Admin charges on buying a secondhand car.
Discussion
I think you'll find that none of the sales guys like it, but the attitude from the big bosses are if you don't like it leave...
But then we do tend to begrudge companies making a profit in this country, so you can't be surprised that some dealerships try to fin new ways to squeeze profit out of a car
But then we do tend to begrudge companies making a profit in this country, so you can't be surprised that some dealerships try to fin new ways to squeeze profit out of a car
The margins for the likes of Cargiant are huge. Sure some customers hammer those margins down, but an awful lot don't. And they buy those worthless warranties etc. Second hand cars is a very lucrative business. An admin charge is just a way of adding a non-negotionable fee to whatever deal you have managed to screw out of them. Main dealers are worse. I was related by marriage to a guy that owned a Ford dealership. I popped in to see him once and he was discussing a trade in value of a Mondeo with a customer. The thing was identical to one on the lot. It was superb nic. But the way he described it, it was going to give him rabies. And he did it with a totally serious face. I know several car dealers, very likeable guys. But vultures where cars are concerned. Always remember, they are not doing you a favour by selling you the car.
Devil2575 said:
Good sales people tend to be likable, charming but utterly focused on the sale and fairly ruthless. I've known a few and they have all been nice on the surface but quite superficial and very competitive. Also lacking in depth technical knowledge about what they were selling.
Nothing like a rash sweeping generalisation is there?Fast Bug said:
Devil2575 said:
Good sales people tend to be likable, charming but utterly focused on the sale and fairly ruthless. I've known a few and they have all been nice on the surface but quite superficial and very competitive. Also lacking in depth technical knowledge about what they were selling.
Nothing like a rash sweeping generalisation is there?
Crap like this came about when the general public moved away from an understanding of value and instead focus solely on price.
The first thing most buyers do when they search AT / PH or whatever is order the cars by price low to high. They won't even go to page 2 of the listings instead focusing on the cheapest examples available. Dealers do it to make sure their cars are the cheapest advertised, which gets people through the doors. A percentage will kick off about the admin fee so the dealer will drop it, but most won't and in turn you sell more cars.
The first thing most buyers do when they search AT / PH or whatever is order the cars by price low to high. They won't even go to page 2 of the listings instead focusing on the cheapest examples available. Dealers do it to make sure their cars are the cheapest advertised, which gets people through the doors. A percentage will kick off about the admin fee so the dealer will drop it, but most won't and in turn you sell more cars.
Rincewind209 said:
The margins for the likes of Cargiant are huge.
Their net margins are waifer thin.Rincewind209 said:
Sure some customers hammer those margins down, but an awful lot don't.
Their prices are non negotiable - though you might get "something" off if you're lucky.Rincewind209 said:
And they buy those worthless warranties etc.
Most of their cars are still under manufacturers warranty.After market warranties are generally worthless though.
Rincewind209 said:
Second hand cars is a very lucrative business.
No. Its not. Its damned hard work for the mainstream stuff, and net margin percentages are in low single figures.Rincewind209 said:
An admin charge is just a way of adding a non-negotionable fee to whatever deal you have managed to screw out of them.
Correct.Rincewind209 said:
Main dealers are worse. I was related by marriage to a guy that owned a Ford dealership. I popped in to see him once and he was discussing a trade in value of a Mondeo with a customer. The thing was identical to one on the lot. It was superb nic. But the way he described it, it was going to give him rabies. And he did it with a totally serious face. I know several car dealers, very likeable guys.
A main dealer probably needs a markup of around £3,000 to get probably £500 net. Particularly with a Ford main dealers, unless a car is within certain mileage parameters, condition, FFSH, etc, they wont want it on their forecourt. Rincewind209 said:
Always remember, they are not doing you a favour by selling you the car.
Uh huh. I think the term for it is "running a business".markmullen said:
Crap like this came about when the general public moved away from an understanding of value and instead focus solely on price.
The first thing most buyers do when they search AT / PH or whatever is order the cars by price low to high. They won't even go to page 2 of the listings instead focusing on the cheapest examples available. Dealers do it to make sure their cars are the cheapest advertised, which gets people through the doors. A percentage will kick off about the admin fee so the dealer will drop it, but most won't and in turn you sell more cars.
Yup.The first thing most buyers do when they search AT / PH or whatever is order the cars by price low to high. They won't even go to page 2 of the listings instead focusing on the cheapest examples available. Dealers do it to make sure their cars are the cheapest advertised, which gets people through the doors. A percentage will kick off about the admin fee so the dealer will drop it, but most won't and in turn you sell more cars.
I was actually thinking, maybe theres a market for that menu based selling for mainstream cars for smaller traders?
Buy a car, add on your margin.
Bloke comes out...
Scuff on bumper sorted? +£80
Full Valet? +£50
Oil + Filter Change? +£80
Alloys refurbished? +£300
Years Warranty? +£350
Fitted Mats? +£50
Or you can take it as it sits for the advertised price.
You'll still be close to a grand cheaper to someone doing all that up front....and customers can pick and chose from the "menu" as to what they want done.
Devil2575 said:
Fast Bug said:
Devil2575 said:
Good sales people tend to be likable, charming but utterly focused on the sale and fairly ruthless. I've known a few and they have all been nice on the surface but quite superficial and very competitive. Also lacking in depth technical knowledge about what they were selling.
Nothing like a rash sweeping generalisation is there?If you go to a car supermarket place you'll find a fair few salespeople are lacking in depth technical knowledge as they sell so many different makes and models of cars you can't be an expert in all of them. Not that you need to be a technical guru as 99% of people don't want or need to know the ins and outs of the car they're buying. Strangely enough the bulk of the buying public are more concerned with mpg and if they can park it easily than wanting to know if its a dohc engine with variable timing and turbo whirligigs
Fast Bug said:
Actually yes. And whilst true in some cases, you're wide of the mark in a lot of cases.
If you go to a car supermarket place you'll find a fair few salespeople are lacking in depth technical knowledge as they sell so many different makes and models of cars you can't be an expert in all of them. Not that you need to be a technical guru as 99% of people don't want or need to know the ins and outs of the car they're buying. Strangely enough the bulk of the buying public are more concerned with mpg and if they can park it easily than wanting to know if its a dohc engine with variable timing and turbo whirligigs
Was speaking to a Dealer Principal i know and he was saying moreoften come in to the dealership having got all the info off the internet and know probably more than the salesmen do about the specific car and model they're looking at. Also usually very finely tuned as to what the value of their car needs to be because they've checked it all out online.If you go to a car supermarket place you'll find a fair few salespeople are lacking in depth technical knowledge as they sell so many different makes and models of cars you can't be an expert in all of them. Not that you need to be a technical guru as 99% of people don't want or need to know the ins and outs of the car they're buying. Strangely enough the bulk of the buying public are more concerned with mpg and if they can park it easily than wanting to know if its a dohc engine with variable timing and turbo whirligigs
Fast Bug said:
Devil2575 said:
Fast Bug said:
Devil2575 said:
Good sales people tend to be likable, charming but utterly focused on the sale and fairly ruthless. I've known a few and they have all been nice on the surface but quite superficial and very competitive. Also lacking in depth technical knowledge about what they were selling.
Nothing like a rash sweeping generalisation is there?If you go to a car supermarket place you'll find a fair few salespeople are lacking in depth technical knowledge as they sell so many different makes and models of cars you can't be an expert in all of them. Not that you need to be a technical guru as 99% of people don't want or need to know the ins and outs of the car they're buying. Strangely enough the bulk of the buying public are more concerned with mpg and if they can park it easily than wanting to know if its a dohc engine with variable timing and turbo whirligigs
However it was a generalisation and I have met some really decent blokes and even the odd one who's been honest with me
The thing I find with sales people is to remember that it is just a game. Don't get offended, know your stuff, don't be scared to be cheeky and push hard for what you want and stick to your guns. Too many people feel awkward about asking for money off, especially the English it seems. It was like when me and my wife put an offer in on our current house. My wife was worried that the offer was too low and we might offend the seller. I was bemused as to why someone would be offended and if they were why that would be a problem.
Devil2575 said:
It was like when me and my wife put an offer in on our current house. My wife was worried that the offer was too low and we might offend the seller. I was bemused as to why someone would be offended and if they were why that would be a problem.
You can easily up a bid, you can't easily wind it back 
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