Dealers Profit Margin

Porsche 100 replied on 09/05/2019 09:20

Posted on 09/05/2019 09:20

For various personal reasons our motorhome is not going to get the use it needs and we have therefore decided to sell. We prefer to go to a dealer and are prepared to 'take a hit' on value but just how much should we accept? We have established that a dealers price would be £35000 and are prepared to accept £30000 but is this a big enough margin? Do dealers operate on a bigger margin? I appreciate that it depends on condition and extras etc., but it has been well maintained, is  well looked after and has many small extras, so we would be very surprised if a dealer had to spend a significant amount to market it.

Any opinions/comments would be appreciated.

 

 

 

 

Tinwheeler replied on 09/05/2019 09:30

Posted on 09/05/2019 09:30

Don’t forget that a dealer has to pay vat so the windscreen price will not all go in his pocket. Also he has to bear the cost of possible warranty issues so will make an allowance for that. 

I reckon your £30k is optimistic. 

MichaelT replied on 09/05/2019 09:37

Posted on 09/05/2019 09:37

Dealer may advertise at 35k but likely he will sell it for less.  They have to clean and service it and as TW says VAT, warranty and fixing any problems so I would say you are 2-3k off the mark.

SteveL replied on 09/05/2019 11:15

Posted on 09/05/2019 10:20 by brue

Why not go for a brokerage deal, you agree a sale price and the dealer takes a fee. smile

Posted on 09/05/2019 11:15

Trouble is with those there is not enough incentive for the dealer to push it, over selling his own vans on which his margin will be higher. We tried selling the late father in laws van in this manner and ended up selling it to the dealer before we would have needed to reinsure it.

brue replied on 09/05/2019 13:26

Posted on 09/05/2019 13:26

Yes, much depends on the circumstances, how soon payment is wanted and the reasons for selling etc.

 

Oneputt replied on 09/05/2019 14:47

Posted on 09/05/2019 14:47

You could find a dealer who will act as a broker to sell your van.  I did this with a caravan about 4 years ago.  Paid a fix price which included, valet, display, advertising etc.,  Van sold in a month and I made nearly twice as much as I was offered for part exchange.  Might be worth you exploring

Oscarmax replied on 09/05/2019 18:38

Posted on 09/05/2019 09:20 by Porsche 100

For various personal reasons our motorhome is not going to get the use it needs and we have therefore decided to sell. We prefer to go to a dealer and are prepared to 'take a hit' on value but just how much should we accept? We have established that a dealers price would be £35000 and are prepared to accept £30000 but is this a big enough margin? Do dealers operate on a bigger margin? I appreciate that it depends on condition and extras etc., but it has been well maintained, is  well looked after and has many small extras, so we would be very surprised if a dealer had to spend a significant amount to market it.

Any opinions/comments would be appreciated.

 

 

 

 

Posted on 09/05/2019 18:38

We have been down this path you may be looking at around £12000 - £15000 , we ended up selling it privately.

Fisherman replied on 10/05/2019 18:57

Posted on 10/05/2019 18:57

Recently sold our van through Autotrader. Many dealers enquired and their prices was top teens, I took that as an average £18K. Selling privately I was asking £29K and got £27K. It was easy, Autotrader  web site very helpful with tips on preparing your advert. Warnings on Scams. How to take payment etc. Total cost £49.

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