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Underselling or maximising FULL profit potential.

Here’s an interesting bit of info for anyone interested. 

 

Hopefully everyone on here likes to make the’ maximum profit’ on any car you've bought, don to the last £25/50 [They all add up just think if you’re selling 25 cars per month – extra £25 per vehicle = £7500 year-end profit, sorry I digress]

Just trying to do a deal on a Golf Plus 2011-11 – 17000 miles, one owner FVSH + Few extras.
I've valued the car with
Autotrader Price £8650
Glass Guide £9060 
CAP Clean £9375 [Live today £9475]

Slight variance; happens on them all but what is the Retail price for this car?

I use Glass Guide and the useful feature is ‘Radar’ For those who don’t know about ‘radar’ it shows same/similar vehicles either for sale or sold throughout the country , who is selling it/ sold it and days in stock and on average how many days that car takes to sell.
So I check who’s got one and what they’re selling for or have sold for.

Hopefully not boring you but the 1st 4 cars sold as follows

£8999  14 Days in Stock  Suzuki Dealer
£9490  93 days in stock  VW Dealer     [£10490 – 2 months £9490]
£8950  92 days in stock  Ford Dealer  [£9450 – THEN £10,000 –Reduced to £8950]
£9995  86 days in stock  VW Dealer    [£9995 – 2 months then £8999]

Is it that the car has been undersold? or is that the correct retail price , if that’s the case then are the trade values wrong?
After that we have to think DO - GG/ CAP/ Autotrader ++ collate this info , look at the ‘retailed prices’ and  adjust the ‘trade values’ down due to the retail values being lower?

 

Retail values according to  Autotrader  £10825
                                                     GG   £10800
                                                    CAP   £10950 [Live £11095]

So I’m sure we’d all agree retails are £11000!

Have these dealers missed ‘ extra profit potential ‘  would they have been better simply ‘trading’ these cars from day one and even made more profit than retailing them ?

 

Your thoughts ? Hope it  all makes sense ?  :) 
Over to you !

 

 

*PS  the mileage of all the cars is not 17,000 but even taking the variance at most of £500/600 - I feel the retail value would have been £10500. Also note the vehicle i valued is today the cars were for sale since November where the trade/ retail values would have been higher ? 

 

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First thing that hits me is how long the 2,3and 4 cars have taken to sell !   nearly 3 months each !

 

Seems not a very sought after model .

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why not try selling it for £9001 seems to not work for one dealer up here

of course balloons would have sold it quicker

we all know balloons sells cars after all :D

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Annoyed I have only just seen this thread Umesh.

 

One thing to bare in mind is that the LIVE Retail values are region and local market specific. Its not going to drive a huge difference, but its still apparent. What is also in play is the large level of discounting. About 10% of retail on average based on those examples and what, close to 60-70% of likely margin aspiration? Those are some big numbers.

 

Take into account 90+ days of advertising cost, depreciation etc, to me it looks like the discounting is too high, and too late.

 

I am glad to read you are using the "Sold" tab on Radar, and not just relying on Asking prices in the market.

 

Did you get to agree a deal at all?

 

Chris

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