My Lexus Has To Go

[Steve ( West Mids )]

Sold to a Lexus dealer this morning, sad to see it go :(

[Exiled]

You don't mess about do you, a man of action. Hope your luck changes and you quickly find something suitable.

[Steve ( West Mids )]

Well it's up for sale already at £3.5k more than they paid me for it.

[Tango]

Well it's up for sale already at £3.5k more than they paid me for it.

That's why we call them Stealerships

[Steve ( West Mids )]

I know they have to make a living, but one ally refurb. and a wash and hoover. It still has five months manufactures warranty. So they just have to find a buyer.

[fairygodmother]

I know they have to make a living, but one ally refurb. and a wash and hoover. It still has five months manufactures warranty. So they just have to find a buyer.

If only it was as simple as a wash and hoover and make £3500!!! Let me tell you how a dealer works its margin:

£3500 - VAT = £2975

£2978 - Warranty extension £560

£2418 - two hours workshop approved pre owned cheque £186

£2232 - Pay salesman's commission and Valet car £200

£2032 - Most customers want a deal on the car so minus at least another £500

Total margin £1532 not allowing for any other prep work tyres service pads ect.

There you go the secret is out the average used car profit per unit in the Lexus network is between £1200 and £1800.

[juicestop]

I know they have to make a living, but one ally refurb. and a wash and hoover. It still has five months manufactures warranty. So they just have to find a buyer.

If only it was as simple as a wash and hoover and make £3500!!! Let me tell you how a dealer works its margin:

£3500 - VAT = £2975

£2978 - Warranty extension £560

£2418 - two hours workshop approved pre owned cheque £186

£2232 - Pay salesman's commission and Valet car £200

£2032 - Most customers want a deal on the car so minus at least another £500

Total margin £1532 not allowing for any other prep work tyres service pads ect.

There you go the secret is out the average used car profit per unit in the Lexus network is between £1200 and £1800.

That is really eye opening... and thinking about it makes total sense, are you a Lexus employee or generally in the trade?

[fairygodmother]

I know they have to make a living, but one ally refurb. and a wash and hoover. It still has five months manufactures warranty. So they just have to find a buyer.

If only it was as simple as a wash and hoover and make £3500!!! Let me tell you how a dealer works its margin:

£3500 - VAT = £2975

£2978 - Warranty extension £560

£2418 - two hours workshop approved pre owned cheque £186

£2232 - Pay salesman's commission and Valet car £200

£2032 - Most customers want a deal on the car so minus at least another £500

Total margin £1532 not allowing for any other prep work tyres service pads ect.

There you go the secret is out the average used car profit per unit in the Lexus network is between £1200 and £1800.

That is really eye opening... and thinking about it makes total sense, are you a Lexus employee or generally in the trade?

I have worked in the motor trade for the last 13 years. I have been working at a Lexus dealer for the last 9 years in lots of different roles but the last 4 years i have been the sales manager.

I do not normally comment on these forums very often but i do enjoy reading about peoples experiences. However people do not realise just how difficult it can be to make money out of used cars and keep 100% of customers happy. The hardest part of my job at the moment is finding good quality used Lexus cars that you can buy cheap enough, low preparation cost and be able to sell them at a sensible price.

If you have any questions at all about Lexus dealers please ask.

[Steve ( West Mids )]

Fairygodmother did you buy my Lexus?

[fairygodmother]

Fairygodmother did you buy my Lexus?

No i did not buy your car but i would have bought it if you had offered it to me!!!!!!

The only reason i have posted is to show you what the real margin is the dealer you sold the car to is making.

[Steve ( West Mids )]

Well they have increased the price by £1000 .............

[Exiled]

Well they have increased the price by £1000 .............

Are you surprised Steve? What are fairygodmother's famous for........ telling fairy tales of course!

[Steve ( West Mids )]

Makes you wonder, maybe they have taken the advice of FG and realised they were not making enough.

[fairygodmother]

Makes you wonder, maybe they have taken the advice of FG and realised they were not making enough.

You really think that they have increased the price after what i wrote!!!!.

Lexus dealers are mostly run by big PLC companies. Weekly price checks are done every to ensure that their stock is competitively priced. Sometimes we get it wrong and the last thing big companies want is to under sell a car.

You decided to accept the offer that they made nobody forced you. It is up to them to decide how much they sell that car for car.

You can see why outside of work i never tell anybody what i do for a living as they automatically think you are a bit of sh@t. There are some honest genuine people in the trade who just want to make a sensible living and do a good job but the minority of idiots give us all a bad name.

[Steve ( West Mids )]

Hey FG, I was just jesting ;)

[Exiled]

Makes you wonder, maybe they have taken the advice of FG and realised they were not making enough.

You really think that they have increased the price after what i wrote!!!!.

Lexus dealers are mostly run by big PLC companies. Weekly price checks are done every to ensure that their stock is competitively priced. Sometimes we get it wrong and the last thing big companies want is to under sell a car.

You decided to accept the offer that they made nobody forced you. It is up to them to decide how much they sell that car for car.

You can see why outside of work i never tell anybody what i do for a living as they automatically think you are a bit of sh@t. There are some honest genuine people in the trade who just want to make a sensible living and do a good job but the minority of idiots give us all a bad name.

Come on Fg, chin up, be proud of what you do, there are lots worse occupations. I know many very nice car sales persons.