2nd Hand car dealer markup.. wtf ?!

Rynax SG · 2007-05-06T22:17:23+00:00

if tats the case i tik lots here can be car dealers...10-15 times? Think again...then post.

Rynax SG

Hi, was walking around ubi 2nd hand car shop dealers a few days ago and i noticed a car that looked strangely familiar. Upon closer inspection, i noticed it was my uncles old car which he sold for 41k. Out of curiosity i asked for the price and was quoted $48,800. WTF ? The dealers mark up so much ? My dad was thinking of getting a 2nd hand car as a second car… but after finding out abt the7k mark up, we were abit skeptical about getting a 2nd hand car.. so can anyone tell me.. is this incredible profit margin applicable to all companies ? and where can I get a second hand car whereby i wont get ripped off

Ito_^ SG

very strange meh?

allentyb SG

Rolling Eyes

those 2nd hand car dealer also want to make money, mah

weiqimun SG

i think car dealers making 10-20% off the selling price is not uncommon. after all, there is the risk of car depreciating further if it is not sold within a reasonable period of time…

sand king SG

sgcarmart?

tomsss SG

this is normal. you buy something and want to sell it off, of course you want to make some $$$ out of it right? so no need to wtf Laughing

cosmic_rides SG

think about it, they will have to clean the car up, then they might have to repaint the car or do minor touch up to the paint work. they will also be taking some risk if they cannot sell those 2nd hand cars within a couple of months. they will have to suffer loses in terms of road tax, coe ......

btw i am not a car sales man.. Very Happy

racingmafia SG

If someone bought something for $40k and profit $2k...i tik dun do business lar better go work in office...i tik 7-8k is reasonable. Business=War=Can makan gao gao must makan gao gao(English*Malayu*Hokkien*)

Ah Cek SG

they oso need to eat ma

shin-kyo SG

i dont find there’s any wrong with it… they also need to earn mah…

eviljustice SG

noob sia. e company no need earn $$? employee no need money? bills? etc.

Deportivo SG

Don't be surprise, the official dealer makes more than reseller.

For example, a new latio cost $56.5k. Tan Cheong makes a 21% premium from that price.

sir_boris SG

You expect them to make $2?

CyanSupra SG

same as those in handphones dealer..
Let's say they take in ur nk 7610 for $170..
Dun tell me they goin to sell others below the price of 170?

number_09 SG

I have a car dealer friend who works in a car company for many many many years.Quite a Big Reliable Japanese Brand.

Heard that the mark up is at least 10 - 15 times of the original price.

But the reason was mainly because of the government.
Car dealers/companies are taxed heavily. And rental of space to store the cars also included in.

mamamamama SG

OK then don't buy anything from anywhere else.

Because retail prices everywhere are much much higher than their cost.

Rynax SG

Thanks for the replies guys. I don’t mean I am surprised they are earning money. But 8k markup…. i mean 3k – 5k a car would be a more justifiable amount, no ? It’s not like they only sell 1 car a month and call it a month…

casshern SG

u must understand their overhead costs, rental of grounds, staff salaries, freebies to sibei niao customers, bills etc etc

if only 3k-5k, i think they eat grass. moreever now 2nd hand car market moving very very very very very slow.

it would come as a surprise if they manage 4 car sales per month

Rynax SG

icic… but do you guys think it’s worth it to get from these dealers ? or should i just get direct owner/1st hand

cosmic_rides SG

of course if you can afford, brand new car would be best. if you are going to buy direct from car owner, few things u have to look out for. accident car? do you know how to tell if the car owner lies about it? problems with the car ie, gear box needs change or engine problems. these are just some of the few things to look out for.

If you do not think you can cope or handle these issues, maybe it is still better to go to a car dealer.... you can usually go back to the car dealer if these issues come up within the warranty period.