Car manufacturers and the iPhone generation

537 More

Earning the right to be successful

520 More

Knowledge is power

597 More

Selling cars – it’s all about timing

836 More

Truemag

  • Home
  • About
  • Advertise
  • Archives
  • Contact
  • Subscribe

More value in used cars

Well there is only one thing to say about the current climate, buy used! I’m not sure this will be the long term view but with VAT on new cars a cost manufacturers simply have to pass on, they are more likely to be flexible and take a smaller profit on a used car which is not vatable but of which the extra VAT will cost them only £25 for every £1,000 of profit.

Of course in the car trade we have learned over the years to be resilient and creative and we certainly know how to get a deal done when it needs to be, from hitting monthly targets to moving ageing stock or just doing a deal because it is the right thing to do.

Most new car profit margins however are set by the manufacturer and the dealer can work within these parameters and decide how much of the margin he wants to give away based on the desirability and availability of the model. That’s not to mention the added potential bonuses which can often be given when certain volume targets are met.

Used cars are unique in their nature and, as a result, so are the margins that are across them. For instance if a car is highly specced or particularly rare then it may empower the dealer to put a premium price on the car based on the fact that he may not easily be able to replace it, but at the same time to get the customer to commit he needs to be flexible enough to make the sale having done the work of creating the desire for the model in the first place. Of course not much of this necessarily helps the buyer unless he is lucky enough to locate the car of choice at a dealer who, for one reason or another, needs to move the car on quickly, but often as we all know the best deals are done on the least desirable items.

How many times do we go to a clothes store during a sale and look at the tremendous savings on the sale rack but have absolutely no desire to buy anything on there because we don’t like it, but the jeans we set our heart on are still at full retail and therefore we either buy the jeans full up or look like a complete dork but saved money.

The feeling around, like most things in this country, is that we will all moan for a few days/weeks, not make a decision and then realise that perhaps it’s not quite as bad as we thought it would be and continue as normal. At least it is a situation that car dealers are very much aware of and know what they have to do to overcome it.

Keep an eye out for some bargains during the year long sale at your local car centre!

Jan 5, 2011In51der
  • Marketing cars online, answers on a postcard
  • No atmosphere at the auctions as decent cars become scarce
  • As used car prices heat up could demand swing back to new cars?
  • Fewer new cars being bought means a heating up of demand in the used car market
  • With used car prices too high are new cars looking good again?
  • When will new cars make a comeback?
  • Consumer Credit Directive - have dealers got it covered?US car makers turn a corner after strong December sales
    You Might Also Like
     
    Car manufacturers see upturn in US sales
     
    Inside the…BMW 1 Series
    In51der

    Motor Trade Insider - Bridging the gap between the customer and the Motor Trade

    10 years ago Blog, Consumercar manufacturers, car sales, new car buying, new car sales, research used cars, Used car buying, used car prices, used cars73
    Most viewed
    Top 100 UK Dealer Groups
    38,226 views
    The car sales process and the “9 point plan”
    10,561 views
    webuyanycar review – They will buy any car but beware of the asterisk
    5,328 views
    Most commented
    Car sales and the power of silence…
    25 Comments
    Car dealers still not prepared to play the “we buy any car” game
    23 Comments
    A Traders Tale – Part Four
    22 Comments
    Win a pre-loaded Ipod Shuffle!
    19 Comments
    Bargain of the Week – StreetKa 1.6i Luxury
    14 Comments
    Bridal Hair Berkshire
    Fox Body to 2018 Mustang Parts
    and Accessories
    About MTI

    Motor Trade Insider
    is written by people working actively in the motor trade for people on the inside and people on the outside.

    Our aims
    Build a bridge between consumers and the trade, create Interesting and informative content, break down barriers and create better understanding, expose bad practices and rip-offs and promote outstanding products and service.
    Have something to say?
    We are always looking for experienced writers who can write good original quality posts on motor-trade-insider.com. Please contact us if you would like us to consider you. Make sure you give us details of your own blog or a link to some articles you have written.
    2017 © Motor Trade Insider
    Truemag theme by StrictThemes