Broker Discounts - Achievable in Showroom?
Broker Discounts - Achievable in Showroom?
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romeogolf

Original Poster:

2,112 posts

150 months

Friday 30th January 2015
quotequote all
As a general rule, are the discounts offered/advertised by Orangewheels/Drive the deal/ Broadspeed etc a good indicator of what could be achieved in a dealership?

For example if they're showing they can save £3990 on a C-Class, is it reasonable to expect you could negotiate the same in a dealership? And then also get any deposit contribution if you take their finance?

Thanks smile

Cupramax

11,007 posts

283 months

Friday 30th January 2015
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Doubt it, those rates are no doubt negotiated on volume they pass to the dealer, you might get lucky if a dealer needs a sale to hit a target.

Shaw Tarse

31,901 posts

234 months

Friday 30th January 2015
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Ask the dealer,
Worked for me on a Freelander2

anonymous-user

85 months

Friday 30th January 2015
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Broker quotes often, but not always, include the deposit contribution for taking dealer finance.

Too many variables to give a simple yes/no answer, depends how good the broker deal actually is, where the dealer you're talking to is at in relation to their targets, etc.

I know a couple of people who've had the DTD price matched by their local dealer, and another person who was told it couldn't be done so they bought from the broker instead.


romeogolf

Original Poster:

2,112 posts

150 months

Friday 30th January 2015
quotequote all
charltjr said:
Broker quotes often, but not always, include the deposit contribution for taking dealer finance.
A few outline how much that is, so you can remove it, but it's something to consider, thanks.

HTP99

25,390 posts

171 months

Friday 30th January 2015
quotequote all
romeogolf said:
As a general rule, are the discounts offered/advertised by Orangewheels/Drive the deal/ Broadspeed etc a good indicator of what could be achieved in a dealership?

For example if they're showing they can save £3990 on a C-Class, is it reasonable to expect you could negotiate the same in a dealership? And then also get any deposit contribution if you take their finance?

Thanks smile
So you want a dealer to match the broker price and also offer their deposit contribution; which is in effect a discount anyway, is that right?

romeogolf

Original Poster:

2,112 posts

150 months

Friday 30th January 2015
quotequote all
HTP99 said:
So you want a dealer to match the broker price and also offer their deposit contribution; which is in effect a discount anyway, is that right?
In a sense, yes.

I've asked if the broker price is achievable in general negotiation (as in, within a few hundred £) or if it's much higher than a single buyer could get for themselves.

Deposit contribution usually comes from the finance company, but if I negotiated a price to pay with my own funding and then said "Actually I'll take your PCP" would the deposit contribution still be valid?

HTP99

25,390 posts

171 months

Friday 30th January 2015
quotequote all
romeogolf said:
HTP99 said:
So you want a dealer to match the broker price and also offer their deposit contribution; which is in effect a discount anyway, is that right?
In a sense, yes.

I've asked if the broker price is achievable in general negotiation (as in, within a few hundred £) or if it's much higher than a single buyer could get for themselves.

Deposit contribution usually comes from the finance company, but if I negotiated a price to pay with my own funding and then said "Actually I'll take your PCP" would the deposit contribution still be valid?
Deposit contributions usually are a mix of fiance company/manufacturer and dealer money; I doubt very much you will get a massive discount and a deposit contribution as there is also likely to be different margin structures depending on how the car is to be financed.

robsdesk

220 posts

163 months

Friday 30th January 2015
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As you'd expect it varies & also depends on how the discount being offered by the broker is being achieved, I've just ordered a Touareg, local dealer came up with some numbers which weren't very impressive, I said I'd read there was a fair bit of flexibility available & rather than coming up with a better price asked where he needed to be to get the order, I sent him to the broker & asked how close he could get, at that point he declined to offer anything else, I've since ordered through the broker. However my Dad bought an XF Estate 18 months ago & the supplying dealer used a broker quote as part of his sales pitch & his pricing was as good as any broker I could find.

My wife bought a Toyota through a broker 6 years ago, great price & she preferred that approach as the prospect of haggling etc.. didn't appeal to her (or sitting next to me while I did it). No issues at all with that purchase.

The Touareg is being supplied through the fleet team of a major dealer group, so I suspect there's probably some discount being given by VW which isn't generally available on the basis it's a fleet sale hence my local dealer probably wasn't able to compete even if they wanted to, probably naughty but it took an extra £7k off the car & makes no difference to me (other than a 100 mile trip to go collect it & no trying to sell paint protection nonsense).

blade7

11,311 posts

247 months

Friday 30th January 2015
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4 nearest Ford dealers couldn't/wouldn't match DTD last year on a Fiesta ST2. Nearest one was way over and the salesman had a take it or leave it attitude punch

HTP99

25,390 posts

171 months

Friday 30th January 2015
quotequote all
blade7 said:
4 nearest Ford dealers couldn't/wouldn't match DTD last year on a Fiesta ST2. Nearest one was way over and the salesman had a take it or leave it attitude punch
Well if they can't match it, what are they supposed to do?

Many dealers use fleet money to be able to achieve the high discounts that online brokers offer.

Johnnytheboy

24,499 posts

217 months

Friday 30th January 2015
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Just bought a new van, dealer offered me a reasonable (10.5%) discount without much drama.

Best broker price I could find was 13.5% discount, after a bit of back and forth the dealer matched this.

So on a sample size of one, yes!

liner33

10,861 posts

233 months

Friday 30th January 2015
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I'm currently in the market for a new Octavia VRS , with the options I want the car retails at around £30k.

Skoda is currently offering 2.8% finance which also opens the door to reduced servicing cost (3yrs for £149) but the dealer wont offer me any discount at all claiming that they have to make up 6% on the price due to the cheap finance deal (I dont believe they have to pay 8.8% apr on debt like they are claiming)

IF I pay cash they will reduce the list price by this 6%

They have offered me £500 more than WBAC for my trade in but its in immaculate condition with tons of extras so they arent giving much away really

If I went with a broker I could save around £4k over list price.

My last two new Skodas the dealer has priced matched a broker or at least got close enough , in one case it needed a 250 mile round trip to collect but worth it .


daydotz

1,806 posts

192 months

Friday 30th January 2015
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Not in my experience even being a loyal customer hasn't helped

So if your a hard nose individual & would like to help me negotiate on my next purchase then you would make me very happy thumbup

Challo

12,850 posts

186 months

Friday 30th January 2015
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A few years ago an ex-girlfriend managed to get the dealer to nearly match a broker quote. Dealer originally couldn't move much on the price, but we came back a week later with a broker quote and advised if he can get near the broker quote then we would sign. Few mins later and my girlfriend purchased the car.

I wouldn't say they can match the broker quotes, but certainly might give you some wiggle room on the prices, or at least get some freebies thrown in you would normally have to pay for.

berlintaxi

8,535 posts

204 months

Friday 30th January 2015
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Bought my last car through Drive the Deal, discounted price include a contribution from the manufacturer if you took out their finance, but not taking it only reduced the discount by a couple of hundred quid.

The local main dealer had no interest in even discussing a discount let alone matching the broker price, purchase couldn't have been easier, probably half a dozen emails and a coupe of phone calls, and the car was delivered to my home.

LP670

912 posts

157 months

Friday 30th January 2015
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ive got a yaris hybrid on order via drivethedeal as my local dealers were over a grand more than the broker price.

Bluebarge

4,519 posts

209 months

Friday 30th January 2015
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Bought a VW through a broker and dealt with the fleet manager at the supplying dealer, so obviously using the unit margin on the car to achieve fleet bomus/sales targets. Nearest VW retail outlet would only offer about 2% and a derisory trade-in price, so went with the broker, who offered 13%. TBH, I don't know why you just don't go with the broker - there is no dealer loyalty to customers in most dealerships (discounting rural ones and high-end cars) and they deliver the car to you.

anonymous-user

85 months

Friday 13th February 2015
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I would also like to know if you can get deposit contribution on top of broker discounts?

I was told by coast to coast you can't? Is this the same for the other?

CYMR0

3,940 posts

231 months

Friday 13th February 2015
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As ever, it depends.

Sometimes manufacturer's finance is heavily subsidised by the manufacturer via a deposit contribution in which case the broker price generally includes the discount already. (Think BMW, Ford via DriveTheDeal).

Other times the subsidy goes into the interest rate, the final price, etc., in which case it is effectively built into the price paid by the buyer, so you can't combine the finance and discount. This is rarer but this was my experience when looking at a Skoda that I eventually didn't go for.

It doesn't really matter which is which - all that matters is, is the deal right - i.e., could you get a better car for the same money, or the same car for less money?