john banks

It is like people selling houses that think they are "worth" more than someone is willing or able to pay. Purchasers have loads of choice.

On Pistonheads, someone mentioned you can get a 997 Turbo at 20% off list, unregistered, UK model. People have been trying to sell two year old models for that until recently. Some of this stuff is dropping £2-3k a month.

ross d

the dealers had this exige for 3to4months now,so my thinking was that he may accept a cheeky offer.he might break even or even take a small loss but at least he would still be getting a good chunk of cash to put back in to the business.mind you he may be doing ok

Hoppy

<hobby-horse mode on>

Reality check.

Sell at a loss if you have to, or die. Cash flow is the life blood of business. It's a good analogy. You can have a body full of blood, but unless it's pumping around your system, you'll die. And your business with it.

Some dealers will have to sell some stock at a loss, take the hit, get the cash re-invested in something that will sell, re-set the business model (much lower), suffer some real pain, but ultimately survive.

On the other hand, dealers that have known nothing but 20 years of prosperity, and have the stubborn arrogance to go with it, are going to see their stock pulverised at the inevitable bankruptcy auction.

Richard.

<hobby-horse mode off>

Terminator X

iTrader: (7)

It's worth a punt at any level I guess; I would throw you out though if you went in at that other chaps derisory offer

TX.

Terminator X

iTrader: (7)

Hoppy.

I don't agree. If they constantly lose money on every car they will go out of business, cashflow or no cashflow.

TX.

Hoppy

Hey TX I didn't think you'd agree, but that's not what I said. It's a crap dealer indeed that has got nothing at all apart from over-priced stock. They deserve to go bust.

The point I make is that if dealers are prepared to take very hard and difficult decisions now, cut their losses and reshape their businesses quickly and efficiently, they can survive. If business was easy, we'd all be rich wouldn't we? Any dealer expecting things to pop back up again with the daffodils is a gonna.

If you have £1m of stock, that you are trying to sell at £1.2m and nobody buys, then you're finished. But if you are truly courageous enough to let it go for £800k, you can restructure a business around that scenario. It's as obvious as the nose on your face, but very difficult to actually do. (Sorry to be serious )

That is why, when we come out the other side of this difficult time (made far, far worse by the media constantly knocking back consumer condidence at every turn) the businesses that make it will be very well managed, and will prosper.

Apologies and BR,

Richard.

Simon C

Theres a 55 plate Forester at the top of my road (independant) who on christmas eve wiped £1k off the screen price. From 7k down to 6k and I think more is to follow.

If it weren't for the £350 car tax, I'd buy it.

Hoppy

It's stuff like that which is also affecting apparently similar cars, when you look a bit closer. There are some useful tax breaks on big-engined pre-2001, and also pre-2006 cars (although the hike up to £400 on the latter has been postponed for now). That itself can be worth a grand over five years.

Buying a big car might be a bargain now, but running costs have not come down much, and will not. That's the thing making gas-guzzling, tyre-tearing, service-shocking, tax-terrible and insurance-'orrible performance/luxury cars so cheap

Richard.

Edit: I forgot brake-bashing

SimonD

It always makes me laugh when "people in the trade" talk about what a car owes them............ as if this has any bearing on its value.

I paid EUR1.50 for every pound I bought last summer. I went to the FX clerk at the bank the other day when I wanted to change back to Euros and she offered me just 1 euro for each pound!!!!
I kicked her out on her **** and told her they (the pounds not the bank) owed me 1.50. Silly cow!!!

thesyn

Cannot believe some dealerships. An independent up the road. had a 350z which they gently reduced from 17k to 14k then I presume unloaded. They have an M3 CSL which is gradually falling from 30k now approx 27k (recently mentioned in autocar). Their newest aquisition is an sl 55 amg for 27.5k ( I was interested in a chat about this ). Their stock really does not seem to change, I went up there today and wandered around for 20mins and was not even spoken to.
Is this some money laundering operation I wonder?

FlightMan

Offer whatever you're prepared to pay. If that's 14k for an 18k car, the offer 14k.If they laugh at you, walk away.

In 6 months you can go back and laugh at them as the padlocks are put on the doors.

hodgy0_2

car dealerships aren’t museums

and idiots with more money than sense are slighlty harder to come by these days

so like other posters have said the successful dealers will cut losses raise cash and re buy stock at sellable prices

remember if your not embarrased by your first bid -- its too high

what would scooby do

Nope, they know serious buyers will go direct to a member of staff. Tyre kickers just amble around the forecourt

Terminator X

iTrader: (7)

Why leave it there, offer them £500 ...

TX.

Luke

VERY VERY true. people dont want sales people bothering them if they just want a casual look around.

Luke

Heard "Alan Day" is having talks with the banks.......

By order from the banks head offices !!

FlightMan

For a £1500 car, yes.

thesyn

Originally Posted by thesyn
Cannot believe some dealerships. An independent up the road. had a 350z which they gently reduced from 17k to 14k then I presume unloaded. They have an M3 CSL which is gradually falling from 30k now approx 27k (recently mentioned in autocar). Their newest aquisition is an sl 55 amg for 27.5k ( I was interested in a chat about this ). Their stock really does not seem to change, I went up there today and wandered around for 20mins and was not even spoken to.
Is this some money laundering operation I wonder?

Nope, they know serious buyers will go direct to a member of staff. Tyre kickers just amble around the forecourt

So it was you in the Burton suit, chain smoking and jabbering on your mobile who was too busy to talk about selling cars to me then

RyanSTI

iTrader: (1)

ok so your selling a car privatly, you want to get rid of it, so you've priced it so its extremely competive. Its mint, brillant car you love it. i come along and want to buy it, its up for 10grand, and your prepared to have a deal for a couple of hundred less. i roll up with cash and offer your 5 grand, because i feel thats all its worth.

what do u do? throw the guy out of your house? laugh in his face. flipping the coin is interesting some times.

Terminator X

iTrader: (7)

^^ Take you to court for wasting my time?

TX.

FlightMan

Correct. Of course, you'll loose, throw a temper tantrum and be held in contempt.

"Take him down"

Hoppy

Not sure what your point is Ryan. The price that matters is not what the seller thinks its worth, nor what the buyer would like it to be. It's what the market says it's worth which counts, the price set by current actual buyers and sellers doing real deals.

If it's priced that way, it will sell. If it's not, it won't. I've seen enough to know that already, as I'm sure you have to. And you still haven't let on which Cambs dealership you're at, so we can have a laugh at eachother in person

Richard.

nixxon

Not necessarily. All the profit in the world isn't any good if there is no cash coming in! The dealer may be prepared to sell at a loss to pay his bills.
It's a business like any other- They need cash-flow more than short term profit.

Hoppy

That RS4 above is now sold. And not to me That's less than a week from the ad appearing to the car going, and with Xmas inbetween!

This is just the kind of car which, apparently, is supposed NOT to be selling - an expensive high performance gas guzzler. But at £29k, the price is obviously right for today's market.

I rest my case.

Richard.