Tigger
Member Since: 30 Mar 2011
Location: L15KRD
Posts: 2555
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I wouldn't begrudge the dealers for what they have to do.
Firstly, they have to stump up the £17,150.00 of working capital to buy a depreciating asset.
Out of the £3,840.00 difference, they will have to pay for the interest on the money, reserve around £1,500. for price reduction and the possible inflation of a customer's trade in valuation. They'll have the cost of bringing the vehicle up to standard and cleaning and preparation. There will be the dealer's cost of marketing and advertising the car, the provision of the warranty and the costs of sorting out any post sale issues that aren't covered by warranty.
Assuming they do sell it, there'll be VAT to pay on any remaining profit.
If it doesn't sell, it'll go to auction, where they might be lucky to get the price they originally paid for it.
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1st Oct 2016 1:20 pm |
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