Part-ex & trade-in Is it just me or ....

[HUGGY]

Hi All,

Maybe it's just me expecting to much ? Or do all Dealers really want and expect customers to accept this kind of deal ?

Trawling through a dealer's website and saw a nice looking van. Fired off an email asking for a ball-park part-ex on our current van against the one I had seen. 4-days later I get a reply telling me that the best trade-in would be £30k against the £45 k van I had seen.

Quick trawl of the internet came up with 4 examples of my van (similar age / mileage etc) ranging from a high of £41,995 down to £37,500 .

So, assuming I sell my van to the dealer for £30k. He retails it for £37k and sells it for £36k (Gross profit £6k) I buy new van from Dealer and pay £44k for it. I assume same gross profit of £6k.

Dealer has made £12k on the deal ! I know a margin has to be made to cover overheads etc, but £12k on what is effectively just one deal is taking the P IMO

Would value other peoples thoughts on this. As I said, maybe I'm expecting a better (and fairer) deal than I'm going to get from a Dealer ?

 

[Boringfrog]

How much could you buy the 45K van you saw in the dealer privately?

 

[HUGGY]

Hi, that's a good question. Not seen any of the make / model advertised as private sale so unable to say, but I guess same age etc would be circa £4k less as private sale

 

[Silver-Fox]

The dealer is in buisness to make money.

No different to a car dealer, they buy in cheap advertise and sell at a profit.

Sell yours privately and buy privately

 

[Southdowners]

I expect that running a dealership is expensive as it is in any business.

Rent, rates, wage bill, insurances, advertising, facilities management, H&S input, accountants, running costs, finance tied up in stock, preparing vehicles for sale, the cost of fulfilling guarantees, etc. etc.

It's far from being all profit.

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[138go]

You missed the bit about the Vat he has to pay and how much it’s going to cost to put all the faults right before he sells it.

You could always sell it yourself and then go for a cash deal

 

[Peter JohnsCross MH]

You forget that for a start VATman takes 20% of the GROSS profit immediately on a margin vehicle before the cost of rectification, servicing, replacing age related tyres, wages, business rates, pensions, telephone, advertising, website and many more items

Peter

 

[Emmit]

You forget that for a start VATman takes 20% of the GROSS profit immediately on a margin vehicle before the cost of rectification, servicing, replacing age related tyres, wages, business rates, pensions, telephone, advertising, website and many more items

Peter

Not being but that still leaves 80% (And that seems to be generally 80% of a lot)

 

[Odd-no-more]

Many years ago I had a tea bar on Hayling Island. We sold a cup of tea for 11p
The cup cost 1/2 p and the tea, milk and sugar cost another 1/2 p.
I lost money.

So the gross profit on a cup of tea was 10p from the 11p charge. But the rent, electricity, and staff costs took the profit and more. A Motorhome dealer will have huge overheads and needs to make a good profit on every sale.
Don't forget if you buy from a dealer you will have a warranty new mot etc.
You get what you pay for

 

[The Wino]

You also forgot its not 12k on one deal its 12 k gross if he sells yours as well so 2 deals less 20% ( well actually a bit less as he will be able to reclaim the VAT back on expenses). I agree its quite a lot but you could always go into the m/h trade if its easy money!!!!

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[Silver-Fox]

Not being but that still leaves 80% (And that seems to be generally 80% of a lot)

That’s 80% of the difference then the overheads and as said rectification work etc etc.
The vehicle may be in stock for a while as well and reductions made to ease a sale.

 

[HUGGY]

OK, sounds as if I'm in a minority of one here with my thinking. Think I will just keep the van I've got now, nothing wrong with it just fancied something newer. Big positive is all the extra trips away on the cash I'll be saving.

Thanks to all for the comments

 

[The Wino]

OK, sounds as if I'm in a minority of one here with my thinking. Think I will just keep the van I've got now, nothing wrong with it just fancied something newer. Big positive is all the extra trips away on the cash I'll be saving.

Thanks to all for the comments

Or sell private buy private will be a lot cheaper but you have to accept the risks in return. Its what we aim to do next time our first was a private sale worked out very cheap. Latest bought from a dealer and traded in the old one very easy no hassle but at a price!

 

[Lanerboy]

I spent 115k on new van at dealer he took my old one in part ex and it's now up for sale at 10k more than they gave me

I offered my part ex on here and eBay for the same as the dealer had offered me but got no takers not sure why maybe people need finance on a 50k van also how long will the dealer have it on their books for tying up nearly 50k

It is just how it works I did the deal as I was happy with the figures if your not then walk away there will be other vehicles that come up

 

[tonyidle]

A year ago I asked a dealer for a price on my Hymer against a 75K van. He offered 18K. I agreed with him that I'd try to sell it privately but other wise agreed the deal. I sold it privately for 21K based on midway between what the dealer offered and what I thought he'd sell it for. I went to pick up my new van and without being asked the dealer knocked off another 3K for no trade-in. I thought that was pretty fair. I asked him what he would have asked for the Hymer & he said 24K + a bit more for haggling. The result for me was that I was better off by 3K than his trade-in offer plus 3K he knocked off the price of the van I bought. I sold the Hymer within a day of advertising it on MHF.

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[Carolyn and Kev]

2016 plated Autotrail Apache 634 with 12k miles and full history . Dealerships up and down the country offered 34k!!! I bought this honestly for 46k!!!
Dealerships want everything for nothing! Period!
Having said that...there are some out there that see sense! Not all are trying to rip us off!

Kev

 

[Misterg]

You're comparing the sticker price of the new one with their opening offer for yours.

 

[Bart]

If possible sell privately and buy privately.

 

[TM59]

Get a sum of money in your head you are willing to spend. Make the offer to the dealer and wait for their reply. Don’t just give up or you get nowhere.

 

[Janine]

When we were at the Newbury show last week, my son saw a van that he liked.

Same size, age, value and mileage but it had the drop-down bed that he likes

He asked the salesman how much it would cost to swap.

£10,000 on a £30,000 van.

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[Cheshirecat57]

To answer the original thread title question- its nit just you, but that’s the industry
It is built entirely around the margin/overhead/ customer expectation circle

 

[Bognor Saint]

We're picking up our new motorhome tomorrow. It's a part exchange deal. I'd researched what we could expect for our current van and got offered more or less what I expected. However, we got good discounts on the screen price of new van and some off the extras we are having fitted plus a couple of other items included.
Overall happy but I guess we would all like a bit more.

 

[pappajohn]

I paid £24k for my RV.
4 years later I wanted a quick sale and accepted £16k private cash sale.
Not grumbling, it needed work, some expensive (replacement hydraulic Jack legs @ £500 each).
A year later I saw it advertised on a well known RV dealers website priced at £29k.
£5k more than I paid 5 years earlier and £13k more than I sold it for a year earlier.
There's no logic to dealer pricing.

 

[Phill D]

Dealers have overheads and a profit margin to make, which appears to many of us to be excessive. I try not to focus on the dealer prices. i am of the opinion that the forecourt price and trade in price are irrelevant..... for me its what difference in hard cash am i willing to part with for the change.
if we want the change and i have given it my best shot at a minimum to change cost and it comes within what we are willing to top up then the deal is done.

but we all have our own view on how to deal and what constitutes a good deal for us. that said the simple truth is that a change through any dealer is not going to be the cheapest option but probably the easiest.

 

[peterc10]

There's no logic to dealer pricing.

There is perfect logic. They put it up at the price they think they can sell it for. And if they do sell it, then that is what it is worth. If they don't sell it they reduce the price until they can sell it, and the price they sell it for is what it is worth.

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[Crazylegs]

The vat on the profit of the deal has already been mentioned, add to that some dealers will be using expensive stock in finance plans from lenders like Lombard. This allows them to purchase sufficient stock to make forecourt look good if they are not cash rich.
Being a motor dealer is a fragile business, nationally car dealers only average around 1% profit, I don’t know the figure for motorhome dealers but given that we regularly read about dealers going out of business I suspect the numbers after all costs are similar.

 

[Simon Select]

If a dealer offers you £30,000 for your van and expects to sell it for £38000. You will always have to do a deal, maybe £1000 off.
That leaves you with £7000.
Dealer will lose £1750 for the Vat.
Thats £5250 left in the deal.
Rule of thumb, you will at least spend £2000 on prep ranging from MOT's to fixing scuff on body work, occasionally the dreaded damp to fix.
Other costs include, valeting, fuelling, marketing it, insurance etc etc.

 

[Delboyarapaho]

As people have said dealers have t make a profit and cover costs but sometimes you can get lucky and they have other needs 9such as cash). I had part ex deals lined up with two dealers trading in my 2011 Arapaho against Elegances. Both offered me exactly the same part ex price and the vans being the same price on the windscreen the cost of changes was identical. I left both 1 week to stew and received a call towards the end of the week from one of the dealers who over the phone offered to increase the part ex value by £7.5K. I called the other who wasn't interested in improving the deal they offered so I went to the first and bought the van. Before we picked up our van that dealer had sold my Arapaho for £2.5k more than he paid me. (5%). That says to me that for that dealer, at that time, cash was probably more important than margin. I got lucky but you need to play the market and play the dealers at their own game and only take the deal you are happy with. Remember time is an asset in any negotiation that is yours to use (or otherwise).

 

[gus-lopez]

Here you might be lucky with a MH dealer doing a part -ex. With cars & vans only main dealers will offer an absolute rock bottom part -ex price which they will have obtained from the trade that will be taking it from them at that price.Only one of the main dealers here offers any sort of second hand vehicles.
Rarely will you ever see second hand dealers offering part -ex.If on the odd occasion you come across it the price of the vehicle for sale will Increase .I.e if on sale for 15k & offering to accept a part ex it will state that the vehicle on sale price for part-ex will be 20k.

 

[SteveRallye]

Recently did a deal and got a good return on my old van and a good deal on the van I got. My old van sold within a week and the dealer only made 3k on the PX he gave me. As previous post if you are happy with what you get and the deal is good thats all that should matter.

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