Car salesman thread

Author
Discussion

HTP99

22,752 posts

142 months

Wednesday 9th October 2013
quotequote all
Fox- said:
oldnbold said:
some charge for diognostics because people pop in for a free diognostic and then get the fix done somewhere else.
The only do this because they are shocked at the price and then go elsewhere. If the dealer offered a competitive price on the repair the customer wouldnt go elsewhere, would they? Some main dealers have caught onto this and offer competitive pricing on repair and service work for older vehicles as a result. Others will do a free diagnosis on a £4000 car, then quote for repairs at £120 an hour and then blame the 'freeloading customers' when they say thanks but no thanks.
We charge for a diagnostic, if you have the repair done with us then we refund the diagnostic charge.

SpeckledJim

31,608 posts

255 months

Wednesday 9th October 2013
quotequote all
Fox- said:
oldnbold said:
some charge for diognostics because people pop in for a free diognostic and then get the fix done somewhere else.
The only do this because they are shocked at the price and then go elsewhere. If the dealer offered a competitive price on the repair the customer wouldnt go elsewhere, would they? Some main dealers have caught onto this and offer competitive pricing on repair and service work for older vehicles as a result. Others will do a free diagnosis on a £4000 car, then quote for repairs at £120 an hour and then blame the 'freeloading customers' when they say thanks but no thanks.
But being inside the manufacturer's circle of trust is VERY expensive.

So how can a franchised garage give away their crown jewels (the diagnostics) for free and then try to compete with under-the-arches on labour rate. Doesn't stack up.

Either the free diagnostics is subsidised by the high labour rate (which is fine) or the diagnostics and labour are two separate chargeable items (also fine).

You can't have a low labour rate AND free diagnostics AND all the franchise bells-and-whistles.

bigdavy

1,085 posts

209 months

Wednesday 9th October 2013
quotequote all
bigdavy said:
Looking for some opinions please, bare with me while i explain a little.

I've recently ordered a skoda citigo Sport 5dr, got a great deal which included a trade in. My dad then went and ordered a citigo se & traded in his old audi.
My niece then ordered another sport with cash deposit. All 3 are pcp on the 0% offer. Basically the other two got the cars as i got a great deal and I was instrumental in all the 3 sales. We had a good joke with the excellent sales guy about being their best customers buying 3 cars in 3 weeks smile

Now out the blue due to a change in circumstance we might be looking to get a 4th for my daughter!
My thoughts are this, I really feel this time round we should be getting an exceptional deal on this car with a substantial discount on the list price. The what car target price is around 3-4% ie £342 on an se model. I'm looking for maybe a bit more so am wondering if anyone can give me an idea what sort of max discount I might get? I appreciate they still need to make some profit but considering this is our 4th new car purchase in 5 weeks I reckon the dealer should be discounting this one.
One other question, we want an option paint (460) and the PID system (275) added. Would it be easier to ask for these free than a substantial discount? IE pay list but not for options? Is there more movement one way or another for the dealer?
Really I need to know as much as possible to help my negotiations! beer
Cheeky bump for the dayshift, appreciate any advice smile

SpeckledJim

31,608 posts

255 months

Wednesday 9th October 2013
quotequote all
bigdavy said:
bigdavy said:
Looking for some opinions please, bare with me while i explain a little.

I've recently ordered a skoda citigo Sport 5dr, got a great deal which included a trade in. My dad then went and ordered a citigo se & traded in his old audi.
My niece then ordered another sport with cash deposit. All 3 are pcp on the 0% offer. Basically the other two got the cars as i got a great deal and I was instrumental in all the 3 sales. We had a good joke with the excellent sales guy about being their best customers buying 3 cars in 3 weeks smile

Now out the blue due to a change in circumstance we might be looking to get a 4th for my daughter!
My thoughts are this, I really feel this time round we should be getting an exceptional deal on this car with a substantial discount on the list price. The what car target price is around 3-4% ie £342 on an se model. I'm looking for maybe a bit more so am wondering if anyone can give me an idea what sort of max discount I might get? I appreciate they still need to make some profit but considering this is our 4th new car purchase in 5 weeks I reckon the dealer should be discounting this one.
One other question, we want an option paint (460) and the PID system (275) added. Would it be easier to ask for these free than a substantial discount? IE pay list but not for options? Is there more movement one way or another for the dealer?
Really I need to know as much as possible to help my negotiations! beer
Cheeky bump for the dayshift, appreciate any advice smile
Piece of string job.

All depends on the behind-the-scenes situation in the dealership. They might need the unit sold desperately, or they might not. There simply isn't the profit in the metal that you might think. How are you financing it?

HTP99

22,752 posts

142 months

Wednesday 9th October 2013
quotequote all
SpeckledJim said:
bigdavy said:
bigdavy said:
Looking for some opinions please, bare with me while i explain a little.

I've recently ordered a skoda citigo Sport 5dr, got a great deal which included a trade in. My dad then went and ordered a citigo se & traded in his old audi.
My niece then ordered another sport with cash deposit. All 3 are pcp on the 0% offer. Basically the other two got the cars as i got a great deal and I was instrumental in all the 3 sales. We had a good joke with the excellent sales guy about being their best customers buying 3 cars in 3 weeks smile

Now out the blue due to a change in circumstance we might be looking to get a 4th for my daughter!
My thoughts are this, I really feel this time round we should be getting an exceptional deal on this car with a substantial discount on the list price. The what car target price is around 3-4% ie £342 on an se model. I'm looking for maybe a bit more so am wondering if anyone can give me an idea what sort of max discount I might get? I appreciate they still need to make some profit but considering this is our 4th new car purchase in 5 weeks I reckon the dealer should be discounting this one.
One other question, we want an option paint (460) and the PID system (275) added. Would it be easier to ask for these free than a substantial discount? IE pay list but not for options? Is there more movement one way or another for the dealer?
Really I need to know as much as possible to help my negotiations! beer
Cheeky bump for the dayshift, appreciate any advice smile
Piece of string job.

All depends on the behind-the-scenes situation in the dealership. They might need the unit sold desperately, or they might not. There simply isn't the profit in the metal that you might think. How are you financing it?
That's the thing, a dealer can't give discount that they don't have, no matter how many you may have bought before, and any options that you might try and get thrown still have to be paid for somewhere; the margin of the car.

If What Car are offering 3-4% off then I doubt a dealer can offer any more.

Edited by HTP99 on Wednesday 9th October 13:09

oldnbold

1,280 posts

148 months

Wednesday 9th October 2013
quotequote all
bigdavy said:
Cheeky bump for the dayshift, appreciate any advice smile
As others have said, getting any discount at this price point in the market will be hard work. When I worked in a Mazda dealership the group MD was quiet up front with us and told us that if we sold Mazda 2's at the offer price that Mazda were advertising nationally, the business would actually loose money on each individual unit. We neaded to make the quarterly target to get the bonus payments that that brings, and even then the profit was less than £250 per car.

IIRC without any Mazda offers running, if we sold a Mazda 2 for cash at full retail the margin was about £450.

I expect the best you will achieve is to get free GAP/paint/dent insurance thrown in.

That 0% finance is getting paid for by somebody!

bigdavy

1,085 posts

209 months

Wednesday 9th October 2013
quotequote all
Thanks guys, I'm sure I said I know they still have to make something on the deal. I'm also very aware there is high demand on this offer so it's not like they need the sale. Point of my thread was to seek other opinions to what a realistic discount could be. I've also come to the conclusion getting options fitted rather than discount is probably the better target.

Fox-

13,265 posts

248 months

Wednesday 9th October 2013
quotequote all
SpeckledJim said:
So how can a franchised garage give away their crown jewels (the diagnostics) for free and then try to compete with under-the-arches on labour rate. Doesn't stack up.
I can't remember the last time an independant specialist didn't have the required diagnostic equipment so that doesn't really work. I'd imagine most people going to a main dealer go there for a quote on the job, which obviously will require a bit of diagnostic work - and then leave when they choke over the price. The next time they'll simply visit the indy for the diag.

It doesn't really matter what it costs - you make zero money if the customer drives away and gives his cash to somebody else so it makes sense to discount labour for older cars as low as you can unless your workshop utilisation is already running near 100%. You might as well get something for any spare capacity you have, right? It's not as if these people with older cars are mostly people who would have paid £120+vat an hour had you not offered them £70+vat an hour - they'd have walked after the huge quote.

This must work to some degree because it's exactly what a number of franchised dealers now do - some even match quotes given by indys. I'd imagine they enjoy high workshop utilisation rates as a result.

va1o

16,036 posts

209 months

Saturday 12th October 2013
quotequote all
What is the general consensus on when the price differs significantly between online and forecourt?

I found a nearly new Golf Mk7 at a very competitive price a couple of days ago so made enquiries with the dealer to confirm its on site and told them I'd be coming to have a look at the weekend. Arrive this morning with full intent of buying only to find it was now advertised for £3500 more than it was when I saw it. When I challenged this they seemed to make out its my fault for expecting too much for the money. No room for negotiation and no attempt to even steer me towards another car or take my details. Walked thinking what a total waste of time!

markmullen

15,877 posts

236 months

Saturday 12th October 2013
quotequote all
It is quite common to have different prices online and offline.

Would the dealer sell you it for the online price?

va1o

16,036 posts

209 months

Saturday 12th October 2013
quotequote all
markmullen said:
It is quite common to have different prices online and offline.

Would the dealer sell you it for the online price?
No he tried to make out they can't even buy them in for the online price, and didn't believe me when I told him there are others advertised for not that much more. Very odd confused

markmullen

15,877 posts

236 months

Saturday 12th October 2013
quotequote all
va1o said:
No he tried to make out they can't even buy them in for the online price, and didn't believe me when I told him there are others advertised for not that much more. Very odd confused
Very strange.

daemon

36,010 posts

199 months

Saturday 12th October 2013
quotequote all
va1o said:
markmullen said:
It is quite common to have different prices online and offline.

Would the dealer sell you it for the online price?
No he tried to make out they can't even buy them in for the online price, and didn't believe me when I told him there are others advertised for not that much more. Very odd confused
Have you a link to the advert?

va1o

16,036 posts

209 months

Saturday 12th October 2013
quotequote all
daemon said:
Have you a link to the advert?
Can't seem to link from the used section of vw.co.uk (address bar is just http://www.volkswagen.co.uk/used/search/#width@926... ) but they appear to have put the "Online price" up now anyway. I don't know whether it was a deliberate stunt to get people in the showroom or a genuine error, frustrating either way!

pincher

8,694 posts

219 months

Sunday 13th October 2013
quotequote all
Any Merc dealers on here? Got a couple of question on ML specs.

matc

4,714 posts

209 months

Sunday 13th October 2013
quotequote all
pincher said:
Any Merc dealers on here? Got a couple of question on ML specs.
I'm here.

pincher

8,694 posts

219 months

Sunday 13th October 2013
quotequote all
Ooh great - mind if I send you a PM?

andymc

7,373 posts

209 months

Sunday 13th October 2013
quotequote all
I used to moan about the difference between online and offline, they would qualify for the online price if they took our finance and had no part ex, management's view was it got the customer here didn't it?

HTP99

22,752 posts

142 months

Sunday 13th October 2013
quotequote all
andymc said:
I used to moan about the difference between online and offline, they would qualify for the online price if they took our finance and had no part ex, management's view was it got the customer here didn't it?
Yes it did, however most likely they left with the hump and never returned and also told all their mates that you tried to rip them off!

vikingaero

10,578 posts

171 months

Sunday 13th October 2013
quotequote all
Any idea why this dealer has different prices for Part Ex and non-Part Ex?

http://www.banchorycarcentre.co.uk/used-cars/subar...

Trade-in Price £9495. No Trade-in, £8,995

I thought most dealers want part exes as it's effectively 2 slices of the pie in one go.