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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?
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?
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Hi Dave
Thanks for the pointer, but no clear info in the posts.
Would I be a million miles away to assume an average GP of 25% on new van sales from an average sized typical dealer.
Andrew
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.
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
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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"
Eddie
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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.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.
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A "value" is only a guess until some one is prepared to pay the price. Until then it remains a guess, only that.
Once some one is prepared to pay the price, it becomes the correct price for that transaction.
Regardless of whether you would or wouldn't pay the same price is immaterial, some one wants to sell and some one wants to buy.
Eddie
I see John cross is saying nothing on this that's got to be a first
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New motorhome retails £65k, Dealer does a deal cos everyone expects it and sells it to Jo Bloggs for £60K this includes VAT at 20% = £10k, so the dealer actually gets 50k, so the dealer has no doubt paid £40k net to the manufacturer for that = £10k profit.
J
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New motorhome retails £65k, Dealer does a deal cos everyone expects it and sells it to Jo Bloggs for £60K this includes VAT at 20% = £10k, so the dealer actually gets 50k, so the dealer has no doubt paid £40k net to the manufacturer for that = £10k profit.
Jo Bloggs arrives back 7 months later and ask's the dealer for a price and he offers £45k which is £15k less than Jo Bloggs paid.
The dealer puts this on sale at £52950 and VAT is due on the profit which is £7950 of that £1395 goes to the VAT man leaving the dealer with a profit of £6625.
And thats the way it works, the dealer may have to fund that money outstanding for months if he does not sell it very quickly, he may service the base vehicle, he may have to fix a few small faults, he may have to give it a full valet, he may have to habitation service it and so on...... Oh and add to that punishing UK business rates which are just about the highest in the world !
It amazes me that more dealers have not gone bust as as we all know lots of caravan and MH dealers have had financial problems and more will follow.
And no I have no friends or relations in the trade
On the above, would a dealer pay £45k for a used mh, when the new one from the manufacturer only cost £40k - this is where it gets interesting !!
AGM
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