Sale or Return (SOR) costs ?

[twerp 69]

Whats the going rate places charge to SOR £10-£20k units ?

 

 

[justina3 518]

I have never heard of a "going rate" know plenty that do it but not something they advertise 

[twerp 69]

I ask because I know of a guy that buys and puts all his cars through 2 x garages down south to sell for him instead of taking the hassle/time of sales himself.

Seems like a smart biz model assuming the commission isn't too high.

[NOACROSS 414]

I do a few SOR's, at the 5-15k mark-but only with a select few people I like/trust/can put up with. 

I explain it's not a quick business and that having a site is very expensive.  I usually take £100 off for the salesman, £200 for the vat- and then we split the remaining profit 50/50 after recon and prep costs.  However I do add on the caveat that it's a minimum £500 net to the site worse-way. Also they have to stand on for their half of any doom or screamers - but cars at that price generally don't cause too much headache if you do your job properly prior to sale.

Works well on the whole, but, as always, the profit is made in the buying, not the selling, and the buying isn't easy.

Both sides are happy usually as the return for the buyer is better than they'll get leaving it in the bank or under the bed, and they don't have to join the legalised robbery that is the VAT club.

Goes without saying that you need a couple of grand mark up.

[Earunder 69]

We do around 5/6 per year on that value, we don't advertise it at all but have a Sale or Return process.

We do a flat 10% fee, no haggle no quibble.  I know a few dealers that charge 5% and 1 that charges 8%.  The Sale Or Return customers does not have to pay for anything prior apart from a charge of a £50 Valet fee if the car arrives in a non sell-able condition.   Out of our commission we pay for the expenses.

You'll need to have a Sale or Return invoice with terms and conditions. You can find these online easily enough that just need a little re-wording.

[twerp 69]

Thanks guys - these figures seem like more than I guessed but then look at the costs of opening a site.

Edited November 22, 2017 by twerp