Ask a car salesman anything...anything at all (Vol. 2).
Discussion
The Rotrex Kid said:
We charge a ‘house charge’ on every used car (internally), some of this goes into a ‘rectification pot’ which we use to pay for out of warranty repairs/customer goodwill etc.
Is this usually a fixed amount per car or a percentage of sale cost? And how much would you happily pay for in warranty work on one car?aturnick54 said:
The Rotrex Kid said:
We charge a ‘house charge’ on every used car (internally), some of this goes into a ‘rectification pot’ which we use to pay for out of warranty repairs/customer goodwill etc.
Is this usually a fixed amount per car or a percentage of sale cost? And how much would you happily pay for in warranty work on one car?We use a genuine manufacturer warranty (which has a much higher initial cost) so our out of warranty amount is quite small, no real limit, but I have bought cars back from people rather than fix them in the past.
The Rotrex Kid said:
It’s a fixed amount.
We use a genuine manufacturer warranty (which has a much higher initial cost) so our out of warranty amount is quite small, no real limit, but I have bought cars back from people rather than fix them in the past.
What tends to happen once they're bought back? Presumably can't just sell it on with the same faultWe use a genuine manufacturer warranty (which has a much higher initial cost) so our out of warranty amount is quite small, no real limit, but I have bought cars back from people rather than fix them in the past.
aturnick54 said:
The Rotrex Kid said:
It’s a fixed amount.
We use a genuine manufacturer warranty (which has a much higher initial cost) so our out of warranty amount is quite small, no real limit, but I have bought cars back from people rather than fix them in the past.
What tends to happen once they're bought back? Presumably can't just sell it on with the same faultWe use a genuine manufacturer warranty (which has a much higher initial cost) so our out of warranty amount is quite small, no real limit, but I have bought cars back from people rather than fix them in the past.
Many times, a customer overstates or invents a fault, generally down to buyers remorse. Unless they are being utter #@%/@, buy back and resell. Usually easier than the fight..
aturnick54 said:
Is this usually a fixed amount per car or a percentage of sale cost? And how much would you happily pay for in warranty work on one car?
Dealers who self warrant generally have very high prep standards, so experience few faults. You'll get the odd major disaster as you describe but over time you save money. A decent warranty is £200-400 multiplied by annual unit volume (call it 500 used for us) and you can see the savings. Even if you get a couple of £3k bills, you're still better off AND you don't face the warranty company madness.papa3 said:
aturnick54 said:
The Rotrex Kid said:
It’s a fixed amount.
We use a genuine manufacturer warranty (which has a much higher initial cost) so our out of warranty amount is quite small, no real limit, but I have bought cars back from people rather than fix them in the past.
What tends to happen once they're bought back? Presumably can't just sell it on with the same faultWe use a genuine manufacturer warranty (which has a much higher initial cost) so our out of warranty amount is quite small, no real limit, but I have bought cars back from people rather than fix them in the past.
Many times, a customer overstates or invents a fault, generally down to buyers remorse. Unless they are being utter #@%/@, buy back and resell. Usually easier than the fight..
nobrakes said:
What’s the sales industry feeling about new cars only being sold directly by the manufacturer at a take it or leave it price?
The manufacturer makes more money. However volume will drop overall, so you'd like to think they've worked the maths out on that one.As a customer its generally bad unless you can't/don't like to haggle. I think it will put an end to pre registration as well, so those who like a pre reg bargain dip out as well.
There are quite a few manufacturers either running agency kodel now, or will be in the next year or so.
Will it stay? Probably. I think the manufacturers have put too much money in to it for it to fail. Although I do know that MB switched back to margin model after a trial with agency, but vans are trickier to push through agency.
Fast Bug said:
The manufacturer makes more money. However volume will drop overall, so you'd like to think they've worked the maths out on that one.....
I was assuming it is just a ploy to finally get rid of 'cash' sales. Have a fixed list price but discounts in the form of 'contributions' or 'incentives' for financed purchases. (Also, generous PXs, enhanced final values and interest rate offers to lower the monthlies to 'do a deal')
HTP99 said:
I cannot recall a car that we've taken back off someone that has had a genuine problem, it doesn't happen often though.
Thought it wouldn't. Although I'm currently going through this having bought a car recently and finding it needs £2800 worth of repair work, after the dealer has already attempted a repair for the same fault and failed. As much as I feel bad for the dealer as they took it in part-ex and wouldn't have known about the fault, it also sucks for me as the new owner having to deal with it. I suppose that's the risk that motor traders take when buying vehicles or taking them in as part-ex.Truckosaurus said:
Fast Bug said:
The manufacturer makes more money. However volume will drop overall, so you'd like to think they've worked the maths out on that one.....
I was assuming it is just a ploy to finally get rid of 'cash' sales. Have a fixed list price but discounts in the form of 'contributions' or 'incentives' for financed purchases. (Also, generous PXs, enhanced final values and interest rate offers to lower the monthlies to 'do a deal')
Ordered a new car recently, ended up using carwow although it hadn't been my intention. Was looking for lease deals but got a cash price that was too good to refuse.
What surprised me was that the dealer made no attempt to sell GAP, paint protection, tyre insurance etc.. Just asked me to tick some boxes on a form for the benefit of the FCA.
Do you often not bother with all the commission-generating gubbins when selling to online customers? Is it because it's much easier to upsell all that when the customer is sitting in your showroom?
I ended up asking for a service plan and some accessories, but if I hadn't they wouldn't have been mentioned.
What surprised me was that the dealer made no attempt to sell GAP, paint protection, tyre insurance etc.. Just asked me to tick some boxes on a form for the benefit of the FCA.
Do you often not bother with all the commission-generating gubbins when selling to online customers? Is it because it's much easier to upsell all that when the customer is sitting in your showroom?
I ended up asking for a service plan and some accessories, but if I hadn't they wouldn't have been mentioned.
jamei303 said:
Ordered a new car recently, ended up using carwow although it hadn't been my intention. Was looking for lease deals but got a cash price that was too good to refuse.
What surprised me was that the dealer made no attempt to sell GAP, paint protection, tyre insurance etc.. Just asked me to tick some boxes on a form for the benefit of the FCA.
Do you often not bother with all the commission-generating gubbins when selling to online customers? Is it because it's much easier to upsell all that when the customer is sitting in your showroom?
I ended up asking for a service plan and some accessories, but if I hadn't they wouldn't have been mentioned.
I think they can suss you out What surprised me was that the dealer made no attempt to sell GAP, paint protection, tyre insurance etc.. Just asked me to tick some boxes on a form for the benefit of the FCA.
Do you often not bother with all the commission-generating gubbins when selling to online customers? Is it because it's much easier to upsell all that when the customer is sitting in your showroom?
I ended up asking for a service plan and some accessories, but if I hadn't they wouldn't have been mentioned.
I have posted this before but I now have another car to add. 2020, 2021 and now 2023 I have bought cars from main dealers, none of them new. At no point have they tried to sell me GAP, paint protection, alloys insurance or any other add on. Finance was mentioned and I declined at the first opportunity and it was never mentioned again. Car have ranged from £12k upwards (a a long way upwards). I must have the wrong kind of buyer profile for them to even try.
LastPoster said:
jamei303 said:
Ordered a new car recently, ended up using carwow although it hadn't been my intention. Was looking for lease deals but got a cash price that was too good to refuse.
What surprised me was that the dealer made no attempt to sell GAP, paint protection, tyre insurance etc.. Just asked me to tick some boxes on a form for the benefit of the FCA.
Do you often not bother with all the commission-generating gubbins when selling to online customers? Is it because it's much easier to upsell all that when the customer is sitting in your showroom?
I ended up asking for a service plan and some accessories, but if I hadn't they wouldn't have been mentioned.
I think they can suss you out What surprised me was that the dealer made no attempt to sell GAP, paint protection, tyre insurance etc.. Just asked me to tick some boxes on a form for the benefit of the FCA.
Do you often not bother with all the commission-generating gubbins when selling to online customers? Is it because it's much easier to upsell all that when the customer is sitting in your showroom?
I ended up asking for a service plan and some accessories, but if I hadn't they wouldn't have been mentioned.
I have posted this before but I now have another car to add. 2020, 2021 and now 2023 I have bought cars from main dealers, none of them new. At no point have they tried to sell me GAP, paint protection, alloys insurance or any other add on. Finance was mentioned and I declined at the first opportunity and it was never mentioned again. Car have ranged from £12k upwards (a a long way upwards). I must have the wrong kind of buyer profile for them to even try.
Rule of thumb is to offer everyone everything, every time. Even without trying you’ll sell something to 1/3. Easy money for a salesperson. Lazy ones just don’t bother. More fool them
nobrakes said:
What’s the sales industry feeling about new cars only being sold directly by the manufacturer at a take it or leave it price?
For too long the supply has been dictated by the factory margin. I.e. we need to ship x vehicles for our budget, therefore your market must move x vehicles. For years the registration figures have been skewed high by toxic discounting to brokers and daily hire.For the near future, at least, this is no longer the case.
Dealers have reduced overheads from storage and interest costs, margins have improved and stock turn is at unheard of levels.
Those with narrow cash flow will still flinch on occasion but the majority of dealers are far happier now than when swimming in stock.
Some will progress to the 'agency' model, others won't. Those afraid of it are likely the dealers who are light on cash flow.
For as long as I need to worry about it, there will be physical dealerships for the majority of brands.
papa3 said:
nobrakes said:
What’s the sales industry feeling about new cars only being sold directly by the manufacturer at a take it or leave it price?
For too long the supply has been dictated by the factory margin. I.e. we need to ship x vehicles for our budget, therefore your market must move x vehicles. For years the registration figures have been skewed high by toxic discounting to brokers and daily hire.For the near future, at least, this is no longer the case.
Dealers have reduced overheads from storage and interest costs, margins have improved and stock turn is at unheard of levels.
Those with narrow cash flow will still flinch on occasion but the majority of dealers are far happier now than when swimming in stock.
Some will progress to the 'agency' model, others won't. Those afraid of it are likely the dealers who are light on cash flow.
For as long as I need to worry about it, there will be physical dealerships for the majority of brands.
spikeyhead said:
You pay off the finance direct, that way you know it's done. If it's above your immediate transfer limit, then you both go into your bank to do it.
If you pay off the sellers finance, they own the car outright. Unless you have some purchase contract in place, they have no obligation to give/sell you the car. They could walk away!The fact that many people do it thus way, does not make it safe.
Does anyone know of any issues at present with dealers being able to tax brand new cars?
My MiL is waiting on a new motability car which is at the dealership. However, the dealer is saying there's an issue that a few dealers are facing doing first time tax - they've been trying the last week to do so.
My MiL is very light on detail so apologies the above is sparse but want to check if it rings any bells with people on here.
My MiL is waiting on a new motability car which is at the dealership. However, the dealer is saying there's an issue that a few dealers are facing doing first time tax - they've been trying the last week to do so.
My MiL is very light on detail so apologies the above is sparse but want to check if it rings any bells with people on here.
Zippee said:
Does anyone know of any issues at present with dealers being able to tax brand new cars?
My MiL is waiting on a new motability car which is at the dealership. However, the dealer is saying there's an issue that a few dealers are facing doing first time tax - they've been trying the last week to do so.
My MiL is very light on detail so apologies the above is sparse but want to check if it rings any bells with people on here.
The DVLA have been on strike for the last week I believe with more strike dates coming up My MiL is waiting on a new motability car which is at the dealership. However, the dealer is saying there's an issue that a few dealers are facing doing first time tax - they've been trying the last week to do so.
My MiL is very light on detail so apologies the above is sparse but want to check if it rings any bells with people on here.
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