Part-ex & trade-in Is it just me or ....

[Allanm]

I know that buying abroad is a different kettle of fish to the UK and of course the value of your PX will be influenced by what use it's had as well as what extras you've fitted, making it more attractive to a dealer. Perhaps more of us should buy abroad!

I wonder if non U.K. manufacturers sell their vehicles at the same price to Euro and UK dealers. If not, I am sure the difference in cost prices are marginal. I know some dealers will get a discount if they buy in high numbers but most new motorhomes are similar prices at all dealers, excluding special offers and shifting of old stock.

We bought our motorhome near the end of last year in France. We had been looking at near identical vehicles in the UK and were surprised at the lower costs in France. The van we bought had no equivalent model in the UK, being a special edition, but now a similar model has been released in the UK, at £18000 more than ours was. ( the new 2019 model in France is the same price we paid for ours.)
How can U.K. dealers justify this huge difference?

 

[tonyidle]

How can U.K. dealers justify this huge difference?

They don't have to. People buy them.

 

[Lenny HB]

I wonder if non U.K. manufacturers sell their vehicles at the same price to Euro and UK dealers. If not, I am sure the difference in cost prices are marginal. I know some dealers will get a discount if they buy in high numbers but most new motorhomes are similar prices at all dealers, excluding special offers and shifting of old stock.

We bought our motorhome near the end of last year in France. We had been looking at near identical vehicles in the UK and were surprised at the lower costs in France. The van we bought had no equivalent model in the UK, being a special edition, but now a similar model has been released in the UK, at £18000 more than ours was. ( the new 2019 model in France is the same price we paid for ours.)
How can U.K. dealers justify this huge difference?

Most continental dealers shift far higher quantites and work on much lower margins also their over heads are lower the don't have our stupid business rates for a start, land is cheaper etc.
Our last van our dealer gave us €60,000, told me he would sell if for €62k without a warranty or €65k with a warranty. True to his word it was up on his website for £65,500, he would have taken an offer on that and had to pay the vat content.

 

[Coolcats]

I was recently told by a sales manager at a pretty large dealer that their net profit on their last years sales figure was around £400.00 per van. I was a bit dubious of this, but on reflection, I believe him now. Modern business costs for a reputable and well set up company are mind boggling compared to say 20 years ago, I'm glad I'm out of it now.

Anyone know what say Brownhills bottom line was last year?

Your probably right, a car dealer looks for about £3k when they sell a car, after overheads there probably isn’t much more business profit than £400. It’s always about the deal when I did a deal on my last car I had been give. A trade in price I had negotiated the price of the car down and when The deal was almost closed I said to the salesman there is a bit more in there how much more movement have you got he said £50 so I said would it be rude if I asked if I could have it so he knocked the final £50 off. The sales guys want to sell the buyer wants to buy so just negotiate it can be fun for both sides in doing a deal.

 

[Cheshirecat57]

Cars are different to motor homes in so much that the depreciation on cars is much higher than the (uk) public will ever accept
All has to be hidden by false margin and px over-allowance and discount

If “discount” did not exist in Uk car industry, it would be a better place for all

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[The Wino]

Most continental dealers shift far higher quantites and work on much lower margins also their over heads are lower the don't have our stupid business rates for a start, land is cheaper etc.
Our last van our dealer gave us €60,000, told me he would sell if for €62k without a warranty or €65k with a warranty. True to his word it was up on his website for £65,500, he would have taken an offer on that and had to pay the vat content.

Presumably as in the UK the VAT content on his margin not the full price (a common misconception not suggesting thats what you meant).

 

[Lenny HB]

Presumably as in the UK the VAT content on his margin not the full price (a common misconception not suggesting thats what you meant).

Yes it would only be in the margin. What I was trying to point out is that after he had discounted the price, the margin left is far lower that what UK dealers work on. And don't forget it's Euro not pounds.

 

[DL42846]

When I bought a new to us Motorhome about four years ago I paid 27500€ for it. That was after haggling and getting a new TV and fitting plus a three month guarantee.. On looking at various websites and ebay the price was right.
A few months later I was at the dealer where I bought it when a guy came running over and started chatting. It transpired that he had sold the van to the dealer for 20000€. He was rather upset and shot off to see the dealer he had done business with.
I sold the van two years later for the same price I bought it for.

 

[Silver-Fox]

It transpired that he had sold the van to the dealer for 20000€. He was rather upset and shot off to see the dealer he had done business with.

This is what frustrates me about people selling anything really.

The owner is accepting the amount they want.
If someone buying makes money out of it that’s up to them.
If you arnt happy with the amount don’t sell it.

I work as a subby in the building game.
I don’t get the amount I’m charged out at to the customer.
If I was the bloke using me would go bust.
It really is that simple.

 

[Northernraider]

Many years ago I had a tea bar on Hayling Island. We sold a cup of tea for 11p
The cup cost 1/2 p and the tea, milk and sugar cost another 1/2 p.
I lost money.

So the gross profit on a cup of tea was 10p from the 11p charge. But the rent, electricity, and staff costs took the profit and more. A Motorhome dealer will have huge overheads and needs to make a good profit on every sale.
Don't forget if you buy from a dealer you will have a warranty new mot etc.
You get what you pay for

Because if course they all do it out the goodness of their hearts lol.

Many dealers don't even fix the faults some just give it a wash a Hoover and add 10k to the price they have you for it.

I viewed some right pieces of crap in dealers forecourts and the 2 vans my sister has bought from dealers have had various faults etc.

Personally I'd never buy from one I'll sell privately and buy privately usually making a profit in the sale cause it's true as they say you don't make money when you sell something you make it when you buy it
So but privately at a good price look after it and sell it for the same or a profit when you're done.

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[Langtoftlad]

Convenience is a commodity and that has a price.

 

[gus-lopez]

The owner is accepting the amount they want.

Too much is never enough.

 

[Coolcats]

Each sale and purchase is different, and whilst I don't disagree Motorhomes have a lower depreciation the principle is the same, it just the margins that differ.