Setting the right selling price for used cars is one of the most critical decisions for any car dealer. Price too high and the vehicle sits on your lot costing you money. Price too low and you leave profit on the table. Here's how to find that sweet spot.
Your first step should always be checking what similar vehicles are selling for on the major Austrian and German marketplaces. AutoScout24, willhaben.at, and mobile.de (for German customers) are your primary research tools.
When comparing prices, don't just look at the asking price of similar models. Pay close attention to three key factors that significantly impact value: mileage, engine power, and special equipment. A BMW 320d with 80,000 km and a premium sound system will command a higher price than the same model with 150,000 km and basic equipment.
Create a realistic comparison by finding at least 5-7 similar vehicles within your target market radius. Note both the asking prices and how long these vehicles have been listed - cars that have been on the market for months might be overpriced.
For Austrian dealers, proper tax calculations are essential for accurate profit estimation. You need to account for both VAT and NoVA (Normverbrauchsabgabe) when determining your final costs and potential profit margins.
NoVA can reach up to 70% of a vehicle's net value and is based on CO2 emissions, making it a significant cost factor for higher-emission vehicles.
VAT handling depends on whether you're operating under the regular scheme or margin scheme (Differenzbesteuerung). Each has different implications for your pricing strategy and profit calculations.
Many dealers focus only on the purchase price when calculating margins, but this approach can quickly eat into profits. Every day a vehicle sits on your lot, it accumulates costs that need to be factored into your selling price.
Track expenses like repairs, repainting, fuel for test drives, regular washing, and detailing. These seemingly small costs add up quickly, especially for vehicles that require more preparation or stay in inventory longer. Industry margins typically range from 5-15%, but these additional expenses can significantly impact your actual profit.
Storage costs, insurance, and financing costs for your inventory should also be considered, particularly for higher-value vehicles or those with longer turnover times.
Once you have all your data - comparable market prices, tax obligations, and all recorded expenses - you can calculate your realistic profit margin. Average dealer margins range from 12-18%, but this varies significantly based on vehicle type, preparation costs, and market positioning.
Remember that your margin needs to cover not just direct costs but also overhead expenses like staff time for sales processes, administrative work, and facility costs. A vehicle that requires extensive preparation or longer sales cycles effectively costs more than the recorded expenses suggest.
Rather than manually researching comparable vehicles and calculating complex tax obligations, Autoblicker streamlines the entire pricing process in seconds.It automatically displays links to similar listings from major marketplaces, taking into account your vehicle's specific year, mileage, power and more.
The system handles both regular VAT and margin scheme calculations automatically, while the built-in NoVA calculator ensures accurate tax cost estimation. Most importantly, Autoblicker tracks all your recorded expenses - from repairs to fuel costs - and provides real-time profit margin estimates based on your potential selling prices.
This integrated approach eliminates the guesswork and time-consuming manual calculations, allowing you to make informed pricing decisions quickly and confidently. You can immediately see how different price points affect your profit margins while ensuring competitive positioning in the market.