dealer margins

Honest John Back Room » Motoring discussion
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Wed 28 Aug 2002 21:14
dealer margins - johnny
Is there a rule of thumb you can apply e.g.
1.Auction hammer price = £5000
2.Dealer pays auction house £5000 + x%
Does bare minimum to car (ie Valet / new MOT)
3.Screen price = £5000 + x% + y%
4.Lowest price dealer will accept = £5000 + x% + y% - z%

go on - its not that simple though is it?

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Wed 28 Aug 2002 21:26
dealer margins - The Watcher
I thought at auction only the seller pays a commission ie the buyer pays the hammer price and nothing else?

Thats how it worked at my local auction. So, if that is the case, you can forget number 2 and the rest should be ok.
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Wed 28 Aug 2002 22:34
dealer margins - Honestjohn
Buyer ALWAYS pays a premium at auction. On £5,000 a trade buyre pays about £50 and a private buyer pays about £150, which includes a self-insured indemnity against certain things being wrong with the vehicle. Then there are all the dealer's other costs, such as transport, trade licence, insurance, premises, advertising and, of course, time.

HJ
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