how much profit (1 Viewer)

[robnchris]

We are wondering what main dealerships consider a fair profit is when selling a motorhome, we realise they have to put a warranty on ours etc but phew.

We have just been offered from £35000.00 to £40000.00 for ours depending on them seeing it for a 3yr old autosleeper priced at £49995.00

We didn`t think the offer was that good considering they are selling the same model, year, though with more mileage and not as many extras as ours for £51995.00
They clearly don`t want our business.

 

[TheBig1]

thats one reason some refer to them as stealers. Theres making a profit and theres ripping people off. Warranties are only insurance policies at the end of the day, which the dealer purchases when he sells a vehicle and cost a few hundred pounds at most. Everything else is spent on the posh showrooms and staff wages along with a nice bonus for the boss

 

[vwalan]

its called business .many work on the same principal. if i buy some thing for one pound sell it for onepound fifty how much as a percentage have i made?
this is why some companies carry on and many fail.

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[buttons]

We are wondering what main dealerships consider a fair profit is when selling a motorhome, we realise they have to put a warranty on ours etc but phew.

We have just been offered from £35000.00 to £40000.00 for ours depending on them seeing it for a 3yr old autosleeper priced at £49995.00

We didn`t think the offer was that good considering they are selling the same model, year, though with more mileage and not as many extras as ours for £51995.00
They clearly don`t want our business.

You cant blame the dealer for not wanting to pay your vat. Take that off and it has not lost much. Are you quoting the 3year old van with vat included.

 

[GJH]

Doesn't VAT have an effect - 20% of the whole price on new but only 20% of the margin on used?

 

[joner8888]

Because of the big numbers involved, most owners are at the mercy of dealers.
If it was a 5 k car , you could buy another one what you wanted, and sell your old one when you wanted to.
They know it`s convenient for you to drive in and drive out with a newer one -----they will see you comming
I would sell private first--get the money--then go and bargin :thumb:

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[robnchris]

vat

You cant blame the dealer for not wanting to pay your vat. Take that off and it has not lost much. Are you quoting the 3year old van with vat included.

Not certain were you are coming from with the VAT angle, surely he will only pay VAT on the actusl profit made on the sale.
The VAT has already been paid on the vehicle when it was new.

I just saw it as a big dealership charging top dollar for their motorhome and offering me the lowest price for mine, for which they will then put on the forecourt again at the top end price.

Whatever I won`t be doing business with them.

 

[Terry]

I think it comes down to your negotiating skills :thumb: and how serious you come across as a buyer -- did you try for a better offer or was it left at the salesman's first offer ?It perhaps would be better to ask the difference to pay/change,:thumb:that way nobody is feeling insulted.If you are buying new ring around all the dealers who sell what you want for there best cash price on the van,then you can ask if they are interested in PX yours and ask the cost to exchange :thumb:You may find a dealer giving say 5k discount on new will want to give you less for your van and visa versa someone not giving a discount may give you 5k more for your PX You can do this over the phone to narrow your search/rough idea, but nothing will be better than a face to face if both parties understand it is a serious offer.Better to make a few k than none at all
terry

 

[Terry]

Not certain were you are coming from with the VAT angle, surely he will only pay VAT on the actusl profit made on the sale.
The VAT has already been paid on the vehicle when it was new.

I just saw it as a big dealership charging top dollar for their motorhome and offering me the lowest price for mine, for which they will then put on the forecourt again at the top end price.

Whatever I won`t be doing business with them.

Further to my last post Rob, go back (if you really want the van) and let him know you are seriously thinking provided he comes up with a better offer:thumb:IF you are in the same ball park -ish he should scurry off to his manager to see what he can do :thumb: Screw them down as much as possible and if still not happy walk You can always put in a counter offer and leave them your number You never know they may have a rent bill to pay
terry

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[JJ]

I guess that a fair price for a motorhome is what you are willing to sell it for...

What the dealer then sells it for should not be of concern...

I once sold an old motorhome of mine, which I had had for several years, for £2200 (I paid £3000ish for it) to a part time dealer... two years later I was contacted by the then owner who had bought it from the guy who had bought it from the dealer. He was so pleased with it and he said "I got it at the bargain price of £5000."

I reckoned that the dealer was actually selling his knowledge... he knew what he could get for it... I didn't...

I was very happy at the time with my £2200... the current owner was very happy with his £5000 and I guess the dealer had made a lot of profit so he was happy too... win... win... win... that's what I say...

JJ :Cool:

 

[Jim]

The profit a dealer makes cannot be calculated by those selling and buying prices, anyone paid business rates lately? Or corporation tax? Employers national Insurance contributions? Paid staff 14 months wages for 12 months work? That's just some of the overheads, lots of dealers have over-draughts and big rents or mortgages. They have to then pay themselves, it all comes out of that sale, then if they do make a profit 40% of that or more is paid in tax.

So many dealers going bust. I was talking to a small dealer at the Stratford show. He told me he was using an over draft to pay his staff wages. He has almost half a million in stock on his forecourt and no one is buying. The guy was very genuine, and very worried about his future. Glad I'm not in the game.

 

[rangi]

P/X d our old Pilote, G reg, got £6500, Dealer had it on his lot for £10,000, that's what business is all about.

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[slobadoberbob]

The profit they want is a bit over the top

While I accept a dealer needs to turn a profit and he carries the vat on the margin I do think they strong it a bit.

My own RV has a couple of bids from a dealer and he was trying to get it for 2/3rds of what I wanted and I am selling it already close to trade price... But I am not under any pressure and if it sells now, fine, if next year fine. But I will not drop my price.... certainly not loaded the way it is.

But dealers need to make a living, have no problems with that, but it needs to be equitable.

Bob:Sad:

 

[JJ]

So your RV is still for sale then Bob?

JJ :Cool:

 

[Terry]

While I accept a dealer needs to turn a profit and he carries the vat on the margin I do think they strong it a bit.

My own RV has a couple of bids from a dealer and he was trying to get it for 2/3rds of what I wanted and I am selling it already close to trade price... But I am not under any pressure and if it sells now, fine, if next year fine. But I will not drop my price.... certainly not loaded the way it is.

But dealers need to make a living, have no problems with that, but it needs to be equitable.

Bob:Sad:

Hi Bob is that the 32k price or 34k one
all I can say is if it does not sell at 32k this year it will not sell next year at 32k oh:
terry

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[buttons]

Not certain were you are coming from with the VAT angle, surely he will only pay VAT on the actusl profit made on the sale.
The VAT has already been paid on the vehicle when it was new.

I just saw it as a big dealership charging top dollar for their motorhome and offering me the lowest price for mine, for which they will then put on the forecourt again at the top end price.

Whatever I won`t be doing business with them.

We are wondering what main dealerships consider a fair profit is when selling a motorhome, we realise they have to put a warranty on ours etc but phew.

We have just been offered from £35000.00 to £40000.00 for ours depending on them seeing it for a 3yr old autosleeper priced at £49995.00

We didn`t think the offer was that good considering they are selling the same model, year, though with more mileage and not as many extras as ours for £51995.00
They clearly don`t want our business.

Perhaps I miss read it are you saying that you paid 4999.00 for the van 3 years ago and you are now being offered 35 to 40k. If this is the case then a fare part of the original cost was indeed your vat.

 

[Jim]

While I accept a dealer needs to turn a profit and he carries the vat on the margin I do think they strong it a bit.

My own RV has a couple of bids from a dealer and he was trying to get it for 2/3rds of what I wanted and I am selling it already close to trade price... But I am not under any pressure and if it sells now, fine, if next year fine. But I will not drop my price.... certainly not loaded the way it is.

But dealers need to make a living, have no problems with that, but it needs to be equitable.

Bob:Sad:

Bob you can choose not to sell your RV but you cannot say what it is worth. Its worth what someone is prepared to pay, and these days that is lower than many peoples expectations. You can keep it till you die at a price no one will pay, but that doesn't make it worth that price, in fact the price will only go down. The market dictates the price with very few exceptions.

 

[Jim]

P/X d our old Pilote, G reg, got £6500, Dealer had it on his lot for £10,000, that's what business is all about.

If it took him a month to sell it, if his staff were not selling but still being paid, still having to pay rates etc, he may have made a loss. He probably made a few quid but it would a fraction of the £3,500

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[vwalan]

but most business work on 30 percent gross profit. so they will buy for 35 grand sell for 50 . thats normal .just about every thing you buy is based on that. it just seems alot as the price increases . could sit on their forecourt for months . losing money as well.
tesco say stack it high sell it cheap. but not all things work like that.

 

[slobadoberbob]

Thanks JJ for reminding everyone - appreciated

So your RV is still for sale then Bob?

JJ :Cool:

Thanks JJ for reminding everyone.. much appreciated when someone draws attention to the 23'9" 'european' size RV


Keep AT it JJ:Blush:


Bob:thumb:

 

[slobadoberbob]

it was off the £34k

Hi Bob is that the 32k price or 34k one
all I can say is if it does not sell at 32k this year it will not sell next year at 32k oh:
terry

The first offer I had was £22k, the second was £24k and then an direct off of £32k

But offers are not cash.

When I see money in my account then it is sold.. or a proper deposit is paid. Not getting excited......

Bob

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[JJ]

Thanks JJ for reminding everyone.. much appreciated when someone draws attention to the 23'9" 'european' size RV


[HI]Keep it JJ:Blush:[/HI]


Bob:thumb:

Wait a moment... are you giving me your RV Bob?

JJ :Cool:

 

[Terry]

Speaking of profits Bob ask anyone who knows and they all say extras are just about worthless,they only make a vehicle more desirable Did you not say the other week you only paid 28k for your van ?Why do you think your van has gone up in value by 6k ?/Take off all the extras that can be used on your new van and reduce the price
Even the yanks are feeling the pinch :Sad:I remember 15 yrs ago they would not entertain a piddling little 2 ltr car that did 30 mls plus,now fuel price has got High by there standards they are clamouring for them
terry

 

[Terry]

Wait a moment... are you giving me your RV Bob?

JJ :Cool:

Yeah you can pick it up in ten yrs plus time,because that's how long it will take to sell it at the asking price
terry

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[robnchris]

miss read

Perhaps I miss read it are you saying that you paid 4999.00 for the van 3 years ago and you are now being offered 35 to 40k. If this is the case then a fare part of the original cost was indeed your vat.

Ahh perhaps a bit of miss read or have I confused the issue with the £49995.00

They offered me £35000.00 to £40000.00 for mine, I haven`t stated how much we paid for our motorhome.
The cost of the motorhome they are selling is £49995.00

I take on board Jims and others points re how much it costs to run a business, I am just saying you walk into a dealers see something you like, they offer you a price for your part ex which is £17k that`s a massive seventeen thousand pounds less than one they are selling which has more mileage and isn`t fitted with your extras and it`s parked up next to the one you are looking at.

Now call it whatever you want but I personally can`t help but think they are taking the p**s.
Everything taken in to account and if times are as hard as everyone is saying for these businesses you would think they might be making an effort to make that sale.

Or am I missing something here.

 

[slobadoberbob]

we will see Terry we will see

Yeah you can pick it up in ten yrs plus time,because that's how long it will take to sell it at the asking price
terry

We will see Terry, we will see.. Yes I paid £28k for it.. but that was originally up for £37K plus vat .. the US$ went 2 fo1 then and dived .. I got it un registered and the dealer lost out on the price of even the shipping.. so the asking price is not so far off as this dealer knows.. the extras are all a bonus.

But as I keep saying Terry I am not in a rush.. if it goes now or next season... I intend to use it next week ...or was to Rutland.. but have concerns over being able to use the 4 KW genny to recharge my power wheelchair.. as the site says it will not allow noise I am not sure if it will be used or not now... But I am intending to use it to Malvern if it does not sell.

But keep up the good work... with JJ .. Chris Green etc., all this free advertising... wonderful...

what is it they say... any publicity is good publicity... I bet anyone you ask can tell you what is 23'9" ... simple a Winnebago.

 

[Terry]

We will see Terry, we will see.. Yes I paid £28k for it.. but that was originally up for £37K plus vat .. the US$ went 2 fo1 then and dived .. I got it un registered and the dealer lost out on the price of even the shipping.. so the asking price is not so far off as this dealer knows.. the extras are all a bonus.

But as I keep saying Terry I am not in a rush.. if it goes now or next season... I intend to use it next week ...or was to Rutland.. but have concerns over being able to use the 4 KW genny to recharge my power wheelchair.. as the site says it will not allow noise I am not sure if it will be used or not now... But I am intending to use it to Malvern if it does not sell.

But keep up the good work... with JJ .. Chris Green etc., all this free advertising... wonderful...

what is it they say... any publicity is good publicity... I bet anyone you ask can tell you what is 23'9" ... simple a Winnebago.

Are you sure it's 23'9 " Bob,:thumb:ARE YOU SURE IT'S NOT 7010.4 mm( 7 mtrs)
terry

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[Jim]

Yes I paid £28k for it.. but that was originally up for £37K

Big clue there Bob You got almost 25% off the asking price. What are you asking

 

[slobadoberbob]

I could remove a lot of the goodies

The option as Terry knows from earlier exchanges before I put it on ebay was to remove a whole load of the goodies and then reduce it down.. may be that will happen .. who knows.. but at the moment it is in 'turn key' mode and has a lot of the toys... certainly would not be able to buy them even second hand for that sort of reduction...

We will see, as said I am not in a major rush.. I know the toy hauler is safe for now... but if push comes to shove I will have to let my option expire on it and look again.. but at this time it is not an issue. I would like to really sell it after the season.. but the cost of the advert is pennies and it is a dip the toe in ... if someone wants a fully rig unit then it is good value.. if they want a much more basic unit then we will see.

But lots of RV's for sale out there... my main selling point is that at 23'9" it is european size and will go on all the C&CC and CC sites and any aires or camp site. Many RV's cannot do that.

Bob

 

[aba]

sorry to jump on this one again.

Bob i thought the whole idea of getting an RV was because it is bigger than a euro van.

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