Anyone got any real life recent history of trading in a car and prices being offered?
A friend works in a car dealership and she is telling me of some silly prices that cars are being offered like a 55 plate Clio for £1200 and a 55 plate Mondeo Estate with 40k miles for £1800.
She is saying dealers are only giving trade in prices for what they know they will get and the markets are very dire just now. They won't give prices for what they might get if they hold onto the cars for a while. They want turnover.
Anyone been looking at prices lately???
|
02 plate Mondeo 70k £500.00 trade in against a focus 57 plate.
|
Chopped in my 200k mile 51 plate Mondeo estate in December 2010 for £800. Still regret that. Should've kept it as a spare. Would've been handy for a property renovation I'm doing now too. Watched it go for nearly twice that on EBay within the week.
Has the market contracted since then? Not sure. What I do know is that when you're selling, cars ain't worth a row of beans but when you're buying, it's a different story. T'was ever thus I fear.
|
>> Chopped in my 200k mile 51 plate Mondeo estate in December 2010 for £800.
Wish you hadn't divulged that price Hump, i'd have gladly given you that for Bessie.
Specially now we've got the hound that thinks that SWM is it's puppy, trust me to find a dog that's even barmier than 'er.
Last edited by: gordonbennet on Sun 22 May 11 at 20:03
|
Oh I see, you'd like an estate car now would you?
:-)))
|
Ah well, now um, hang on a mo, ah got it, we could do with a van to replace the pick up, windowed van optional.
phew..:-))
|
>> Ah well, now um, hang on a mo, ah got it, we could do with
>> a van to replace the pick up, windowed van optional.
>>
>> phew..:-))
>>
Me fancy you didn't get away with that GB.
|
>> Me fancy you didn't get away with that GB.
>>
It's at times like this you find out who your mates are....pah..)-
|
I got a really good price for my Avensis a few weeks ago, slightly beating the Glasses value for it. However, that was at a Toyota dealer that needed an Avensis for their forecourt, and I was buying a Vauxhall from them, a Zafira petrol auto that they'd had hanging around for ages.
As ever, the price depends as much on the specifics of the situation as the car you're trading in.
|
>> As ever, the price depends as much on the specifics of the situation as the
>> car you're trading in.
Not least the 'cost to change'.
I was once offered a grand more for my old Mondeo than it was worth even in private sale, but perhaps predictably, a few minutes of talking turkey revealed the car I was buying was about a grand overpriced.
The only important thing to consider is your old car plus x. How they divide the x between the price of the 'new' car, and the valuation of the p/x is up to them. In many cases, this number is massaged by the salesman to suit his or her targets at the time.
|
|
As an incredibly dull aside, one of the reasons for inflating the price of a PX is vat. Under the motor trade margin scheme you only have to account for vat on the 'profit' between the sale price and the purchase price, so an inflated px value can help the business reduce its vat liability, which can of course help cashflow.
|
I don't get that Alastair. Because you are selling the first car at a higher price and you are paying the VAT on the larger margin upfront. Worse, you might then sell the trade in car at a loss, which doesn't help if you're on the margin scheme.
Bessie goes to the car dealer at £800.
Bessie is then sold for £2,800 (VAT £333) and a mini (worth £200) is taken at value £1200.
Next month the mini is sold for £900, and the dealer has made a loss but gets no VAT credit under the margin scheme.
Plan B
Bessie goes to the dealer at £800.
She is then sold for £1,800 (VAT £167) and a mini (worth £200) is taken at value £200.
Next month the mini is sold for £900 (VAT £116).
|
I stand corrected Mappy.
Not something I deal with on a day to day basis tbh, but I'm sure I read something somewhere about the advantage of inflating the px value.
|
>>I stand corrected Mappy.
Oh. I was hoping you would explain! Thought I was being thick; I have heard about the advantages of inflating the px, and have never understood it.
HJ says in his auction report www.honestjohn.co.uk/news/auctions/2011-05/bbsh-13-5-2011/
"After an April of bank holidays and royal weddings in which average car auction prices fell by 10%, the situation is settling predictably.
Prime, ready to retail, low mileage stock is still making good money. But the average price is being dragged down by scruffy high milers that aren’t seeing anywhere near trade book prices."
|
Yes, as suggested above it's difficult to assess p/x value as you don't really know how much the price has been bumped up by discounts on the car you're buying or even finance commission.
I reckon we got £1500 for daughter's 54 reg SEAT Ibiza 1.2S 3dr with 55K miles. Considering the body was roughish (metallic black didn't do it any favours) and it needed front and rear suspension work I wasn't unhappy with this. It was only £7500 new. Dealer said they'd just load it on a transporter and send it to auction.
|
Trade In Prices - Bigtee
