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Used car Admin fees.
Comments
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Because most van purchasers are VAT-registered businesses who will reclaim the VAT, so the VAT-inclusive price is irrelevant to them.
By advertising a VAT qualifying used van with a VAT-inclusive price, you're making it look 20% more expensive to the typical buyer - unless you also explicitly state that it is VAT qualifying?
I'm going back to the late 80's, early 90's, when I was selling ex BT and British Gas nd Royal Mail vans for £1000 - £5000. So most customers were not VAT registered back then and more often than not, starting their own one man band, business.
The country was in a bit of a bad state, many people were made redundant, the privatisation of these big business's, de-fleeted and changed liveries, as well as life expectancy of their fleet. I did exceptionally well from these changes, as did my customers. These days, you won;t find comprable stock at budget prices. You might find people who would like a 'cheap' van, but chances are, everything you look at will be well worn, these days.
As for current marketing, if i were still trading, then yes, 20% included, would make stock look dear. But I would be more inclined to offer competetive monthly leasing prices and forget the actual vans price. similar to how something a basic as a Combo van is crazy money, new...'cos nobody pays for it without a monthly budget.
VB0 -
Ah, sorry. You should have said you were talking about a quarter to a third of a century ago...0
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LOL!
Time flys!
VB0 -
Had all this today while trying to buy a £6K Captur from a back street place. Hard sell on the extended warranty/Gap ins/Paint protection all adding an extra £1K to the screen price. I wouldn't care but the paint work already had a couple of scratches so not sure what the use in paint protection now is!
They only offered £150 part ex for my car which I could get £500+ for if I sold it privately, even the WBAC places where offering more than double the part ex offer. And to top it off they wanted £85 admin fee and they wouldn't budge when I told them "I'm not paying that".
If they had just agreed to sell me the car for the screen price with no added BS I just may have put a deposit down with a view to collect next weekend.
Ended up leaving.0 -
I bought a car from a main dealer recently and came across this. We'd already finished haggling and then they tried to add it on. £129 I think. They were very insistent and quite miffed but I was prepared to call the whole deal off and didn't pay in the end. Their admin and the whole sales process was terrible anyway.0
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