Dealers,how much do they want to make!

Discussion in 'Motorhome Chat' started by Ovalball, Sep 13, 2015.

  1. Ovalball

    Ovalball Funster

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    as always at this time of year with shows coming up,I dipped my toe in the water and made a few enquiries about trading in for a new van.I can only describe as flabbergasted what I was told.The first offer on my van was £16000 less than I paid for it 2 years ago and the dealer openly admitted they would put about an £8000 mark up on it.It still has a years manufactures warranty left.It also has stacks of extras but,surprisingly,add little or no value to the van.When a previous van was delivered to me,it mistakenly included the original paperwork from the manufacture.This showed a mark up of over £8000 to the dealers asking price.Am I missing something or are they all out to rip me off?
     
  2. emmitdb

    emmitdb Funster

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    Yes.

    I've hit the edit button to add more???

    Any dealer will attempt to get as low a price as he can. I suppose it depends on a whole host of stuff.
    I appreciate that your van is your pride and joy but there are many things that make up the price you have been offered. What if, for instance, that dealer has had your model in the past and it took some shifting. Kerching! he knocks something off your's.
    What if he's got a few more stock than he is comfortable with, Kerching! He knocks something off yours.

    What happens if he is just plain greedy.
    You guessed the rest.
     
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  3. chaser

    chaser Funster

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    Yes and no , the prices they charge against buying private are tremendous but on the other hand , the problems we see on here from people saying the dealer is putting it right must sometimes cost them a fortune, s o they have to cover for this.
     
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  4. Ovalball

    Ovalball Funster

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    Surely they get paid by the manufacture for warranty work?Plus if the dealer did a thorough PDI most of the problems would be sorted before the van was picked up by the buyer.
     
  5. Robert Clark

    Robert Clark Funster Life Member

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    As I'm led to believe, unless dealers make a 'proper' margin, then we as customers can't expect to get 'Red Carpet' treatment from them.
     
  6. Judge Mental

    Judge Mental Funster Deceased RIP

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    Am I missing something or are they all out to rip me off?[/QUOTE]


    yes you are ..sell it privately:)
     
  7. Ron & Gerri

    Ron & Gerri Funster

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    A dealer we know reckons to make £5000 on a m/h and £2000 on a caravan, wether new or secondhand! But they expect to make this on both the original sale and on the trade in:cry:
     
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  8. Robert Clark

    Robert Clark Funster Life Member

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    I think that may be an under estimate on the new MH.
    One dealer told me that he made 15% on the new MH he was trying to sell me
    Another dealer gave me 20% off an identical MH
    If I haven't asked for a discount the dealer would have made about £20k on one sale
    I'm bet the dealers rub their hands together with excitement when a customer doesn't ask for a discount.
     
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  9. Chris

    Chris Funster Life Member

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    They are in business though.

    Their mark up won't be profit.
     
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  10. TheBig1

    TheBig1 Funster Life Member

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    when you go to a big dealership, look at all the land, workshops, shops, showrooms and other facilities along with all the staff, front of house and behind the scenes, YOU the customer are paying for it all, plus a profit on top of that
     
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  11. Robert Clark

    Robert Clark Funster Life Member

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    That's true, but the workshops and accessory shops are surely generating profit in their own right ?
    Or at least they should be, based on what I was charged for my habitation check
     
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  12. Chris

    Chris Funster Life Member

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    If it's such a money maker I suggest a few of you set up a dealership.

    I suspect you might get a shock if you did.
     
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  13. mickyc

    mickyc Read Only Funster

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    The fact is that they are in business and are in business to make a profit.

    Providing YOU are happy with the deal you get, then their profit is not your concern really. If you are not happy with the suggested/negotiated deal, walk away.

    Whatever you do, NEGOTIATE - but be sensible :)
     
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  14. TheBig1

    TheBig1 Funster Life Member

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    Every visit to a dealers, try looking at the few people milling round that huge showroom and accessory shop. Not all are buying, but all expect to have individual attention. Accessory shops at dealerships often barely pay their way in terms of running costs. They are there to attract in potential buyers and as a courtesy to their customers.

    With second hand vans, the dealers need to do any repairs and thoroughly clean them prior to being put on sale. they then need cleaning at least every few days to look their best and replace bits stolen by thieves posing as potential buyers. it all costs a lot more than most people think, even the paperwork that needs doing costs money to do

    yes granted some busy dealerships are making a huge profit but not all are. If it was a licence to print money as some people think, then there would be ten times the number of dealerships

    At one point I looked into starting up a small dealership, so looked into the real costs
     
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  15. makems

    makems Funster Life Member

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    A few years a couple of large dealerships went bust and one of the largest, Brownhills closed three of their four branches. It's not a license to print money but a tough, competitive business
     
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  16. NickNic

    NickNic Funster Life Member

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    A motorhome or other vehicle dealer is no different to anyone else selling anything.

    Any salesperson's job is to get the biggest margin/mark up they possibly can. If they don't they aren't doing their job properly. There's nothing wrong with someone making a profit - if they didn't they wouldn't be in business very long and I for one object to the term "rip off" when used in this context. As @Chris said a big gross profit doesn't net out to very much for a business with large overheads which any kind of dealership will certainly have.

    If the £8k mentioned in the OP resulted in an £800 actual profit on the bottom line then they are doing pretty well. If it's any more than that I would be amazed.

    The only suggestion I can make to those of you who think profit is a dirty word is to never buy anything from anyone. But don't complain when you can't obtain whatever it is you want because you've driven all the dealers out of business.
     
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  17. Barclaybasher

    Barclaybasher Funster

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    We run a business, showroom, overheads............ customers come in for free advice, we quote for work

    Customer A
    compares prices with other showrooms and negotiates a better price..... fair enough

    Customer B
    compares prices with the internet (much cheaper - few overheads - probably no after-sales service) .....asks us if we can price match - no........... then asks if we will fit items bought on the internet.... NO!

    It's not all about price it's about service as well


    'Profit' or rather margins are needed otherwise there will be no dealers, free advice or after-sales service

    (y)...........got that off my chest...........
     
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  18. NickNic

    NickNic Funster Life Member

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    @Barclaybasher have you had the one where you quote, the customer comes back and says so and so can do it for this much. You say OK you'd best get them to do it then. They then say oh no, they can't do it for 6 months so we want you do do it for the same price.

    Same answer: NO!
     
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  19. Barclaybasher

    Barclaybasher Funster

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    Yes...... and the ones that ring up and ask "have you got such and such on display"

    We know they want to see the article, 'pick your brains', then buy on the internet


    ..... happens every week........... then we sell off the 'internet' stuff........or try to

    .......just part of being in business....... and you do it with a smile

    (y)
     
  20. TheBig1

    TheBig1 Funster Life Member

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    in a previous life I was a specialist contractor. It was a very specialist field so all the contractors knew each other or at least about each other

    Many many times I had a customer ask me to drop my price to match a competitor but start working immediately as they couldnt do the job for a week or two. My reputation never failed to make sure I was always busy. but in emergencies I would fit a job in quickly, but at a price to cover extra costs etc.

    some people, even others in business just cannot understand the concept that the price of everything you buy depends on costs and a profit to keep the business afloat. much like the disgusting attitude of supermarkets towards dairy farmers and the end price of milk. no profit =no business long term
     
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