Auctions are empty....

[Lazz 16]

To get the really big discounts and buy in bulk they will properly bypass the Main dealers and go straight to the manufacturer direct and get the big discount there, the main dealer may handle the prep, pdi of it and get paid a set handling fee for sorting that out .

[Contracts 68]

1 hour ago, Grantlfc81 said:

It doesn’t work like that with ford. 
 

Ford dealers need to achieve so many new registered cars to achieve a bonus from ford.  This is why fords will pre register bundles of ford Ka’s and then sell them for £5995 (cost) to hit there new reg bonus.

Well it was like this when I was there.  
 

Regarding mileage and retraction of a registered keeper, I remember fords did it after a customer had it for 400 miles however ive known cars to have 400 miles as pre delivery miles.

I doubt you would get away with much more than that anyway.

Slightly different now for most we deal with.

We have clients with manufacturer terms.  In most cases the deal is constructed of manufacturers terms % and a dealer discount %.  Example a Transit van, Ford Fleet May give 24% whilst the dealer gives 11% giving a total 35% discount of the list price.  

There are often conditions and minimum retention periods to stop people buying on fleet terms and selling on for a profit however it does still go on.  

As for Cazoo doing this, not a chance, the manufacturers don’t like their retail prices undermined.

 

 

On 9/23/2019 at 8:44 PM, SC Derby said:

Surely if a new car gets returned even after 7 days that would add an owner / devalue it hugely 

I would assume they tax the car but hold off change of keeper for 7 days and just backdate. 

48 minutes ago, David Horgan said:

There is going to be some serious money lost selling used cars this way isn't there , they have zero idea about what will be involved in prep , servicing , cleaning standards , MOT advisories , then as you point out , distance selling , soon as people get into the fact they can send it back its a free car isn't it , enough time for a holiday trip , park it at the airport and send it back . 

Apparently they already have stock ready for the launch, wonder how long some has been held as it could of already had 1 or 2 book drops.

As for prep, I guess they will need to set a standard in stone in regards standard as our industry standard (BVRLA) is really loose.  I would also question the standard of refurbishment centres work.

I was even wondering about the delivery cost, I know cars are going to be centrally stored therefore reducing overhead but then they are dispatched to a hub for cleaning and onward delivery to the client in a covered lorry which will be over 3.5t and no doubt dear to purchase and run.

I can only assume there will be added value in commercial ties with warranty, finance, insurers etc to add value to the proposition.

[Casper 272]

9 minutes ago, Contracts said:

Slightly different now for most we deal with.

We have clients with manufacturer terms.  In most cases the deal is constructed of manufacturers terms % and a dealer discount %.  Example a Transit van, Ford Fleet May give 24% whilst the dealer gives 11% giving a total 35% discount of the list price.  

There are often conditions and minimum retention periods to stop people buying on fleet terms and selling on for a profit however it does still go on.  

As for Cazoo doing this, not a chance, the manufacturers don’t like their retail prices undermined.

 

 

I would assume they tax the car but hold off change of keeper for 7 days and just backdate. 

i guess that's how they do it with lease vehicles on a personal  or business lease etc with 2 years leases etc 

[Contracts 68]

11 minutes ago, Casper said:

i guess that's how they do it with lease vehicles on a personal  or business lease etc with 2 years leases etc 

Very similar, an example is VWFS who did a Golf GTI promotion a couple of years back that had over 30% discount to make the monthly rentals really low.

[Casper 272]

15 minutes ago, Contracts said:

Very similar, an example is VWFS who did a Golf GTI promotion a couple of years back that had over 30% discount to make the monthly rentals really low.

Thanks ..

[have a word with the wife 299]

"The new way to buy a used car has almost arrived."

its not new, it does not work, many have tried, guess why they failed ?

[awc1000 93]

few points -

cazoo will only be selling used cars, they have contracted into bca only to use bca services which will be- in house prep with bca prep centres / storage / and forward transport with bca.

they will not be buying cars from bca pre auction- no chance, but car supermarket buying rates probably yes.

bizarrely they claim to have already been buying stock for 12 months, on launch how they will turn a profit on these only god knows.

like others have said,  bigger players have come and gone with this business model before -virgin/tesco both thought they could rewrite the industry and both went down in flames.

distance selling will hurt them as will valuing p/ex cars unseen, there is a huge difference in the likes of us fetching and inspecting a p/ex car as opposed to a delivery driver who has no financial interest in the p/ex doing an inspection - its loaded and home prompto.

in the short term bca will be rubbing their greedy hands happy to take as much of the start up capital off cazoo before the inevitable withdrawal from the market.

personally i hope it fails, start up company's like cazoo and carwow are parasites who invest nothing in actual bricks or infrastructure or people, instead they devalue every part of the trade from valeters to salesmen by encouraging punitive working margins before the inevitable fleeing of the market.

[Frankieola 22]

I've just looked up Cazoo, they have about 120+ staff already and a fair few of them are ex zoopla which is the last start up the guy done. 

Raised about 57 million and reckon they will have 1000 cars in stock at any one time, making noises about disrupting the market and being around for a long time. 

Fair enough, but how are they going to do it? Zoopla was only a vehicle enabling sellers to sell houses, they didn't actually buy any of the houses themselves, renovate them or buy them back off screamers? 

I will watch them with interest because if they make it work then we can learn from them, if they can't we can have a good laugh! 

[Casper 272]

I seen an ad for macklin motors earlier who if i got it right are saying you can buy a car pay for it online and have it delivered to your door   

[CCC 31]

1 hour ago, awc1000 said:

few points -

cazoo will only be selling used cars, they have contracted into bca only to use bca services which will be- in house prep with bca prep centres / storage / and forward transport with bca.

they will not be buying cars from bca pre auction- no chance, but car supermarket buying rates probably yes.

bizarrely they claim to have already been buying stock for 12 months, on launch how they will turn a profit on these only god knows.

like others have said,  bigger players have come and gone with this business model before -virgin/tesco both thought they could rewrite the industry and both went down in flames.

distance selling will hurt them as will valuing p/ex cars unseen, there is a huge difference in the likes of us fetching and inspecting a p/ex car as opposed to a delivery driver who has no financial interest in the p/ex doing an inspection - its loaded and home prompto.

in the short term bca will be rubbing their greedy hands happy to take as much of the start up capital off cazoo before the inevitable withdrawal from the market.

personally i hope it fails, start up company's like cazoo and carwow are parasites who invest nothing in actual bricks or infrastructure or people, instead they devalue every part of the trade from valeters to salesmen by encouraging punitive working margins before the inevitable fleeing of the market.

Given that carwow posted a £16m loss today despite having no real physical costs then it will be very interesting.

I'm also a bit clueless about benefit of BCA for in house prep - how many cars will need mechanical/body work to prep them to a retail standard? Can't see BCA doing that effectively? 

Ditto your comment on P/Ex, are they going to apply dealers nouse or just blindly follow the guides. The Insignia I declined to take in p/ex due to high oil usage and being run close to dry where the customer sold it to Evans Halshaw for a nice price (to him) springs to mind.

Cars might feel like commodities but unless they are still under warranty, they aren't.

I don't mean to be negative, but in reality we could do with a good recession to clear out the zombie businesses/low profit merchants to get some profit back into the market, and also get some sense back into investors.

 

 

50 minutes ago, Frankieola said:

I've just looked up Cazoo, they have about 120+ staff already and a fair few of them are ex zoopla which is the last start up the guy done. 

Raised about 57 million and reckon they will have 1000 cars in stock at any one time, making noises about disrupting the market and being around for a long time. 

Fair enough, but how are they going to do it? Zoopla was only a vehicle enabling sellers to sell houses, they didn't actually buy any of the houses themselves, renovate them or buy them back off screamers? 

I will watch them with interest because if they make it work then we can learn from them, if they can't we can have a good laugh! 

Indeed. Zoopla was a bit like Rightmove though their money is made by selling advertising (from their own website "How does Zoopla make money? The information and services we offer are completely FREE to the general public. We make our money by selling advertising, leads and other services to professionals/businesses.")

So this is a very different model, more like LoveFilm, the guys original business (so people can borrow a car for a week then post it back  )

 

12 minutes ago, Casper said:

I seen an ad for macklin motors earlier who if i got it right are saying you can buy a car pay for it online and have it delivered to your door   

Nothing new there, just the risk of it coming back when it's not as expected. 

[Casper 272]

11 minutes ago, CCC said:

Given that carwow posted a £16m loss today despite having no real physical costs then it will be very interesting.

I'm also a bit clueless about benefit of BCA for in house prep - how many cars will need mechanical/body work to prep them to a retail standard? Can't see BCA doing that effectively? 

Ditto your comment on P/Ex, are they going to apply dealers nouse or just blindly follow the guides. The Insignia I declined to take in p/ex due to high oil usage and being run close to dry where the customer sold it to Evans Halshaw for a nice price (to him) springs to mind.

Cars might feel like commodities but unless they are still under warranty, they aren't.

I don't mean to be negative, but in reality we could do with a good recession to clear out the zombie businesses/low profit merchants to get some profit back into the market, and also get some sense back into investors.

 

 

Indeed. Zoopla was a bit like Rightmove though their money is made by selling advertising (from their own website "How does Zoopla make money? The information and services we offer are completely FREE to the general public. We make our money by selling advertising, leads and other services to professionals/businesses.")

So this is a very different model, more like LoveFilm, the guys original business (so people can borrow a car for a week then post it back  )

 

Nothing new there, just the risk of it coming back when it's not as expected. 

Im unsure  i f would like to do it though companies I've known have in the past sold cars online and delivered funny you should mention car wow i noticed there selling shares now for £10 each so must be trying to get some of that 16 mil back 

[Lazz 16]

57 million will not be enough to disrupt the market and neither will 1000 cars and if they think it is they are kidding themselves and I would not trust my recon to bca

[CCC 31]

CarWow are still privately owned, but fair play to raise circa £60m with what looks like no track record means they must be very good at pitching.

With Asset prices so inflated investors are chasing bigger bets and I suspect its small beer to the investors who can write off losses against tax.

In fairness I think Car Wow's business model is a lot more feasible than Cazoo's.

One regret I had with my last business was not being in a higher transaction value category, however the level of stock risk Cazoo must have can be a killer. Though the same might apply to a lot of finance houses, we dealt with Close who claimed to be more cautious in their loan/value ratio and customer profile.

[Casper 272]

9 hours ago, CCC said:

CarWow are still privately owned, but fair play to raise circa £60m with what looks like no track record means they must be very good at pitching.

With Asset prices so inflated investors are chasing bigger bets and I suspect its small beer to the investors who can write off losses against tax.

In fairness I think Car Wow's business model is a lot more feasible than Cazoo's.

One regret I had with my last business was not being in a higher transaction value category, however the level of stock risk Cazoo must have can be a killer. Though the same might apply to a lot of finance houses, we dealt with Close who claimed to be more cautious in their loan/value ratio and customer profile.

Carwow sent me an email last week there still privately owned for now . But soon will be offering shares to people think they were £10 each from memory who had used them in the past I've never actually used them but have run a few prices through  with them .. 

Edited September 26, 2019 by Casper

[Rory RSC 596]

9 hours ago, Casper said:

I seen an ad for macklin motors earlier who if i got it right are saying you can buy a car pay for it online and have it delivered to your door   

I've been doing that ages.

[Casper 272]

2 hours ago, Rory RSC said:

I've been doing that ages.

How do you find it in general are most customer happy or do you get the odd one picking non existant things up to try get money off etc .

[metcars 397]

2 hours ago, Casper said:

How do you find it in general are most customer happy or do you get the odd one picking non existant things up to try get money off etc .

Ride the storm because it is the future.

If you are trading cars in 20/30yrs time this will be the norm. Shopping online and buying on description is how most people shop now for anything from shoes to washing machines. Amazon are not going anywhere? The high street is dying and has been for ages. this subject feeds in to a bigger conversation about the take up of EV's and the demise of internal combustion? And how cars are owned an used in the future?

 

[J.T 39]

19 hours ago, Casper said:

I seen an ad for macklin motors earlier who if i got it right are saying you can buy a car pay for it online and have it delivered to your door   

I was talking about this with a finance rep today and he said he knew of a few garages doing this but they were more in the sub prime market, I guess when you're desperate for a car then you'll tend to be less fussy. 

I think I prep my cars to a fairly high standard before they go on sale, but still I have customers spend an hour looking for the smallest stone chip to quibble about.

[Stephen 21]

On ‎9‎/‎25‎/‎2019 at 10:04 PM, Lazz said:

57 million will not be enough to disrupt the market and neither will 1000 cars and if they think it is they are kidding themselves and I would not trust my recon to bca

They only wanted to initially raise 57 million, they could have got 10 times this funding if they wanted

[Rory RSC 596]

On 9/26/2019 at 10:26 AM, Casper said:

How do you find it in general are most customer happy or do you get the odd one picking non existant things up to try get money off etc .

Honestly I see it like this. We sell nice cars, we try and have many pics video etc online beforehand. Most people who come to us to view a car with the intention of buying it do. We give them no reason not to. Doing delivery is the same. I personally prefer a quick phone call / email exchange, payment and then send the car on to the customer. I can spend time doing other stuff. We very rarely  have issues with it.  I won't do delivery for certain customers if they sound like it will be a nightmare but most buyers who opt to go for it are confident and decent buyers looking for an easy transaction. A nice hands up sale if you like.

Do the job right, look after folk? nothing to fear. Absolutely nothing at all in my opinion.

16 hours ago, J.T said:

I was talking about this with a finance rep today and he said he knew of a few garages doing this but they were more in the sub prime market, I guess when you're desperate for a car then you'll tend to be less fussy. 

 

Bollocks the sub prime fuckers are the pickiest most entitled twats who all know their rights are can't wait to pose with a compo face. Don't take responsibility for anything and nothings ever their fault.  

[CRW 73]

14 minutes ago, Rory RSC said:

Bollocks the sub prime fuckers are the pickiest most entitled twats who all know their rights are can't wait to pose with a compo face. Don't take responsibility for anything and nothings ever their fault.  

Completely agree. The type of customer who hasn't got 5 pence to scratch his arse with is the worst customer you could ever wish to meet.  Got one coming in later for a £600 Fiesta we took in p/ex,  wish me luck!

[MattR 177]

46 minutes ago, CRW said:

Completely agree. The type of customer who hasn't got 5 pence to scratch his arse with is the worst customer you could ever wish to meet.  Got one coming in later for a £600 Fiesta we took in p/ex,  wish me luck!

That needs a proper ' to be towed away for spares' invoice

[CRW 73]

1 minute ago, MattR said:

That needs a proper ' to be towed away for spares' invoice

Already printed, here on the desk.  I'm certainly not hiding anything, its a 56 plate 62k miles 1.4 Ghia that is just scruffy. 

[MattR 177]

surely thats 2 k retail? Must be really scruffy!!

[Casper 272]

6 hours ago, Rory RSC said:

Honestly I see it like this. We sell nice cars, we try and have many pics video etc online beforehand. Most people who come to us to view a car with the intention of buying it do. We give them no reason not to. Doing delivery is the same. I personally prefer a quick phone call / email exchange, payment and then send the car on to the customer. I can spend time doing other stuff. We very rarely  have issues with it.  I won't do delivery for certain customers if they sound like it will be a nightmare but most buyers who opt to go for it are confident and decent buyers looking for an easy transaction. A nice hands up sale if you like.

Do the job right, look after folk? nothing to fear. Absolutely nothing at all in my opinion.

Bollocks the sub prime fuckers are the pickiest most entitled twats who all know their rights are can't wait to pose with a compo face. Don't take responsibility for anything and nothings ever their fault.  

I agree no point doing the job if not doing it right customer satisfaction is the key a lot of the time I'm a great believer in if I wouldn't be happy to drive or let a family member thens it not going to be sold by me . I'm very picky when it comes to cars probably overly so but you do the odd customer moaning about a touched in stone chip on a 6 year old car

thanks for your help and advice it's much appreciated Rory as you say internet is the future ..

Edited September 27, 2019 by Casper