Prices at the block

[trade vet 697]

A few weeks ago I posted that as an exercise,I paid mental money at BCA for 57 Fiesta 1.2 ,3 dr,14k,Fsh,1 lady etc etc...... I think guys on here were valuing it at £1200 ( probably right ),Anyway it cost £2175 inc the tip ,it was PDI’d ,valeted ,bit of paintwork then put on the pitch.It was sold in less than a week for £3250,so not much net profit,but it just proves how book prices are way out .This just emphasises you should not be frightened to pay way over for the right stuff.Our guys mostly do ex fleet and paying £1000 over Cap Clean has been quite normal for a while.

[metcars 395]

2 hours ago, trade vet said:

A few weeks ago I posted that as an exercise,I paid mental money at BCA for 57 Fiesta 1.2 ,3 dr,14k,Fsh,1 lady etc etc...... I think guys on here were valuing it at £1200 ( probably right ),Anyway it cost £2175 inc the tip ,it was PDI’d ,valeted ,bit of paintwork then put on the pitch.It was sold in less than a week for £3250,so not much net profit,but it just proves how book prices are way out .This just emphasises you should not be frightened to pay way over for the right stuff.Our guys mostly do ex fleet and paying £1000 over Cap Clean has been quite normal for a while.

Book prices are a joke? I thought they were researched from all over the motor trade?

I've mentioned this before but if the wholesale price rises so does the retail. Or at least down here in 'nutty' London? There is/was an assumption that a lot of guys were/are buying way too much for stock at 'the block' but not when you look at what they are being sold for on AT? Tear up the book at the moment?

Where is that CAP bloke when you need him?

Edited February 23, 2018 by met

[justlooking 48]

On 2/23/2018 at 9:31 AM, trade vet said:

A few weeks ago I posted that as an exercise,I paid mental money at BCA for 57 Fiesta 1.2 ,3 dr,14k,Fsh,1 lady etc etc...... I think guys on here were valuing it at £1200 ( probably right ),Anyway it cost £2175 inc the tip ,it was PDI’d ,valeted ,bit of paintwork then put on the pitch.It was sold in less than a week for £3250,so not much net profit,but it just proves how book prices are way out .This just emphasises you should not be frightened to pay way over for the right stuff.Our guys mostly do ex fleet and paying £1000 over Cap Clean has been quite normal for a while.

we had a similar story, 57 plate fiesta with 45k, paid £2450 inc tip, sold in 3 days for £3425. Bloke travelled 190 miles for it!

Edited February 24, 2018 by justlooking

[andymc1973 199]

Good for you, sounds a fortune to me though 

[justlooking 48]

1 hour ago, andymc1973 said:

Good for you, sounds a fortune to me though 

It is, but we’re used to them selling quickly and way over retail where we are

[BHM 994]

22 minutes ago, tradex said:

Miles always sells...always has, always will and with it goes less grief. 

Whenever I’ve came across a very very low mileage car (admittedly rarely & at today’s prices, never) I’ve found them to be unserviced, drive like a sack of shit & clearly uncared for - usually with a Hyundai badge on the front, I think the punters were greedy (who’d of thought that!!)

The only decent low milers I ever did were them horrible CityRovers. Don’t laugh but they got so cheap at the block, no one in the trade wanted them but the punters loved them (and they were nice pleasant punters too) - I don’t think I ever had one in stock for more than a week.

[trade vet 697]

7 hours ago, BHM said:

Whenever I’ve came across a very very low mileage car (admittedly rarely & at today’s prices, never) I’ve found them to be unserviced, drive like a sack of shit & clearly uncared for - usually with a Hyundai badge on the front, I think the punters were greedy (who’d of thought that!!)

The only decent low milers I ever did were them horrible CityRovers. Don’t laugh but they got so cheap at the block, no one in the trade wanted them but the punters loved them (and they were nice pleasant punters too) - I don’t think I ever had one in stock for more than a week.

They don’t  sound horrible to me,good sellers and good punters,that is what the job is all about.I am now annoyed,I didn’t bother with City Rovers......Sold loads of Ladas though,good profit makers !

[justina3 518]

I agree stupidly low mileage cars always come with a bag full of grief, brakes gear box ect i also find people go crazy for them but never seem to get the top money the other end

[andymc1973 199]

watched a white 12 plate KA make 3650 plus the bit, grand into book, its on his pitch at 4199

[trade vet 697]

15 minutes ago, andymc1973 said:

watched a white 12 plate KA make 3650 plus the bit, grand into book, its on his pitch at 4199

Give us a clue Andy,pitch initials ,general location etc ,it does not make any sense .....you don’t have to if you don’t want to,just being nosey !

[Dealer 54]

43 minutes ago, andymc1973 said:

watched a white 12 plate KA make 3650 plus the bit, grand into book, its on his pitch at 4199

What an absolute tool! There's no way I'd consider selling for that much profit. 

[andymc1973 199]

Car supermarket in Durham 

It’s a 60 plate my mistake 

[BHM 994]

So he’ll have about £3900 in it assuming there are no repairs or prep costs  

I work for that if I’ve had a car in stock 3 or 4 months but if that’s the sort of margin some think they can work for then it’s no wonder I buy very little from the block.

[trade vet 697]

9 hours ago, andymc1973 said:

Car supermarket in Durham 

It’s a 60 plate my mistake 

Yes,found it.Mrs Choudhary.’s Autopark.....Good Luck to her

[ik1980 11]

They must get decent commission from finance, or maybe they have a stocking loan of some sort?

[Ocsltd 133]

18 hours ago, andymc1973 said:

watched a white 12 plate KA make 3650 plus the bit, grand into book, its on his pitch at 4199

R.I.D.I.C.U.L.O.U.S.

[andymc1973 199]

pretty sure its pay nothing for 60 days on the stocking loan

[BHM 994]

Eh? I guess there’ll also be some interest to pay out of the £300 mark-up. Why the f*** are traders working on them sort of margins? 

[twerp 69]

2 hours ago, BHM said:

Eh? I guess there’ll also be some interest to pay out of the £300 mark-up. Why the f*** are traders working on them sort of margins? 

Because these larger companies only care about revenue in order to service their debt and stay open.

They probably still do ok because of the quantity they move after finance kickbacks and PX margin.

 

[grant8064 219]

2 hours ago, BHM said:

Eh? I guess there’ll also be some interest to pay out of the £300 mark-up. Why the f*** are traders working on them sort of margins? 

Big companies need stock.

Big rent and rates, staff bills, high utilities, debt to service, massive advert costs.

Can't service all that with no stock. It's why, IMO, many of these places pop up, trade for a few years and go pop because the business model is like walking a tightrope. 

Never understood the appeal of a massive forecourt/supermarket with no margins personally, I just see it as a vanity thing. Much rather have half the stock with twice the carefully bought margin in it. 

[trade vet 697]

4 hours ago, ik1980 said:

They must get decent commission from finance, or maybe they have a stocking loan of some sort?

Alternatively,the buyer may be a little deaf and thought he was paying £2650,we all make mistakes.More than once,I have been distracted in the ring and bought the wrong car !

[Stephen 21]

He’s also got a repair garage and part ex place, sure it’s not first time they’ve over paid for stock, sure it’s pretty common with him

[Tom 164]

Basic studio spec good luck with that one! 

[Lakeside 94]

So what’s March like for everybody at the block? The prices dropped towards the end of feb around here but the last couple of weeks they’ve shot back through the roof. Like Jan all over again.

[Earunder 69]

90% of everything I've seen has made over CAP Clean + fees + delivery.

I've managed to pick a few pieces here and there (12 this week, still in need of 20+ more though)  It's interesting to see so much go for so high, something isn't right as it hadn't gone like this and stayed like it for a 3rd month running without the book prices shooting up, which they haven't.  My only assumption (OR conspiracy if you will) is there is just simply a shortage of decent stock.  I'm sure it's not down to the new people, or the smaller dealer desperate for stock as that doesn't explain the consistency for 3 months.  The auctioneers are running a lot of the cars more, and shooting the prices up quicker and I've seen many a dealer over the last few months fall into the trap and make a last bid when you can tell by the auctioneers voice he couldn't believe he got a bid out of it.  They tend to be joking about this a lot over the mics too, quick frustrating.  If it were just the one AH I'd be moaning like a school girl about it but it is literally both big ones.

Luckily we have enough in stock to last another month but it is going down as we can't replace it all.  If you can hold off do so, as always the market will come down and you don't want to be stuck with over priced stuff you can't move on.