Hi Glosguy Thank you for going into more detail which makes sense. So let’s say if I got a price from Motab before the end of my lease and didn’t buy it but found that the car was on sale at my dealer at higher price than Motab, then do you think it’s worth telling the dealer look this is what Motab were offering me to try and get a good negotiation including the fact that I will be getting a warranty aswell. Thanks
It doesn’t really work like that. Let’s say that Motabilty ask you £12k for the car. They will probably get around £9k trade for it. Prior to resale, a dealer will often need to service the car (if one is due within the next 6-9 months), attend to any bodywork damage, replace any tyres that are within a few thousand miles of needing changing and allow for the cost of providing a warranty. All of that probably adds up to £1k to what they need to recover from the car. They might then stick the car on the forecourt for £12k but will know that most savvy buyers will haggle so, in reality, they might expect to get more like £11.5k. They also have to allow for the fact that they have a depreciating asset. For all these reasons and more (overheads, staff costs, tax etc etc etc) that is why the trade prices are so much lower than retail prices and why Motability will always ask us way more than they will be prepared to sell the car to the trade.