Car P/EX woes V forecourt prices

Exemplar

Evening,

So we are trying to trade in the family wagon at the moment as we don't need 7 seats anymore and we want a car that's newer under warranty (manufacturers warranty not 'other').

Thus far all the dealers we have spoken to have not budged on their forecourt price and will also not budge on the P/EX value. Therefore they are creating a larger profit for themselves.

I have no issue with profit at all, that's their job. They also want to maximise profit. However from my 'being in the trade' for many years I get the feeling they are trying to make £4K out of me instead of £2K.

These are my 'rough' figures - not accounting for internal costs, sales VAT etc. (but they might include writing back etc...

My car - valued at £6200 as a P/EX. Forecourt prices around £8.5-9K - therefore £2.3K+

Their car - on the forecourt at £10750 - should be at least £1.7-2K in it.

Grrrrr

I know people will go crazy bashing me down but I'm failing to see where the 'price to change' comes into this!

unforeseen

If all the dealers are coming out with those figures then that implies that your thoughts are a bit off beam.

Exemplar

Let me refer you to this part:

I know people will go crazy bashing me down but I'm failing to see where the 'price to change' comes into this!

motorguy

Exemplar wrote: »

Evening,

So we are trying to trade in the family wagon at the moment as we don't need 7 seats anymore and we want a car that's newer under warranty (manufacturers warranty not 'other').

Thus far all the dealers we have spoken to have not budged on their forecourt price and will also not budge on the P/EX value. Therefore they are creating a larger profit for themselves.

I have no issue with profit at all, that's their job. They also want to maximise profit. However from my 'being in the trade' for many years I get the feeling they are trying to make £4K out of me instead of £2K.

These are my 'rough' figures - not accounting for internal costs, sales VAT etc. (but they might include writing back etc...

My car - valued at £6200 as a P/EX. Forecourt prices around £8.5-9K - therefore £2.3K+

Their car - on the forecourt at £10750 - should be at least £1.7-2K in it.

Grrrrr

I know people will go crazy bashing me down but I'm failing to see where the 'price to change' comes into this!

The market has moved on in recent years - dealers have to price cars now competitively in order to get the phone to ring or bums on seats.

If you're there looking at the car they know you've already done your homework online and know their car is the cheapest (or you wouldnt be there), so they will be reluctant to move - again having had to take out the maybe £500-£1000 "buffer" they'd previously built in.

Price around for the value of your trade in with some of the online buyers or opt to sell privately.

£2K odd gross profit is not unreasonable and after costs and overheads they're maybe making £500 tops - hence why knocking say, another £500 off is very difficult.

I'd exactly the same problem when my son was changing his car last year - he was after a 2012 Clio RS200 and there were two for sale here in NI at big dealers - one at £8995 and the other at £8950. The one at £8950 said he wasnt moving a penny as he was already the cheapest in the country (and one of the cheapest in the whole of the UK as it happens), and the dealer with the one at £8995 said he would drop the £45 to "price match" the other one but only as a goodwill gesture.

Both just plugged the details of his trade in in to the computer and it came up with a valuation. No negotiation on that either.

The trick now is to find the right car at the right price in the first place - its better to get £10 off a car priced at £10,000 than £1,000 off the same car at another dealers priced at £11,000.

motorguy

Exemplar wrote: »

Let me refer you to this part:

I know people will go crazy bashing me down but I'm failing to see where the 'price to change' comes into this!

The price to change is the difference between what you're offered for and the price of the car you're looking at.

Your problem is your expectation - you're expecting to go in and knock £,£££s out of the deal. Its just not there any more in terms of discount. Cars are priced lean in the first place now, so theres no fat to be trimmed.

Its a very different market to what it was even, say, 5 years ago.

AdrianC

Exemplar wrote: »

Let me refer you to this part:

I know people will go crazy bashing me down but I'm failing to see where the 'price to change' comes into this!

Your price to change is £10,750-6,200 = £4,550.

Is it worth spending that to go from the car you're in now to the one you're looking at?

Yes? Do the deal.
No? Don't do the deal.

It really is that simple.

If you think you can reduce that price to change by selling your old car separately from buying the newer one, instead of PXing, then do that.

takman

Exemplar wrote: »

I know people will go crazy bashing me down but I'm failing to see where the 'price to change' comes into this!

The "price to change" is often used by salesmen and consumers to convince themselves they have got a good deal.

Just think of it as two deals, buying one car and selling the other.

Look online and see if the car you are buying is a good price compared to similar cars.

Then check we buy any car and similar sites plus private sale prices to see if they are offering a good price for the car you are selling. If you think they are making you much profit then sell the car yourself privetly.

But like others have said just because a dealer gives you a big discount doesn't mean your getting a good deal and just because the "price to change" is only £xxx definetly doesn't make it a good deal !

almillar

My car - valued at £6200 as a P/EX. Forecourt prices around £8.5-9K - therefore £2.3K+

Their car - on the forecourt at £10750 - should be at least £1.7-2K in it.

No bashing here, just healthy discussion.
You have several different garages valuing your car at £6,200 to trade in? Or have you read that in Parkers or somnething? Advertised prices in Autotrader? Value your car independently, around several dealers if you want, to see what you can really get for it. Maybe you're overvaluing it.

Car on the forecourt - have a look around at others - is IT fairly priced, or are there better deals elsewhere?

If you find that no-one else will give you more than £6,200 (against a similar car to the one you're looking at), and you can't do better than £10,700 you're looking at for the car you want, it looks like you've got a good deal.
Perhaps giving us the details of each car would gain better, more relevant advice.

caprikid1

I have to say whilst consumer power is all very well and good with some great new legislation protecting the buyer.


The upshot of this is that car rejections are clearly on the up and this all has a considerable cost .


It's great to be able to take a car back for niggles galore but ultimately it has to be paid for.

davidwood123

You could always buy a showroom, hire staff, pay the rates, pay the overheads, advertising etc

Then try and sell for what you think your car is worth.

AdrianC

takman wrote: »

The "price to change" is often used by salesmen and consumers to convince themselves they have got a good deal.

Just think of it as two deals, buying one car and selling the other.

Look online and see if the car you are buying is a good price compared to similar cars.

Then check we buy any car and similar sites plus private sale prices to see if they are offering a good price for the car you are selling. If you think they are making you much profit then sell the car yourself privetly.

But like others have said just because a dealer gives you a big discount doesn't mean your getting a good deal and just because the "price to change" is only £xxx definetly doesn't make it a good deal !

Sorry, but I disagree.

You are driving this car.
You want to be driving that car.
How much money will leave your pocket in order to do that?

THAT is the price to change. If it's a straight PX deal, then it's forecourt price minus px value. Inflate the px value all you like, but if it all goes straight back onto the forecourt price, it's not changing the price to change one penny.