How Much Dealers Make Profit?

[hucus]

I'm going to sell my car (about 500k) and then buy another one (1000k). All cars are 1-2 y. old.

The fist one I got directly from a farang. The new one I'm going to buy from a farang also.

So I need to make some calculation.

If a farang is selling his car for 1000k how much will he loose if he sell it to a street dealer (tent)?.

[mikethevigoman]

I'm going to sell my car (about 500k) and then buy another one (1000k). All cars are 1-2 y. old.

The fist one I got directly from a farang. The new one I'm going to buy from a farang also.

So I need to make some calculation.

If a farang is selling his car for 1000k how much will he loose if he sell it to a street dealer (tent)?.

1000k, ? what sort of car is that ? and what new car does a farang have or do you mean a new secondhand one ?

[lingnoi34]

Spread between dealer trade in price and private selling price should be about 15%.

L

[mikethevigoman]

I'm going to sell my car (about 500k) and then buy another one (1000k). All cars are 1-2 y. old.

The fist one I got directly from a farang. The new one I'm going to buy from a farang also.

So I need to make some calculation.

If a farang is selling his car for 1000k how much will he loose if he sell it to a street dealer (tent)?.

one of the dealers i know in pattaya told me cars can be bought for 100k in bkk and resold in pattaya for 200k, iit wouldnt surprise me as i went and had a look at some trade ins and they were almost double bkk prices,. .that thais work on small profits in the car trade is a myth,

[ray08]

If a here is normally a few years old the spread in price between new and secondhand is so close that it makes much mores sense to buy new , secondhand prices are not a competitive as overseas where there are good savings to be made ,

[mikethevigoman]

If a here is normally a few years old the spread in price between new and secondhand is so close that it makes much mores sense to buy new , secondhand prices are not a competitive as overseas where there are good savings to be made ,

Too true, i find looking at used cars here over 10 years old bizzare !, yesterday i saw a ford sierra 1990, for B199.000=3100 pounds ! the same car in england is 200 quid tops , i couldnt, i just couldnt pay that sort of money for that old pile,and a 1995 bmw 525 for B399.000,6200gbp . UK price 500 quid,,i know its relevant, bit id say save /add a bit more and buy new, or 3 years old or there abouts,

[Maigo6]

I bought a new Fortuner at a Toyota Dealership, I traded in a Tiger 4WD 2 door that I had paid 395,000 for 2 years previous.

I got 270,000 from the dealer trade in, I know I could have got more private, but I was impatient and didn't want 2 cars.

When I got a call to sort out the paperwork on my old Pick Up, I had to go to a second hand trader in Khon Kaen to sign some papers for the new owners of my old pick up.

Then I got the full story!!

My old pick went to him for 350,000 from the Toyota Dealership!!! Toyota made 80,000 Baht.

He sold it on for..........400,000 !!!!!!! Dealer made 50,000 Baht.

That's more than I paid for it 2 years before !!

Unbelievable really, the Toyota guy that took me to this dealer looked pretty peeved that the second hand dealer had given me this information, fair play to them, but I was shocked at how much my old Tiger went for, I guess when people are buying second hand on monthly payments, the prices are artificially high.

Cash talks loudest!

Edited February 3, 2008 by Maigo6

[hucus]

1000k, ? what sort of car is that ? and what new car does a farang have or do you mean a new secondhand one ?

1000k = 1,000,000.00 = 1 million baht.

[hucus]

one of the dealers i know in pattaya told me cars can be bought for 100k in bkk and resold in pattaya for 200k, iit wouldnt surprise me as i went and had a look at some trade ins and they were almost double bkk prices,. .that thais work on small profits in the car trade is a myth,

Well if you are talking about 100-200k cars then everything is possible.

A car for 100k should be a 10 year old or in similar state.

I was talking about 1-2 y.o. cars with few years of original warranty.

[hucus]

Then I got the full story!!

My old pick went to him for 350,000 from the Toyota Dealership!!! Toyota made 80,000 Baht.

He sold it on for..........400,000 !!!!!!! Dealer made 50,000 Baht.

That's more than I paid for it 2 years before !!

It looks like a trade-in doesn't work here as in other countries.

In my home country I got almost the top market price for an old car (while buying a new one).

Here a local dealer offered 400k for a 2 y.o. car that I bought for 600k (they didn't look at the car, just made calculations).

I was expected 450k at least while tent dealers prices are about 500k.

I'm not in a hurry I better try to sell it by myself.

[torrenova]

one of the dealers i know in pattaya told me cars can be bought for 100k in bkk and resold in pattaya for 200k, iit wouldnt surprise me as i went and had a look at some trade ins and they were almost double bkk prices,. .that thais work on small profits in the car trade is a myth,

If it was that easy, doubling your money just by going to Bangkok, then everyone would be doing it and thus the margin would be eroded.

[Gearhead13]

tents cars that used to be a mangled mess: Are they rampent in every tent or are there really places that actually have a reputation?

[Gearhead13]

I don't want to be driving a high-frequency maintenance bill on wheels or see ghosts in my mirror sitting in my backseat. With the way dealers do business as described, I don't wanna be cleaning dog$#!t off my shoes walking out of these dealer tents.

[wilko]

Many "street" dea;ers are selling on commission - they have a reserve price and anything above that is negotiable.

[mikethevigoman]

one of the dealers i know in pattaya told me cars can be bought for 100k in bkk and resold in pattaya for 200k, iit wouldnt surprise me as i went and had a look at some trade ins and they were almost double bkk prices,. .that thais work on small profits in the car trade is a myth,

If it was that easy, doubling your money just by going to Bangkok, then everyone would be doing it and thus the margin would be eroded.

I assure you the guy i know that is doing it is on big margins doing just that,what would put most people off is knowing your way around bangkok to go and look at these cars, if its anything like the motor trade in the rest of the world people lie about the condition and you end up looking at 10 and buying 1 or 2,and as a dealer in the uk for 35 years you can take that as gospel !

[mikethevigoman]

one of the dealers i know in pattaya told me cars can be bought for 100k in bkk and resold in pattaya for 200k, iit wouldnt surprise me as i went and had a look at some trade ins and they were almost double bkk prices,. .that thais work on small profits in the car trade is a myth,

If it was that easy, doubling your money just by going to Bangkok, then everyone would be doing it and thus the margin would be eroded.

Id like to add i had some very good margins in the uk and it didnt have everyone doing it, luckily !