What's going to collapse next...

[leonardratso]

reliant

[One percent]

1 hour ago, eek said:

which brand?

Vertu (sp.) bmw malton. 

[eek]

3 minutes ago, One percent said:

Vertu (sp.) bmw malton. 

Suspect they are merging it with York then - but you would have expected them to be clear about it,

[One percent]

Just now, eek said:

Suspect they are merging it with York then - but you would have expected them to be clear about it,

I would have thought if they were merging, they would have tried to drive my business towards the other place. Nope. Just cancelled it.  Weirdly, i called and booked in at the teeside one to be told that it was already booked in with malton. I said, it’s closing.  Replied with, is it?   

[eek]

21 minutes ago, One percent said:

I would have thought if they were merging, they would have tried to drive my business towards the other place. Nope. Just cancelled it.  Weirdly, i called and booked in at the teeside one to be told that it was already booked in with malton. I said, it’s closing.  Replied with, is it?   

Does open the question is BMW driving the change because they don't want the whole of North Yorkshire / Teesside / Durham  owned be a single Franchisee...

 

or is it that BMW are having a hard time now interest rates make leasing a new £45,000 car unaffordable.

Edited March 6, 2023 by eek

[Noallegiance]

4 hours ago, One percent said:

I really didn’t know where to post this.  My car was booked in to the main stealer for a service this week. I’ve just had a call to cancel the appointment as the garage is shutting.  Never, ever heard of a main stealer shutting before.  

Main Suzuki dealer shut near us a few months back. Been there as long as I can remember.

[One percent]

Just now, Noallegiance said:

Main Suzuki dealer shut near us a few months back. Been there as long as I can remember.

Wonder what’s afoot. My guess is that they are just not shifting the number of new cars required to be viable. The rising cost of gas and electricity must be hitting them hard too. 

[Noallegiance]

2 minutes ago, One percent said:

Wonder what’s afoot. My guess is that they are just not shifting the number of new cars required to be viable. The rising cost of gas and electricity must be hitting them hard too. 

Indeed. And it isn't like Suzuki are the bastions of expensive motoring. In a fact, the Alto, Ignis, Swift and Vitara are exactly the kind of cheap but effective motoring people will be needing.

[sleepwello'nights]

1 hour ago, eek said:

Does open the question is BMW driving the change because they don't want the whole of North Yorkshire / Teesside / Durham  owned be a single Franchisee...

 

or is it that BMW are having a hard time now interest rates make leasing a new £45,000 car unaffordable.

I reckon its the first. From the little I thought I knew about automotive Franchise dealers the sales side is a loss leader with the profitable bit being service and repairs. 

Please correct me if I'm wrong.

[eek]

3 minutes ago, sleepwello'nights said:

I reckon its the first. From the little I thought I knew about automotive Franchise dealers the sales side is a loss leader with the profitable bit being service and repairs. 

Please correct me if I'm wrong.

Service and repairs is the profit for the franchisee but it's not going to be what the brand wants - that would be new car sales.

[Dicky Back]

54 minutes ago, eek said:

Service and repairs is the profit for the franchisee but it's not going to be what the brand wants - that would be new car sales.

You do have to wonder what a £45k bm costs to build and ship to the UK? There must be a lot of fat in that price surely?

[nirvana]

1 hour ago, One percent said:

Wonder what’s afoot. My guess is that they are just not shifting the number of new cars required to be viable. The rising cost of gas and electricity must be hitting them hard too. 

it's a big site that...they're making more money on selling less cars......BM made €16billion last year, in the first 6 months!!

with rising IRs I think I'd be looking to 'cut back' in 'dodgy markets' lol

quote from autocar

The company, which owns BMW, Mini, and Rolls-Royce, recorded a 65.9% uplift in pre-tax profits as it sold 1,160,094 models between 1 January and 31 July, down from 1,339,047 (a 13.4% fall) in the same period last year.

Broken down, there were 1,016,228 BMWs sold (down 13.7%) and 140,675 Minis (down 10.9%)

This is a similar picture to other firms, with the Volkswagen Group also experiencing a drop in deliveries of 22.2% to 3.875 million units, but achieving pre-tax profits of €13.2bn (£11.0bn) - a 16.1% increase compared with the first half of 2021

 

 

[One percent]

2 minutes ago, nirvana said:

it's a big site that...they're making more money on selling less cars......BM made €16billion last year, in the first 6 months!!

with rising IRs I think I'd be looking to 'cut back' in 'dodgy markets' lol

quote from autocar

The company, which owns BMW, Mini, and Rolls-Royce, recorded a 65.9% uplift in pre-tax profits as it sold 1,160,094 models between 1 January and 31 July, down from 1,339,047 (a 13.4% fall) in the same period last year.

Broken down, there were 1,016,228 BMWs sold (down 13.7%) and 140,675 Minis (down 10.9%)

This is a similar picture to other firms, with the Volkswagen Group also experiencing a drop in deliveries of 22.2% to 3.875 million units, but achieving pre-tax profits of €13.2bn (£11.0bn) - a 16.1% increase compared with the first half of 2021

 

 

Sales are down but profits are up. How’s that work?  Has the cost of a new car gone up a lot?

[nirvana]

21 minutes ago, One percent said:

Sales are down but profits are up. How’s that work?  Has the cost of a new car gone up a lot?

errr not really an expert since I stopped working and can't afford em lol but yeah I think , massively

also they're making a small fortune on servicing/repairs methinks, how much were you quoted for the service?

Modern BM/Mini are tricky to service yourself, you need a bloody computer to reset settings when you swap the battery out FFS

[One percent]

5 minutes ago, nirvana said:

errr not really an expert since I stopped working and can't afford em lol but yeah I think , massively

also they're making a small fortune on servicing/repairs methinks, how much were you quoted for the service?

Modern BM/Mini are tricky to service yourself, you need a bloody computer to reset settings when you swap the battery out FFS

200 quid for an oil change.   

the most annoying thing is that they couldn’t tell me how long I had to wait, could have been all day.  
 

ah well, can you drop me off at the out of twon shopping centre, five minutes away?

oh, we don’t do that anymore, coz covid

can i have a courtesy car then?

certainly, that’ll be another 20 quid. 
 

last time I’m going there.  Customer service is beyond shite.  

[Calcutta]

Utterly anecdotal and based on my own observance while my cars fucked and I'm walking about...

There are a lot of shiny new shitboxes around, lot of Kia's, the kind of thing the government give to 'disabled' people.

But what has occurred to me is that they're all 22 plates. Almost as if they had a load of stock left over last year.

[onlyme]

10 hours ago, One percent said:

I really didn’t know where to post this.  My car was booked in to the main stealer for a service this week. I’ve just had a call to cancel the appointment as the garage is shutting.  Never, ever heard of a main stealer shutting before.  

Cazoo shutting down a load of outlets and prep centres, thin back in last summer was told in the trade they all knew they were in trouble.

[spunko]

On 06/03/2023 at 22:24, onlyme said:

Cazoo shutting down a load of outlets and prep centres, thin back in last summer was told in the trade they all knew they were in trouble.

It's really bizarre how you can make a loss on used cars when they're at record prices. It isn't as if they're buying them for loads more, trade prices haven't risen as much as private.

There's a company near where I work, big local firm but not national, who sell 'high end' cars. Though they're not really high end, think of an Audi Q5 after the 4 year PCP is up, and you'd be closer to what they sell. Anyway, they're closing an outlet too. Literally all they do is just buy them from BCA, I've even seen the transporters branded with BCA livery offloading the used cars. Then they prep them and sell them. Not rocket science but it does make you wonder how they are making a loss.

All I can think of is that less people are willing to take out extortionate finance deals, on used cars it must average what 12.9% APR again now, absolutely mental.

Even going direct to the manufacturer you'll be lucky to get anything below 8% APR. BMW are doing 8.9% on most of their range now, Audi doing 10.9%, ... I refuse to pay anything above 4.9% personally.

[sancho panza]

22 minutes ago, spunko said:

It's really bizarre how you can make a loss on used cars when they're at record prices. It isn't as if they're buying them for loads more, trade prices haven't risen as much as private.

There's a company near where I work, big local firm but not national, who sell 'high end' cars. Though they're not really high end, think of an Audi Q5 after the 4 year PCP is up, and you'd be closer to what they sell. Anyway, they're closing an outlet too. Literally all they do is just buy them from BCA, I've even seen the transporters branded with BCA livery offloading the used cars. Then they prep them and sell them. Not rocket science but it does make you wonder how they are making a loss.

All I can think of is that less people are willing to take out extortionate finance deals, on used cars it must average what 12.9% APR again now, absolutely mental.

Even going direct to the manufacturer you'll be lucky to get anything below 8% APR. BMW are doing 8.9% on most of their range now, Audi doing 10.9%, ... I refuse to pay anything above 4.9% personally.

The margins aren't as big as you think.I suspect they're fincaincg costs haev gone up significantly too.

Just a thought but say you have a dealer who soruces £1mn funding for 100 cars-effectively selling two cars a week.Interest costs are now circa £70k per annum,then add on maybe 20k rent/utlitlies,50k salary ,75k on buyers prmium if sourced at auction(assuming half are part ex),you're possible looking at costs circa £215k

Even if cash funded that's £145k.

Then you source some at auction and the price drops below what was paid and then the fun begins.

And that's without duds etc.Hard way to make money

@ThoughtCriminal has worked the trade so may be able to give a better idea of what the finaces of a car dealer are like

https://cardealermagazine.co.uk/publish/how-much-profit-do-car-dealers-make-on-new-and-used-cars-heres-the-perception-versus-reality/225342

[sancho panza]

On the issue of car dealers,here's Pendragons finacials.Net income of 61.5mn on 3.5bn.....net margin 1.7%........

 

https://www.investing.com/equities/pendragon-financial-summary

goodwill is £150mn

[Inque]

Silicon Valley Bank https://www.bbc.co.uk/news/business-64915616

[Ash4781b]

For retail sadly I think it will be Wilko’s. 

[Inque]

 

[HousePriceMania]

What's going to collapse next...

The bank of ant and dec.

[honkydonkey]

22 minutes ago, HousePriceMania said:

What's going to collapse next...

The bank of ant and dec.

https://goo.gl/maps/CJrZVw9XjMxMbqSz5

That's what already cost them a load. 

Edited March 12, 2023 by honkydonkey