Somebody In The Motor Trade....

[SX 150]

Could somebody who's worked & understands the Motor trade (all makes of & types vehicle), please explain why when a customer buys a second hand car or bike that it has to be serviced before it can be released?

Why can't they be serviced when they come in? So if a customer wants to buy they can take away immediately instead of waiting for a service.

[BaZa ®]

Long time since I was in the motor trade Kev, but this is what it was like years ago:

If everything was serviced as it came in that could be unnecessary expense if the dealer decides to move the vehicle on to another trader if it does not sale retail.

Customer comes in and wants a vehicle there and then, 99% that there will be a warranty on the deal so rather than servicing the vehicle and then sitting there waiting to be sold they do it as it is sold, fresh oil etc and anything that may have deteriorated while sitting on forecourt waiting to sell.

On the other hand if you sign to say as a trader would 'Sold as seen tried and approved without any warranty given or implied' you can take the vehicle straight away.

All it is, is to cover their (the sellers) arse.

[BaZa ®]

Kev I copied and pasted your question and my answer to a mate of mine in the trade, this is the latest regulations.

Baz what you say in your email was certainly spot-on a few years back, but things have changed you old git! :-)

Here's how it is these days.

Trading standards laws actually prevent you from offering any vehicle for sale unless it's ready to go, and that includes a valid MOT. You're not supposed to even discuss prices with any interested party until it's prepared, and putting some kind of sticker on the vehicle that states it's "awaiting preparation" doesn't cover your back. So, if a dealer makes a decision to retail a used vehicle, he's obliged by law to prep it. If he trades it after a period of time, he'll usually lose at least the prep bill.

The reality is that dealers will prep vehicles before being offered for sale wherever possible, but certainly with bikes, that doesn't happen too much in the summer. The big risk is that if a customer gets hurt, or even worse killed while test driving/riding a vehicle that cannot be 100% proven as being fully prepared, the dealer's arse is grass.

[kiltbill]

As a Gm for a motor dealer and having been in the trade for over a quarter of a century I write you a book on the subject! But if I did that then I would have to put all the gory bits in, including all the sex, and that would take far too long!

What we do..

Vehicle comes in and immediately gets a safety check to ensure it is safe should someone want to test it. (Same rule for bikes and cars)

Vehicle once it is up to standard (Trading Sandards) it is put up for sale.

Why we don't do it when it comes in.

1. Most dealers have a stock programme, meaning that if a vehicle is in stock for more than 90 days (This changes dependant on dealer. 90 days is the norm, but there are also 60, 90, and 120 day programmes) it has to be disposed of. So if you have spent loads on servicing, MOT, etc... Your loss will be worse.

2. If a vehicle has sat for 70 days, then problems can occur. eg: sticky brakes.

3. Doing all the work just before delivery means you know all is good for the customer.

Some further info.

The ideal expected profit result for any dealer (Car or Bike) is 2% of turnover. Therefore if you turnover £100 you should make £2.00. £10,000 and you make £200. £100,000 and you make £2,000

So by turningover £5,000,000 you hope to get £100,000. Compared to EVERY other industry this abysmal. More dealers (Car and Bike) are going out of business due to losing money than ever before. Unless you are a really big player then you have little chance of survival, and even they can lose it big time (See Pendragon shares as an example)

So whilst the majority of the population think car/bike dealers make fortunes, the reality is somewhat different. If anyone wants to know more about car or bike dealers just get in touch.

kb

[SX 150]

Thanks for your replies,- just had a friend try & buy a Triumph of a main dealer, quoted ten days till the bike would be ready, so it's still sitting on the forecourt,- unsold.