What mark up do dealers make on MH's

[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?

 

[Spriddler]

The thing is I tend to make more on the cheaper cars than the good one.

Back in the 70's Dixons founder's son, Stanley Kalms (latterly 'Sir' and PC World) was a customer of my firm when he had just two (or it might have been three) photographic shops in London. Whenever I was giving him a fight over prices he often trotted out a couple of favourite sayings which reflected his philosophy that the retail market dictates the prices:

"I buy pound notes for eighteen shillings and sell them for nineteen and six".
and
"My profit is determined when I buy, not when I sell".

He also said that his highest margin was on extended warranties.

 

[Just smiffy]

When you buy from a dealer you only get some service history to try and guess the treatment that it’s been subjected too…

I prefer to go to a sellers house and see how they live, I’ve walked on occasions without knocking on the door as the state of the house and other vehicles in the drive tells me it’s not been looked after…

Go to see a vehicle where the house is clean and surroundings it’s obvious that they take care of and look after the stuff they have tells me it’ll be worth looking at and buying… talking to the owner gives a lot more information on your potential purchase then a dealer could ever give…

I don’t have much money and look after what I do have because I’ve worked bloody hard for what little I got so it does grind on me when some people say I can’t be bothered with the hassle for possibly a month or two and chunk away £5 to 20k…

 

[Bognor Saint]

In May 2019 we purchased a new Dethleffs. After over 4 years of ownership we decided to upgrade. We found what we wanted at the same dealer and were offered a PX price that I was happy with. Not taking this offer up immediately I tried a few of the advertised " we buy you motorhome people". None offered me anything near what I was offered in PX so we traded in and also negotiated a good discount.
We noticed that our old MH was advertised at 12k more than we received in PX and being sold for a higher price than when we had bought it new 4 years previously.

 

[Just smiffy]

Another thing…

If a dealer said…. ‘Buy this motorhome that’s marked up for £50k and in 6months I’ll give you £50k for it, but only if you pay £70k for it now”….

I wonder how many would buy it…

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[BikerGraham]

Are you trying to make us feel sorry for the dealers?

Of course not

But the way some people go on you’d think I’m any making of profit was bad.

Thing is, if we don’t allow a business to make a profit then they go out of business. Or the investors take their money elsewhere where they can make more money on their investments.

If we keep pushing everything as cheap as it can possibly be and bleed them dry then we put them out of business.

Just look at all those energy suppliers that went bust trying to keep undercutting each other. Now less competition with what’s left

 

[Tombola]

telling me I needed to charge more?

Which is why you needed to borrow from the bank.

Only cheap folk shop on price alone its a fact quality and service counts for more.

I had a nightmare 5 years ago convincing my friend her cafe prices were too cheap and to increase them....no nooooo the customer will go elsewhere..

Rubbish....she thanks me for it now

 

[bobnick]

Old saying years and years ago.
Owe the bank £1,000 you got worries and problems
Owe the bank £1,000,000 and the bank have the worries and problems

 

[gus-lopez]

Against what?

Thinking about it now,I have no idea? They lent the money to me personally nothing to do with the business.

I am amazed at how many people do not value their time.

Obviously I don't unless dealing with scum like tfl or Epc & the likes of them.

I say handyman as some people will do this to try their hand as they are unemployed but £30 an hour minimum of two hours wouldn't be a bad start, many do not consider factoring in insurance, travel, tools consumables and other costs.

Even now I wouldn't even consider A ) paying anything like that or B) charging it. The work still needs doing.

Just look at all those energy suppliers that went bust trying to keep undercutting each other.

Yes but A) those in charge walked away with pocketfuls, & gov.uk encouraged & allowed it
B) gov.uk allowed the other companies,who took on those who had been benefiting from the low prices,to increase standing charges to pay for what they had allowed. to go on.
Me I wouldn't be paying standing charges like you have in the Uk I would have the electric cut off first & find alternative ways or go without.

 

[WESTY66]

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.

Keep the Harley!

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[BikerGraham]

Thinking about it now,I have no idea? They lent the money to me personally nothing to do with the business.

Obviously I don't unless dealing with scum like tfl or Epc & the likes of them.

Even now I wouldn't even consider A ) paying anything like that or B) charging it. The work still needs doing.

Yes but A) those in charge walked away with pocketfuls, & gov.uk encouraged & allowed it
B) gov.uk allowed the other companies,who took on those who had been benefiting from the low prices,to increase standing charges to pay for what they had allowed. to go on.
Me I wouldn't be paying standing charges like you have in the Uk I would have the electric cut off first & find alternative ways or go without.

Sometimes Gus you just have to listen to what people are saying instead of arguing against them and the point they are trying to make.

Fundamentally Companies that don’t make money go out of business. When I started my business I quickly learned to put my prices up as was too cheap. I am still cheap, relatively. But my day rate is well more than it used to be.

 

[Derbyshire wanderer]

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


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

The tax advantages do help but without profits you may as well work for someone else as the ‘wage’ would/could be the same.
Profits over time invested in growth would lead to a bigger retirement pot if sold on.
I tried it for enough years and decided that it wasn’t working for me as the profits were too low due to the increasing overheads so have been a (happy) wage slave for the last 25 years. Two serious medical issues since then isn’t lost on me how self employed would have been a disaster for us.

 

[gus-lopez]

Sometimes Gus you just have to listen to what people are saying instead of arguing against them and the point they are trying to make.

I can see the point,I just do not agree with it nor any type of unearned income. To me if you do not need to look for work weekends you are all being paid too much.
When I actually stopped & walked away they had to use 2 firms to cover me & pay out five times what I was costing for less actual work.

but without profits you may as well work for someone else as the ‘wage’ would/could be the same.

I would certainly hope not although these days employed wages seem to have got completely out of hand.

 

[BikerGraham]

I can see the point,I just do not agree with it nor any type of unearned income. To me if you do not need to look for work weekends you are all being paid too much.
When I actually stopped & walked away they had to use 2 firms to cover me & pay out five times what I was costing for less actual work.

I would certainly hope not although these days employed wages seem to have got completely out of hand.

But profits are earned income and tax is / has been paid on them.

 

[WESTY66]

I’m a simple guy but I thought profits were what’s left after all outlay, tax’s and investments had all been taken out
But hey ho what do I know, that’s why I’ve always worked my ass of for the man

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[Derbyshire wanderer]

I would certainly hope not although these days employed wages seem to have got completely out of hand.

For me the overheads and being a one man band meant that there was no economics of scale and the big companies could pay the same as I could make.
I learnt that if I could have grown to having at least 8 employees it would make the numbers count but would need close to £350k to finance the kit and it wasn’t possible when living in a £65k house. The sums then were looking like it would take 7 to 10 years to get there but would have had to risk everything while having 2 kids in school. I couldn’t take that much risk as I wasn’t the only one who would suffer if it went belly up.

 

[Tombola]

The sums then were looking like it would take 7 to 10 years to get there but would have had to risk everything while having 2 kids in school. I couldn’t take that much risk as I wasn’t the only one who would suffer if it went belly up.

You did the right thing.

An old Oppo of mine would bank to the hilt for anything and everything,(inclduing silly exotic holidays) and try and extract every penny from the company and more....

not me, I like to make it then re invest it. We parted ways for obvious reasons

 

[jerryz]

I know that UK car dealers after heavy manufacturer supported discounts make up to about 15% maximum on new car sales , 20% on used and more on servicing and parts 30% on average . But they offer lots of inducements and freebies on New and used vehicles along with the discounts .

In Thailand the Dealers make 37% on ALL new vehicles , no discounts ever , not even for cash , no freebies or inducments , they are the most profitable new car dealers in the world .... and also most Thais pay over 5 to 7 year loans to purchase the vehicle so the banks also win win , Used vehicles are making about 20% for dealers , Imported vehicle have 263% import tax , so if you drive Merc or BMW or VW the price is double or treble UK price .. but Merceded say Thailand is their 5th biggest market , many Thais will live in a wooden shack but drive a new £120,000 Merc to gain face ,, totally Barmy ,,, I will stick with my Hilux and Ducati .

 

[Ditcha]

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

I suppose it's a little easier making a keen deal when it's not your money hopefully the same can be had now that it's his own business.

 

[Northernraider]

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.

That's business these days.. no interest in making a good living it's all get rich ASAP and retire at 40 lol.

I buy and sell privately, knock down the price when buying , put up the price with selling. I couldn't sleep at night if I was taking the financial hits I see some on here taking.

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[MichaelT]

And depreciation of the 2 mill worth of stock if the market slows.

Im guessing there is a glasses guide book (online nowadays) that trade use as a general rule of thumb too ? Ther3 are for caravans and statics etc, but mhs have "a van" with engine attached too which needs consideration. Not an easy one id say

I'm not sure about the guide book. When at NEC we asked a couple of dealers to give us an idea of trade in price, as itvwas not a make they sell they just seemed to call another dealer who did to get a figure, indeed when we were sitting with the dealer we did buy off he got a call to price a van?

 

[WESTY66]

I suppose it's a little easier making a keen deal when it's not your money hopefully the same can be had now that it's his own business.

I get that
Of course he made money on the deal as rightly he should, but the point I was making it was nothing like the amounts in some of the posts on here, there’s one thing making money for the business and there’s another having someone’s pants down, Simon knew I had a strong belt

 

[The Wino]

I get that
Of course he made money on the deal as rightly he should, but the point I was making it was nothing like the amounts in some of the posts on here, there’s one thing making money for the business and there’s another having someone’s pants down, Simon knew I had a strong belt

I suspect he was just being nice to the seller with terminal cancer being a dealer doesn't stop you being a human

 

[vkr15s]

Profit is not a dirty word.I have just p/x my van and the dealer was up front and said he needed 15% on what he offered me and what he could sell for. Checking current market prices he was up front and honest and I believe more than fair.
Retired now but have ran my own businesses for over forty years and can bear witness that scaling of business is not always the best way forward.I made more money, slept better,when I ran a couple teams of three or four guys as I ran the business lock stock and barrel .
Ended up with a company turning over multi millions employing over a hundred people unable to sleep, had my house on the line, health went downhill, and the business was run by the banks, regulations and numerous other organisations that wanted a slice of the cake leaving me with all the risk and a few crumbs left on the plate.

I should have listened in the early years when I was told that PROFIT IS SANITY TURNOVER IS VANITY.

 

[Simon Select]

Hello, what did I miss? Just got back from Germany with big news!

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[Tombola]

Hello, what did I miss? Just got back from Germany with big news!

Nothing much but apprently your making a mint..

 

[CazPaul]

Hello, what did I miss? Just got back from Germany with big news!

Big news, you’re going to be selling Hymer or Carthago?

 

[Wh05apk]

Big news, you’re going to be selling Hymer or Carthago?

With massive discounts for Funsters?

 

[bigtree]

Hello, what did I miss? Just got back from Germany with big news!

C’mon spill the beans.

 

[WESTY66]

Nothing much but apprently your making a mint..

Not off me he isnt

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[WESTY66]

Hello, what did I miss? Just got back from Germany with big news!

Well, go on then