Car P/EX woes V forecourt prices

forgotmyname

I would give you £20,000 in part ex for your old car... I have a lovely Ford Focus for sale its a 2002 Ghia model. A bargain to you at £20,795...

See why the price to change is important?

They maybe giving you little for yours but their profit in the other vehicle maybe little also.
They could increase the money for your car but they would then need to increase the screen price on the car your buying.

If you really think their offer is low then buy elsewhere???

Mercdriver

AdrianC wrote: »

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.

Indeed. I've always looked at it in this way to get around how salespeople try and say they are giving you a great price for the car or for the part ex. What matters is what money is leaving your bank account between the two.

E.G. Salesman says he will give you £500 more for P/X but doesn't budge on screen price - it's the same thing as a £500 discount.

bengalknights

If you really dont like the forecourt prices than you could always private sell your car and purchase the one you want via auction

No guarantee you will save money though

takman

AdrianC wrote: »

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.

Mercdriver wrote: »

Indeed. I've always looked at it in this way to get around how salespeople try and say they are giving you a great price for the car or for the part ex. What matters is what money is leaving your bank account between the two.

E.G. Salesman says he will give you £500 more for P/X but doesn't budge on screen price - it's the same thing as a £500 discount.

If you just look at the price to change then you are leaving yourself open to getting a very bad deal.

So lets say that you see a car that you want for sale for £19,995 and the dealership won't budge on the price.
You offer then your car as part exchange and they say that they will give you £15,000 for it in P/X which is only a price to change of £5,000. You then haggle and get them to reduce the price to change to £4,500 so you think you have got a good deal.

But wait!, webuyanycar would have offered £16,000 for your car!. So you think you have got a good deal because you were so focused on the price to change but you have actually paid out at least £500 too much.


People focus too much on the price to change and it gets them thinking "i can have that great car and it will only cost me £5000". It then stops them shopping around for a better deal when selling their old car. It makes people forget that they don't actually have to sell their car to the same dealership they are buying the new one from!.


If you two disagree that you shouldn't compare prices before you part exchange your car then you must have lost thousands of pounds over the years in bad deals without even knowing about it.

I have never part exchanged a car because what they have offered is so poor compared to selling privately.

AdrianC

takman wrote: »

If you just look at the price to change then you are leaving yourself open to getting a very bad deal.

No...

So lets say that you see a car that you want for sale for £19,995 and the dealership won't budge on the price.
You offer then your car as part exchange and they say that they will give you £15,000 for it in P/X which is only a price to change of £5,000. You then haggle and get them to reduce the price to change to £4,500 so you think you have got a good deal.

Agreed...

But wait!, webuyanycar would have offered £16,000 for your car!. So you think you have got a good deal because you were so focused on the price to change but you have actually paid out at least £500 too much.

Because your price to change has now dropped to £4,000.

People focus too much on the price to change and it gets them thinking "i can have that great car and it will only cost me £5000". It then stops them shopping around for a better deal when selling their old car.

Only if you use some odd definition of price to change which means you can only buy and sell at the same time, from the same business, in the same deal.

It makes people forget that they don't actually have to sell their car to the same dealership they are buying the new one from!

Quite.

If you two disagree that you shouldn't compare prices before you part exchange your car then you must have lost thousands of pounds over the years in bad deals without even knowing about it.

I have never part exchanged a car because what they have offered is so poor compared to selling privately.

Equally, don't forget to take the other costs into account, together with the time and hassle factor. It may well be that you see the extra £500 as decent value, when you fully consider those. Drive in, drive out, minimal time. No running around, dropping the car off here, getting a lift/taxi/train to there, picking the other car up. No extra insurance or parking costs if you pick the replacement up before selling the old one. If you're selling to the trade, then it's unlikely there'll be much difference in price. If you're selling privately, then no advertising costs, no time-wasters, test-pilots and post-purchase-discount-negotiators.

takman

AdrianC wrote: »

Only if you use some odd definition of price to change which means you can only buy and sell at the same time, from the same business, in the same deal.

Price to change should simply be a calculation done by the customer to work out how much they have to pay. The salesman should quote the price of the car they are selling and the amount they are offering for the part exchange.

Salesmen will often quote "price to change" or "£xx per month" as the price of the car and use only those figures when discussing the deal. Which are numbers that shouldn't be considered until after the individual prices have been discussed and negotiated.

So if someone isn't very good with numbers they won't be able to work out if they can get a better deal elsewhere.

It's surprising how many people will quote the price to change or the cost of the finance per month when talking about how much their new car cost!

AdrianC wrote: »

Equally, don't forget to take the other costs into account, together with the time and hassle factor. It may well be that you see the extra £500 as decent value, when you fully consider those. Drive in, drive out, minimal time. No running around, dropping the car off here, getting a lift/taxi/train to there, picking the other car up. No extra insurance or parking costs if you pick the replacement up before selling the old one. If you're selling to the trade, then it's unlikely there'll be much difference in price. If you're selling privately, then no advertising costs, no time-wasters, test-pilots and post-purchase-discount-negotiators.

Yes i agree that those costs have to be taken into account but I've always got a better deal than any P/X price i have been offered even after negotiations.

AdrianC

takman wrote: »

Price to change should simply be a calculation done by the customer to work out how much they have to pay.

Nobody's saying anything else.

You seem to be arguing that it can only be calculated if the two halves of the deal are at the same establishment.

Herzlos

takman wrote: »

Salesmen will often quote "price to change" or "£xx per month" as the price of the car and use only those figures when discussing the deal. Which are numbers that shouldn't be considered until after the individual prices have been discussed and negotiated.

I've never seen this; I've been asked how much I'm looking to pay a month to get an idea of what they can try and sell me, but I've always been given separate purchase and p/x costs.

takman

AdrianC wrote: »

Nobody's saying anything else.

You seem to be arguing that it can only be calculated if the two halves of the deal are at the same establishment.

No not at all, i'm just using the buying and selling at the same establishment scenario to put across my point about shopping around to get the best deal. Reading the OP it seems they have only considered P/X their car at the same place and are complaining about getting a bad deal. They haven't even compared prices online and just assume the deal is bad compared to forecourt prices for the car they are selling.

AdrianC

takman wrote: »

No not at all, i'm just using the buying and selling at the same establishment scenario to put across my point about shopping around to get the best deal. Reading the OP it seems they have only considered P/X their car at the same place and are complaining about getting a bad deal. They haven't even compared prices online and just assume the deal is bad compared to forecourt prices for the car they are selling.

Great. So we're all agreed that price to change IS the single most relevant figure, isn't restricted to buying and selling from the same place, and is impossible to properly calculate without separate buy and sell prices.

<group hug>