Did I read the info right for that car; do they really charge 12% commission?!??! I thought the actual dealer 8.4% was steep! Bringing me to the cost of selling a car. Does it seem reasonable to charge more commission for selling a more expensive car? When we sold our house through Purple bricks nearly four years back. The other estate agents wanted 1.5-2%. So £1500-£2k per 100,000. I was told that by the time they had deducted wages, premises and marketing costs. They actually lost money on the lower value properties they sold. Now I’m in sales and you have to make something on everything. Even the loss leader is costed. So with the advent of companies like Purple bricks, it kind of made the traditional model semi obsolete.
Anyway, in relation to cars. It seems a little unfair to charge £8K for a £100k sale and £800 for a £10k sale. When the government do this, we call it a socialist tax on the rich. I know that some sellers don’t want the hassle and many buyers want finance. And the dealer needs to make some kind of bottom line percentage. So my question is. As a term of business, Do we think it’s fair or ethical to charge such a significant amount more, to sell what is essentially a more expensive box on wheels.