Large scale dealers and margins on used cars

[Chris_702]

But what use is 0% to them ? Why wouldn't they just take the full amount there and then rather than have to wait 2 years.

The dealer doesn't have to wait two years, the minute you sign the documents and they are sent off to the finance company, they are paid out in full and you enter an agreement with the finance company - not the supplying dealer.
They may have to sell £150k of finance per month (for example) so your £3k loan helps them on their way to ensuring they sell the minimum amount of finance required.

 

[m00k]

Not sure what the actual margins were but when I worked in ford I seen cars trade in and be sent into workshop for a check over

Car could have seen new disks and pads all round a few tyres and other bits and pieces before they'd present it for sale... I'd say it wouldn't be long swallowing a whack of the margins

 

[pablo]

Don't forget warranty work the dealer is liable for after sale.

 

[Jason]

Margins arent as big as you'd think as mentioned above finance and aftersales products are where the money is.

As @m00k stated, every car that is going out needs to be serviced, tyres replaced if required, brakes ball joints, paintwork/repairs etc etc

Don't get me wrong theres a pile of dealers that just lick a bit of polish round a car and hoover it, but they are the ones with a bad rep and end up with large numbers of cars coming back.

 

[Ghisallo]

Excellent comments and insights chaps.

The car I'm chasing at the minute wouldn't have required much work from the dealer, it has 14k on the clock and I've spoken to the original supplying dealer who did the five annual services and have verified everything. Only thing is that it got a new powershift gearbox at 10k and just out of warranty so the last owner paid for that. That will have cost a packet I'd say.

 

[KevM]

Yeah, there seems to be a common misconception on finance. The dealer doesn't wait to the end of the agreement or get money monthly. Main finance companies transfer money 3 times a day, so as soon as they receive new completed docs, the most you'll wait for the total payment is around 3 hours max. It's money in the bank!

The old bargaining tool - much for Cash, no part ex - well, you have to pay the bank to lodge it & you've no car for the dealer to sell, so it's the expensive way to buy, although folk still think it gives them 'the power'

 

[Razor.]

Car dealers are the sin of earth

 

[Dave..]

Margins arent as big as you'd think as mentioned above finance and aftersales products are where the money is.

As @m00k stated, every car that is going out needs to be serviced, tyres replaced if required, brakes ball joints, paintwork/repairs etc etc

Don't get me wrong theres a pile of dealers that just lick a bit of polish round a car and hoover it, but they are the ones with a bad rep and end up with large numbers of cars coming back.

For me price isn`t everything but service and especially after sales service is, @Jas Lad you get good feedback and offer clean well looked after cars, so well done.

 

[pablo]

Car dealers are the sin of earth

Bit harsh lol

 

[mike150]

Bit harsh lol

I don't think so, at the bottom of it the dealer wants to buy a car in as cheap as possible, spend as little time and money on it as possible and get it away for as much as possible, it's just a fast profit to them. They are not the owner from new who has looked after it and is maybe genuinely sorry to be selling a car for various reasons, it's a private seller like this I like to deal with.

These days however, with so many issues selling a car privately there are less and less people selling privately as they have got fed up and just sell to the trade or just trade in, that plus the fact that no one seems to actually buy and own a car any more, (except weirdo's like me!) they all lease them.

That's my summation anyway!

 

[Dave..]

I don't think so, at the bottom of it the dealer wants to buy a car in as cheap as possible, spend as little time and money on it as possible and get it away for as much as possible, it's just a fast profit to them. They are not the owner from new who has looked after it and is maybe genuinely sorry to be selling a car for various reasons, it's a private seller like this I like to deal with.

These days however, with so many issues selling a car privately there are less and less people selling privately as they have got fed up and just sell to the trade or just trade in, that plus the fact that no one seems to actually buy and own a car any more, (except weirdo's like me!) they all lease them.

That's my summation anyway!

Its a business and businesses need to make money to invest in staff, training and new equipment etc.
Although some businesses are better run than others.

 

[chris_b]

I don't think so, at the bottom of it the dealer wants to buy a car in as cheap as possible, spend as little time and money on it as possible and get it away for as much as possible, it's just a fast profit to them. They are not the owner from new who has looked after it and is maybe genuinely sorry to be selling a car for various reasons, it's a private seller like this I like to deal with.

These days however, with so many issues selling a car privately there are less and less people selling privately as they have got fed up and just sell to the trade or just trade in, that plus the fact that no one seems to actually buy and own a car any more, (except weirdo's like me!) they all lease them.

That's my summation anyway!

Isn't that how the entire world works these days ?

 

[pablo]

I believe its called capitalism.

 

[mike150]

I feel like I'm under attack here!

My point is the dealer does give a s##t about the car, it's just stock.

The private seller often really cares about the car because it's theirs.

 

[pablo]

quite the opposite usually they want shot of it for a reason.

 

[Jason]

I feel like I'm under attack here!

My point is the dealer does give a s##t about the car, it's just stock.

The private seller often really cares about the car because it's theirs.

You serious? lol Why do you think Joe Public is selling the car!!

 

[mike150]

Speak for yourselves

My wife sold her TT as she was expecting.
I sold my 350z because I was fed up with 2 seats.
I sold my petrol Mondeo because I was going to be commuting 90 miles a day.
I sold my A3 diesel as I was getting a below trade price Focus direct from Ford and I'll be selling it as I hope to get another later this year, Focus ST Tdci is ordered.

Do I need to go on...

 

[ChrisR]

@mike150 You are in the minority. I care about my cars but I traded my last one in as it was starting to give bother so I got rid before it cost alot of money to fix. No idea if anything was changed on it before it was sold and nor do I care as that became someone else's problem.

Have you looked at the cars people are selling privately, its clear people don't care about them.

 

[mike150]

I can honestly say in my time driving and owning about 40 cars I have never ever sold a car with a hidden fault, the car was sold because I had a desire and the money to buy something different or better.

My mates the same only he drives around with faults on the car and then fixes them just before he sells them, timing chains on a 3.2 TT was the last! Not a cheap job.

 

[chris_b]

Totally agree Mike, people change cars for any number of reasons. Anyone changing a car purposefully to hide a fault is a bit of a low dealing TBH.
What goes around comes around and that

 

[mike150]

My mate bought the A3 and 7 years ago I sold a Freelander to my next door neighbour, he still owns it and he still is my neighbour and we are still friends.

I'll be selling a 2014 Focus Zetec S tdci after the summer, it will have no faults

 

[Jason]

Totally agree Mike, people change cars for any number of reasons. Anyone changing a car purposefully to hide a fault is a bit of a low dealing TBH.
What goes around comes around and that

I'd say out of every 10 cars getting traded in I only take about 3, rest are either trying to hide major engine/gearbox/wiring faults/oil or coolant leaks, clocked or categorised.

 

[chris_b]

I'd say out of every 10 cars getting traded in I only take about 3, rest are either trying to hide major engine/gearbox/wiring faults/oil or coolant leaks, clocked or categorised.

Karma will get them

 

[Jason]

The usual conversation goes along the lines of "Just ran an HPI on your car are you aware your car is cat C/D?" Queue shock face of customer followed by "Whats an HPI?" I genuinely don't know if some folk are that green to the whole thing or are were just hoping I wouldn't check!

 

[veron]

Bavarian Mini aim to make 500-1k on their used car trade ins that they can put back out as Approved used Minis.