how much profit

Discussion in 'Motorhome Chat' started by robnchris, Jul 5, 2012.

  1. robnchris

    robnchris Funster

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    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.
     
  2. TheBig1

    TheBig1 Funster Life Member

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    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
     
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  3. vwalan

    vwalan Funster

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    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.
     
  4. buttons

    buttons Funster

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    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.
     
    Last edited: Jul 5, 2012
  5. GJH

    GJH Funster Life Member

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    Doesn't VAT have an effect - 20% of the whole price on new but only 20% of the margin on used?
     
  6. joner8888

    joner8888 Read Only Funster

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    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:Eeek:
    I would sell private first--get the money--then go and bargin :thumb:
     
  7. robnchris

    robnchris Funster

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    vat

    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.
     
  8. Terry

    Terry Funster

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    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 :BigGrin:You can do this over the phone to narrow your search/rough idea, but nothing will be better than a face to face :Wink: if both parties understand it is a serious offer.Better to make a few k than none at all :Smile:
    terry
     
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  9. Terry

    Terry Funster

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    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 :BigGrin:You can always put in a counter offer and leave them your number :Smile:You never know they may have a rent bill to pay :Rofl1:
    terry
     
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  10. JJ

    JJ Funster

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    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:
     
  11. Jim

    Jim Ringleader

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    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.:Eek!:
     
  12. rangitira

    rangitira Funster

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    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.
     
  13. slobadoberbob

    slobadoberbob Read Only Funster

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    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:
     
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  14. JJ

    JJ Funster

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    So your RV is still for sale then Bob?

    JJ :Cool:
     
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  15. Terry

    Terry Funster

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    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 :Doh::BigGrin:
    terry
     
  16. buttons

    buttons Funster

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    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.
     
  17. Jim

    Jim Ringleader

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    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.
     
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  18. Jim

    Jim Ringleader

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    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
     
  19. vwalan

    vwalan Funster

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    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.
     
  20. slobadoberbob

    slobadoberbob Read Only Funster

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    Thanks JJ for reminding everyone - appreciated

    Thanks JJ for reminding everyone.. much appreciated when someone draws attention to the 23'9" 'european' size RV:Rofl1::Rofl1::Rofl1::Rofl1::Rofl1:


    Keep AT it JJ:Blush:


    Bob:thumb:
     
    Last edited: Jul 5, 2012
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