How much do they really make on a trade in ?

Dolby said:
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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I hear you but I firmly believe its not the dealers that determine that value of a used car, but other factors often out of their control. Specifically in your case Volvo (like my Subaru) have a terrible resale value. They are not popular cars as compared to other brands. A dealer has to factor into account that he could have that car on his floor for months. Every month that car devalues. Depending what the value drop is per month his cost on that vehicle could be R220k in four months. Take out commission to sales guys, reconditioning (no car is in "show room" condition when traded in) plus other costs, the R60k GP margin is eroded quite quickly.
Volvo specifically are quite pricey to maintain and repair once out of warranty and service plan. Pirate/aftermarket parts aren't as available as other brands - I know, I have just done the exercise. Couldn't find a clutch kit and cambelt service kit for a 2005 V50D.
Agents only price was R20k for clutch and R12k for cambelt.

My company car a 2007 Impreza 2.0r Sportswagen in great condition with 75000km has been in stock since 2011. Any profit has long gone been eroded.
 
getafix33 said:
A dealer has to factor into account that he could have that car on his floor for months. Every month that car devalues. Depending what the value drop is per month his cost on that vehicle could be R220k in four months. Take out commission to sales guys, reconditioning (no car is in "show room" condition when traded in) plus other costs, the R60k GP margin is eroded quite quickly
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If they give me R200,000 now, they advertise at R260,000 next week and they get an offer of R250,000 the next day, they're making a killing as they're not keeping the car on the floor for months. What happens though is they're seldom doing that and reject the R250,000.

I for one, won't care if that car sits for months and devalues as they're into make huge margins. Margins are great as it's a business - but not the type of margins they want.

My car has 3 year maintenance remaining and they pay nothing of the R60,000 to maintain the car. However let's agree they spend R10,000 doing whatever they need to do, that's still R50,000 the following week.

I've been a Volvo buyer/seller so I've been on both side - I'm always shafted on the trade in and told how horrible Volvos are and depreciate - but when you're looking it's totally the opposite and they won't even bargain.
 
Anyhow - the main point of my OP was a dealer not willing to assist with 6 hours work for R20,000 - which is why I thought they're super lucrative. There is even more to the story ...

So I needed an answer for certain within 2 days to keep the car - but with dragging their heels I thought I lost the deal, despite their huge commission offered. No feedback, communication - nothing! I was pissed off that nothing happened despite me pointing out the urgency ....

So highly annoyed, I decided to ask him again for another car and mentioned one I could take. R290,000 he mentioned - but on the site they clearly have it at R280,000. Not only did he lose the other car with slack service, he now tried to overcharge me ...

The following day I realised the car was still available - so got back to him. He mailed back 6 hours later to tell me it'd gone up R30,000 commission - so in total on the deal I brought he wanted close to R50,000 :/

Lucky I had a backup plan and was chatting to another dealer. 8 hours later the deal was signed and collection of the car is due this afternoon - and less than his orginal quote
 
I think you should shop around. Might get a better deal else where
 
Everyone is getting new cars! Congrats!
 
Touregs probably lose the value the quickest.

What did you get?
 
Colin62 said:
Those are underrated. Enjoy it.
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In this country, very. Loving it...

A 1 year old demo Passat 1.8 TSI DSG, can be had for less than a 1 year old demo Jetta 1.4 TSI DSG. Besides the extra power, space and features, it also comes with a full maintenance plan to 100000km's. Jetta only has a service plan to 90000km's.
 
They wanted to give me R95k for my Hilux 4x4 yet the same vehicle can fetch about R170k+ on autotrader
 
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