Sale or return fee

[Scrawf 1]

Morning folks

Over the weekend someone asked me if I could sell their car for them.  I just wondered what is the going percentage everyone might charge to do this?  

The car is pretty clean so won’t need much prep.  

Scrawf

[Blenheim Car Sales 111]

it will be you covering every aspect of the CRA your customer will be excused all those potentially expensive commitments, He needs to be agreeing to you a near Cap A figure he is willing to take so you are protected

[Mark101 536]

24 minutes ago, Scrawf said:

Morning folks

Over the weekend someone asked me if I could sell their car for them.  I just wondered what is the going percentage everyone might charge to do this?  

The car is pretty clean so won’t need much prep.  

Scrawf

There is no set commission.  You tell them what you would pay for it and sell it at your usual margins, exactly like any other stock (minus the investment).  You could even tip them the equivalent of the buyers fee if it oils the cogs.

Be prepared, they will look at how much you sell it for and will think you are ripping them off - human nature, not realising all of your costs involved.

Edited June 10, 2019 by Mark101

[Tony911 79]

If you know this person as a friend best advice would be stay clear and tell them to sell it privately. If it's a customer buy the car at trade price and flog it

[MattR 177]

No Set percentage, but can be messy. Try to buy it outright instead. If its sale or return, they may ask for it to be returned after you have done some recon (PDI, Valet as a minimum) and advertising costs, thats ignoring your time. I'd avoid the notion of sale or return personally, they want it to get more money off you than you may ordinarily give.

And dont forget, its YOU who will be sorting out any future problems. This forum is littered with stories of cars going wrong even after theyve gone through a rigorous process. this person will not be helping you if you need it, so dont feel like you need to help them. 

[RH Trading 80]

Agree,  avoid, the risk is 100% yours

[Nick M.K. 574]

1 hour ago, Mark101 said:

Be prepared, they will look at how much you sell it for and will think you are ripping them off - human nature

THIS! 

I've done some very nice SOR (and that's not spares or repair) deals over the years. It's free stock, very often stock that I have personally sold them a few months or a year earlier and still in near-retail condition. 

The way I go about this is quote (retail) for the prep required and charge the owner for this in advance. Even if it doesn't sell and you return it you don't lose out on prep costs. I would also do most of these deals in the winter when I have the AT double stock offer. This way my advertising is free. 

Quote a fixed percentage depending on the value of the car, I usually charge between 7 and 11% but this is entirely negotiable and could be lower or higher. 

NEXT. Very important. 

I will have a strong preference for a finance buyer because this will effectively double the income from a no-margin deal or at least for a buyer with a bargain priced part exchange. I will also try and upsell an extended warranty to cover the vehicle so I can limit my exposure. Some dealers even insist on your seller/owner covering the warranty costs for the first 6 months.

Lawgistics's sale or return agreements actually have a clause that states that seller (the car owner) shall stand by and indemnify the dealer against claims that arise so it's not 100% down to you post sale. 

 

Edited June 10, 2019 by Nick M.K.

[CRW 73]

Whilst I agree SOR vehicles can be a cheap way of increasing stock numbers, I personally have never had great success with them.  Obviously if there is any amount of prep costs you have already met the first complication, the owner generally wont want to stump up initally and you don't want an under-prepared car on the forecourt.  You then have the issue of the warranty period but for me personally I just lose interest in somebody else's car. If someone is looking for a £5k car, are you going to sell them one of your own, thus returing you £5k to play with or someone else's which might bank you £1k?  Its very easy for the SOR car to get pushed to the back of the forecourt. You then get continual visits or calls from the owner asking you if the under-prepared car they have lumbered you with is selling!

[whitestone679231 113]

how much would you buy it for and WOULD you buy it, because if it goes tits up after you sell it you will own it cus the owner will be long gone...

[Bluechip Classics 7]

Funnily enough, I'm just on the train to go and look at a SOR car...  I work in the 'modern classics' market so it's not unusual for collectors etc. to want to move a car through a dealer rather than having to deal with Joe-P.

I charge £1000 or 10% (+VAT), whichever is higher.   For that they get the car detailed, advertised and deal closed etc.   I have my own T&C's which the client has to sign before I take the car - key point on there is that any expenditure required to make the car 'retail worthy' is carried by the client, not me.   There are other conditions which are there to protect both me and the client, but fundamentally I would not retail the car unless it was as per one of my own. 

[It's me 609]

there's only two reasons why anybody would do a sale of a customers car

greed

or

insanity

whats it gunna be buoy???????

[DPF 18]

Agreed, avoid not worth the hassle. 

[Contracts 68]

We often do it but only on stuff in line with our stock profile that is in warranty.  

Biggest thing is to agree condition and miles before you take it away as even one of our good clients tried it on once regarding a bumper scuff.

[Nick M.K. 574]

1 hour ago, tradex said:

The dealer is first port of call, and just taking the original owner to court and getting a return well, best of luck. 

More an observation than a criticism, I know you mean well.

I wasn't thinking about court immediately, some of these are repeat customers that I have worked with for many years and it's a case of calling, reminding them of the Tc & Cs and asking for some "modest contribution". 

Some people will pay it, some won't. 

[David Horgan 564]

We sell cars for two sets of people , usually lumpy stuff at 20k agreement is really they end up slightly better off than selling it to the trade , eg CAP Clean 

I charge £1,200 + VAT commission 

£200 advert cost .

£200 Valet costs 

Need the car with a new MOT and serviced , Doesn't sell its the advert costs and Prep costs that are charged , never not sold one though . Finance commissions and we usually get a nice px which we buy out of the deal . 

Have to be aware of all the comments above though as I seriously agree with everyone of them , only reason it works for us is the fact we know these people well and the cars too having usually serviced them from new . 

Right deal and there's some serious profit from nowhere ,