Golden times for dealers?
Discussion
I made this comment on another thread, but I thought t warranted a thread of its own, to see whether any dealers out there, and PH car buyers agree or disagree.
My buying experience has changed so much over the years. It must be golden times for dealers, especially main dealers. Private sales, especially bargains, are almost impossible to come by, since webuyanycar etc was created to mop up all sales within the trade. Some years ago, I bought several cars from auctions, around six months apart, and I virtually wiped out depreciation. Now, auction fees are so exorbitant for private buyers, presumably following pressure from traders, that savings are not possible.
Dealers now have the motor trade wrapped up. They don't take a part exchange unless they've already sold it , and offer you a pittance, so little work is involved there. They price their cars by looking around on the internet and generally will not shift on their price, so no significant work is involved in negotiating a deal. Most people seem to buy on a PCP deal, so dealers know that customers will be trotting through their doors every two or three years, probably to step onto the same hamster wheel again.
Main dealers in particular seem to be constantly finding new ways to separate customers from their money, with exorbitant servicing and repair costs. I recently saved my brother in law hundreds of pounds by arranging for him to have his Volvo XC60 headlight bulbs changed at a local trusted independent garage instead of the main dealer, whose quote was eye watering, despite headlamp replacement on these cars being the easiest I have ever seen. They did later rip him off by charging stupid prices for his servicing and a couple of other jobs, including blatantly lying about work they had (not) done to his door mirror. My brother in law is a loyal customer who believes in sticking to main dealers for servicing etc but even he is beginning to see the light
The motor trade is an absolute cartel now, they have it all wrapped up. I suspect that in some industries, the competition commission might interpret these tactics as illegal.
My buying experience has changed so much over the years. It must be golden times for dealers, especially main dealers. Private sales, especially bargains, are almost impossible to come by, since webuyanycar etc was created to mop up all sales within the trade. Some years ago, I bought several cars from auctions, around six months apart, and I virtually wiped out depreciation. Now, auction fees are so exorbitant for private buyers, presumably following pressure from traders, that savings are not possible.
Dealers now have the motor trade wrapped up. They don't take a part exchange unless they've already sold it , and offer you a pittance, so little work is involved there. They price their cars by looking around on the internet and generally will not shift on their price, so no significant work is involved in negotiating a deal. Most people seem to buy on a PCP deal, so dealers know that customers will be trotting through their doors every two or three years, probably to step onto the same hamster wheel again.
Main dealers in particular seem to be constantly finding new ways to separate customers from their money, with exorbitant servicing and repair costs. I recently saved my brother in law hundreds of pounds by arranging for him to have his Volvo XC60 headlight bulbs changed at a local trusted independent garage instead of the main dealer, whose quote was eye watering, despite headlamp replacement on these cars being the easiest I have ever seen. They did later rip him off by charging stupid prices for his servicing and a couple of other jobs, including blatantly lying about work they had (not) done to his door mirror. My brother in law is a loyal customer who believes in sticking to main dealers for servicing etc but even he is beginning to see the light
The motor trade is an absolute cartel now, they have it all wrapped up. I suspect that in some industries, the competition commission might interpret these tactics as illegal.
Moderator edit: no need for the naming & shaming
Edited by jeremyc on Saturday 20th July 10:23
ZX10R NIN said:
I'd say it's actually the other way round it's a great time to be buying, you have to haggle harder & be prepared to walk away but with so much stock out there in the used market the world's your oyster.
I agree. Cars have to be priced cheap to sell, buyers know what they should be paying and won't pay a penny more, expectation more and more to compete with broker prices if it's a new car, waifer thin margins, massive expectations around consumer rights....Recent experience suggests otherwise. I don't believe that cars are particularly cheap, and it's almost impossible to get a decent trade in price. I did walk away last week, twice, but I'm no further forward.The chance to haggle has all but disappeared, and they don't seem to care if you walk away. With the introduction of PCP dealers' customer base has broadened considerably , because so many people can afford cars they could not previously afford, so that buyers' market argument does not stand up, in my opinion
lornemalvo said:
Recent experience suggests otherwise. I don't believe that cars are particularly cheap, and it's almost impossible to get a decent trade in price. I did walk away last week, twice, but I'm no further forward.The chance to haggle has all but disappeared, and they don't seem to care if you walk away. With the introduction of PCP dealers' customer base has broadened considerably , because so many people can afford cars they could not previously afford, so that buyers' market argument does not stand up, in my opinion
PCP is a big scam....................................apparently.ZX10R NIN said:
I'd say it's actually the other way round it's a great time to be buying, you have to haggle harder & be prepared to walk away but with so much stock out there in the used market the world's your oyster.
This.You can shop around for the best deal at the click of a mouse. Reviews of nearly everything on You tube to help you decide what to buy..
lornemalvo said:
Recent experience suggests otherwise. I don't believe that cars are particularly cheap, and it's almost impossible to get a decent trade in price. I did walk away last week, twice, but I'm no further forward.The chance to haggle has all but disappeared, and they don't seem to care if you walk away. With the introduction of PCP dealers' customer base has broadened considerably , because so many people can afford cars they could not previously afford, so that buyers' market argument does not stand up, in my opinion
Yes if you're trading in then expect to take a hit & don't expect to get the best deal on the flip side either, selling privately is a bit harder but if you sell at somewhere near the market value you will sell it.lornemalvo said:
Recent experience suggests otherwise. I don't believe that cars are particularly cheap, and it's almost impossible to get a decent trade in price. I did walk away last week, twice, but I'm no further forward.The chance to haggle has all but disappeared, and they don't seem to care if you walk away. With the introduction of PCP dealers' customer base has broadened considerably , because so many people can afford cars they could not previously afford, so that buyers' market argument does not stand up, in my opinion
You are under no obligation to sell your car to the dealer you are buying your car off.Loads of online buyers, ring local indies and ask if they are interested in bidding for the car, sell it privately.
Last two cars we have sold, one was sold back to the main dealer, and one we sold on facebook. We got 3,500 more for the car privately than the main dealer was giving us.
Dealers wont feel much urge to discount if they feel their car is among the cheapest on the market already
Edited by Deep Thought on Saturday 20th July 11:25
lornemalvo said:
Main dealers in particular seem to be constantly finding new ways to separate customers from their money, with exorbitant servicing and repair costs. I recently saved my brother in law hundreds of pounds by arranging for him to have his Volvo XC60 headlight bulbs changed at a local trusted independent garage instead of the main dealer, whose quote was eye watering, despite headlamp replacement on these cars being the easiest I have ever seen. They did later rip him off by charging stupid prices for his servicing and a couple of other jobs, including blatantly lying about work they had (not) done to his door mirror. My brother in law is a loyal customer who believes in sticking to main dealers for servicing etc but even he is beginning to see the light
The disconnect between sales and service has always baffled me - I've bought multiple new cars for self and family and have generally used the local franchise dealer for service, but have now moved Merc, Honda and a VW to other garages. Left wife's VW on dealer service for now but they're hopeless.Went into a VW showroom recently - didn't have the model we wanted to look at in the showroom, or any member of staff available to speak to us (although one was sitting on his arse next to the receptionist) so that was the end of the matter as far as they were concerned.
Deep Thought said:
ZX10R NIN said:
I'd say it's actually the other way round it's a great time to be buying, you have to haggle harder & be prepared to walk away but with so much stock out there in the used market the world's your oyster.
I agree. Cars have to be priced cheap to sell, buyers know what they should be paying and won't pay a penny more, expectation more and more to compete with broker prices if it's a new car, waifer thin margins, massive expectations around consumer rights....Sheepshanks said:
lornemalvo said:
Main dealers in particular seem to be constantly finding new ways to separate customers from their money, with exorbitant servicing and repair costs. I recently saved my brother in law hundreds of pounds by arranging for him to have his Volvo XC60 headlight bulbs changed at a local trusted independent garage instead of the main dealer, whose quote was eye watering, despite headlamp replacement on these cars being the easiest I have ever seen. They did later rip him off by charging stupid prices for his servicing and a couple of other jobs, including blatantly lying about work they had (not) done to his door mirror. My brother in law is a loyal customer who believes in sticking to main dealers for servicing etc but even he is beginning to see the light
The disconnect between sales and service has always baffled me - I've bought multiple new cars for self and family and have generally used the local franchise dealer for service, but have now moved Merc, Honda and a VW to other garages. Left wife's VW on dealer service for now but they're hopeless.Went into a VW showroom recently - didn't have the model we wanted to look at in the showroom, or any member of staff available to speak to us (although one was sitting on his arse next to the receptionist) so that was the end of the matter as far as they were concerned.
Deep Thought said:
its because the profit for main dealers these days is in warranty, servicing and parts.
I think it's mainly in servicing, which they can do very fast - half or even less than the book time.If that's true you'd think service would be keen that sales kept selling new cars to exisiting customers. But there's no evidence they give a toss.
Sheepshanks said:
Deep Thought said:
its because the profit for main dealers these days is in warranty, servicing and parts.
I think it's mainly in servicing, which they can do very fast - half or even less than the book time.If that's true you'd think service would be keen that sales kept selling new cars to exisiting customers. But there's no evidence they give a toss.
Yes customer retention doesnt seem to be a big thing these days. Not how you would expect it to be anyway.
Wacky Racer said:
ZX10R NIN said:
I'd say it's actually the other way round it's a great time to be buying, you have to haggle harder & be prepared to walk away but with so much stock out there in the used market the world's your oyster.
This.You can shop around for the best deal at the click of a mouse. Reviews of nearly everything on You tube to help you decide what to buy..
I'd say the market is only stacked against the buyer who let's it be
Gassing Station | Car Buying | Top of Page | What's New | My Stuff