umesh 336 Posted March 4, 2015 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 ? 1 Share this post Link to post Share on other sites
Wheelerdealer1 91 Posted March 9, 2015 Wow now that's seriously complicated Share this post Link to post Share on other sites
Webuycars 4 Posted March 14, 2015 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 . Share this post Link to post Share on other sites
It's me 615 Posted March 15, 2015 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 Share this post Link to post Share on other sites
Chris@Glass 2 Posted April 9, 2015 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 Share this post Link to post Share on other sites
