Motorhome Gross Profit Margins

Discussion in 'Motorhome Chat' started by Andrew G M, Jan 23, 2013.

  1. Andrew G M

    Andrew G M Read Only Funster

    Joined:
    Jun 15, 2012
    Messages:
    156
    Likes Received:
    163
    Location:
    Abergele
    Out of interes, does anyone know the gross profit margin dealers typically make on ther sale of new motorhomes ?

    AGM
     
  2. hilldweller

    hilldweller Funster Life Member

    Joined:
    Dec 5, 2008
    Messages:
    26,432
    Likes Received:
    25,110
    Location:
    Macclesfield
    It's on here somewhere, try Search if you don't get a reply.
     
  3. Andrew G M

    Andrew G M Read Only Funster

    Joined:
    Jun 15, 2012
    Messages:
    156
    Likes Received:
    163
    Location:
    Abergele
    Not sure i am using the search facility correctly (being a wannabe newbie) but not obvious.

    Alot about Tesco though !!

    AGM
     
  4. rainbow chasers

    rainbow chasers Read Only Funster

    Joined:
    Oct 30, 2009
    Messages:
    3,747
    Likes Received:
    1,720
    Location:
    Mid Cornwall
    Depends on dealers - I have known some to put up to 10k on top of trade.

    It sounds like alot, but when you are talking the amounts a motorhome can cost, the premises required, the staff and costs of repairs to motorhomes, servicing and 'dead time' (may sit on the forecourt for quite a while!) - they probably only make a couple of grand profit max.

    Is no different than buying a car.....you may pay 10k for a used Merc, never seen a Merc get over 5k at auction yet.:thumb:
     
  5. johnp10

    johnp10 Funster

    Joined:
    Oct 12, 2009
    Messages:
    7,638
    Likes Received:
    14,190
    Location:
    North Lincolnshire
    What does it matter as long as the punter gets what he/she sees as a fair deal with VFM?
    Surely the profit margin is the dealer's business?
     
    • Like Like x 6
  6. ShiftZZ

    ShiftZZ Funster Life Member

    Joined:
    Feb 19, 2008
    Messages:
    19,821
    Likes Received:
    35,887
    Location:
    Leicestershire
  7. rainbow chasers

    rainbow chasers Read Only Funster

    Joined:
    Oct 30, 2009
    Messages:
    3,747
    Likes Received:
    1,720
    Location:
    Mid Cornwall
    That is quite right! They do the work, and take the risks so you don't have to.

    People are frightened of buying a car at an auction....imagine buying a motorhome without be permitted to look inside for damp etc!
     
  8. Andrew G M

    Andrew G M Read Only Funster

    Joined:
    Jun 15, 2012
    Messages:
    156
    Likes Received:
    163
    Location:
    Abergele
    I am looking at buying a nearly new MH privately, and an idea of the original GP margin, will help me with my best offer, compared to what the dealer may buy it back in.

    AGM
     
  9. Andrew G M

    Andrew G M Read Only Funster

    Joined:
    Jun 15, 2012
    Messages:
    156
    Likes Received:
    163
    Location:
    Abergele
  10. hilldweller

    hilldweller Funster Life Member

    Joined:
    Dec 5, 2008
    Messages:
    26,432
    Likes Received:
    25,110
    Location:
    Macclesfield
    Be careful what you assume, the big problem is that the manufacturers seem to use their dealers as the final assemble shop in the production line so what might look a healthy margin can be far from it with the problems the dealers have to sort out.
     
  11. Andrew G M

    Andrew G M Read Only Funster

    Joined:
    Jun 15, 2012
    Messages:
    156
    Likes Received:
    163
    Location:
    Abergele
    I have no issues with margin, be it 10 or 50%. We all have to make a buck and feed the kids.

    I am just trying to establish the credibility of an offer that an alleged dealer has made on a nearly new privately owned MH I am interested in.

    Andrew
     
  12. eddievanbitz

    eddievanbitz Trader - Funster

    Joined:
    Oct 4, 2007
    Messages:
    3,548
    Likes Received:
    11,053
    Location:
    Taunton Somerset
    Buying from a dealer is not mandatory. No one is forced to used a dealer so the profit made is academic. Surely if your interested in a motorhome, you'll either be prepared to pay a price or your not. Don't beat yourself up about the ethics of a third party.

    It is more likely the vendor telling lies about an offer from "dealer x" :Laughing:

    Eddie
     
    • Like Like x 3
  13. haganap

    haganap Funster Life Member

    Joined:
    Dec 5, 2007
    Messages:
    11,069
    Likes Received:
    13,677
    Location:
    Heavan
    Simple realy.

    Ring a dealer that offers to buy vans, there is plenty of them in MMM. Pretend it is you trying to sell the van you are wanting to buy, age exact model, owners etc etc, and see what they offer you.

    They will give you a rough guide of what they would pay subject to seeing it.

    Then you will have some idea of the offer IRO made to your seller.
     
    • Like Like x 2
  14. rainbow chasers

    rainbow chasers Read Only Funster

    Joined:
    Oct 30, 2009
    Messages:
    3,747
    Likes Received:
    1,720
    Location:
    Mid Cornwall
    You will lose a good chunk as soon as you drive off a forecourt, so 10k loss on retail for a 7 month old van is not unusual and is to be expected.

    For arguments sake, lets take a 10 year old c-class, reasonable condition.

    Owner wants £16995 as he has seen them go for 18k online.


    Dealer wants to pay around £12,000 absolute tops. It needs a little repraying, valeting and servicing, habitation servicing etc. He is looking to retail £17995 with 3 year warranty, making £2500 profit assuming nothing drastic goes wrong with it.

    As a buyer, you have a choice, you can 'save' a couple of grand and do the work that the owner cannot see yourself - or choose to live with the imperfections, lack or warranty and servicing or get it done yourself at extra cost.

    Or you could spent a couple more and have it all ready done and like a 'new' vehicle, serviced and 3 years peace of mind for your extra 2k.
     
  15. Andrew G M

    Andrew G M Read Only Funster

    Joined:
    Jun 15, 2012
    Messages:
    156
    Likes Received:
    163
    Location:
    Abergele
    Eddie



    I beleive you are absolutely right 'the vendor is telling lies about an offer from dealer x.'

    An idea of the original profit margin would confirm the above.

    I am sure the alleged dealer offer to buy back the used MH I have been quoted is more than the dealer would pay for a new mh from the manufacturer in the first place.

    All part of negotiating - all is fair in love and war !

    Andrew
     
  16. Terry

    Terry Funster

    Joined:
    Dec 27, 2007
    Messages:
    10,722
    Likes Received:
    6,224
    Location:
    South yorks
    Hi Andrew it's hard to say how much simply because some makes allow the dealer to discount and others don't -Some dealers will give almost all profit to secure a sale.What you can say is 20% is vat and stright away that will come off any price as soon as it leaves the forcourt.Yep dealer only pays VAT on his proffit so it cancels itself out to the dealer but joe public has it to pay (end user)
    terry
     
  17. busby

    busby Funster

    Joined:
    Aug 18, 2011
    Messages:
    3,315
    Likes Received:
    3,139
    Location:
    derbys
    A dealer on e bay has a van priced at £17999, i bid him £12500 and he accepted. Was well overpriced at £17999 though. BUSBY.
     
  18. jennyp19

    jennyp19 Read Only Funster

    Joined:
    Sep 2, 2009
    Messages:
    73
    Likes Received:
    32
    Location:
    Sunny Scunny
    It had to be worth a try!!!! Supply & Demand - obviously there wasn't a demand - probably better to turn something around, & get money out of it, so that you can buy something else & make money on that instead - its called business.
    In the end, something is only worth to you what you are prepared to pay for it, and so it is with anything.
     
  19. motor roamin

    motor roamin Funster

    Joined:
    May 23, 2010
    Messages:
    1,535
    Likes Received:
    785
    Location:
    Leicester
    With all due respect it matters not a jot what the dealer is or isn't offering..........if you are interested in it bid what you are prepared to pay end of the seller then takes your offer or you look for another one........at the end of the day it is worth what you are prepared to give for it no more no less.

    All the best Rick
     
    • Like Like x 1
  20. joner8888

    joner8888 Read Only Funster

    Joined:
    Jan 4, 2012
    Messages:
    2,190
    Likes Received:
    1,971
    Location:
    somerset
    There must be some people who save for 40 years ,being very careful, then when they see that (dream) MH, common sense melts into the dealers pocket.

    There are dealers who can spot a older, heavy laden cheque book customer, who is itching to buy a MH a mile away.

    I talk to some people, and it scares me what the difference is between what was bought/sold for :Eeek:
     
Loading...

Share This Page