What kind of profit margins do the authorised dealers look for on second hand car sales?

[DonDan27]

Hi all

 

I'm in the market for a second hand Octavia Estate DSG Elegence/SEL probably as a Petrol (as i dont really do the miles for diesel).

 

I dont have any experience in buying cars so i'm trying to get a handle on what kind of price i should be paying assuming im not being a total mug or hit the jackpot with the deal of the century.

 

Ive been quoted £14,098 (down from £14,250) for the following:

Octavia 15 plate, 1.6tdi Elegence, 34k miles (Ex Enterprise rental, set to long service so only had one at 18k miles)

 

General feedback from the forum was this was priced too high but the dealer wouldnt budge.

 

Looking at the trade in values on We Buy Any Car and Cap connect, the average trade in value for the car ive been offered is approx £11,600

 

This works out to an approx gross profit percentage of 18%

 

Is there a rough figure that you all look to to know you are getting a reasonable deal? Is this even a sensible way of trying to value the deal?

 

I'm generally looking at buying from an authorised dealer for that little extra bit of piece of mind, so i know that does come with a cost.

 

I suspect there are probably too many variables to take into account when buying a car for this to be a particularly useful method but it never hurts to ask

 

 

[kevberlin]

I used to assist in buying and collecting cars through the trade. On a £15k the typical dealer profit (after valet and cosmetics) was £1000 to £1500.

[Neily03]

 

Octavia 15 plate, 1.6tdi Elegence, 34k miles (Ex Enterprise rental, set to long service so only had one at 18k miles)

 

You mad??You do know how rentals are treated??

[DonDan27]

Thanks Kevberlin, that's a helpfuil figure to have in mind.

 

Neily03 - opinions on that seem to vary judging by previous posts on the forum, having said that i doubt ill end up going for this car, but thought it might be useful info for me moving forward. It does seems a lot of the second hand car at 2ish years old tend to be ex rentals anyway

[Ranger]

If you're buying on finance, a new one might work out cheaper overall.

The deal you've been offered does look a bit steep. Try using the used car locator on the Skoda website and compare. The car supermarkets are worth a look as well, it gives a good benchmark.

[DonDan27]

Thanks Ranger

 

I have been looking around and keep an eye on the skoda website each morning It does seem that the combination im after (Estate, DSG, Elegence/SEL) are not that common, particularly if you throw the petrol into the mix.

 

Planning on buying cash so it seems like there should be good value in the right second hand car (for the right price of course) rather than going for new. Im going to contact a few more dealers over the weekend and see if they have any more luck finding a match for me. 

[Flying]

Several estates match your choice and look better value on the Motorpoint website - I have had good buys from there in the past and can recommend them.

[DonDan27]

Thanks Flying, they do look like a decent deal. may try and pop to my local one this weekend

 

I would have though that as the 2015/15 plates should come with the balance of the warranty, they would negate some of the advantages of an authorised dealer

[DonDan27]

Having done some quick research i can see i'm going to have to go to Motorpoint well prepared. Wouldnt stop me getting one if it all stacks up but im going to have to make sure ive done my homework

[glosrich]

Have a new one on 0% finance. Use your cash to pay a deposit and the payments.

You can get 20% off list price on new.

Get something like a 1.0 petrol turbo 115ps estate with DSG for £16800.

Go new for a full warranty and new tyres and brakes etc.

Its really only a couple of thousand to have a new one, with no dodgy history.

Edited 9 September, 2016 by glosrich

[Wakey]

Just remember motorpoint have a fixed price policy so the screen price is what you pay

[andyvee]

Some of the Motorpoint cars as not originally UK cars so will not be quite the same spec, or have a 3 year manufacturer warranty either.