v8voodoo

I'm gobsmacked.

What a cheek....

P/x'd my old '03 Blobeye WRX into a dealer against a new Spec D.

I don't mind talking figures here, so I got £7.5k trade in, which I figured was right-ish, considering it had a couple of bad scratches, a broken spotlight and a few other bits and bobs that needed doing.

Now they have it up for sale on their website at £10, 995....!!!

That's a £3.5k mark-up.

I'm not bothered, but that's a bit much I thought, what do you lot think..?

Nige.

Ryo

It may not add up to 3.5 but if.....

- They have fixed scratches and broken spotlight
- They have given the car a full polish / valet
- They have given the car a service or done fluid changes
- They have added a warranty to the car

that could add up to quite a bit, and they want to make a profit, and of course commision for Mr Sales Man.

I could be way off here though.

what would scooby do

It's a business, get over it

wrx-kris

plus it prob includes lee-way money too.... (ie letting it go slightly cheaper)

nik52wrx

They also have overheads to pay and the small matter of a profit to make.
At the end of the day part exchanging is never going to make you the most cash for your car.
Nik.

v8voodoo

"...I'm not bothered..."

badgersport

In all probability the car will go for around £10K, dropping their markup to £2.5K. Painting the scratches, replacing the foglight, servicing, valeting and adding a warranty will have cost them another £1K or so leaving around £1.5K markup - about what I would expect.

speedking

Did you pay list price for the Spec D?

SPG

The Dealer will also have to pay VAT on the margin!

RobinSherwood

and they will presumably be offering a warranty on the used car and will have factored in an amount for the 'risk' on that

corradoboy

I was offered £8k by one dealer for mine last year by a robbing tw@t who already had a car of the same age with higher mileage and lower spec on his forecourt for £12.5k. Eventually sold it for £11k privately, but it was a long hard slog waiting for a buyer to come along. Has put me off getting another, but not too much I did well and lost much less than just about everyone else I know who's sold on. Bought for £16.4k and sold for £11k after just under 3 years. One guy I know had his STiPPP with mods owing him IRO £30k go for £15k after just 2 years. Factor in fuel and insurance and they are a frightening car to own and run financially.

v8voodoo

Scratches & spot = £500 tops.
valet & polish = £50..? (It was very clean anyway).
Service = £400 tops
Warranty = £800..? (Not sure what they cost these days)
Road tax = £210 (I think?)
total = £1960, so we'll call it £2k, plus £7500 = £9.5k

Which leaves £1500 profit, so knock £500 off bartering leaves £1k profit.

Which isn't actually all that much really, is it....!?!

Answered my own question there...lol!!!!

v8voodoo

Good point, nope.

I paid far less than list, but my trade in price of £7.5k was near as damn it what I was expecting from any dealer for any car, so I'm a happy bunny anyway. Just feel a bit for the fella/gal that's going to shell out for my old car.

chrisgreenall

The thing to always bear in mind with cars (unless you are in the trade) is that you buy at retail and trade in at trade and there is a difference....

Chances are that if your car was not mint, they would have given you less than trade value for it.

The other thing is that often there are so many cars on the market they can get away with buying cars in at less than trade....

Luminous

iTrader: (3)

Not unless the rules changed when I was not looking. When you buy a car new your pay VAT, so that is the VAT paid and done with. There is no VAT on second hand goods in this country (don't think there are any exceptions).

They will have to pay tax on the profit.

scubbay

iTrader: (61)

Im afraid that your mistaken as vat has to be paid on every pound between the purchase and selling price. e.g bought for 7500 and sold for 9000 the vat has to be paid to customs and excise of roughly £218.75 and then the dealer is taxed after that...

scoobyboy

i like ferraris but that don't mean i can service one!

Luminous

iTrader: (3)

Hmmm, you sure about that scubbay, thought there was not VAT on second hand goods

speedking

Quick google.

anthscooby01

According to local Scooby dealer there has to be at least £1200 profit in a car if they have it for a week or less. More than that cost goes up due to showroom costs etc. Got £8700 for my 01 WRX and paid £17177 for the 53 STI PPP. Hmmm some profit there me thinks!!