Dealer advice - holding onto stock

[fabes]

Hi there

Looking for a little dealer insight if anyone is around this morning

A main dealer (non Mercedes) has had a 4 year old £10k car on his forecourt for nearly 6 months now.

He has dropped it to a little under £9k a month ago

At what stage is he likely to give up on this and move it off (auction etc?)

I am thinking about a cheeky offer at £8k which is still above what they would get at auction I forecast – but wanted to try and get as much info behind me if we sit down and talk about the pennies

It is already now £600 below what 2 of the ‘guides’ are suggesting it should be retailed for.

Don’t want to get into a debate about the car but am very interested in business model of a main dealer – and how long people believe or know they can hold onto stock in today’s market.

Any and all replies appreciated

Thanks

Fabes

 

[moonloops]

Not an expert on dealers but I would make the assumption that cash in the bank is earning very little interest, so cash tied up in stock not such a burden if the dealer is solvent.

However they will take a hit on depreciation (could they write that off in their accounst anyway)

Make the cheeky offer - what have you to loose ??

 

[jaymanek]

It will probably go to auction very soon where it will fetch around glass's trade price.

If they sell it to you they will want a few hundred more than glass's as they have to provide warranty, prep it etc etc.

 

[fabes]

Jay

Many thanks

you have a PM

Fabes

 

[James Rothwell]

Depends on how the stock is funded. We end up with cars that sometimes sit around for longer than they should and we never send them to auction.

 

[Setanta]

Depends on the dealer. I have come across them where the cars just sit for well over a year.

A certain CL500 that is back on AT again is now coming up to sale for 3 years!

 

[fabes]

Thanks for the replies

Jay's steer is what I was looking for (and with the PM) as elswehere a call has established that 6 months is the decison point wth this main dealers network. This also isn't a mass market car and they may feel the capital is better itied up on one they can churn quicker as they approach half year

Tempted......

 

[fabes]

But no......

the 5 plus months it has been there hasn't helped the interior

Yes a clean etc would help, but there are a few tears in the leather I didn't remember and a few nicks on the dash etc so I remain "en Merc"

Thanks though