cash buyers for £3500-£4000 cars?

[MrV 66]

In your experience guys do you ever have any issues with offering cars at between 3500-4k for cash/bank transfer only? I don't want to buy cars which I'd struggle to sell at cash, do you find there is a fine line between cash buyers and finance buyers in regards to value of the car?

[SC Derby 259]

90% cash buyers in my experience 

I deal in £2k-£9k

[MrV 66]

perfect

[EPV 631]

Have sold 25 cars this year, one wanted it on finance. They failed to pass. 

[Nick M.K. 574]

It depends on your stock profile as well, not just the price bracket. 

A few years old prestige car with high spec typically goes to a finance buyer who "always wanted one" and is kind of tired of waiting to save the money for it. 

Something like a diesel Astra will usually sell to a cash buyer. Both could be priced at £7-£8K. 

I think in the £3-4K bracket it's important to be able to take part exchanges. People just want out of their Clio 1.2 with the leaky sunroof and you saying "yes I'll take it" gives them a huge reason to buy your car. Also, a £100 Clio could sell overnight for £500 and make the whole deal that much better. For you. Even if you scrap the thing you still don't lose. 

 

Edited June 6, 2018 by Nick M.K.

[SC Derby 259]

2 minutes ago, Nick M.K. said:

It depends on your stock profile as well, not just the price bracket. 

A few years old prestige car with high spec typically goes to a finance buyer who "always wanted one" and is kind of tired of waiting to save the money for it. 

Something like a diesel Astra will usually sell to a cash buyer. Both could be priced at £7-£8K. 

I think in the £3-4K bracket it's important to be able to take part exchanges. People just want out of their Clio 1.2 with the leaky sunroof and you saying "yes I'll take it" gives them a huge reason to buy your car. Also, a £100 Clio could sell overnight for £500 and make the whole deal that much better. For you. Even if you scrap the thing you still don't lose. 

 

very true this. 

Even turning a £600 p/ex Astra into £1300-£1400 can help massively over the course of the month.

[grant8064 219]

Just now, Nick M.K. said:

 

I think it the £3-4K bracket it's important to be able to take part exchanges. People just want out of their Clio 1.2 with the leaky sunroof and you saying "yes I'll take it" gives them a huge reason to buy your car. A £100 Clio could sell overnight for £500 and make the whole deal that much better. For you. 

 

+1

Part ex's are where the money is to be made these days. Took a lovely sub 100k CRV in this week for £1200. That's making £2000 in the block all day long plus we got to drive it, check the history, suss out the punters story etc. Hard to get excited about something making above book in the block but the swapper coming in against it is always fun.

As for finance it really depends how you set out your stall. We really struggle to get BACS off anyone but then we have a card machine sitting next to the desk so that's fair enough. Do plenty on strap at that price point but cash buyers are generally speaking more sensible and less likely to scream afterwards.

I'd happily not do finance if it was an option.

[Nick M.K. 574]

11 minutes ago, grant8064 said:

I'd happily not do finance if it was an option.

You don't like the commissions? I'd do every deal on finance if I could. In fact I've seen AT adverts that say "only available on finance" in the attention grabber. 

[grant8064 219]

32 minutes ago, Nick M.K. said:

You don't like the commissions? I'd do every deal on finance if I could. In fact I've seen AT adverts that say "only available on finance" in the attention grabber. 

...if it was an option I said. Not complaining about the comms but think how easy life would be if finance and all that it entails didn't exist.

[MrV 66]

I need to learn about part ex's then!!

[Nick M.K. 574]

5 minutes ago, benjiv50 said:

I need to learn about part ex's then!!

You need to learn a hell of a lot but part exes is up there, yes :-)

[MrV 66]

I could do with a mentor (wink wink)

[Nick M.K. 574]

7 minutes ago, benjiv50 said:

could do with a mentor (wink wink)

I too could've done with one back in the day but didn't have one. Would I go back 13-14 years and do it all over again? On my own? Hell yeah...

Remember what Steve Jobs used to say: "The journey IS the reward!"

[BHM 994]

10 hours ago, benjiv50 said:

In your experience guys do you ever have any issues with offering cars at between 3500-4k for cash/bank transfer only? I don't want to buy cars which I'd struggle to sell at cash, do you find there is a fine line between cash buyers and finance buyers in regards to value of the car?

In my experience it depends on the type of car. Estates, vans & 4x4s no bother finding cash buyers. Standard family hardware I personally wouldn’t bother with at that money unless you have a pitch & as for small/first-timer cars don’t f***ing bother! After saying all of that I’m sure others will disagree.

[Arfur Dealy 823]

8 hours ago, benjiv50 said:

I could do with a mentor (wink wink)

You are being mentored  

[MrV 66]

10 hours ago, BHM said:

In my experience it depends on the type of car. Estates, vans & 4x4s no bother finding cash buyers. Standard family hardware I personally wouldn’t bother with at that money unless you have a pitch & as for small/first-timer cars don’t f***ing bother! After saying all of that I’m sure others will disagree.

why not bother with small/first timer cars @BHM?

[Arfur Dealy 823]

Because, if they can’t afford to buy a banger they certainly can’t afford to maintain it. These are the worst type of customers / pond life. 

[BHM 994]

48 minutes ago, Arfur Dealy said:

Because, if they can’t afford to buy a banger they certainly can’t afford to maintain it. These are the worst type of customers / pond life. 

+1. Tbh if for some reason I had to make the decision between serving the small car market & serving the £500 shitter market I’d take my chances with the shitter customers cos they’re easier to deal with AND more realistic.

1 hour ago, benjiv50 said:

why not bother with small/first timer cars @BHM?

See above. Plenty of traders make a living out of the small car market but not me. I don’t think I’ve ever drawn proper money out a small car (I’m internet based, appointment only), the punters are pathologically unrealistic (that’s code for fussy as f***) and never have money - they’re maxed-out on insurance costs and expect me to discount to subsidise their lifestyle.

Give me a big Estate or 4X4 any day of the week - 4 figure profits, well maintained, rarely any outstanding jobs, usually fly through an MOT - does that sound like a 6 owner Corsa/Fiesta/Clio to you? 

Unfortunately I have two smalls in stock at the moment, sat gathering dust, I’m about to cut the arse off the price & blow them away. I’ll be working for about £200 each assuming I manage to sell them at their new prices. Next to them will be one of Sweden’s finest with £1500 wiped across it & a couple of miley Jap 4x4s with £1-1200 across their bonnets. The buyers of these will NOT be f***ing about whinging about money, road tax and insurance - they’ll be on the phone, ask a couple of questions, then come and cross my palm with silver.

PROPER CARS ATTRACT PROPER PUNTERS. F*** THE SMALL CAR MARKET, YOU’RE ALL WELCOME TO IT! 

[david gott 58]

Proper cars can also attract proper C***S.....Doesn't matter what you sell its part of the job, you can't blame it on the car, the price, you have have to be like a psychologist and try to weigh people up when they call, if they sound like a nutter then I'll do my best to swerve them. If the car is under a grand then the majority are planks! first time buyers can be a nightmare and the main thing I dislike is they don't have a part ex, on the other hand the older generation are great, in the last month Ive took in a nissan micra 54 plate with 35k on the clock from a lovely old lady, needed a steering rack, so I allowed her £100, the next week after £170 steering rack fitted and £30 mot it was on sale and gone for £1300 by the end of the week (I should have advertised it at £1695 but hey ho) next part ex 2009 corsa, 65k in black needs a door, allowed £600, its worth £2295 all day long so plenty of profit left in that and then lastly an old chap chopped in a Hyundai Couple 2002, he'd had it from new (yes nearly 16 years) loads of history with just 50k on the clock, I tried to get it for £500 but in the end allowed £600 to get the deal done, advertised it for £1500, had quite a few enquiries so thought sod it and put it up £1895. Its the part exes that make my money up every month and they generally sell quicker, yes I'd love to be selling every car with a clear £1500 profit in it after vat but thats what Im working my way towards....slowly slowly catch the monkey, small acorns turn into mighty oaks...thats what I keep telling myself anyhow

 

[Nick M.K. 574]

Did a deal last week and they had a 2002 BMW 330i that they owned from new, 80K miles. The stack of paperwork for their car was two inches thick including their original purchase invoice for £40000. Came in p/x at exactly 1% of it's original price.

[Arfur Dealy 823]

18 minutes ago, david gott said:

Proper cars can also attract proper C***S.....Doesn't matter what you sell its part of the job, you can't blame it on the car, the price, you have have to be like a psychologist and try to weigh people up when they call, if they sound like a nutter then I'll do my best to swerve them. If the car is under a grand then the majority are planks! first time buyers can be a nightmare and the main thing I dislike is they don't have a part ex, on the other hand the older generation are great, in the last month Ive took in a nissan micra 54 plate with 35k on the clock from a lovely old lady, needed a steering rack, so I allowed her £100, the next week after £170 steering rack fitted and £30 mot it was on sale and gone for £1300 by the end of the week (I should have advertised it at £1695 but hey ho) next part ex 2009 corsa, 65k in black needs a door, allowed £600, its worth £2295 all day long so plenty of profit left in that and then lastly an old chap chopped in a Hyundai Couple 2002, he'd had it from new (yes nearly 16 years) loads of history with just 50k on the clock, I tried to get it for £500 but in the end allowed £600 to get the deal done, advertised it for £1500, had quite a few enquiries so thought sod it and put it up £1895. Its the part exes that make my money up every month and they generally sell quicker, yes I'd love to be selling every car with a clear £1500 profit in it after vat but thats what Im working my way towards....slowly slowly catch the monkey, small acorns turn into mighty oaks...thats what I keep telling myself anyhow

 

Newbies, this is what years of experience teaches you. There's money in the bangers !!!

[NOACROSS 414]

Absolutely. One of the few joys left in the game for me -turning a good drink on a PX

Most recently: Sold a Kangoo to Wales. Old boy said he had an old BMW Compact on a W. Allowed 200 quid blind after being assured it would get us home. 

Niceset old car I’ve seen in years done 30,000 but never been cleaned. 

£1295 and sold immediately after a valet and some tyres. 

Edited June 7, 2018 by NOACROSS

[MrV 66]

Is there a "how to part ex for newbie dummies" manual around anywhere....

[EPV 631]

7 hours ago, benjiv50 said:

Is there a "how to part ex for newbie dummies" manual around anywhere....

It’s under the “common sense” section sir....

[Nick M.K. 574]

Yes, pay as little as you can, re-sell for as much as you can, learn how webuyanycar make their money so you have an answer ready when the customer pulls out their WBAC online quote...