Buying from private sellers method

[mfizz 0]

Hi all, just trying to gauge what methodology people use when pricing up cars from private.

How do you calculate your drop dead price that you won't go over. 

Does anyone use the AT private as a guide?

[Blenheim Car Sales 111]

start at CAP below and see where you end up, CAP average should be tops

[trade vet 697]

1 hour ago, mfizz said:

Hi all, just trying to gauge what methodology people use when pricing up cars from private.

How do you calculate your drop dead price that you won't go over. 

Does anyone use the AT private as a guide?

Would you mind introducing yourself and telling us about your business first please.

[CRW 73]

4 minutes ago, Blenheim Car Sales said:

CAP average should be tops

Personally I am usually happy to go up to CAP Clean (as long as it is clean!), especially at the moment with the crazy pricing elsewhere.  My view is that at least with the privates you wont have a dollop of commission put on top.  Also you can quiz them pretty hard to get a better feel for the car and test drive it as well. 

[JDM1983 28]

I establish what a realistic retail price is, then I take off my costs and the margin I want, that’s the maximum I will pay for it. 

[CRW 73]

It also varies if its a private punter who has approached you, meaning they are keen to sell and you can bid low.  However if its something you want for stock/ for a customer then you pay what you need to pay.

[mfizz 0]

Apologies, I am in the process of opening a trade. And as such have been meticulously reading as much as I can on it before I start making the big deals. I am trying to get feelers of margins and types of vehicles I should be targeting as such you could say I am in the early stages.

That sounds like a good start. Has anyone noticed how the cap clean price seems to closely resemble the private guide price on AT? What service, other than auction houses do people use to get their cap blw/avg/clean prices from or subscribe to?

[David Horgan 564]

On 9/7/2020 at 1:35 PM, mfizz said:

Apologies, I am in the process of opening a trade. And as such have been meticulously reading as much as I can on it before I start making the big deals. I am trying to get feelers of margins and types of vehicles I should be targeting as such you could say I am in the early stages.

That sounds like a good start. Has anyone noticed how the cap clean price seems to closely resemble the private guide price on AT? What service, other than auction houses do people use to get their cap blw/avg/clean prices from or subscribe to?

retail figure back is the way to think forward in simple terms 

Look at a car , find its retail value from various sites like ebay or autotrader , take off fuel costs , service costs , warranty costs , advertising costs , valet costs , MOT Costs , Your intended profit margin and the figure left is your Buying price . 

Pay more and you earn less its that simple really .

 

[Casper 272]

On 9/7/2020 at 1:35 PM, mfizz said:

Apologies, I am in the process of opening a trade. And as such have been meticulously reading as much as I can on it before I start making the big deals. I am trying to get feelers of margins and types of vehicles I should be targeting as such you could say I am in the early stages.

That sounds like a good start. Has anyone noticed how the cap clean price seems to closely resemble the private guide price on AT? What service, other than auction houses do people use to get their cap blw/avg/clean prices from or subscribe to?

Good luck in your new business 

[XFS 70]

On 9/7/2020 at 8:23 AM, JDM1983 said:

I establish what a realistic retail price is, then I take off my costs and the margin I want, that’s the maximum I will pay for it. 

Me to. CAP valuations are often as useful as a chocolate fireguard. I paid 2.5k over Cap clean the other day and I don’t think the car was dear.....

[JDM1983 28]

40 minutes ago, XFS said:

Me to. CAP valuations are often as useful as a chocolate fireguard. I paid 2.5k over Cap clean the other day and I don’t think the car was dear.....

Exactly this, because of the type of stock I buy, I’m normally paying over book, but my margins are pretty decent, that’s what matters

[Casper 272]

1 hour ago, XFS said:

Me to. CAP valuations are often as useful as a chocolate fireguard. I paid 2.5k over Cap clean the other day and I don’t think the car was dear.....

 

46 minutes ago, JDM1983 said:

Exactly this, because of the type of stock I buy, I’m normally paying over book, but my margins are pretty decent, that’s what matters

I agree sometimes u have to through the book away .. so to speak . 

[DCS01 27]

On 9/7/2020 at 8:23 AM, JDM1983 said:

I establish what a realistic retail price is, then I take off my costs and the margin I want, that’s the maximum I will pay for it. 

What he said. I never understood what the point of the guides where as when ever anyone priced a car it was behind book anyway lol

[metcars 394]

It's the auction houses that use the guide prices more than the traders? For them, CAP clean is an aiming point for everything. It's funny because, as I remember, CAP clean is the price for a car requiring no extra costs or refurbishment, all done and ready to retail. That's not what it appears to mean now?

[David Horgan 564]

Only reason CAP prices are any use in my working out is when Finance is involved and the deal is tight , so I'm looking at getting a deal with 110%/ 120% of CAP retail because most finance companies use the system . 

Apart from that its Profit back everytime , but to do that system from the starter point of view don't forget to factor in repairs , service , tyres etc