Slash prices or ride out the quiet spell

[Barclaywoodmotorco 4]

Hi Chaps

Dead as disco !!!!!!! do i reduce the retail price of my cars or just ride out this super quiet spell.

what to do 

[Grantlfc81 88]

No point reducing prices..... one sale will cover your 2.... I would rather sell 4 cars with £2k profit each than 8 cars with £1k profit each. Don’t become a busy fool.

[EPV 631]

1 hour ago, Grantlfc81 said:

No point reducing prices..... one sale will cover your 2.... I would rather sell 4 cars with £2k profit each than 8 cars with £1k profit each. Don’t become a busy fool.

Sounds lovely but let’s be honest, no one is selling 4 cars on the bounce all with that sort of margin across them. Certainly not run of the mill or 8 year old stuff. 

[Rory RSC 596]

1 hour ago, EPV said:

Sounds lovely but let’s be honest, no one is selling 4 cars on the bounce all with that sort of margin across them. Certainly not run of the mill or 8 year old stuff. 

Quite right mate, wouldn't get out of bed for that. 

Game of averages as we know.

[Nick M.K. 574]

1 hour ago, EPV said:

Certainly not run of the mill or 8 year old stuff. 

It's the 8 year old stuff that can have that sort of margin rather than newish run of the mill superminis. 

I have three part exes I am about to retail. 2005 S320CDI, came at £1000, 2005 Passat 1.9 TDI Highline, came at £400 and 2006 Jeep Cherokee Left hand drive at £1600. Each needed a bit of work and each will earn me more than the last BMW i3 I bought at BCA for £15700. No chance for finance though and the work required on some of these cars to get them up to speed will scare a lot of people off. 

[Dave2302 387]

/\ /\ /\ Like

[EPV 631]

2 hours ago, Nick M.K. said:

It's the 8 year old stuff that can have that sort of margin rather than newish run of the mill superminis. 

I have three part exes I am about to retail. 2005 S320CDI, came at £1000, 2005 Passat 1.9 TDI Highline, came at £400 and 2006 Jeep Cherokee Left hand drive at £1600. Each needed a bit of work and each will earn me more than the last BMW i3 I bought at BCA for £15700. No chance for finance though and the work required on some of these cars to get them up to speed will scare a lot of people off. 

I think you may have missed my point squire. 

Yes you CAN make those margins but you are unlikely to sell 4 cars on the bounce with those sorts of margins on.  You may make £2,000, £750, £100 and a £200 loss. The point I was making is, it’s not as simple as selling 4 cars with £2k instead of 8 cars with £1k. 

[Nick M.K. 574]

9 hours ago, EPV said:

The point I was making is, it’s not as simple as selling 4 cars with £2k instead of 8 cars with £1k. 

It depends on the stock really and how much you are aiming for. 

If you aim for £1K per car I can promise you you won't get £2K per car. If you aim for £3K per car it's entirely plausible that you can sell 4 cars with £2K profit on each. That's why I dislike retail-back and favour a more simple strategy: buy for as little as you can, sell for as much as you can. 

In my example above the (gross!!!) margins will be:

S320: £4K

Passat: £2200 

Left hand drive Jeep: £2400

BMW i3: £1500 (if I get asking price)

Of course to get the p/x stock with that sort of margins (I will achieve close to them, I promise you) I need the overpriced "retail" stock to advertise and get me the customer as I don't operate on a "We will buy your car for cash" basis like many others can and do. 

[whitestone679231 113]

If your happy with your stock what prep it proper then toss it off?? We can all race to the bottom.... jobs quiet,  prep them right and sit tight

[BHM 994]

20 hours ago, EPV said:

I think you may have missed my point squire. 

Yes you CAN make those margins but you are unlikely to sell 4 cars on the bounce with those sorts of margins on.  You may make £2,000, £750, £100 and a £200 loss. The point I was making is, it’s not as simple as selling 4 cars with £2k instead of 8 cars with £1k. 

Correct

22 hours ago, Nick M.K. said:

It's the 8 year old stuff that can have that sort of margin rather than newish run of the mill superminis. 

I have three part exes I am about to retail. 2005 S320CDI, came at £1000, 2005 Passat 1.9 TDI Highline, came at £400 and 2006 Jeep Cherokee Left hand drive at £1600. Each needed a bit of work and each will earn me more than the last BMW i3 I bought at BCA for £15700. No chance for finance though and the work required on some of these cars to get them up to speed will scare a lot of people off. 

That sounds like my stock profile (except the f***ing VW) - it often takes me a fortnight or so to get a car on sale but if I turn an £800er into a £2000er then it’s no sweat for me to have these cars racked up outside the grease monkey’s premises. It beats the ‘wiping it’s face’ I usually end up getting on a newer small car.

Its all swings & roundabouts, I usually seem to work for either decent money or shit money, with little between.

[Rory RSC 596]

1 hour ago, BHM said:

 

Its all swings & roundabouts, I usually seem to work for either decent money or shit money, with little between.

Like

[Grantlfc81 88]

Most of my cars on my forecourt are £500 - £1000 above auto trader average and I’m selling them straight off the forecourt no problem. I only sell German unless something tasty comes up, agreed I can’t make £2000 in every mini but I am with the other stuff Unless I get a cheap tort ex fiesta in. Most of my cars at 6-10 years old.

I’m now averaging £1200 - £2000 per unit now and am thinking of binning off auto trader as Its becoming a dutch auction on there now and I couldn’t make a living competing with their average price guides.