Price Crash on auto trader

[Ice_Coffee]

I thought maybe a new version of the glasses guide came out or something

[RS-4-Me]

I've been looking for a couple of months now and can't say I've noticed any significant change.

[eightfoot]

To put it into context the dealer car with 16k miles is a Silver car. They just dont sell! Avus yes but not silver.
Had the car been Black, Daytonna or Sprint it would be 35k+
I can tell you that every decent car that I have had my eye on has sold.
Its actually a good time to sell because of the snow.
You can actually hear people cursing RWD BMWs as we speak.
The only cars that are dropping below 30K are high milers/owners and ones not up to scratch.

does any one want my daytona saloon with factory warranty and 5000mls on it then,like to se 35 for it anyone intrested pm me

[ARSEY4]

To put it into context the dealer car with 16k miles is a Silver car. They just dont sell! Avus yes but not silver.
Had the car been Black, Daytonna or Sprint it would be 35k+
I can tell you that every decent car that I have had my eye on has sold.
Its actually a good time to sell because of the snow.
You can actually hear people cursing RWD BMWs as we speak.
The only cars that are dropping below 30K are high milers/owners and ones not up to scratch.

does any one want my daytona saloon with factory warranty and 5000mls on it then,like to se 35 for it anyone intrested pm me

You have PM

[HYFR]

ice'coffee ... I went to see the muggy blue cab dropped from 29.9 to 26.9

The reason its dropped its cos its aging ... Car dealers in the main get vehicle funding for 90days, but most efficient operators will have a policy to get shot or reduce at 60days ... Couple in a book drop, winter and wk before Xmas ... That equals 3k drop

The car is nice ... Got brand new pads and discs up front, DRC problem sorted, refurbed wheels and straight paint

But is on some budget kumo tyres

the worst bit is the condition of the front leather, very worn and in fact the leather on the bolster on the drivers seat has come full away from the frame!!!!

Demo+1owner.

Full service done few months ago inc plugs ... But was a non audi garage! So quite how its got through to audi approved I don't know

Anyhow, offered them 26dead ... He said they can't move a penny

We'll see after its still sitting there at new year!

[Dom81]

Full service done few months ago inc plugs ... But was a non audi garage! So quite how its got through to audi approved I don't know

I think they carry out a secret and comprehensive multipoint check (i.e. kick the wheels) and it's then allowed back into the fold

[wolfgang]

I found that the 100+ point checks for an Approved Used Audi mean absolutely zilch. The service department cross-charge the sales department for any prep work. That cross-charge comes out of the margin that the sales department make on the car. During my negotiations I found that the sales depratment were loathe to do any work on the car and I had to demand that some basic things were checked. Their attitude was that the car comes with a 12-month warranty so I should use that if something goes wrong (so that Audi UK pick up the bill, I presume).

[HYFR]

no the warranty is provided by Mondial, nothing to do with Audi UK...

[neckarsulm]

ahh well if we are talking "best forgotten" (quote from Evo buying guide) cabriolets then that's a different story, you definitely have a seasonal thing go on there.

Good point about price guides taking into account the VAT changes.
With most goods, the retailer will have justification to charge a bit more when we get 20% VAT, usually the hike is in excess of the 2.5% to round things up.

With used cars, the VAT is charged on the margin (the dealers profit) so for each £1k gross profit they will be £25 down. Not really worth worrying about I suppose, well not til you get your VAT bill!

So will the price guides reflect this by showing a greater gap between trade and retail prices? I doubt it because compared to the overall costs of preparation 2.5% or £25 per £1000 margin it's not even half a tank of fuel.

[Steve_C]

With used cars, the VAT is charged on the margin (the dealers profit) so for each £1k gross profit they will be £25 down. Not really worth worrying about I suppose, well not til you get your VAT bill!

VAT is only charged on the margin if its a non-qualifying car (i.e. VAT was not reclaimed by the dealer on the purchase price) which all depends on who the dealer bought the car from. But I agree 2.5% is a small enough figure that salesmen will not worry about it (although the accountants will!).

[PetrolDave]

Wouldn't surprise me if this is to counter the VAT changes in someway by twekaing book value

What do you mean by this?

VAT goes up to 20% on 1st January, so if the book prices drop by 2.5% now (when there are usually less buyers out) then when they go up by 2.5% on 1/1/11 the prices will be back where they were.

[Steve_C]

Yes, I see the point now Dave. But I'd have thought this is more relevant for new cars where the 2.5% VAT increase would be applied to the whole retail value rather than (most) 2nd hand cars where the 2.5% is only applied to the profit margin.

[PetrolDave]

But I'd have thought this is more relevant for new cars where the 2.5% VAT increase would be applied to the whole retail value rather than (most) 2nd hand cars where the 2.5% is only applied to the profit margin.

???

You pay VAT on the whole price you pay, not just the dealers profit.

[adsgreen]

you are both right - used cars can either pay the vat on the margin or the whole price.

[Steve_C]

Thanks adsgreen, this is what I was alluding to in my post at 5.41pm .

About 80% of the 2nd hand cars that I see are margin cars (i.e. VAT is on the profit element only). Hence, if such a car is sold at a loss (even as little as a £1 loss) no VAT is charged at all. VAT can only be charged on the full price of 2nd hand cars if the seller is VAT registered and the car has been owned by VAT registered businesses throughout its life (i.e not owned privately).

Not that anyone will be interested , but here's the link: http://customs.hmrc.gov.uk/channelsPort ... e=document