Dealer profit margins
27 January 2009, 11:45 PM
#32
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Just bear in mind though, that when I sell a car, 15% goes to the government, plus they get the money from the road tax, tax from the fuel, tax from my commission, tax from the mechanics wages, tax from the insurance products etc etc etc. I pay 40% tax AND company car tax too! IF our dealer went bust tomorrow, the government will be looking to recoup that lost tax from YOU!
Let's be clear: on used cars, only 15% of your profit, not the total price, goes in VAT to the government; there is only one reason why you pay 40% income tax, and that is because you are one of the highest wage earners in the land, and you only pay 40% on the top band, not on all of it; you pay company car tax because, erm, you have the benefit of personal use of a free company car!I've suddenly lost all sympathy for you, especially after you tried to con S'netters - and not for the first time - with a heads up on VW R32 bargains when all you were trying to do was earn yourself a fat commission (you know, the thread right here that the mods pulled a couple of days ago).
But it's kind of you to think of us all like you do, very considerate. It's obviously clear that without motor traders earning top-rate income tax, and driving around in posh cars for free, that we're all in for an extra hard time. We owe you a comfy living for sure. Thanks bud
Richard.
28 January 2009, 12:29 AM
#33
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Clearly comments from a dealer.
My post about searching the internet was for a price from full main dealers through broker sites such as Autoebid. The cars are supplied by a main franchised dealer and the cash is paid to the main franchise dealer.
So you get all the benefits you describe and non of the hassle.
And given your comments on auctions - I wonder where many, many dealers including main franchise players get their stock? Care to enlighten us?
My post about searching the internet was for a price from full main dealers through broker sites such as Autoebid. The cars are supplied by a main franchised dealer and the cash is paid to the main franchise dealer.
So you get all the benefits you describe and non of the hassle.
And given your comments on auctions - I wonder where many, many dealers including main franchise players get their stock? Care to enlighten us?
As far as auctions are concerned, if a dealer buys a lemon and sells it on to you, wherever they sourced it from, the customer has comeback as per sale of goods. If you take the chance at an auction yourself, your comeback is somewhat limited.
At the end of the day, 75% of people buy their car from a dealer and 25% buy private/net etc. There are pro's and cons both ways!
28 January 2009, 12:33 AM
#34
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You're being very selective with the truth here RJM25R. You ought to be in sales Let's be clear: on used cars, only 15% of your profit, not the total price, goes in VAT to the government; there is only one reason why you pay 40% income tax, and that is because you are one of the highest wage earners in the land, and you only pay 40% on the top band, not on all of it; you pay company car tax because, erm, you have the benefit of personal use of a free company car!
I've suddenly lost all sympathy for you, especially after you tried to con S'netters - and not for the first time - with a heads up on VW R32 bargains when all you were trying to do was earn yourself a fat commission (you know, the thread right here that the mods pulled a couple of days ago).
But it's kind of you to think of us all like you do, very considerate. It's obviously clear that without motor traders earning top-rate income tax, and driving around in posh cars for free, that we're all in for an extra hard time. We owe you a comfy living for sure. Thanks bud
Richard.
Let's be clear: on used cars, only 15% of your profit, not the total price, goes in VAT to the government; there is only one reason why you pay 40% income tax, and that is because you are one of the highest wage earners in the land, and you only pay 40% on the top band, not on all of it; you pay company car tax because, erm, you have the benefit of personal use of a free company car!I've suddenly lost all sympathy for you, especially after you tried to con S'netters - and not for the first time - with a heads up on VW R32 bargains when all you were trying to do was earn yourself a fat commission (you know, the thread right here that the mods pulled a couple of days ago).
But it's kind of you to think of us all like you do, very considerate. It's obviously clear that without motor traders earning top-rate income tax, and driving around in posh cars for free, that we're all in for an extra hard time. We owe you a comfy living for sure. Thanks bud
Richard.
28 January 2009, 07:52 AM
#35
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