How much do they really make on a trade in ?

Dolby said:
I was chatting to my stepbrother earlier and he's traded a number of cars - he lost pretty much the same on an Audi A4 2.0T, a Mercedes B Class and a few other cars.

At least we're not alone with the Volvo and Jeep depreciating so badly
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The discussion isn't about depreciation afaik.
 
Fazda said:
I think what most customers forget is that this is a retail business.

When in that business, the product is bought at x and sold at y and the difference between x and y goes towards it being a profitable business.

We don't question what Pick 'n Pay pays for their various groceries, nor does it bother us what Bradlows pays for their furniture...however, when it comes to a car, the dealer is expected to run at a loss, otherwise he is a crook. :rolleyes:
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Yup, some individuals have no clue how a business runs.
 
Without a doubt some people have no clue...

But there are more than a few dealers who take the absolute piss out of it though.
 
In one month our dealership (well the one I work at) had to replace the gearbox of a Touareg and Sorento (both AWD). Quotations are were R60k each.
We are a private non franchise used dealer and we fitted the bill for both. Fortunately been in the industry we were able to source the relevant parts and repaired both at a lesser price.

The point is the firstly we are an honourable and reputable dealership and secondly these of the types of costs you have to consider when trading in a vehicle.

Price a clutch for a Honda CRV and Navara - R20k
Parts for an Opel Zafira and Meriva - off the wall.

Any aircon condensor costs a fortune.

Unfortunately the reciprocal is that buying from a non reputable dealer is risky as many will tell you to get stuffed. The CPA is there but I believe its not worth the paper its written on as for a functionality is concerned.
 
getafix33 said:
That sometimes does happen. I got a Subaru if you want??
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Yep, a family member let their 2006 <100 000km Forester 2.5X go for R75k because nobody was interested in it for more than that. And it was perfect in every way and cost R0.00 to fix over the last 7 odd years. It's sad that such a capable vehicle is just worth so little. If would be the perfect weekend car if I had the garage space.
 
Fazda said:
I think what most customers forget is that this is a retail business.

When in that business, the product is bought at x and sold at y and the difference between x and y goes towards it being a profitable business.

We don't question what Pick 'n Pay pays for their various groceries, nor does it bother us what Bradlows pays for their furniture...however, when it comes to a car, the dealer is expected to run at a loss, otherwise he is a crook. :rolleyes:
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No, dont expect these businesses to run at losses, but when the transunion guide says 200k, and a dealer low balls you with a 150k offer, then he is a crook :)
 
phiber said:
No, dont expect these businesses to run at losses, but when the transunion guide says 200k, and a dealer low balls you with a 150k offer, then he is a crook :)
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Sorry, but unless you are in the business, you just don't understand it.

NOTHING sells for book - even when private buyers try selling their cars at book, they will die of old age before the car goes.

Book is based on a perfect car with very low mileage and in perfect condition. If you care to read the comments above, you will see why a car is bought behind book.
 
There are very few gems that you will get book value.

The M&M book is a guide line to help dealers with trade and retail pricing. It is also used by the banks and insurance companies to know what to finance and insure a vehicle for.

A customer came to me the other day wanting to trade on their Renault Koleos. Best price I could get was R50k below trade. Who determines that value. Is it me trying to be a greedy snake or is it the situation of the current economy and market or you the buyer.
Is it my fault that no-one wants to buy those cars second hand??? Why must I commit business suicide because Jo Blogs in the street who owns one of these feels his car is worth at least trade value.
Us as dealers have no control over the value of what second hand vehicles are worth.
 
satanboy said:
Yup, some individuals have no clue how a business runs.
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We know how a business runs - but as was mentioned earlier, some dealers take the piss out of it.

At first glance it appears they're making R50k per car for very little work. These cars are under warranty, so there's not too much to spend on them and R50k per car is a tad much I think?

I get a max R200,000 for my Volvo and yet they won't even budge on a R260,000 figure when I'm buying it
 
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