Bought a Used Car TODAY

motorguy

fivetide wrote: »

Terrible argument. He might have a forecourt full of cars to sell. All of which he is going to sell at a profit So to say "now he has three cars to sell at a profit" is wrong. He's probably got 20 but the OP is really only involved in two of them.

I didnt say "now he has three cars to sell at a profit", i said on the back of the O/P's transaction he had sold three cars at a profit. That is good news for the dealer.


Agreed

fivetide wrote: »

No.


He hasn't because you are still counting the profit in the first car. That car, as you admit is now unsold.

He will be stocking the 307 the second time as a trade in. He wont be "undoing" the first transaction on his books.

Trust me on this. Thats how i would have done it in the trade and thats how he'll have done it.

So he still has the profit from the 307 sale.

fivetide wrote: »

In total, yes, he might have that but until he resells the 307 (less whatever it costs to fix) he doesn't have that money.

Yes, because its now a trade in. Its not the original deal reverted.

If he'd reverted the original deal, he'd have had to revert the paperwork, revert the sale, revert the trade in of the O/P's car and then trade in the O/P's original car against the Fiesta. It a nightmare for your accountant to process, hard to represent on your bank statements and a disaster from the VAT perspective.

He wont have done that. He'll have marked the 307 up as a trade in against the Fiesta. Simples

So the 307 just becomes another stock car.

fivetide wrote: »

As above you may as well count every car on his forecourt if you are going to do that.

I am talking about it relative to the revenue / profit made from the O/Ps transaction.

fivetide wrote: »

He isn't going to sell the car to the OP so he won't make £4000 off the OP in three transactions.

Lets play "Count with Paul"...

Original purchase of the 307 = one sale.
Sale of the O/Ps trade in = sale number 2.
Sale of the Fiesta to the O/P = sale number 3.

Subsequent sale of the 307 = sale number 4.
Possible sale of next trade in against the 307 = sale number 5.

Trust me on this - the dealer is going to clear an easy £4,000 profit on that little lot.

fivetide wrote: »

You have just undone your own argument

No, you just dont understand simple sales accounting.

fivetide wrote: »

That is just his business. Again, nothing to do with the OP. He might sell someone a Clio too, nothing to do with the OP.

Uh huh. But look how many sales and how much profit the O/P's transactions made him!

fivetide wrote: »

Got the car swapped. Clearly enough in it for the dealer but not what you are suggesting at all for the reasons, very clearly outlined above (helpfully by you)

He didnt swap the car - he traded it back in and paid the difference. Thats how it will have been documented on the sellers books and thats how it is.

fivetide wrote: »

Finally you again said "talked into buying a more expensive car." The OP says he was the one who raised the issue of the Fiesta not the dealer so that is also incorrect.

Semantics.

I had a similar example one christmas. Guy bought a car off me on christmas eve. Lovely car. It was a cheapie at £1295.

I made £500 on it.

He traded in a car and i had it in at £400. I sold it for £700, so made another £300.

The guy rang me on the day after boxing day in a whole fuss. Turns out the car wasnt for him and asked if i'd be able to do anything for him. So he came out and bought another car off me at £1495. I allowed him his full £1295 on the car he'd bought off me.

I made £500 on that car too.

So theres £500 on the first car he bought, £300 on his trade in, and £500 on the next car he bought.

I sold the first car he bought a couple of days later for the full £1295 again and took a nice little trade in that i made £250 on.

So £500+£300+£500+£250 = £1550 profit.

And the guy couldnt thank me enough! Shook my hand, bought me a bottle of wine and a thank you card for being so understanding!

Invoices to the customer looked like the following :-

First Sale
Hyundai Trajet £1295
Trade in (Renault Clio) £400
Balance Paid = £895

Second Sale
Renault Scenic £1495
Trade in (Hyundai Trajet) £1295
Balance Paid £200


So £1500 profit without having to leave the house over christmas and just with a couple of cheapies and a bloke who changed his mind.... and a happy customer.

motorguy

JustinR1979 wrote: »

Expensive way of getting a fault fixed, guess you reap what you sow

Yeah finding it hard to see "great news, i spent £4000 more and got a different car" as being a win for the O/P.

sh0597

You can't just assume the first car will sell for the same price and take that as given.


In your simplified example the dealer has a 307 that he'd spent 2k on and a fiesta that he'd spent 5.5k on.


The OP comes in, leaves his part ex and pays 2.5k for the 307. He then discovers a fault and the dealer takes the 307 back, receives another 4k and OP leaves with the fiesta.


So before the OP's business, the dealer had invested 7.5k in two cars and afterwards the dealer has 6.5k in cash, the 307 and OP's part ex.


Nobody got a bad deal.

motorguy

sh0597 wrote: »

You can't just assume the first car will sell for the same price and take that as given.

I think its a fairly reasonable assumption - he sold it before to the O/P for that amount, so its very likely it'll sell again for that.

I've seen it happen many times in the trade.

I was never afraid of doing a deal like this with a customer or offering a refund to an unhappy customer because chances are the car sold on for the same amount - or occasionally more - than you sold it for in the first place.

Either way, i dont think they seller will be losing any sleep.

sh0597 wrote: »

In your simplified example the dealer has a 307 that he'd spent 2k on and a fiesta that he'd spent 5.5k on.

Yes, it was a simplified example, but its exactly how it would work. Profit the whole way down the line for the seller.

sh0597 wrote: »

The OP comes in, leaves his part ex (which the seller then sells on and makes profit) and pays 2.5k for the 307 (on which the seller has made profit) . He then discovers a fault and the dealer takes the 307 back (as a trade in), receives another 4k and OP leaves with the fiesta (on which the seller has made a profit)


So before the OP's business, the dealer had invested 7.5k in two cars and afterwards the dealer has 6.5k in cash, the 307 and OP's part ex. (and profit the whole way down the line.)


Nobody got a bad deal.

Nobody got a bad deal, but its certainly not the "win" that the O/P tried to present it as

(a) he didnt get a refund he traded the car back in
(b) he ended up spending £4,000 more than he originally intended

Thats a far cry from "i'm fully entitled to a refund and i WILL get it and i WILL go to court if i have to"

I genuinely take my hat off to the seller - brilliant work.

colino

Well done posters for realising that car trading is a social service and the sheer benevolence of this trader should be highlighted.
Alternatively, nothing demonstrates salesmanship like upselling to a complainer.

harveybobbles

I wonder if this is how the OP will be celebrating halloween this evening..


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