What mark up do dealers make on MH's (1 Viewer)

[davidathomas42]

So ill be done with mine around mid April and started having a feel around what dealers would buy it for cash.

I know its the worst time. April/May will be start of the season and probably good timing to adjust prices north.

I paid £68,500 and have dropped another £5k+ in to the van in Victron and Lithium upgrades along with a few extra bits.
Comparable models for sale are only a few. But £65k £72k and one with delivery miles at £79k without the upgrades fitted this is.

3 Dealers have made offers of £47k. £50k & £54k!

The one at £47k tried telling me its only with £65k retail.... Ok so thats up to £18k mark up. Bearing in mind its a 21 plate with van varranty still and Bailey warranty for a few bits still. Last hab check done in Nov 23. Not much to warrant really so minimal risk.

Do they really expect that much mark up. Or is it just time of year not wanting stuff unless its silly cheap?

 

[Simon Select]

We have just agreed our first Franchise and yes it’s German!

 

[Coastal Cruiser.]

Just got back from Germany with big news!

What don’t tell us you have found some edible schnitzel

 

[WESTY66]

We have just agreed our first Franchise and yes it’s German!

Go one, spill the beans

 

[Steve and Denise]

We have just agreed our first Franchise and yes it’s German!

Lenny HB your van is on its way

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[WESTY66]

Morelo southern branch?

 

[Coastal Cruiser.]

Morelo southern branch?

He wouldn’t stoop that low would he

 

[Just smiffy]

We have just agreed our first Franchise and yes it’s German!

German shepherd’s….

 

[Lenny HB]

I know what it is but I'll let Simon tell you.

 

[Grey Fox]

The dealer has to pay 20% vat on the profit that is made when the van is sold again, so a £12,000 margin comes down to £10,000 before overheads.

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[WESTY66]

I know what it is but I'll let Simon tell you.

I’m a bit disappointed he hasn’t sought my advice

 

[Silver-Fox]

I know what it is but I'll let Simon tell you.

Now we know who the favoured one on here is

 

[Spriddler]

We have just agreed our first Franchise and yes it’s German!

Frankiafurter?

Alzhymer?

 

[WESTY66]

Well do we know what it is yet?

My moneys on something I can’t afford

 

[Steve and Denise]

The dealer has to pay 20% vat on the profit that is made when the van is sold again, so a £12,000 margin comes down to £10,000 before overheads.

We all have to pay 20% vat

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[Millcourt]

We all have to pay 20% vat

Not when you sell a MoHo privately. Only a Dealer who is VAT registered pays VAT on the difference between price paid and price sold for second-hand vehicles.

 

[Steve and Denise]

Not when you sell a MoHo privately. Only a Dealer who is VAT registered pays VAT on the difference between price paid and price sold for second-hand vehicles.

You have already paid vat when you purchased your van! Why would you as a private seller pay again

 

[Millcourt]

You have already paid vat when you purchased your van! Why would you as a private seller pay again

Sorry if I am adding to any confusion. I was just trying to make clear that Dealers have to pay Vat on the margin when selling a second-hand vehicle. Obviously private sellers do not. So, when a Dealer decides on the mark-up, he has to include the VAT he will have to pay.

Of course, this begs the question as to why any further VAT should ever collected by HMRC when VAT was paid when the vehicle was new.

 

[Simon Select]

Also don't forget that we have to pay VAT on any profit we make.........

 

[bobnick]

On the theme of mark up.
Last week i went to Blackburn in the hope of buying a nearly new Mini, 23 Reg, 1740 miles.
I did research on the sale of our Fiat Dolcivita, same are selling for between £11k and 11.5K.
Knowing the dealer is a business i was prepared to accept £9.5 or there abouts.
He offered £7k in PX.....................i walked.
Accept it or don't, i didn't. He would have put the on the forecourt at £11,250/£11,500. Not a bad margin on a circa £10k car eh, £4 to 4.5k. I know i know he has to pay this that and the others, i have been in business i'm aware. Not bad trading if you are selling 100 cars a week as he boasted.

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[The Wino]

Sorry if I am adding to any confusion. I was just trying to make clear that Dealers have to pay Vat on the margin when selling a second-hand vehicle. Obviously private sellers do not. So, when a Dealer decides on the mark-up, he has to include the VAT he will have to pay.

Of course, this begs the question as to why any further VAT should ever collected by HMRC when VAT was paid when the vehicle was new.

You're in effect not paying vat on the motorhome but on the services the dealer provided no difference to paying vat on the services of a builder or mechanic or anyone else.

 

[Steve and Denise]

You're in effect not paying vat on the motorhome but on the services the dealer provided no difference to paying vat on the services of a builder or mechanic or anyone else.

Correct and ultimately the customer pays the vat as it’s inclusive

 

[The Wino]

Correct and ultimately the customer pays the vat as it’s inclusive

But the point is that vat isn't being charged twice on the motorhome if it was it would be 20% of the total paid not just the dealers margin.

 

[Carpmart]

Lol. Well I have many hobbies.

But I’m a car guy. I’d like to own one of everything before I die. I don’t have the money to keep them all or a big enough garage. So I buy a lot of cars and run them and sell at the same time ready to get the next one.
Yes I spend a lot of time browsing eBay

In 2022 I had 3 different Mercs. an MX5. A Ford Pick up. An electric car and my Harley.

I don’t know you, but I like you!

 

[OnlyTony]

You don't know what profit is for?

So they've sold all their vans this year, paid themselves. Made no profit. So how do they buy another van to sell, Or advertise their business, expand their business premises, or even pay wages on the 30th Jan.

You and me both as iv still got nothing left.

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[WESTY66]

Also don't forget that we have to pay VAT on any profit we make.........

See Simon, when we deal just think of all the vat I save you

 

[Bazzagas]

Motorhome Depot worked fine for us.

We told them what we wanted, they did all the advertising and vetting of buyers. Sold within a couple of weeks to the first couple who came to see it.

Full cash transfer on collection. I wanted £48k, I believe they had it advertised for £52K.

Another shout for motorhome depot...I sold my nissan elgrand with them...it went very quickly..then we bought a motorhome off them...hey were great...I think they aim for around 10% ...I would use them again...

 

[RobSelectMotorhomes]

So ill be done with mine around mid April and started having a feel around what dealers would buy it for cash.

I know its the worst time. April/May will be start of the season and probably good timing to adjust prices north.

I paid £68,500 and have dropped another £5k+ in to the van in Victron and Lithium upgrades along with a few extra bits.
Comparable models for sale are only a few. But £65k £72k and one with delivery miles at £79k without the upgrades fitted this is.

3 Dealers have made offers of £47k. £50k & £54k!

The one at £47k tried telling me its only with £65k retail.... Ok so thats up to £18k mark up. Bearing in mind its a 21 plate with van varranty still and Bailey warranty for a few bits still. Last hab check done in Nov 23. Not much to warrant really so minimal risk.

Do they really expect that much mark up. Or is it just time of year not wanting stuff unless its silly cheap?

So ill be done with mine around mid April and started having a feel around what dealers would buy it for cash.

I know its the worst time. April/May will be start of the season and probably good timing to adjust prices north.

I paid £68,500 and have dropped another £5k+ in to the van in Victron and Lithium upgrades along with a few extra bits.
Comparable models for sale are only a few. But £65k £72k and one with delivery miles at £79k without the upgrades fitted this is.

3 Dealers have made offers of £47k. £50k & £54k!

The one at £47k tried telling me its only with £65k retail.... Ok so thats up to £18k mark up. Bearing in mind its a 21 plate with van varranty still and Bailey warranty for a few bits still. Last hab check done in Nov 23. Not much to warrant really so minimal risk.

Do they really expect that much mark up. Or is it just time of year not wanting stuff unless its silly cheap?

Simon Select

 

[CazPaul]

So ill be done with mine around mid April and started having a feel around what dealers would buy it for cash.

I know its the worst time. April/May will be start of the season and probably good timing to adjust prices north.

I paid £68,500 and have dropped another £5k+ in to the van in Victron and Lithium upgrades along with a few extra bits.
Comparable models for sale are only a few. But £65k £72k and one with delivery miles at £79k without the upgrades fitted this is.

3 Dealers have made offers of £47k. £50k & £54k!

The one at £47k tried telling me its only with £65k retail.... Ok so thats up to £18k mark up. Bearing in mind its a 21 plate with van varranty still and Bailey warranty for a few bits still. Last hab check done in Nov 23. Not much to warrant really so minimal risk.

Do they really expect that much mark up. Or is it just time of year not wanting stuff unless its silly cheap?

Are you giving up motorhoming?

 

[Realist]

Dont mention markups from dealers or stealers.

I purchased a BMW X6 and me in my great wisdom went back to the garage I purchased my part ex car from thinking I'll get a good deal so.....

Jaguar XF 2014 purchased for cash 3 months before for £14,000 garage said best we can do is £12,000 part ex so ok deal done.
I was sat in the office finishing off the paperwork and outside they was washing the Jag and before I left it was on the forecourt for £15,000.

Markups my arse, robbing gits.

Anyway, X6 was a bag of shite for has Jag back after many arguments.

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[MontyB]

Recently part ext a MH dealer was adamant it would be hard to sell on so settled for £54,000 only to see on my return to the dealership up for £69,995 hope it is on their fore court for at least the next five years underhanded bast#?ds