WBAC Ridiculous offer?

[Deleted member 6183]

I think that at this point the depreciation curve has already started to ease....

Perhaps he should buy another

 

[wivenhoe]

Indeed, one doesn't have to settle for a bad deal.

Just knocking the VAT off the original sale price gets you to £32k, (which is perhaps were it would be priced as an Approved Used).Deduct some more based on half a year's depreciation, plus the 'used' status, two increments on the number plate, fall in diesel popularity, cooking 220d (for clarity I'm not saying a 250d would fair any better) and their need to turn a profit.....

So, on the face of it not the best offer, but can see how they got there.

Why would you need to knock the VAT off - the cost of the car is the cost paid - all cars have VAT on them and if it is used and “vat qualifying” the dealer has to charge VAT.

Residual values have nothing to do with VAT, selling the car is all about the market - at the moment, the car market is in recession so dealers and manufacturers are awash with cars so the market price is depressed. As the manufacturers have skewed the market by selling PCP’s based on high GMFV’s then those cars are flooding onto the market, as used values are depressed then that in turn depresses the new car prices.

When Merc couldn’t get me a E300e within 8 months and I told them my only alternative plug-in was a BMW the sales director offered me a new unregistered S560e L AMG Line for £ 64k against a list of £ £98k. I didn’t take it as it is far too big for my needs and the emissions didn’t give the tax break I am looking for. DriveTheDeal have the same model at £ 70k so my offer was about right. I see on the a Merc site there is a similar car at MB Liverpool but a March 19 plate with 49 miles on it for almost £ 90k - someone is in for a shock if they pay anything like the asking !

 

[pmcgsmurf]

Why would you need to knock the VAT off - the cost of the car is the cost paid - all cars have VAT on them and if it is used and “vat qualifying” the dealer has to charge VAT.

The most common way for dealers to account for VAT on used cars is the "margin scheme".
In this way VAT is only charged on the profit that the dealer will make and not on the full price of the car.

 

[Scooby_Doo]

When I was changing my C207 over 3 years ago , WBAC's offer was only about £700 less than MB had offered for it in p/ex. Carwow's price of £10,000 off the new C207 made the deal a no-brainer.

 

[wivenhoe]

The most common way for dealers to account for VAT on used cars is the "margin scheme".
In this way VAT is only charged on the profit that the dealer will make and not on the full price of the car.

As it’s used, the original price had the VAT in it

 

[Flyinspanner]

It’s all the Brexiteers dumping their European cars back on the market so they can buy up SD1s, Allegros, Marinas etc its killing the values!

 

[pmcgsmurf]

As it’s used, the original price had the VAT in it

Yes I know that.

I was responding to the statement:

all cars have VAT on them and if it is used and “vat qualifying” the dealer has to charge VAT.

 

[219]

You paid too much in the first place.

I regularly get emails from lease companies offering the likes of your car for circa £30k brand new after discount.

Times have changed ; I remember my dad taking delivery of his W115 back in 1970 , and immediately putting a deposit on another ( 18 month waiting list ) , when the next car cam the first one was still going well , so he paid the list price for the new car , stuck an ad in the paper and sold it to a dealer for a profit . The only stipulation was it had to be ‘delivery miles , which on asking was under 100’ but the guy sent a transporter to collect it .

It was quite a common practice at the time .

 

[219]

Indeed, one doesn't have to settle for a bad deal.

Unless your name is Boris

 

[Thrash]

In my experience, WBAC valuations are pretty similar to what you'd get as a part exchange valuation so they're not entirely ridiculous. Of course if you overpaid in the first place, the more ridiculous it does seem.
I'm a member of a MB Facebook group and people slate WBAC for giving low-ball offers and they should go to Mercedes and p/x it for a new Merc as they'll get a much higher valuation, not realising it comes out of their margin, along with the discount on the new car.

 

[Will]

As has been said already, there’s two lots of margins to account for with the WBAC offer - their own and that of whoever buys it at auction to sell for profit.

They only buy stuff for a price that they can be guaranteed to make a good chunk of money on. And also have to account for the risk (think how many ‘bad’ cars with serious faults could be sold to them by private owners looking for a way out!)

If you have a nice example of a desirable car, cut out the middle man (WBAC) and sell direct to someone/somewhere that specialises in those sorts of cars. They will probably prefer buying from a private owner than something that’s been dragged through the auction anyway and you won’t be paying for WBAC’s chunk of the deal either