How much does one loose if they sell a car to intermediary as opposed to advertising it privately?

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grandadgolfer said:

chubsta said:

recent example - Hyundai i10, dealer selling prices around £5000. webuyanycar quoted £3000, there were a few small scratches on it so went in with my eyes open and knew they would knock me down, get £2650 after the extra charge for immediate payment. Was in there about 15 minutes and all done. Would I do it again? Definitely, given the hassle I have had in the past selling cars this was by far the best option. Once I had someone complaining the car I was selling was blue and he didn't want a blue car. I pointed out the description said blue and the photos showed it was blue, what colour did he think it was? he said he knew it was blue but didn't think it was... Never again.

For the time and hassle you save, no problems with anyone coming back to you 6 months later because they need new brake pads etc, I would definitely take the hit on the money.

That's a fair size hit you took on the price

Probably £1000, depends on what your peace of mind is worth I suppose.

As a private seller you need to be 20% under advertised dealer prices to get people round, and they will still try and chip £500 off the price, assuming they turn up after you've stayed in all day waiting for them to show up.

I'd certainly consider taking a hit with WBAC unless I really was desperate for every £ I could get.

grandadgolfer

facade said:

grandadgolfer said:

chubsta said:

recent example - Hyundai i10, dealer selling prices around £5000. webuyanycar quoted £3000, there were a few small scratches on it so went in with my eyes open and knew they would knock me down, get £2650 after the extra charge for immediate payment. Was in there about 15 minutes and all done. Would I do it again? Definitely, given the hassle I have had in the past selling cars this was by far the best option. Once I had someone complaining the car I was selling was blue and he didn't want a blue car. I pointed out the description said blue and the photos showed it was blue, what colour did he think it was? he said he knew it was blue but didn't think it was... Never again.

For the time and hassle you save, no problems with anyone coming back to you 6 months later because they need new brake pads etc, I would definitely take the hit on the money.

That's a fair size hit you took on the price

Probably £1000, depends on what your peace of mind is worth I suppose.

As a private seller you need to be 20% under advertised dealer prices to get people round, and they will still try and chip £500 off the price, assuming they turn up after you've stayed in all day waiting for them to show up.

I'd certainly consider taking a hit with WBAC unless I really was desperate for every £ I could get.

The few times I've sold privately the car has been priced accordingly for its condition after research of private sales on various sites....always use a spare phone for contact details / agree a time for viewing and if they turn up late and I'm out tough luck / have your lowest price ready 5% etc. And most importantly stand your ground on price when they try to haggle/knock down/pick faults etc if you've priced it right it will sell. I've had someone travel 130 miles by train for my daughters old car £600 he tried to offer £400 surprise surprise he bought it at £600

Grumpy_chap

grandadgolfer said:

chubsta said:

recent example - Hyundai i10, dealer selling prices around £5000. webuyanycar quoted £3000, there were a few small scratches on it so went in with my eyes open and knew they would knock me down, get £2650 after the extra charge for immediate payment. Was in there about 15 minutes and all done. Would I do it again? Definitely, given the hassle I have had in the past selling cars this was by far the best option. Once I had someone complaining the car I was selling was blue and he didn't want a blue car. I pointed out the description said blue and the photos showed it was blue, what colour did he think it was? he said he knew it was blue but didn't think it was... Never again.

For the time and hassle you save, no problems with anyone coming back to you 6 months later because they need new brake pads etc, I would definitely take the hit on the money.

That's a fair size hit you took on the price

Is it?
Really?

OP sold for £2,650 after the knock-down for scratches etc from £3k.
Dealers advertise for £5k

Notionally a mark-up of £2,350.

Straight off the mark, the Dealer needs to pay to resolve the scratches, that's the £3k less £2,650 = £350.  Remaining mark-up £2k

From the £5k, there is some "negotiation" down, which may not be actual reduction in sale price, but maybe a little uplift in the trade in price, or contributions such as mats etc.  That could be £250 gone.  Remaining mark-up £1,750

Dealer cost to valet the car, present for sale, advertise, £100.  Remaining mark-up £1,650

Pay for service and warranty, £250.  Remaining mark-up £1,400

That still has to cover all the other costs of the business, premises, finance, insurance, risk.  The profit is not massive once everything is taken into account.

Conversely, the OP might have been able to sell at £3.5k private sale.

As cars get older / lower value, it becomes quite difficult to be a motor trader.  Many of those cost items are essentially fixed irrespective of the value of the car, so the percentage mark up seems excessively high.

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Grumpy_chap said:

grandadgolfer said:

chubsta said:

recent example - Hyundai i10, dealer selling prices around £5000. webuyanycar quoted £3000, there were a few small scratches on it so went in with my eyes open and knew they would knock me down, get £2650 after the extra charge for immediate payment. Was in there about 15 minutes and all done. Would I do it again? Definitely, given the hassle I have had in the past selling cars this was by far the best option. Once I had someone complaining the car I was selling was blue and he didn't want a blue car. I pointed out the description said blue and the photos showed it was blue, what colour did he think it was? he said he knew it was blue but didn't think it was... Never again.

For the time and hassle you save, no problems with anyone coming back to you 6 months later because they need new brake pads etc, I would definitely take the hit on the money.

That's a fair size hit you took on the price

Is it?
Really?

OP sold for £2,650 after the knock-down for scratches etc from £3k.
Dealers advertise for £5k

Notionally a mark-up of £2,350.

Straight off the mark, the Dealer needs to pay to resolve the scratches, that's the £3k less £2,650 = £350.  Remaining mark-up £2k

From the £5k, there is some "negotiation" down, which may not be actual reduction in sale price, but maybe a little uplift in the trade in price, or contributions such as mats etc.  That could be £250 gone.  Remaining mark-up £1,750

Dealer cost to valet the car, present for sale, advertise, £100.  Remaining mark-up £1,650

Pay for service and warranty, £250.  Remaining mark-up £1,400

That still has to cover all the other costs of the business, premises, finance, insurance, risk.  The profit is not massive once everything is taken into account.

Conversely, the OP might have been able to sell at £3.5k private sale.

As cars get older / lower value, it becomes quite difficult to be a motor trader.  Many of those cost items are essentially fixed irrespective of the value of the car, so the percentage mark up seems excessively high.

Don't forget the dealer pays 20% VAT on the difference between the buying price and the sale price, which would be £470 out of that £1400, so less than £900 profit.

WBAC punt then straight to auction, and make a couple of hundred, plus the auction fees, but they do this thousands of times a week so it works.

grandadgolfer

"OP sold for £2,650 after the knock-down for scratches etc from £3k"

You could take a brand new car to WBAC and they'd still find faults with it

"OP sold for £2,650 after the knock-down for scratches etc from £3k.
Dealers advertise for £5k Notionally a mark-up of £2,350"


Dealers work on tighter margin than that......at the end of the day if WBAC offer £2650 and a dealer is selling a similar/same model car in same condition for £5000....WBAC have had you over

Grumpy_chap

grandadgolfer said:

Dealers work on tighter margin than that......at the end of the day if WBAC offer £2650 and a dealer is selling a similar/same model car in same condition for £5000....WBAC have had you over

Not necessarily.
There are always cars advertised as high prices.  What are the same car selling for? 
Actually selling for rather than the optimistic advertised prices on some cars? 
Getting actual sold prices is harder, but it does mean looking at the lower end of the advertised prices on Autotrader - the ones at the higher price probably don't get that price when the deal is done.  Most people pick the type of car they want, set some parameters and then sort results by price low-to-high.  It is only the cheapest cars that get real interest.  Obviously, with the higher-priced cars, the Dealer may hope that someone puts in a certain set of parameters to filter against and the car then looks a bargain even though a slight change in one filter parameter would show that not to be the case.