What is 2nd hand car dealers' profit?

[Alheych]

i think 12k buffer is quite normal. the final deal price will almost certainly not be so high, and the dealer has to pay the rent, bear the risk of not selling it, and maintain it meanwhile. can't say high or low, it depends on the individual car.

 

back in 2011 when COE still not that high, i saw some old mercedes which were for sale forever until the end of the COE lifespan. that one dealer really absorbed all the losses.

[LukePinetree]

My take is as long as you are comfortable with the price u sell, why bother abt how much the dealers are earning? After all, it's their trade. Selling by yourself have to bear with the emotional attachment and with all the trouble dealings with phone calls. Mostly from dealers anyway.

[Matrix0405]

Dealers mark up is abt $10K - $12K. So if you can offer $5 - 6K below the dealers' selling price to direct sellers, that should be a compelling offer.

[Matoonia]

Don't take the selling price literally. That is just the asking price. In the end, the purchase price could be a few $k off the listed price

[LukePinetree]

recently offers like 2k off and starbright, replied cannot match. and there you go, they up the price by 1k again.

their strategy is to offer a low price to catch buyers and then tries to sell the car to you at a higher price.

 

for me, I walked off and bought another car.

[EXO]

A couple of months back I sold my car to a dealer approximately 5k above the next highest dealer is asking.

 

The reason i was able to do that is because the car that I bought is a difficult to sell model. I used that to my advantage and sold my car 5k above and got the car 4k below their asking price without any admin fees etc..

 

Eventually they sold my previous car for around 5k profit. If I were to sell it myself, I will mostly probably be able to get at most 1-2k more while having to pay more for the next car.

[Matoonia]

  On 3/2/2014 at 3:51 PM, EXO said:

A couple of months back I sold my car to a dealer approximately 5k above the next highest dealer is asking.

 

The reason i was able to do that is because the car that I bought is a difficult to sell model. I used that to my advantage and sold my car 5k above and got the car 4k below their asking price without any admin fees etc..

 

Eventually they sold my previous car for around 5k profit. If I were to sell it myself, I will mostly probably be able to get at most 1-2k more while having to pay more for the next car.

 

If your car is a difficult to sell model, how to use to your advantage? Recently I had a friend who wanted to sell his car, which is relatively unpopular. Let's just say that this car brand has less than 10 cars available for sale on sgcarmart now. Mind you, his car is only 1.5 years old, and less than 15k mileage. He did not want to sell on his own as he does not like to deal with buyers' calls. In the end all the dealers he spoke to deliberately push down the price, claiming his car is hard to sell, no one heard of etc. In the end he put on consignment with one of the dealers, and manage to sell after 2 months. But he had to pay 1.5% for dealer commission.

 

[EXO]

The current car that I'm driving is a hard to sell model. My previous car was a Honda.

 

  On 3/3/2014 at 6:56 AM, Matoonia said:

 

If your car is a difficult to sell model, how to use to your advantage? Recently I had a friend who wanted to sell his car, which is relatively unpopular. Let's just say that this car brand has less than 10 cars available for sale on sgcarmart now. Mind you, his car is only 1.5 years old, and less than 15k mileage. He did not want to sell on his own as he does not like to deal with buyers' calls. In the end all the dealers he spoke to deliberately push down the price, claiming his car is hard to sell, no one heard of etc. In the end he put on consignment with one of the dealers, and manage to sell after 2 months. But he had to pay 1.5% for dealer commission.

 

[Matoonia]

  On 3/3/2014 at 12:08 PM, EXO said:

The current car that I'm driving is a hard to sell model. My previous car was a Honda.

 

 

 

Oh I see. Yes, if you are getting hard to sell model can get better price. But what goes around comes around. Next time you sell also no resale value, unless you drive till the end

 

[7007]

Mind to share which is that?

[Shelltoxin]

  On 2/24/2014 at 2:25 AM, Quantum said:

My friend recently wanted to buy new car, sold his 08 Avente 1.6(M) to 2nd hand car dealer at a low price 30K, the dealer's excuse is manual no buyer, so cannot give higher,

immediately the dealer advetisted the car at sgCarMart price S$41888, and after 2 weeks sold out,

My friend felt "chopped carrot"

 

looks like 2nd hand dealers very easy earn $$$, thinking to join this industrial

 

 

You should ask What is HDB's profit for selling HDB flat to Singaporeans.

[Mason016]

  On 3/11/2014 at 6:52 AM, Shelltoxin said:

 

You should ask What is HDB's profit for selling HDB flat to Singaporeans.

 

HDB's mission is to provide subsidised housing for all Singaporeans.

[Wyfitms]

  On 2/24/2014 at 2:47 AM, Quantum said:

because my friend told me he doesn't want the buyer to know him, in case if any problem in future the buyer look for him,

btw, he told me his car AC compressor going to fail, due for 80k major service, and gearbox "gear biting" in hot condition,

 

want convenience, no trouble, ease conscience, etc etc

 

and also want highest price..

 

beri good!

[JeremyGoh]

  On 2/24/2014 at 5:27 AM, Kangadrool said:

you can OMO freelance also. Just need some capital.

 

Buy from seller, sell to buyer and advertised as direct owner/consignment sale. Lemon law does not apply.

 

But, for manual car, to sell to dealer is a waste. There are a group of buyers specifically eyeing for them since you can hardly find any manual cars now in the market. Once you adertised, easily sell within a week.

 

 

 

Ever thought of that too but after checking, to do that you need to be registered as a used car company because if you buy from a seller, you can't do temporary transfer and therefore will incur a transfer count on the vehicle. The only way to do freelance is to know some reliable dealers, best is the boss, if you have a contact to sell a vehicle, can always work out a profit sharing scheme with him and get him to purchase the vehicle.

[Mercs]

http://thecourtroom.stomp.com.sg/courtroom/cases/case-of-the-day/judge-dismisses-car-sellers-suit-over-ferrari-sale

 

Judge dismisses car seller's suit over Ferrari sale

Posted on 20 April 2015

 

 

A property agent who had his eye on a second-hand Ferrari, but wanted to mull over the purchase, placed a $10,000 deposit to reserve the sports car after being told there were several other prospective buyers.

 

But Mr Toh Han Yang, who had offered $750,000 for the 458 Italia, backed out of the deal after he failed to drive the price down, upon finding out that the car's market price was about $650,000.

 

Around this time, the post-dated cheque he had issued to self-styled car dealer Lim Chin Liang was returned due to a problem with his signature.

 

Two months later, Mr Lim sued Mr Toh for $70,000 over the aborted deal, reports The Straits Times.

 

He sought to recover the $10,000 deposit and claim damages of $60,000, the "loss" he suffered when he sold the car to another buyer for $690,000.

 

Earlier this month, a district court dismissed Mr Lim's claim for $60,000 but ordered Mr Toh to pay him the $10,000 deposit.

 

District Judge Seah Chi-Ling found that Mr Toh had been induced by Mr Lim's misrepresentations into signing the sale and purchase agreement and was therefore entitled to rescind the deal.

 

The judge accepted Mr Toh's testimony that Mr Lim had told him the deposit was just to confirm his interest in the car and that, until he confirms he is going ahead with the purchase, the agreement would not be binding.

 

Mr Lim has filed an appeal. On Feb 10 last year, Mr Lim bought the Ferrari from importer Ital Auto for $675,000.

 

On the same day, he placed an online advertisement on a car listings site, jacking up the car's price to $768,000. Mr Toh saw the ad and arranged to view the car the next day.

 

The price was knocked down to $750,000 and both men signed a one-page sale and purchase agreement. Mr Toh handed Mr Lim a cheque for $10,000, post-dated to Feb 20, 2014.

 

That day, Mr Lim banked in the cheque but it was returned. The circumstances surrounding the signing of the document and the events that followed are in dispute.

 

Mr Lim argued that the deal had been concluded on Feb 11. But Mr Toh said that he did not want to commit on the spot and the agreement was just an expression of interest that is non-binding until he confirmed the purchase.

 

The cheque was post-dated to allow him to make more inquiries on the price before making the final decision.

 

Mr Toh said that after assessing the market price, he offered $650,000 and then $730,000 but was either rejected or ignored, so he told Mr Lim on Feb 13 that the deal was off.

 

Judge Seah noted a few reasons for accepting Mr Toh's version. He found it unlikely that Mr Toh would commit to the deal after just 20 minutes of negotiations without test-driving the car.

 

He pointed out that Mr Lim could not give a convincing explanation as to why the deposit cheque was post-dated - if the deal was concluded, Mr Lim would more likely have asked for immediate payment.

 

The judge also noted that the morning after the agreement was signed, Mr Toh had asked another car dealer about two other Ferrari cars.

 

This was entirely consistent with Mr Toh's account that he needed to make further inquiries before committing to the purchase.

[Wt_know]

one wants to chop robert

 

one wants to put down a $10k post-dated cheque with "error signature" to take the ferrari for fun drive?

Edited April 20, 2015 by Wt_know

[Hamburger]

an agreement is a contract that needs to abide by its clause.

 

property agent also dont know this????

[Wt_know]

agent vs dealer ... one wants to "outthink" the other ... lol

 

  On 4/20/2015 at 11:52 PM, Hamburger said:

an agreement is a contract that needs to abide by its clause.

 

property agent also dont know this????