will be 2 years old too, so will be put on Audi's forecourt for £17,495 too.
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what year, and model of a3 is it.
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TourVanMan TM < Ex RF >
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what year and model of a3 is it.
A 2006/56 A3 2.0 TDI SE 3 door. Manual. Climate control, Auto dimming mirror, and bits and pieces...
I'm confusing myself here.
All I really want to know is how the dealers calculate p/xing.
To put it simply: This time next year (August 08) I will be trading in my current a3 for a 08 plate ex demo. The 08 plate A3 i will be interested in will probably be up for around £18k. Audi salesman will probably offer me around £14k for my 56 plate A3. But surely will not discount the 08 plate A3 by up to £1500?? This would cost me £2.5k to change?? Wouldn't this be too cheap "new car" motoring??!
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Ok, if you traded it it now, the dealer will off you around 14k as you said. If you trade it in this time next year, it will be about 12k
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TourVanMan TM < Ex RF >
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What i meant is that a 2 yr old car on the forecourt is selling for £17 495 (55 plate)
No its not selling at that. Its advertised at that. If i was buying that I would be looking to knock the dealer down by at least 7%. The dealer knows that, so he is looking to have got that car in at 14495 or less.
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TourVanMan TM < Ex RF >
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sony - my real life example.
Car traded - Audi A3 2.0TDI SE Sportback with DSG. 32,000 miles and a month off being two years old. Only extras were metallic paint and reversing sensors.
OTR price of the same car but with 170PS, metallic paint and parking sensors is £23,825.
The trade in for the A3 was £14,500 if I left it there and then, if I waited to trade it until my new one arrived (12 weeks) it would have been £14,000 to take account of the additional mileage and it being slightly older.
Cost to change was negotiated to £7,200 plus a £150 car seat - near enough to £7,000 I wanted to spend.
My old car went on the forecourt priced up at £17,850. The last price I saw on it was £15,450 and it appears to have sold now, so they made less than £1,000 on this car.
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Right so the A3 lost £8k in 2 years. Ouch!
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No. It cost me £7,200 (plus a car seat!) in depreciation.
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Sorry that was in reply to TVM! Didn't think it lost 8k in 2 years!
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)>> Sorry that was in reply to TVM! Didn't think it lost 8k in 2 years!
No you are getting hooked up again on Trade in value. The cost to change will be less than 8k (unless of course you let the dealer roll you over)
For example, Say I could get BRAND NEW A3 Se for 18.5k (and you can) and I sold my current one privately next year for 14k. Thats a cost to change of 4.5k
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TourVanMan TM < Ex RF >
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Thats how I go my £7,000 - IIRC internet broker was quoting about £22,000 for the new car, private sale was £16,000, leaving a balance of about £6,000.
In order to sell my car quicker and get near the asking price it needed tax (£135), a service (£250-300), two rear tyres (£150- £200) and it was coming up to DSG clutch fluid service. So not much change from £1000.
Leaving me with a 'cost to change figure' of around £7,000.
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In other words sell privately!! Is it much hassle davejp?
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Only tried to sell a car privately once (my A2) and it was such hassle I will probably never do it again.
I prefer to do research and go with a "cost to change" figure in mind. Getting information is so much easier than it used to be and it's easy to become savvy quickly.
A friend is looking for a car for his wife - found a pre reg Fiesta 1.6TDCi - 20 miles on the clock, 3 months old from a dealer. Car was up for £9,800 for a Zetec Climate. They are cash buyers, but he is one of the old school thinking car sales is a black art and as it has so much off it must be a bargain.
He mentioned it to me and I said as its a Ford there will probably be better deals around.
5 minutes surfing found a brand new Zetec climate for much less. For £9,800 they could have a Ghia spec.
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