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?

 

[Coastal Cruiser.]

Why are alm these people moaning about what dealers make on their vehicles, it’s simple really if you don’t want people making money from you sell it private and have all the tyre kickers and time wasters coming around and wasting your time!!

I choose to let a mate sell my cars as they tend to be 18-24 months old and he can PX and offer finance, don’t care what he makes I tell him what I would like and normally I get it.
Most times they are sold before I take them over or a few days later.

If I thought he was shafting me I wouldn’t be using him again.

 

[bobnick]

Why are alm these people moaning about what dealers make on their vehicles, it’s simple really if you don’t want people making money from you sell it private and have all the tyre kickers and time wasters coming around and wasting your time!!

I choose to let a mate sell my cars as they tend to be 18-24 months old and he can PX and offer finance, don’t care what he makes I tell him what I would like and normally I get it.
Most times they are sold before I take them over or a few days later.

If I thought he was shafting me I wouldn’t be using him again.

And that's why i walked.

 

[Hymerboy]

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.

Same for me, I wanted £43k they sold it for £47k I think.

 

[MichaelT]

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.

They will not have sold it for that, then they have to pay for valet, anything that needs doing, service and MOT it, then offer some sort of warranty and as stated above pay VAT on the profit.

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[CazPaul]

There’s a lot of factors at play here.

It’s the fact that a lot of dealers pretend and tell you your car/van isn’t worth much, there’s no call for them etc, but I’ll take it off your hands at a push.
People get annoyed with that, dealers would be better saying” it’s a nice vehicle I’m going to sell it for £15000 etc more than I’m offering you, I’ve got a business to run, work to do on it, offer a warranty, habitation check, wages to pay, rent, overheads etc.

But then if they told the truth would some folk try to then sell it themselves?

 

[Coastal Cruiser.]

And that's why i walked.

Exactly,,,, but you could have done the deal then had a good whine about it

 

[Steve and Denise]

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.

Correct

 

[Simon Select]

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?

I have sent you two private messages now!
P.S. if you are going to sell it privately, get rid of the photo of you with the dog in there.
I love dogs however not everyone does and people that don't own a dog won't want a van that's clearly had a dog!

 

[Gizmouk]

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?

Don't forget overheads - flash showrooms, salespeople with cheap suits and fake watches, huge level of "dead money" tied up in stock. Then all the boring stuff like insurances, wages, pensions etc. Then the damn customers who now want decent coffee, warranties - and that's before the rip the backside out the salespeople with the cheap suits andfake watches for discounts / extras etc.
The smart person buys second hand - a year or two old. Some other mug has take the the showroom exit loss, after adding extras (which add very little to the intrinsic vehicle value), and then had the obligatory snagging done.

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[Simon Select]

Don't forget overheads - flash showrooms, salespeople with cheap suits and fake watches, huge level of "dead money" tied up in stock. Then all the boring stuff like insurances, wages, pensions etc. Then the damn customers who now want decent coffee, warranties - and that's before the rip the backside out the salespeople with the cheap suits andfake watches for discounts / extras etc.
The smart person buys second hand - a year or two old. Some other mug has take the the showroom exit loss, after adding extras (which add very little to the intrinsic vehicle value), and then had the obligatory snagging done.

Wow, thanks for the generalising of sales people.........
If it helps, I wear a body warmer with a polo shirt and don't own a watch........

 

[Soycd]

The smart person buys second hand - a year or two old. Some other mug has take the the showroom exit loss, after adding extras (which add very little to the intrinsic vehicle value), and then had the obligatory snagging done.

Bit patronising. So how would you class anyone that buys new? Not very smart? bit dim? I've bought 6 months old 5 times, about to buy a new one, where am I on the 'smart' scale then?

 

[bobnick]

Wow, thanks for the generalising of sales people.........
If it helps, I wear a body warmer with a polo shirt and don't own a watch........

I bet you have a sheepskin coat though

 

[Simon Select]

I bet you have a sheepskin coat though

Does Jerry count?

 

[Ralphey]

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?

Near 40% mark up seems very high to me

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[Silver-Fox]

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.

This has always been a mystery to me.

It’s possible to pay multi times of vat on one item.

 

[Silver-Fox]

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.

Then only the service should be vat charged but it includes the profit on the van as well.

 

[Silver-Fox]

Why are alm these people moaning about what dealers make on their vehicles, it’s simple really if you don’t want people making money from you sell it private and have all the tyre kickers and time wasters coming around and wasting your time!!

As you say if you’re selling and not happy with the amount don’t sell.

It’s the same in the building trade, price a job and people moan you are making too much money.
If so move on to another qoute

 

[Coastal Cruiser.]

As you say if you’re selling and not happy with the amount don’t sell.

It’s the same in the building trade, price a job and people moan you are making too much money.
If so move on to another qoute

Yes and nobody ever offers you more money if you have priced a job and lost money on it

 

[Funkmachine]

Well Brownhills (year to Sep22) made a net pre tax profit of £7m on £87m revenues which is hardly excessive - oh, and they have changed into an Employee Owned Trust!

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[Tony50]

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.

Good idea, I done that years ago with a local dealer, they put their markup on , I didn't care what they sold it for I was satisfied

 

[Tony50]

Yes and nobody ever offers you more money if you have priced a job and lost money on it

I totally agree

 

[Silver-Fox]

Yes and nobody ever offers you more money if you have priced a job and lost money on it

Strange that isn’t it

 

[Silver-Fox]

Well Brownhills (year to Sep22) made a net pre tax profit of £7m on £87m revenues which is hardly excessive - oh, and they have changed into an Employee Owned Trust!

Effectively smallish return on high risk.

This would also include servicing and spares sold so they arnt making a fortune.

Unless the employees are on massive wages

 

[The Wino]

Then only the service should be vat charged but it includes the profit on the van as well.

The service provided by the dealer is retailing the van. The vat is therefore the difference between the price the dealer pays for the van and what they sell it for the same as any other trade. They can of course reclaim vat on any overheads parts services bought in as part of their trade. As I pointed out if vat applied more than once to the actual motorhome it would be a straight 20% of the retail price and it isn't.

In the example of the building industry vat is on what they charge in total including presumably the element that is profit it is after all a value added tax

I don't see it as too hard to grasp.

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[VXman]

I find it amusing when a buyer thinks they got an excellent price for their van on trade in for a new one. What they don't realise is that the dealer screwed them over on the purchase price of the new van. Then there's the bloke who got it new motorhome really cheap but doesn't realise the dealer screwed him on the trade in value of his present motorhome.

Whatever way you look at it the dealer always wins. Unless - you sale privately and sell well, and then pull off a good deal for cash at the dealer or wherever you go to buy.

It's all smoke and mirrors.

 

[Silver-Fox]

The service provided by the dealer is retailing the van. The vat is therefore the difference between the price the dealer pays for the van and what they sell it for the same as any other trade. They can of course reclaim vat on any overheads parts services bought in as part of their trade. As I pointed out if vat applied more than once to the actual motorhome it would be a straight 20% of the retail price and it isn't.

I don't see it as too hard to grasp.

I understand all of your post.
But their service wouldn’t amount to say 10 or 12k per vehicle.
Hence my post.

 

[Steve and Denise]

The service provided by the dealer is retailing the van. The vat is therefore the difference between the price the dealer pays for the van and what they sell it for the same as any other trade. They can of course reclaim vat on any overheads parts services bought in as part of their trade. As I pointed out if vat applied more than once to the actual motorhome it would be a straight 20% of the retail price and it isn't.

In the example of the building industry vat is on what they charge in total including presumably the element that is profit it is after all a value added tax

I don't see it as too hard to grasp.

It is for some

 

[Silver-Fox]

I find it amusing when a buyer thinks they got an excellent price for their van on trade in for a new one. What they don't realise is that the dealer screwed them over on the purchase price of the new van. Then there's the bloke who got it new motorhome really cheap but doesn't realise the dealer screwed him on the trade in value of his present motorhome.

Whatever way you look at it the dealer always wins. Unless - you sale privately and sell well, and then pull off a good deal for cash at the dealer or wherever you go to buy.

It's all smoke and mirrors.

The way I see it is you’re screwed over if you had to sell to a dealer with a gun to you’re head.

As we know this isn’t the case and you can walk away if not happy.

 

[Swozer]

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

I'm not sure if many people on here understand VAT. VAT is a consumption tax on the end-user. Dealers don't suffer VAT as such, they are merely collection agents for HMRC. The pay over the difference between their input and output VAT via quarterly tax returns (they collect more VAT from us than they pay out to their suppliers, hence the pay-out of the difference to HMRC). They only "suffer" from Corporation Tax . But if the OP's van + extras was say £72k, the cost was only £60k, with £12k going to HM Treasury. So £60k is prob your best starting number. Please correct me if wrong.

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[The Wino]

I understand all of your post.
But their service wouldn’t amount to say 10 or 12k per vehicle.
Hence my post.

What else is the 10 to 12 k other than the value added! It's in effect the dealers charge for retailing the motorhome. It's not all profit of course as they have all the overheads of the buisness like premises,heat light power,staff,parts fitted, valeting ,advertising etc plus an element of profit. They will reclaim the vat on the vat able inputs and pay the net amount on their vat return which in effect is the net cost of their service in selling motorhomes.