2nd Hand car dealer markup.. wtf ?!

• Rynax

  2 May 07, 06:05

  Hi, was walking around ubi 2nd hand car shop dealers a few days ago and i noticed a car that looked strangely familiar. Upon closer inspection, i noticed it was my uncles old car which he sold for 41k. Out of curiosity i asked for the price and was quoted $48,800. WTF ? The dealers mark up so much ? My dad was thinking of getting a 2nd hand car as a second car... but after finding out abt the7k mark up, we were abit skeptical about getting a 2nd hand car.. so can anyone tell me.. is this incredible profit margin applicable to all companies ? and where can I get a second hand car whereby i wont get ripped off
• Ito_^

  2 May 07, 06:10

  very strange meh?
• allentyb

  2 May 07, 07:20

  
  
  those 2nd hand car dealer also want to make money, mah
• weiqimun

  2 May 07, 08:25

  i think car dealers making 10-20% off the selling price is not uncommon. after all, there is the risk of car depreciating further if it is not sold within a reasonable period of time...
• sand king

  2 May 07, 08:40

  sgcarmart?
• tomsss

  2 May 07, 09:07

  this is normal. you buy something and want to sell it off, of course you want to make some $$$ out of it right? so no need to wtf
• cosmic_rides

  2 May 07, 10:46

  think about it, they will have to clean the car up, then they might have to repaint the car or do minor touch up to the paint work. they will also be taking some risk if they cannot sell those 2nd hand cars within a couple of months. they will have to suffer loses in terms of road tax, coe ......
  
  btw i am not a car sales man..
• racingmafia

  2 May 07, 11:26

  Originally posted by Rynax:

  Hi, was walking around ubi 2nd hand car shop dealers a few days ago and i noticed a car that looked strangely familiar. Upon closer inspection, i noticed it was my uncles old car which he sold for 41k. Out of curiosity i asked for the price and was quoted $48,800. WTF ? The dealers mark up so much ? My dad was thinking of getting a 2nd hand car as a second car... but after finding out abt the7k mark up, we were abit skeptical about getting a 2nd hand car.. so can anyone tell me.. is this incredible profit margin applicable to all companies ? and where can I get a second hand car whereby i wont get ripped off

  If someone bought something for $40k and profit $2k...i tik dun do business lar better go work in office...i tik 7-8k is reasonable. Business=War=Can makan gao gao must makan gao gao(English*Malayu*Hokkien*)
• Ah Cek

  2 May 07, 11:27

  they oso need to eat ma
• shin-kyo

  2 May 07, 12:08

  i dont find there's any wrong with it... they also need to earn mah...
• eviljustice

  2 May 07, 16:06

  Originally posted by Rynax:

  Hi, was walking around ubi 2nd hand car shop dealers a few days ago and i noticed a car that looked strangely familiar. Upon closer inspection, i noticed it was my uncles old car which he sold for 41k. Out of curiosity i asked for the price and was quoted $48,800. WTF ? The dealers mark up so much ? My dad was thinking of getting a 2nd hand car as a second car... but after finding out abt the7k mark up, we were abit skeptical about getting a 2nd hand car.. so can anyone tell me.. is this incredible profit margin applicable to all companies ? and where can I get a second hand car whereby i wont get ripped off

  noob sia. e company no need earn $$? employee no need money? bills? etc.
• Deportivo

  2 May 07, 16:09

  Originally posted by Rynax:

  Hi, was walking around ubi 2nd hand car shop dealers a few days ago and i noticed a car that looked strangely familiar. Upon closer inspection, i noticed it was my uncles old car which he sold for 41k. Out of curiosity i asked for the price and was quoted $48,800. WTF ? The dealers mark up so much ? My dad was thinking of getting a 2nd hand car as a second car... but after finding out abt the7k mark up, we were abit skeptical about getting a 2nd hand car.. so can anyone tell me.. is this incredible profit margin applicable to all companies ? and where can I get a second hand car whereby i wont get ripped off

  Don't be surprise, the official dealer makes more than reseller.
  
  For example, a new latio cost $56.5k. Tan Cheong makes a 21% premium from that price.
  
  
• sir_boris

  2 May 07, 23:19

  You expect them to make $2?
• CyanSupra

  2 May 07, 23:24

  same as those in handphones dealer..
  Let's say they take in ur nk 7610 for $170..
  Dun tell me they goin to sell others below the price of 170?
  
• number_09

  4 May 07, 01:08

  I have a car dealer friend who works in a car company for many many many years.Quite a Big Reliable Japanese Brand.
  
  Heard that the mark up is at least 10 - 15 times of the original price.
  
  But the reason was mainly because of the government.
  Car dealers/companies are taxed heavily. And rental of space to store the cars also included in.
• mamamamama

  4 May 07, 18:59

  OK then don't buy anything from anywhere else.
  
  Because retail prices everywhere are much much higher than their cost.
• Rynax

  5 May 07, 00:01

  Thanks for the replies guys. I don't mean I am surprised they are earning money. But 8k markup.... i mean 3k - 5k a car would be a more justifiable amount, no ? It's not like they only sell 1 car a month and call it a month...
• casshern

  5 May 07, 10:45

  Originally posted by Rynax:

  Thanks for the replies guys. I don't mean I am surprised they are earning money. But 8k markup.... i mean 3k - 5k a car would be a more justifiable amount, no ? It's not like they only sell 1 car a month and call it a month...

  u must understand their overhead costs, rental of grounds, staff salaries, freebies to sibei niao customers, bills etc etc
  
  if only 3k-5k, i think they eat grass. moreever now 2nd hand car market moving very very very very very slow.
  
  it would come as a surprise if they manage 4 car sales per month
• Rynax

  5 May 07, 11:45

  icic... but do you guys think it's worth it to get from these dealers ? or should i just get direct owner/1st hand
• cosmic_rides

  5 May 07, 13:07

  of course if you can afford, brand new car would be best. if you are going to buy direct from car owner, few things u have to look out for. accident car? do you know how to tell if the car owner lies about it? problems with the car ie, gear box needs change or engine problems. these are just some of the few things to look out for.
  
  If you do not think you can cope or handle these issues, maybe it is still better to go to a car dealer.... you can usually go back to the car dealer if these issues come up within the warranty period.
• Rynax

  5 May 07, 14:07

  thank you very much
• Mitsubishi hater

  5 May 07, 14:22

  Originally posted by number_09:

  I have a car dealer friend who works in a car company for many many many years.Quite a Big Reliable Japanese Brand.
  
  Heard that the mark up is at least 10 - 15 times of the original price.
  
  

  really ar?
  
  10-15 times??
  
  meaning vios cost price is 5k OMV and below?
  
• racingmafia

  6 May 07, 22:17

  Originally posted by Mitsubishi hater:

  really ar?
  
  10-15 times??
  
  meaning vios cost price is 5k OMV and below?
  

  if tats the case i tik lots here can be car dealers...10-15 times? Think again...then post.