So many new vans for sale

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So many new vans for sale Empty So many new vans for sale

Post by samleeds on Wed Nov 14, 2018 1:35 pm

The market has more than its fair share of 1 and 2 year old vans for sale just recently. Probably due to the release of the pension funds scenario some time ago. My local dealer has even decided he isnt stocking vans over 10 yrs old anymore as he cant make any money on them. he can buy an older van for 10k and sell it for 12,5k making a couple of thousand less expenses, but a 1 yr old carries at least a 7k mark up, so why should he waste his time with older vans. 

He reckons that 80% of older vans are autotrader or ebay sales and only 20% change hands privately, meaning only 1 in 5 van owners are getting what they want. Thats seriously depressing news for anyone selling these days and good news for the likes of the motorhome depot types of sellers. Nothing against them, but the days of trading up are diminishing rapidly and it would appear that the dealers are back in the game big time.

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So many new vans for sale Empty Re: So many new vans for sale

Post by Gromit on Wed Nov 14, 2018 2:11 pm

Not the attitude of our local dealer.

He says he can buy four old vans for the same price as one nearly new one.

Each of those will give him the 2.5K profit you mention, which adds up to 3K more than the 7K he would make on a single newish van.

Plus it gives him 4 times the chance of making a sale and keeping the cash flowing, especially when a large proportion of first time buyers can't, or don't want to afford a new van.

Never having been a dealer I don't know the ins and outs - but his philosophy seems to make sense, and he is just extending his business.


P.S. I'm not sure I follow your logic here, "He reckons that 80% of older vans are autotrader or ebay sales and only 20% change hands privately, meaning only 1 in 5 van owners are getting what they want."
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So many new vans for sale Empty Re: So many new vans for sale

Post by samleeds on Wed Nov 14, 2018 5:22 pm

Gromit wrote:Not the attitude of our local dealer.

He says he can buy four old vans for the same price as one nearly new one.

Each of those will give him the 2.5K profit you mention, which adds up to 3K more than the 7K he would make on a single newish van.

Plus it gives him 4 times the chance of making a sale and keeping the cash flowing, especially when a large proportion of first time buyers can't, or don't want to afford a new van.

Never having been a dealer I don't know the ins and outs - but his philosophy seems to make sense, and he is just extending his business.


P.S. I'm not sure I follow your logic here, "He reckons that 80% of older vans are autotrader or ebay sales and only 20% change hands privately, meaning only 1 in 5 van owners are getting what they want."
I understand your logic but as far as the dealer is concerned, very few dealers actually buy new vans, the majority on his forecourt and comms sales, ie the seller gives him the van tells him what he wants and he then puts on his mark up and sells it. These vans are less likely to come back with faults, but older vans are such a pain. People come back with battery issues, pumps that failed 11 months down the live, bulbs blown etc etc. He has 22 vans on his forecourt at the moment and nothing under 20k.

on the e bay sale sand autotrader, those vans may sell for the buyer prices, but after commissions and price drops etc, nobody achieves the same level as a private sale. It is certainly a minefield out there and its defo a buyers market these days.

10 years ago dealers had cash for your old van, these days they offer marketing to sell it and take a cut with no risks which is why motorhome depots and the likes are creeping into the market these days. In fact, my own van is on my drive, I want 20k for it stripped down and original and The Motorhome depot mansfield told me they would advertise it for 22k stripped if I was willing to accept around 17 to 19k and I could use it untill it sold but it must be available for viewing if they rang. Thats a deal for some but alas not for me. I will rather give it to my kids to use after im gone, rather than loose 4 or 5k on it so a dealer can make money for basically doing very little.

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