Parts-King
November 22, 2007, 1:54 pm
You are not going to get retail money for your car if you sell it to a dealer. The dealer will have to make his margin, pay for servicing, valeting, interest charges, VAT etc. A dealer can always drop his price, and that's what happens when the car sits on the forecourt at say 21K for a month, then the book price drops at the month end, so the dealer has to drop the pice a bit, and that happens each month until the car is sold. Joe Egg comes in to buy the car and the dealer then tailors a deal using some of the margin he has in the forecourt car, against the part ex you want to bring in. At the end of the day, if the dealer doesnt make 1K gross margin on a car, he will probably soon be out of business, considering the above mentioned costs that have to come out of that 1K gross profit
There is considerably more money in used cars than new ones, and depreciation the day after you take it out of the showroom is considerable (just think of the VAT on a 28K car, you will never get that back) There is always a difference between buying in and selling out price, the trouble is, we all want retail price for our part exchanges and to pay trade prices for our next used car, sadly, its not going to happen
Parkers has the car new at 27K, Dealer used price 21,245, Part exchange price 18,425, so I dont think you were offered a bad deal at 19K, it's just not what you were looking for, but our expectations are always higher than reality
[url="http://www.parkers.co.uk/cars/used-prices/Valuation.aspx?deriv=33666&plate=81&issue=0"]
Parkers prices T180 RAV[/url]
Kingo