Jump to content

Interesting mark up information


Dr Dave

Recommended Posts

I have just been walking around a motorhome dealers forecourt and got talking to a guy picking up his new motorhome (having teething troubles fixed apparantly), In the coversation he pointed to a used pilote which used to be his and told me the difference in price between what he got part exchange and the ticket price was £8000 is this the norm i wonder. Has anyone got any similar experiences?

Still not found our ideal MH but the hymer van 522 looks like it will be the one when we find a good example.

Dave

Link to comment
Share on other sites

Dr Dave - 2011-05-02 11:05 AM

 

I have just been walking around a motorhome dealers forecourt and got talking to a guy picking up his new motorhome (having teething troubles fixed apparantly), In the coversation he pointed to a used pilote which used to be his and told me the difference in price between what he got part exchange and the ticket price was £8000 is this the norm i wonder. Has anyone got any similar experiences?

Still not found our ideal MH but the hymer van 522 looks like it will be the one when we find a good example.

Dave

 

£8000 on a £60,000 M/H would be a very fair markup, £8,000 on a £15,000 M/H pretty steep, would need a lot more information than this to give any sort of opinion.

Link to comment
Share on other sites

We traded in last July and our trade-in MH was then advertised with a mark up of £6000 which seems like a lot BUT: take out the 20% VAT payable on the profit margin, there is £1200 which reduces the profit straight away then add on ground rent on the dealer’s premises, the cost of stocking that vehicle until this month when it was resold, any refurbish costs (mechanical, body and caravan internals parts), salaries for sales and other staff, then warranties when sold on and this margin is fast disappearing. For many years I was involved in the retail motor trade and far from getting rich we found it just about paid the bills and if you are working with borrowed money then may God help you as the amounts involved are huge by most people's standards. The saving grace for the dealer I refer to is the fact that they sell in large numbers; I have watched since buying from them and haven’t seen a month since last July when they have sold less than 20 MHs, this last month they appear to have sold 39 motorhomes! They sell many before they are advertised; our “new” one had only been with them for a few hours when we first saw it! We wish them good luck as we feel we were treated very fairly and hope they continue to be there for when we want to change again. If you expect to be looked after the margins need to start big.

 

Regards,

 

 

Link to comment
Share on other sites

It means nothing. This is the price on the sticker but what will he sell it for? Everyone wants a discount so a dealer wanting £30K will price it at £33k so that he can satisfy the hagglers.

 

We all do it. When we sell our house for instance, we price it up a little so that we've got negotiating space.

 

 

 

 

 

Link to comment
Share on other sites

Archived

This topic is now archived and is closed to further replies.

×
×
  • Create New...