Dealer prices, which planet are they on.

Discussion in 'Motorhome Chat' started by pappajohn, Jul 22, 2016.

  1. pappajohn

    pappajohn Funster Life Member

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    We sold our american A class almost a year ago to a private buyer.
    1999 Rexhall Rexair which is by no means a common or popular RV.
    Originaly advertised at £24k, then at £20k eventually accepting £16,500 to 'get rid' of it quick.
    We paid £24k for it 4 years earlier as a private sale

    Yesterday we found it on Ebay at a well known RV dealers......£29000.
    I wish them luck but it aint worth anywhere near £29k.
    Only two ways they'll get that sort of money.....a buyer with a white stick or a poor mug with no idea of what its really worth.
     
  2. Astro

    Astro Funster

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    Don't forget the dealer has VAT in his price. The ex Vat price of £24160 is the real comparison.
    Cheers, Dave.
     
  3. Zains Pops

    Zains Pops Funster

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    Are you sure that there is a VAT element on a second Hand |Vehicle, I thought it only applied to new vehicle purchases.
     
  4. JJ

    JJ Funster

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    Hi Mr PJ...

    Maybe the dealer is the one who knows what it is worth...

    Years ago, when I was a self employed "turn", I had good years and bad ones.

    From 1985 to 1988 I had landed some great work at a London venue and, with my new found wealth, I bought a large coach built motorhome based on a Mercedes 406. This had been especially built for the then power boat champion of the UK. After a couple of years he had lost his sponsorship and I bought it from him for approx 4k.

    I used to park it at the weekends in Central London and work Friday, Saturday and Sunday evenings. Those were exciting times!

    I loved that old bus and so when this Irish gentleman of the road asked me if I wanted to sell it... I said no.

    He wanted it badly and said he would give me a "profit" if I sold it to him, but I still said no.

    I saw him again a year later and he still wanted it... I again said no.

    Time passed... the London venue changed hands... I was out on my ear.

    I was in a spot of bother... I had committed to doing some stuff in America but I didn't have the cash for the airline ticket.

    The motorhome had to go.

    I advertised it in the Exchange and Mart for £2700.

    Who turned up at my door? The Irishman.

    After hours and hours of haggling, he went away with the van and I had £2100 cash in my sweaty hand and felt pleased with myself because that was £100 more than my lowest price.

    Two or three years later, I got a call from a stranger who had just bought the motorhome and, as he lived quite near, he asked if he could pop around for a chat. No problem.

    It was great to see the old bus again. The new owner was thrilled with it. He had bought it from a Canadian guy who had bought it from the Irishman (a dealer I am now sure). The Canadian had lived in it for some time.

    The new owner told me he had got it at a really knock down price because the Canadian was going home.

    "I only paid £7000 for it" he said.

    I said nothing.

    I was the mug... I didn't know what it was worth when I sold it.

    Mind you... the American thing worked out very well.

    A win, win, win, win.situation!


    JJ :cool:
     
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  5. Minxy Girl

    Minxy Girl Funster Life Member

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    If VAT is applicable you're sums are wrong, the VAT would only be payable on the 'profit' made between what the dealer paid for it and what he sold it for, so if he bought it for, say, £20,000 and sold it for £29,000, that would only mean a VAT bill on the £9,000 profit, so £1,800.
     
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  6. Robert Clark

    Robert Clark Funster Life Member

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    If the dealer if offering a warranty there is a potential financial risk that they need to build into the price
     
  7. Lenny HB

    Lenny HB Funster

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    How do you arrive at that figure? VAT is only chargeable on the profit.

    Sounds like typical rip off British dealer they always appear to want to make at least 10K on every S/H sale where the German dealers are happy with a couple of grand.
     
  8. Astro

    Astro Funster

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    I assumed when the dealer buys the van from a private individual that person wouldn't be vat registered and the dealer wouldn't pay any vat.
    When the dealer sells the van he would add his margin to the purchase price and then add vat? Hence my figure of 24160. Is that not right?
    As you can probably tell I'm not an accountant :)
    Although he would pay corporation tax on amount of profit in the deal ??
     
  9. matamoros

    matamoros Funster

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    Why is it a rip off?

    If someone is prepared to pay that price then that is what it is worth, I think they they call it the free market economy.........which is the basis of the whole capitalist system.

    I am sure many members of this forum have made money by selling for as much as they can get.
     
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  10. Astro

    Astro Funster

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    Reply to self :) A quick google and as previously mentioned by a couple of other post by peeps more knowledgeable than me ( lol) mentions VAT margin scheme for business selling second hand goods. Vat is payable on the profit.
    I'll go and stand in the corrected corner for a while ;-)
    Cheers, Dave.
     
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  11. olley

    olley Funster

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    Its only a rip off when its you paying the bill, when your selling its just the market economy in action.:D
     
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  12. Geo

    Geo Trader - Funster

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    and he don't get to deduct any repairs or parts he has to fit to it from his "Profit"but he can claim the vat back on parts used
    Unless he sets up a separate company to charge himself to do the repairs. but then the new company is liable for tax on its earnings and profits Loose Loose
    What a grand scheme
    When I die I'm coming back as a VAT Man
     
  13. pappajohn

    pappajohn Funster Life Member

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    VAT, profit......all relevant.
    But the most relevant bit is .....it ain't worth £29k of anyone's money.
    Maybe with a respray, new decals, new hydraulic jacks, wiring sorting so it works as it should, air con repairing so it blows heat as well as cold as it should, slide out fixing bolts are popping through the outer slide skin.
    All expensive repairs even for a dealer.
    Hydraulic rams are £500 a pop and at least two need replacing.
    At that price someone is in for a shock.
     
  14. olley

    olley Funster

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    And you wanted £24 grand for it!!!:)
     
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  15. pappajohn

    pappajohn Funster Life Member

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    Optimistic !!!!!
    Wishful thinking!!!!!
    Hopeful !!!!
    Chancer !!!!

    But I did list most faults...which will be why it didn't sell.
    And any buyer would see the bodywork and decals.

    When it finally sold it was advertised at a sensible £17k.
     
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