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?

 

[Tombola]

No they do expect that Mark up.

they are in business, and as such have to check the van prep it, fix any crap on it, advertise it, and a whole load of other things.

I have sold a few to dealers, and although it can hurt a little £ wise, there is the advantage of they take it and your done. But I always remember they have to make money.

Though of course, as ever there are some good and some bad

 

[iandsm]

If the van is as you describe I would have thought a decent dealer would bite your arm off for it, A quick service good clean and math warranty for a quick turn around just as the season is starting and people are looking for good vans the one who offered 54K could sell at 65k and his expenses too our it on the forecourt wouldn't be much more than 1.5 or 2k. so a nice little profit. o think the one who offered 47k is probably a shyster.

 

[Soycd]

Personally, I'd sell it privately. We had an extremely good offer for our last van with a dealer PX on a new one. In the end though we but it on eBay classified and it was gone in about 10 days. The dealer was not going to make a lot on re-selling ours.

 

[davidathomas42]

Wow thats a hell of a mark up then.

Ive been buying and selling cars for 20+ years as a hobby and make £500-1000 a car. My dealer mates are £1000-2000 maybe £3-4000 on high end stuff. Thats after prep work and advertising of course. But very rare to spend more than 500-1000 on most stuff. I could see 2-3k on a motorhome like mine if say the fridge and boiler died or it needed alloy refurbish. Maybe some repair to corners of bumpers etc. (mine doesn't). Thats still a whack of a mark up.

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[DJIT]

At a simple level, work out the total business costs for the dealer for a year - including rent, rates, utility bills, employee wages, insurances, parts for the vans, advertising etc. and then divide the total figure by the number of vans they sell in the same year - that will give you an idea of how much they need to make per van to break even.
Of course, they will probably not want to just break even....

 

[gus-lopez]

I'd offer it private at around 70k

 

[chaser]

They will try to make as much as they can.
But there is a guy on here who will make you a genuine offer can't remember his name though sorry

 

[Sapper520]

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.

 

[BouncyBoatFolk]

Wow thats a hell of a mark up then.

Ive been buying and selling cars for 20+ years as a hobby and make £500-1000 a car. My dealer mates are £1000-2000 maybe £3-4000 on high end stuff. Thats after prep work and advertising of course. But very rare to spend more than 500-1000 on most stuff. I could see 2-3k on a motorhome like mine if say the fridge and boiler died or it needed alloy refurbish. Maybe some repair to corners of bumpers etc. (mine doesn't). Thats still a whack of a mark up.

You sound more able to withstand the rigours of a private sale than the average van seller, it should sell itself from your description. Treat your self to a nice free holiday when it's gone.
Mike.

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[Bognor Saint]

There is a small dealership near me that offers selling on your behalf. I've attached a screenshot.

 

[Just smiffy]

Anything from £5 to 20k depending on dealer… some say they don’t want the hassle of selling privately but losing say 10k to a dealer is a good days work…

I’d put up with the hassle for a month or two for 10k…

 

[suavecarve]

Simon Select

 

[Derbyshire wanderer]

My thoughts are that 20% has to be a starting price difference between buying and selling as the prep, wages and premises costs can easily eat into that and result in net profit of 10% or less.
Making less than 7% would be pretty pointless as the capital could be making that or more if lucky on the stock market.

 

[WESTY66]

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?

Try Simon Select

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[gus-lopez]

Making less than 7% would be pretty pointless as the capital could be making that or more if lucky on the stock market.

Yes but it is all the other things that you don't pay when running a business,or can off set against tax.

My thoughts are that 20% has to be a starting price difference between buying and selling as the prep, wages and premises costs can easily eat into that and result in net profit of 10% or less.

I've never really got my head around what this "profit" is for if you have paid all the expenses + your wages?

 

[Coastal Cruiser.]

I've never really got my head around what this "profit" is for if you have paid all the expenses + your wages?

Back up cash for when you have not sold or don’t have any vans for sale and still have the same overheads.
In an ideal world you would cover cost plus a bit 52 weeks if the year but unfortunately never works like that

 

[gerry mcg]

Can't speak for MH, porsche dealers will look for somewhere around £10k between what they offer as trade in and the forecourt sale price.

The breakdown I was given was something like a mandatory flat £1500 workshop cost to prepare the car for sale, 20% VAT on the margin (1/6 of £10k, so £1670 ish) comprehension 2 yr warranty £2000ish, the remaining £4830 is their profit on the sale to cover salaries, tea coffee and biccies, and the posh premises

 

[davidathomas42]

Everyone seems about on the same page here.

I’ll see how I feel mid April when I’m done with a need for it. I’d like to keep it really. But it’s a lot of toy when I have a house to renovate and a new car needed for my work commute.

Can’t give it away though. I’d rather finance a car than lose £20k in 4 months. At that rate I’d have been better off renting one.

 

[gerry mcg]

Can’t give it away though. I’d rather finance a car than lose £20k in 4 months.

You said it was a 2021 model.
Have you had it from new?
This suggests You have only for 4 months.
There is always going to be a significant gap between trade price and retail price.
If you try to sell it privately, you need to be prepared to deal with tyre kickers and potential fraudsters.
Is it owned outright or is there finance owing one it?
Your price will need to be significantly below the price of dealers, as the buyers have less consumer rights and no comeback on you.
You are unable to offer finance, so this limits your market, and then you have the issue of settling outstanding finance (if any) and the practical issues around the actual transaction, where trust needs to be gained on both sides as there are daily limits on sending large amounts of money and risk around the actual payment.

The dealer may have a buyer lined up, or they may have to sit on it as stocks for month ( and pay for finance on it's in the mean time)

All things to consider

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[bobnick]

Our Autotrail Imala sold within 10 mins of us dropping it off. The dealer had to do absolutely nothing to it other than hand over the keys. Not even a warranty was given.
Dealers mark up was £7,000
I know all this as the new buyer contacted me about the van. We had a good chat about timings, amounts etc.

When mine goes i will see like for like, undercut somewhat and give it a try for a few weeks privately. If no luck i will offer it to the like of Motorhome Depot and Simon to see if they want it.

 

[Wh05apk]

We were looking recently at a used van up for £129,995, found the owner on Facebook, to ask some questions about spec but he also told me he had sold it back to the dealers for £95,000! The van was sold within a week, not sure final price, but doubt it was much less, the van was pretty mint so wouldn't have needed much and still under warranty, so potentially £30k profit within a few days.....

 

[BikerGraham]

Your price will need to be significantly below the price of dealers, as the buyers have less consumer rights and no comeback on you


You would think so. However, I’ve noticed over the last 6 months at least, the many people who are selling their vans, after having them a relatively short time, who are expecting people to pay only £2k to £3k less than dealers are charging. And think they are doing the buyers a favour !!!

Suppose, shy bairns get nowt

 

[97243]

It's even more evident at the cheaper (pre-owned) end of the market. We were in the fortunate position to be able to buy our Esterel before we sold the Laika.

Out of curiosity, we asked the French dealership we were buying from for a figure for our Laika and they offered 12000€. We sold it privately two weeks later for 32000€.

 

[WESTY66]

My present van was sold to Simon Select at Alan Kerrs for cash as the previous owner was terminally ill. I know how much he gave them and what I paid for it, and it was nothing like the figures on this thread, out of that he had prep warranty installed a few things, so the profit was reduced even further, yes he made a few quid (they have to or the lights go out) but I’ll tell you what the previous owner said “wow he’s been very fair with you, he hasn’t ripped either of us off”

Plus he give me a great price for my px

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[bobnick]

My present van was sold to Simon Select at Alan Kerrs for cash as the previous owner was terminally ill. I know how much he gave them and what I paid for it, and it was nothing like the figures on this thread, out of that he had prep warranty installed a few things, so the profit was reduced even further, yes he made a few quid (they have to or the lights go out) but I’ll tell you what the previous owner said “wow he’s been very fair with you, he hasn’t ripped either of us off”

Plus he give me a great price for my px

But did you get a coffee

 

[Coolcats]

I suspect mos

Back up cash for when you have not sold or don’t have any vans for sale and still have the same overheads.
In an ideal world you would cover cost plus a bit 52 weeks if the year but unfortunately never works like that

I suspect most dealerships do not have millions in the bank to invest in MoHo's much stock will be funded by the banks such as Black Horse finance

 

[Coolcats]

My present van was sold to Simon Select at Alan Kerrs for cash as the previous owner was terminally ill. I know how much he gave them and what I paid for it, and it was nothing like the figures on this thread, out of that he had prep warranty installed a few things, so the profit was reduced even further, yes he made a few quid (they have to or the lights go out) but I’ll tell you what the previous owner said “wow he’s been very fair with you, he hasn’t ripped either of us off”

Plus he give me a great price for my px

This is how a reputable dealer will work and Simon Select would seem to be one of the good guys, I have sold many performance cars as sale or return the dealer takes £3K for marketing should any work need to be done, so the best thing is make sure when you hand the van over it has new tyres and batteries, serviced valeted and everything in good working order, then its just the sale and marketing fee.

Also people keep talking about dealer Mark up but actually what you are looking for is the dealer Margin.

 

[Coolcats]

But did you get a coffee

If I was selling Via Simon Select I would take him a coffee

 

[Spriddler]

I have a simple philosophy in that if the offered price is acceptable, sell.
If it isn't acceptable, don't sell.