Trade-in offers with VAT deal

[Mike Austin]

Selling private is the best option having already tried a trade in so you know where your bottom line is, then anything above this and you have saved yourself some money.

When the delivery date of a newly-ordered Fabia varies wildly (by months, it seems), I find the best option is the one that doesn't leave me car-less or with two cars on the road at the same time.

[Lady Elanore]

Ello Do you know if the NO VAT is still running Elanore?

Sorry I don't, but the Skoda website should confirm if they do or not . Ello btw

[LeedsVRS]

When the delivery date of a newly-ordered Fabia varies wildly (by months, it seems), I find the best option is the one that doesn't leave me car-less or with two cars on the road at the same time.

So in your case it's to accept that you probably won't get as good a deal as selling private and buying cash/finance with no px. For me I don't rely on my car so can cope with the bus until the vRS arrives. I managed to get over £4k for mine private (and close to similar dealer prices!) when the best dealer offer was a touch over £3k. All depends on individual circumstances!

[Mike Austin]

So in your case it's to accept that you probably won't get as good a deal as selling private and buying cash/finance with no px.

That's right. I expect to lose the difference between part exchange and private sale - about £800. I did not expect to lose a further £1,000 with a part exchange offer £1,000 under the published part exchange price.

I am not fussed about changing if the price is not right. My old Fabia is running well - and I prefer it to the new Fabia. It is only its age and the 20% deal that has aroused my interest.

[LeedsVRS]

But the point is there isnt really such a thing as a 'published part exchange price'. There are guide prices but these can be affected by so many things.

At the end of the day if your car is only going to auction they won't offer you much more than auction prices and the CAP black book is the best 'guide' for this.

When buying a car with a PX the most important thing to look at is the overall 'cost to change' and not get hung up on the PX price.

[the mad monk]

in paper i got 3600 for an 04 with 64k which im happy with, as said its what it costs to change that counts and i was happy with my deal, even got a few things thrown in for nowt

[Mike Austin]

At the end of the day if your car is only going to auction they won't offer you much more than auction prices and the CAP black book is the best 'guide' for this.

I think that (auctioning) is the key. The CAP black book and Glass's are close (so I have heard), but the old car is too old for the dealer to sell. It would be sent to auction where others in the sales chain need to take their cut. Still, I am quite surprised at the high part exchange prices that others have quoted here.

[JHP-VRS]

I got 2500 for a 04 rx8 with 84k on if. Way less than I wanted but it's a hard car to sell cuz of how un reliable they are after 60k.

[vRSy]

I got offered £1000 less than book trade in price for my punto, when I was looking to order new! I laughed in their face, I showed them the book trade in price (with mileage deduction) and they wouldn't give me it! I said.. ~"its the tarde in price!" they wouldn't budge... idiots lost a sale. I bought mine (pre registered 14 miles) from a ford dealership, and they gave me the correct trade-in price for my car . No was I was going to give it away.

i looked at trading my Octavia in after the first year just as the recession hit. they offered me £9200 for a 1 year old 10k car in pristine condition. because of the recession they said. Stuttered when i asked how come there are year old octavia vRS's on the forecourt for 14k+. They upped it to 12.5k but i walked out being stubborn.

[kwacker80]

I went to a skoda dealer when the vat free offer was on last year to part ex our fabia 2 1.4tdi 57 plate 12k miles in against another similar spec fabia.They offered us £4500 for it, i said that is too low,the sales guy said you cant get the vat off a new car and get a good price for yours, quote"you cant have it both ways". I have just gone back to the same dealer today and ordered a monte carlo, they offered us £6000 for our fabia which we were happy with. It amazed me how we have now got a better spec car and cheaper than our last one 3 1/2 years down the line. So you can have it both ways.

[vulgatrendkill]

Looks like I was really done over :( 1800 trade in price for my fabia 1.4 comfort 53 plate with 35k on the clock! Parkers guide says 2400. I mentioned to the dealer to which he said (and I quote)- Well, parkers arent taking into account the vat free offer we have on at the moment......

More fool me for saying ho hum ok.. :(

[Mike Austin]

I mentioned to the dealer to which he said (and I quote)- Well, parkers arent taking into account the vat free offer we have on at the moment......

I was also told this by one dealer. It's nonsense! You get the VAT free offer whether you trade in or not. The trade in price can be considered as a stand-alone deal, unless you are negotiating it against further reductions beyond the 20%.

[pipsyp]

Trade-ins are a funny one, it depends on the age of the car and whether the dealership is likely to sell it themselves or trade it on. No offense but given the age and mileage of your car its likely they will either auction it or theyve lined up a local used car dealer to take it on, as a result they want to offer minimum cash for it to protect their interests as particularly with an auction they could make a loss on it. With the local trader scenario, they'll want to be paying trade money for it so the dealership will be squeezed with what they can offer for it. Problem with the VAT deal is that dealers have very little margin left in the car, as a result they cant lose some of the value of your tradein in the sale of the new car.

Newer cars dont fair so badly as they will often put them on their own forecourt but they'll still want to retain a fair margin. Often they need to service and prep the car which costs a fair sum of money. Last thing a dealer wants to do on any trade in is make a loss, if they continually did this it would put them out of business then you'd have to go elsewhere to buy your car.

[Bullyboy]

I got 2500 for a 04 rx8 with 84k on if. Way less than I wanted but it's a hard car to sell cuz of how un reliable they are after 60k.

Sorry but if they are well looked after with oil top ups and servicing they are not unreliable.

[Whitelighter]

Take a look:

It's the glasses GUIDE, the parkers GUIDE - these do not offer a definitive value.

Trade value is then minus any prep. So any service, any dents, scratches, wheel scuffs, tyres that are less than about 4mm etc. This is because when YOU buy a used car from a dealer you want it to be perfect if course.

Some models make the guide price, some don't. The publications are only ever historic, as the Market can't be predicted -it's a best guess.

With regard to profit, a dealer buys your car for 6500 and puts it on the forcourt for 8995. He has to factor in the deal price (cos you all want a grand off, but let's say you get 500) so sale is 8500. Now take of the vat he has to pay so 2,000 profit becomes 1,650. Take off the manufacturers warranty he has to give and you want and we are at 1,400. Now take of any prep (average for a car more than 3 years old is about 350 ) so now we're at 1,050. And that doesn't take into account the cost of funding the car while it sits on the front for 2,3,4 months waiting for a buyer.

Ok, it's a good profit. But it's a long way from the difference between asking price and trade in price. Now if he gives you another 500 on px the deal gets very tight indeed.

With a trade in you are paying for a service. If you want best value sell it yourself

[hertsnminds]

The VAT offer should have no bearing on the trade-in value of your car. It is effectively a discount from Skoda not the UK Government being benevolent and not charging VAT.

It does have an effect on used car prices as has the VAT rise. Pre VAT rise a car costing the dealer 10,000 would have been sold for 11,750. After the VAT rise the same car cost the dealer the same amount but now costs you 12,000. If you have the advantage of the Skoda VAT discount you only pay 10,000 for the car. When it comes to trading the same spec car in, one owner will be working from a starting point of 12,000 whilst the other only paid 10,000. The difference will be age and mileage.

The same is true of any used car, a dealer who paid 5,000 for a used car and adding a 1,000 margin will now be charging 7,200 for the car, pre VAT rise this would be 7,050. The trade-in price is the same, the perceived value has changed.

I am trading a 3 year old Toyota Verso in against my new Roomster, brand new the Verso was about 18,000 and I was offered 10,000 as a trade in (when I placed my order, actual value may have changed by the time my Skoda is built). This is the best retained value I have had in any car I have owned. My wife has been looking at trading in her 2.5 year old MX-5 against various other cars (from Suzuiki Swift to Mini to Fabia Monte Carlo), her car new cost over 24,000 (and still costs over 23,500 to spec new) the best offer anyone has given her is 10,400 as a trade-in.

It really does depend on the market at the time and how the demand/supply of certain types of car is.

[LeedsVRS]

The VAT offer should have no bearing on the trade-in value of your car. It is effectively a discount from Skoda not the UK Government being benevolent and not charging VAT.

It does have an effect on used car prices as has the VAT rise. Pre VAT rise a car costing the dealer 10,000 would have been sold for 11,750. After the VAT rise the same car cost the dealer the same amount but now costs you 12,000. If you have the advantage of the Skoda VAT discount you only pay 10,000 for the car. When it comes to trading the same spec car in, one owner will be working from a starting point of 12,000 whilst the other only paid 10,000. The difference will be age and mileage.

The same is true of any used car, a dealer who paid 5,000 for a used car and adding a 1,000 margin will now be charging 7,200 for the car, pre VAT rise this would be 7,050. The trade-in price is the same, the perceived value has changed.

I am trading a 3 year old Toyota Verso in against my new Roomster, brand new the Verso was about 18,000 and I was offered 10,000 as a trade in (when I placed my order, actual value may have changed by the time my Skoda is built). This is the best retained value I have had in any car I have owned. My wife has been looking at trading in her 2.5 year old MX-5 against various other cars (from Suzuiki Swift to Mini to Fabia Monte Carlo), her car new cost over 24,000 (and still costs over 23,500 to spec new) the best offer anyone has given her is 10,400 as a trade-in.

It really does depend on the market at the time and how the demand/supply of certain types of car is.

All fair point except for the used car example. VAT is not added to the asking price of a used car as traders usually operate on the margin scheme. VAT is paid on the profit made on the car, not it's total selling price.

[Allams Skoda]

Interesting thread, nice to see the motor trade has some support from the buying public. After all we wouldn't be here if it wasn't for you guys. Also don't forget we have to pay VAT on any profit we make. So if we buy a car for £4k and sell it for £5k and have to service/tax (for example) we'll have to pay £200 to the VAT man and lets say a service costs £170 plus road tax £115, we're left with £500 and also we have to pay to stock the car, pay to advertise it, pay the valeters, pay the salesperson, pay the rates etc.

Again, very interesting thread to read through.

In answer to the original post, £1,750 seems about right for a Fabia 2.0 they aren't good sellers so they have to value it as though it may stick around for a few months and suffer some depreciation. If it was against a stock vehicle and your Fabia is in good all round condition I'd suspect it may make £2000-£2200 somewhere in the trade, but against a new vehicle with a long order time anything between £1,700 and £1,900 would be reasonable in my eyes.

As mentioned before all these price guides things are literally that, a guide. It's only worth what someone is prepared to pay and what you want for the car and what it is worth are two totally different things.

[dirty hari]

Got offered £3000 for a 55 Reg Octavia VRS with 72k on, which i accepted as it seems a lot less for me to worry about

[karlvrsfab]

I was told that with the VAT offer, the dealer recieves a smaller amount from the sale than they would normaly, I took £1k less for my car on PX, but got a bargain. I would rather my dealership paid the staff well and trained them and gave me good aftercare than were forced to cut corners to get and keep customers happy.

[seboni121]

Interesting thread, nice to see the motor trade has some support from the buying public. After all we wouldn't be here if it wasn't for you guys. Also don't forget we have to pay VAT on any profit we make. So if we buy a car for £4k and sell it for £5k and have to service/tax (for example) we'll have to pay £200 to the VAT man and lets say a service costs £170 plus road tax £115, we're left with £500 and also we have to pay to stock the car, pay to advertise it, pay the valeters, pay the salesperson, pay the rates etc.

Again, very interesting thread to read through.

Hi I sold my superb 2 s 1.9tdi 09 plate wiper 7k on the clock,we were offered £11k for it last September,my fabia arrived feb 2011 so roughly 5months and still I got the £11k for the superb which Iwas happy with,I am thoroughly happy with my dealers skoda has done the right thing with the vat deal ,this will help them achieve there ambition of selling thousands more cars over the next few years

se

In answer to the original post, £1,750 seems about right for a Fabia 2.0 they aren't good sellers so they have to value it as though it may stick around for a few months and suffer some depreciation. If it was against a stock vehicle and your Fabia is in good all round condition I'd suspect it may make £2000-£2200 somewhere in the trade, but against a new vehicle with a long order time anything between £1,700 and £1,900 would be reasonable in my eyes.

As mentioned before all these price guides things are literally that, a guide. It's only worth what someone is prepared to pay and what you want for the car and what it is worth are two totally different things.