Dealer Margins - Used Vehicles

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a_kerr
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Joined: Tue Oct 08, 2019 2:39 pm

Dealer Margins - Used Vehicles

Post by a_kerr » Sat Oct 26, 2019 11:59 am

Hello,

I appreciate there are a huge number of variables involved as to when a dealer can or can't discount a used vehicle, and if so then by how much. I also appreciate that for the dealer there are preparation costs, overheads, future liabilities, not to mention a degree of profit. All that said, I've had a couple of conversations recently regarding 18 month old V8R convertibles and if you believed everything I was told they would have you believe they are making a very narrow margin on cars that are listed at £64K?

Now call me a sceptical, but I find that hard to believe! Admittedly at least one of these cars has had a recent price drop of £4K, so again I was told the price was pretty firm now at £60K - maybe a few hundred pounds for a cash sale at very best. Now maybe it was because I had my hopes dashed of getting a great deal/discount on a convertible at this time of year, or maybe it was just the feeling I got that I was being fed a line of BS - either way I didn't pursue it any further. Now 2 weeks later it's dropped another £2K just like that?

So, my question is to those in the know, realistically what would kind of margin do you think a dealer is playing with on a £60K used car, generally speaking? Just for interest, I put one cars registration into one of the dealers own "Value your Jaguar", which offered £51K for a car their competitor was retailing at £64K!


nurgle
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Joined: Fri Aug 03, 2018 8:43 am

Re: Dealer Margins - Used Vehicles

Post by nurgle » Sat Oct 26, 2019 3:49 pm

When looking at used cars recently I was repeatedly told that the price was fixed by Jaguar centrally for any ‘approved’ car. The prices do change regularly and thus dealer sticker price to a lower web site price (the jag approved used one) isn’t a discount, just slow updating.


jono_h
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Joined: Tue Sep 17, 2019 7:15 pm

Re: Dealer Margins - Used Vehicles

Post by jono_h » Sat Oct 26, 2019 4:15 pm

There's always a deal to be done. I was looking at a car that was 4 hours away at £49.5k, and was speaking to the dealer to see if we could get closer to my £45k budget before I travelled. We didn't get to an exact figure but there was definately some 'wriggle' room - that was the exact phrase used.

There's also one on Autotrader that's been up for 7 weeks. Started at £47.5k, now £44.2k. I don't think you'll get another £5k off, but if you turned up with a halfway reasonable offer they must want to get rid of it.

Sometimes a deal for cash isn't available - there's more chance of extras. A second year of warranty or a service don't cost the dealer the retail price so are easier to throw in.

And I'm not sure that the F-type lends itself to a winter bargain - unless you can find a desperate private seller.


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scm
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Location: Southampton, UK

Re: Dealer Margins - Used Vehicles

Post by scm » Sat Oct 26, 2019 5:11 pm

jono_h wrote:
Sat Oct 26, 2019 4:15 pm
Sometimes a deal for cash isn't available ...
Yeah, dealers prefer to make some commission on finance deals.
MY18 F-Type V8 R AWD in Glacier White
Lots of leather and toys, and loads of noise!


a_kerr
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Joined: Tue Oct 08, 2019 2:39 pm

Re: Dealer Margins - Used Vehicles

Post by a_kerr » Sat Oct 26, 2019 5:12 pm

On the subject of warranties, if a car I was looking at had just over a year left of the manufacturers warranty, is it possible for the dealer to extend it at the time of purchase (giving 2+ years) or does the factory warranty have to run it's term before being able to extend?


jono_h
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Re: Dealer Margins - Used Vehicles

Post by jono_h » Sun Oct 27, 2019 8:26 am

scm wrote:
Sat Oct 26, 2019 5:11 pm
jono_h wrote:
Sat Oct 26, 2019 4:15 pm
Sometimes a deal for cash isn't available ...
Yeah, dealers prefer to make some commission on finance deals.
That's what I thought - but I asked the question on the £49.5k car and the price was the same whether straight cash or financed.

I was a bit disappointed because I was hoping for a decent incentive for taking it on finance which I'd have paid off in the cooling off period.


djtex
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Joined: Sun Mar 24, 2019 9:50 pm

Re: Dealer Margins - Used Vehicles

Post by djtex » Sun Oct 27, 2019 3:50 pm

Very interesting reading this, I will be in the market for a V8R or preferably an SVR in the next few months and as such am monitoring prices closely. I constantly see stock having reductions made, some cars have dropped several thousands. Just seen the first facelift SVR on the Jag used site that’s dropped under 70k. Hoping that a similar car will be around when I am ready. If I get another 2/3k off then that’d be even better. Some of these cars seem to sit for ages, so I’d be amazed if they wouldn’t budge on price. Just gotta be prepared to walk away if they won’t budge closer to where you want to be.

Having said that I am also considering AMG GT’s, and R8’s. Both of which have much stronger residuals and are therefor a fair chunk cheaper to finance, it’s annoying as the Jag would be my preference but the shocking depreciation does mean it’s not the no brainer decision I want it to be.
MY18 V8 Coupe R, British Racing Green, Panoramic Roof, Climate Pack 2, Black Pack, Meridian Surround


Chamon_lee
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Re: Dealer Margins - Used Vehicles

Post by Chamon_lee » Tue Nov 19, 2019 11:15 am

I feel your pain OP. This problem is made worse by the fact that prices seem to be all over the place for these cars.
I have been looking at these cars on and off for the last year or so and I can't make no sense of the pricing. The only thing I do know is that the spreads are huge and prices drop all the time.

Even looking at the used examples now for the car year/millage spec car between dealers there is around a 7-8k difference.
I remember 3 or 4 private V8Rs coming up for sale privately.

2 x 2015 - sub 15k miles - lovely condition. both bought by a trader and had 6k added onto the price and both sold this summer.
Recently seen a 2017 model come up again sub 16k miles and was advertised at 47.5k. Even if you assume the trader only got 500 quid off it was put up for sale at 57k and I thought there is no way some mug is going to buy that. Well some mug did as its no longer for sale.

Recently seen another private AWD vert (for a V6 though) come up for sale for 33k with sub 30k miles. Sat around for say 4 weeks then it was sold. I see it at a dealer now for 4.5k added on.

The thing is though this is the spread you kiss good bye to as soon as you buy the car.

The valuations you see are true and its what makes me scared of buying one. a 60-65k car on the forecourt is around 45-50k or less trade in, THAT VERY SAME DAY let alone a year down the line.

With a new 2020 model coming round the corner I would negociate hard or wait. personally I will prob wait
an SVR will keep its value much better than a V8R (I think) but you just don't know sometimes.


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JFA
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Location: Hampshire

Re: Dealer Margins - Used Vehicles

Post by JFA » Tue Nov 19, 2019 2:53 pm

I wonder if the unpredictable and volatile prices reflect the fact that an F-type is a pretty emotional purchase and so the dealers are often happy to wait for the buyer who just falls in love with the car and therefore will pay a premium? With other, more 'sensible' (or German) purchases, prices reach a market value based on more consistent logical factors and so the prices become more consistent. I knew that I was going to 'lose' a fortune buying a brand new SVR, but I did not care and did not perceive it as a loss, but more as a justification of my real desire to own the car. I suspect the smart dealers with quality Fs know that the right buyer will come along and will only discount when desperate!
2016 Firesand SVR. Panoramic roof, carbon pack - 'Kitty' by name - travelling the UK with a big smile and a lot of noise!


Jagman100
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Re: Dealer Margins - Used Vehicles

Post by Jagman100 » Tue Nov 19, 2019 9:24 pm

In the U.K. we have by law a 14 day cooling off period on the finance, so here you could in theory sign up to the finance to sweeten the deal and haggle for the best price, then (assuming you have the freely available funds) cancel the repayment plan and pay the finance company in full within the 14 days, interest free, but check the small print first to be sure...
2016 V8 R AWD Coupe Italian Racing Red, Black Alloys & Pano Roof


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