Discussion
Two weeks ago I came very close to buying a second hand Audi A4 avant. I Negotiated the deal (good deal IMHO) The garage (a main dealer, but not Audi) valued the part ex (a 2007 Focus diesel) we did all the figures, but I wanted the evening to think it over. After talking it over with my wife we decided it was just a little too much for us to afford at the moment and we decided to walk away.
The garage has called on four occasions since, seeing if I might still be interested and on one occasion offered to throw in cruise control (which can be retro-fitted to the A4 s-line) F.O.C. I declined.
In the last 24 hours my circumstances have changed a little and I noticed that the car had been discounted on the web down to the figure that I was offered. I decided to see if I could have another go at eeking a bit more out of them. (but was prepared to go ahead on the original deal) I have just got off the phone with the garage after a lengthy chat where I was told that on the basis that we are now in a new month, my Focus is now worth £600 less and this is why the Audi has also been dicounted, so therefore not only are they not able to offer me any more discount, but they can't even match the offer that I was made 2 weeks ago. Now as far as I know the Audi has only done a few test drives in this period and the Focus has hardly turned a wheel, so why is it that my Focus has lost £600 and the Audi £1000 in that time. Do garages really take that much notice of Glasses or am I being spun a yarn?
The garage has called on four occasions since, seeing if I might still be interested and on one occasion offered to throw in cruise control (which can be retro-fitted to the A4 s-line) F.O.C. I declined.
In the last 24 hours my circumstances have changed a little and I noticed that the car had been discounted on the web down to the figure that I was offered. I decided to see if I could have another go at eeking a bit more out of them. (but was prepared to go ahead on the original deal) I have just got off the phone with the garage after a lengthy chat where I was told that on the basis that we are now in a new month, my Focus is now worth £600 less and this is why the Audi has also been dicounted, so therefore not only are they not able to offer me any more discount, but they can't even match the offer that I was made 2 weeks ago. Now as far as I know the Audi has only done a few test drives in this period and the Focus has hardly turned a wheel, so why is it that my Focus has lost £600 and the Audi £1000 in that time. Do garages really take that much notice of Glasses or am I being spun a yarn?
Glass's prices are based on averages of what a particular make and model is fetching at auctions (for the trade bit) and prices asked on forecourts for the retail bit.
Some models go wildly down (or indeed up) based on supply, trends and of course demand. Sometimes you win, other times you lose.
Whichever way you look at it, it's just a guide (I know many traders who don't use Glass's or CAP, ever) and a dealer will always use it against a customer... never the other way round!
we've just had the same with a customer that looked at a car last month, that is now £500 cheaper due to the book drop this month, he popped back at the weekend because he'd seen that we had reduced the price but was shocked that his car was also worth £500 less then we had valued it in june,it works the same both ways you know and cost to change was still the same!
Deva Link said:
OK, but you wouldn't really think of an Audi A4 Avant and a Focus as being cars that would do anything wildly!
What would have caused such a change in one month?
Because he was going to knock £500 off of ALL possible part exes for that car? Because in his mind you messed him around? Because he felt like it?What would have caused such a change in one month?
The Glass's thing is a bit of an excuse IMO, and if you can't see that then you probably need to be a bit more careful when you go to buy a car.
MarJay said:
Because he was going to knock £500 off of ALL possible part exes for that car? Because in his mind you messed him around? Because he felt like it?
The Glass's thing is a bit of an excuse IMO, and if you can't see that then you probably need to be a bit more careful when you go to buy a car.
Yes but, they'd also knocked a grand off the screen price of the Audi.The Glass's thing is a bit of an excuse IMO, and if you can't see that then you probably need to be a bit more careful when you go to buy a car.
I think it's most unlikely that car salesman take these things personally.
Perhaps a salesman, such as f1stoxfan, could advise - but I would guess the repricing and revaluing is more to do with dealership finance than anything else.
Thanks for the comments so far.
I did wonder whether it was because he felt messed around, but to be honest are they or aren't they there to sell cars. I didn't tell the dealer this, but I was willing to settle at the previous deal, as I thought it was a good one, albeit out of reach at the time. Due to a change of circumstances however I was now in a position to proceed, but when he robustly informed me he could no longer match that deal (only two weeks later) I ended the conversation. I was nothing but honest with him throughout, I just cannot understand why he was willing to settle at x two weeks ago and now claims to not be able to get near it. What has changed so much with the two cars in these two weeks? It just doesn't make sense.
The thing that annoys me the most is that (for once) I got a good feeling about the dealer first time around, they seemed to bend over beackwards to get my custom and I really felt that they were trying theIr best to get me into that car. The gap was just too big to bridge at the time, but now the answer is sorry can't get near it, simple as that!!!!NO DISCUSSION
I did wonder whether it was because he felt messed around, but to be honest are they or aren't they there to sell cars. I didn't tell the dealer this, but I was willing to settle at the previous deal, as I thought it was a good one, albeit out of reach at the time. Due to a change of circumstances however I was now in a position to proceed, but when he robustly informed me he could no longer match that deal (only two weeks later) I ended the conversation. I was nothing but honest with him throughout, I just cannot understand why he was willing to settle at x two weeks ago and now claims to not be able to get near it. What has changed so much with the two cars in these two weeks? It just doesn't make sense.
The thing that annoys me the most is that (for once) I got a good feeling about the dealer first time around, they seemed to bend over beackwards to get my custom and I really felt that they were trying theIr best to get me into that car. The gap was just too big to bridge at the time, but now the answer is sorry can't get near it, simple as that!!!!NO DISCUSSION
Edited by sixpot on Tuesday 5th July 17:37
We had a dealer hold off making a bid just before the end of the month because the drops were expected.uncinquesei said:
The book drops this month have been alarming. Again. checked 55 plate Mini Cooper D chili £650! And if they've dropped the A4 by a grand they'll have less margin to offer over allowances...
So it's right then....there really have been some big drops this month.With all this being the case then, their "asset" is depreciating by the day. Would it not therefore make sense to sell it to a serious buyer today (for the deal offered two weeks ago) than hold onto it and be forced to discount it again next month? Just my simple logic!!!!!
My take on it is this....the market is in a state of "adjustment"...this has happened a few times in the last 15 years...Many people coming through the door will not entertain a car bigger than a 1.4 engine, if they have to swop their car they are taking the opportunity to cut insurance, tax and fuel costs.
There are not currently enough buyers in the market place to soak up the amount of cars coming off lease, motobility etc etc, the demand in the trade isnt there, the prices drop....
As a dealer if I dont get "caught" with loads of stock that stands me wrong, the adjustment in the market only means that I will be buying cheaper and selling cheaper.
BMWBen said:
Interesting - I've got my car up for sale privately at the moment, at the parkers asking price (which I'm not expecting to get), and I've had 0 buyers interested.
Any ideas why the market is dead at the moment?
Im the same Ben, trying to sell a family owned 1.2 clio that I *think* I've priced fairly well for the market. Not even a single phone call! Any ideas why the market is dead at the moment?
POORCARDEALER said:
My take on it is this....the market is in a state of "adjustment"...this has happened a few times in the last 15 years...Many people coming through the door will not entertain a car bigger than a 1.4 engine, if they have to swop their car they are taking the opportunity to cut insurance, tax and fuel costs.
There are not currently enough buyers in the market place to soak up the amount of cars coming off lease, motobility etc etc, the demand in the trade isnt there, the prices drop....
As a dealer if I dont get "caught" with loads of stock that stands me wrong, the adjustment in the market only means that I will be buying cheaper and selling cheaper.
To add to that, forget what you have heard about new car registrations being better than last year. That is only the result of many manufacturers/dealers registering a huge number of cars to meet targets. They then have to be disposed of somehow. Generally that is through your used car site. So you have a 'perfcet storm' regarding depreciation. Massive discounting on new cars, large numbers of 'pre-reg' cars even further heavily discounted (with not enough demand) and the final knock on effect is that auction/trade values plummet.There are not currently enough buyers in the market place to soak up the amount of cars coming off lease, motobility etc etc, the demand in the trade isnt there, the prices drop....
As a dealer if I dont get "caught" with loads of stock that stands me wrong, the adjustment in the market only means that I will be buying cheaper and selling cheaper.
My personal view and it's not being negative, just realistic, is that this year and going into next year is going to be an absolute disaster for the motor trade in general. We won't have scrappage to get us out of the hole this time and everyone is going to suffer badly.
Just yesterday, our call centre was shut down. 15 people redundant. We have reduced the number of technicians by half, from this time last year etc. etc.
Have in mind that we are the largest site in Europe for my particular franchise (and wholy manufacturer owned) so we are not talking a 2 car showroom. In addition, a huge number of our usual buyers are just either sitting on their money, or don't have it any more. Our life blood is 20'ish to mid 30'ish customers...they are the ones who continue to be hit in the pocket.
So in summary, you have to look at the 'big picture', there are a number of things that effect used values, not just what the trader feels on the day.
TVR1 said:
My personal view and it's not being negative, just realistic, is that this year and going into next year is going to be an absolute disaster for the motor trade in general.
Do you think (or know) if that's just a UK thing, or is it happening across Europe?Perhaps VAG diesel leadtimes will drop to under 6mths!
There have been some major guide adjustments in the last couple of months. All it has done it brought the guides back into line with the actual market a little....many models have not been getting near book price at auction or in trade sales. Some cars basically have no trade purchase appeal whatsoever even if they are basically free.
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