part exchange

[gwb]

Just how does part exchange work?

 

Am I being completely nieve

 

If I have a gun worth £1200 second hand and the gunshop has a gun worth £2000

 

to me I would pay £800

 

but the gunshop would say sorry our part exchange price is £2250 therefore I need to pay £1050

 

can anyone explain?

[Paddy Galore!]

simple, the gunshop will need to put a guarantee on your gun if they sell it, the trade in price is always lower than the estimated resale price, they need to make a profit to stay in business. Their P/X price is probably the retail price, whereas the first price quoted is the cash sale price.

[gwb]

sorry forgot to mention that the first price quoted would be the buy in price, in this case £1200

 

the gun shop would sell at lets say £1500 making £300.

 

But because im p/x they would make £550

 

 

seems to me then that it would always be best if possible not px but sell seperately

 

thanks for the quick reply, hardly finishes typing

[Paddy Galore!]

ah, ok now i getcha, hmmm seems a bit steep then, best advice is shop around, profit is one thing, this sounds like extortion. Some gun shops will work out a price based on £100 - £150 profit, some charge up to £200 - £250. It sounds to me like he's trying to double charge you, pick him up on it and see what response you get, i'm sure there's plenty of people on here would like to know the reply.

[Paddy Galore!]

It's a shame you weren't closer, chris tanner at norfolk sporting guns does some amazing deals on P/X. As long as it's on his gun rack he gives some of the best trade in prices going. For example, i bought a mossberg hushpower 12g £470, traded in against a winnie coyote light 22/250, got £350 for my gun, £40 off the glass [his price, not retail] screw cut free, rings and bases free, didn't have to ask for discount.

[danddo]

Not sure how far you are away from Rugby in Warwickshire but can recommend Norman Clark, Gunsmith, Rugby. He will give you a good deal and you won't be ripped off. Have you considered trying to sell your gun yourself. Good Luck

[HDAV]

Just how does part exchange work?

 

Am I being completely nieve

 

If I have a gun worth £1200 second hand and the gunshop has a gun worth £2000

 

to me I would pay £800

 

but the gunshop would say sorry our part exchange price is £2250 therefore I need to pay £1050

 

can anyone explain?

 

I assumed it would work like cars ie new car £10k you get offered £2k part ex cash to change is £8k I would expect them to knocnk your £1200 gun down to £1000 not increase the price of the gun sale (as when i sold cars it was illegal to quote a different price for no part ex, cash sales etc) So if you diso**** the car for no P/X and then cusotmer comes back with a P/X you can't increase the price. I would have a word with Trading standards if the price of the item changes for P/X or finance purchase rather than cash. YOu saying your gun is worth£1200 wont mean you will get £1200 in P/X Dealers neeed to make money if you want the lowest price to buy and the best value to sell sell and buy privately the dealer will always add a % on top and i can't see it being worthwhile for less than £200 Markup per gun

[gwb]

the prices I posted earlier were just an example, I was curious as to why some sites posted two prices for their guns the higher price being the PX price. {cant find the link at the moment but will try and find it later]

 

unfotunately i had very little interest in my gun which is still for sale on this site.

 

I was told that I wouldnt have any problem selling it!!

 

But I am off to the newark shooting show and wil try and get a fair price there .I shall just have to be careful not to get ripped off

 

 

Thanks all for your help.

 

On a side note, is there any discussion on the do's and dont's of selling guns privately with regards to making sure payments are received and garauntees, things to be wary of etc.

[Paddy Galore!]

It's always best to use an rfd if you can't meet face to face, i bought one on here a while back and made sure the gun was in the posession of the gun dealer and arrangements for delivery were made before i transferred the funds overto his account.

[notsosureshot]

I dont think you're naive. This one has me confused also.

 

Surely if he's offered £1200, you could just accept. Leave the shop, return and pay the £2000 for the other gun, he cant then add a random £200 surely? Whats the sticker price?

 

Alternatively, get a mate to go buy the £2000 gun and take it away. Then go to the store and get £1200 for yours. Mate transfers new gun to you, you give him £2000, job done.

 

This is a pretty strange situation to be in actually and I cant see a business reason for it, then again, its late and Im tired.

[chrispti]

Just how does part exchange work?

 

Am I being completely nieve

 

If I have a gun worth £1200 second hand and the gunshop has a gun worth £2000

 

to me I would pay £800

 

but the gunshop would say sorry our part exchange price is £2250 therefore I need to pay £1050

 

can anyone explain?

 

 

Sounds all a bit odd to me ....... sell the gun to him, then purchase the new one, you save £250 by not part-ex'ing

[christy]

It all depends who your local dealer is I suppose. Maybe there are choices in your area.

Where I live, I could not possibly deal with them because they don't deal. They think, arrogantly, I/you know nothing.

I took two rifles looking for a deal as px...they offered 200. Yep 200. I sold them on another site for 460 within 24 hours. I priced them to sell hence the instant result. Dealer face would have put them up for 650 waiting for a mug.

Their days as sellers of guns are coming to an end. And hey, they have had a jolly good time off our backs!

Now we have the internet and we can sell, swap, deal amongst ourselves.

They will become cartridge sellers, tele sights, pellets, targets et-al.

I'm sure, no, hope, there are some good dealers out there. Not met one yet.

Ok I am ready for the flack...

[notsosureshot]

@christy

 

I can rationalise that though. If they dont think they can shift them, they wont take them into stock for anything except a bargain basement price. I do the same thing with stock, if someone offers me something I dont really want, i.e not enough margin or the potential of a long wait before I can sell it, I offer them a very low price, which is basically a company's way of saying they dont want it.

 

I've had car dealers do the same thing if it doesnt fit their model. I once tried to sell a 2 year old mercedes to a local dealer. He offered me £7,800 for a car worth almost £20,000 (I got £18,900 in the end). I asked him politely why and he replied that his customers just wouldnt be interested in it as he sold mostly older non-premium cars. He'd then have to auction it or sit on it for ages whilst it ate forecourt space, robbing him of his fast turnaround and therefore profit and more importantly, cash flow. They arent trying to be rude when they do that, its just business.

 

Im still trying to make sense of the OP's dilemma though, no luck yet on that one.

[HDAV]

I think part exchange is the issue normally you get more for P/X to dealer than straight sale as they are making on the sale it's basic business

Item Y owes £3000 profit margin 30% ticket price £4000 (over simplified numbers) profit £1000

Customer brings Item X in to sell to dealer its worth nothing unless he can sell it. He thinks he can sell it for £1000 so offers customer £600 to buy it, Customer likes item Y and dealer says if he buys likes item Y dealer says OK I'll give you £800 for Item X you owe me £3200 to take Item Y home. Customer thinsk its great and does the deal. Customer paid £3200 saving £200. Dealer makes £200 clear profit and can sell item X for £1000 makes another £200 by this time dealer has made £1200 dealer happy and customer happy.

 

If only it always worked like that!

[Chris B123]

I was amazed at the mark up on P/X guns, I traded in a blaser F3 against a DT 10. They allowed me £1500 pound for my F3 towards a £4380 DT 10. I seen the F3 on there website for £2350. Thats £850 plus what they made on the DT10. I wont be going back there in a hurry.

[CharlieT]

Just remember though that if a dealer sells a gun for cash he has the full purchase price in his hand to put in the till. However if he accepts a gun in PX he will only have the difference between the two guns to put in the till and he will have to wait for however long it takes to sell the PX gun before he is able to put the profit in the till. In the meantime he still has bills and wages to pay.

[jackinbox99]

All a fact of life really. Whether you are part ex`ing a car, a motorbike, a gun or a telly. You will nearly always get a much better deal if you sold the item privately, then approached the dealer with cash in your hand to buy the new item.

 

The main advantage to part-ex`ing something is that you dont have to mess about trying to sell your old item off. Sometimes when your selling something it can take months to sell. The dealer, whilst giving you less than you can get privately, will give you cash there & then and you have a nice quick sale.

 

Personally I always check out what the item is worth privately before seeing what a dealer would give me. If theres a big difference in price, then i sell privately.

 

At the end of the day, the dealer has to make a living, and he is taking the risk on selling your item. He normally would have to give a guarentee on the item to the new buyer, and there is no tellings how long it may take them to sell that item. Prices may crash in the meantime, so he may even end up loosing money.