Car Values

[umesh 336]

Car Values !

That old chestnut !

We all use various guides to value car s/ buy car s/sell cars ..but everyday its gets more and more challenging on not only what to buy m what to pay and then what to retail it for to make a workable margin. 

Find myself today question WHO is is really giving a TRUE VALUE of a car.

Golf TDI BMT Match 5dr - 2015-15 -14000 miles 

VALUES AS Follows

GG Trade £11970 Retail £13510

CAP Clean £12000 Retail £13695

Autotrader Retail £13759 

In reality they are all very similar , a lot closer than many other cars I've checked 

On AT Prices start at £12395 / Loads at £12500 12/14000 miles - one owner 

On motors prices from £11999 with 17000 miles - One owner 

The low prices are mainly from car supermarkets / bid group - so does this mean they dictate what the retail market is ?

I'm told auction prices are fetching cap clean + , don't forget the commission , transport etc etc , so how do we the independents compete ? 

As we all know customers who search these platforms will naturally do the ' price' checks but if they are selling at £1500/2000 less than the 'suggested' market price , surely these customers will travel and buy them ? ( I'm sure they will end up paying more with the bolt on's any way !) 

I'm sure the manufacturers of some these cars must be getting worried a Golf to depreciate circa 45% ?? ( 21500 new - trade circa 12000) !

Thoughts ?

[grant8064 219]

We only stock 3 year or older vehicles but do price check against Autotrader. 

Usually we try and be amongst the cheapest within a 30 mile radius but that excludes the car supermarkets who are unbeatable on price usually.

Part of our reasoning with customers for this is that we offer genuine service from two friendly local guys rather than commission based selling by a 'sales exec ' in a warehouse who tries too hard to sell you GAP, paint protection etc. Have a problem with your car in a week and YES we will help sort it out...will he whilst he's out chasing sales?

I also remind them that sometimes those CRAZILY cheap cars don't actually exist...you drive all that way for that 62 plate low mileage Astra to be told it just sold when you arrive but they have a similar one in but it's 'a little bit more money'.

Cheapest isn't always best and when you're making a big purchase I think most people would rather pay for decent service.

 

As for values...we use Glass's just because it's there. Always buy below book unless it's a decent bit of stock or we think it books wrong and then just pay what we think it is worth.

 

[XFS 70]

I'm a part time trader specialising in particular makes so I wouldn't claim to be anything of an expert, but my experience is that guides are simply that - a guide. Of the last 3 cars I've bought, one was bang on Cap clean price, one was £400 over Cap clean price, one was £1150 below Cap clean. I think the first two were the correct money given their spec and saleability, the third was about £500 under what I would have happily paid, so a bargain.

i can price each of these cars towards the lower to average end of the price spectrum for the model, but in each case the car is at the higher end of the spec/desirability range for the model.

I decided what I would pay for each car based more on what similar cars were selling for and how much I could reasonably sell it for, rather than guide price, although obviously having a guide figure is helpful.

I don't worry much about car supermarkets, I don't think they are that cheap given that often their cars are very low spec and are often stocked (and presumably bought) purely on price.

Of course, I am low volume, so I'm sure selling average family cars is more competitive and difficult, especially when you see the prices they often sell for at auction in comparison to what you would think they would retail for. I find auctions difficult to comprehend and usually anything I want to buy is miles out of reach.

[metcars 394]

I remember when 'cap clean' meant ready to retail, ie no remedial work all ready to go. But now 'cap clean' is the auction house reserve price.

IMO the real nonsense are the guide retail prices which are usually a giggle. Most of us set our retail prices by the market place? We all play that game on AT, put in your car details inside 30miles and see what else gets 'burped up'

[russp 10]

The difference between CAP and Glass's now on some vehicles is huge. I always do a few online checks of various sites and if I am buying at less than they are all advertised at I am happy to go with the deal. Some rarer performance cars are valued very low by the guides and in reality are worth a lot more.