Carwow dealer 'offers'

[redstar1]

We're on the hunt for a new car, and I've been poking around looking for deals etc - on new EVs so not expecting much - but some of the offers you get via Carwow from dealers seem too good to be true.

I understand there's almost always a better price to be had in GB (am in Northern Ireland) but looking at a Premium spec Ford Capri for instance, which I don't think is an old car but they're offering 9k off RRP in some cases which seems mad.

I might be out of touch as I've not bought a car for 11 years, and when I did I used GB prices to get a discount from a local dealer but this seems like a massive discount, or maybe the margins are crazy and the cars aren't selling....

Any pitfalls/things to look out for if we were to go this way?

[Discombobulate]

redstar1 said:

We're on the hunt for a new car, and I've been poking around looking for deals etc - on new EVs so not expecting much - but some of the offers you get via Carwow from dealers seem too good to be true.

I understand there's almost always a better price to be had in GB (am in Northern Ireland) but looking at a Premium spec Ford Capri for instance, which I don't think is an old car but they're offering 9k off RRP in some cases which seems mad.

I might be out of touch as I've not bought a car for 11 years, and when I did I used GB prices to get a discount from a local dealer but this seems like a massive discount, or maybe the margins are crazy and the cars aren't selling....

Any pitfalls/things to look out for if we were to go this way?

That's the sort of deal you can get on some cars, including EVs. Indeed you are likely to get the best deals on EVs. Just watch the APR if financing, some "deals" involve very high interest rates.

[redstar1]

Discombobulate said:

That's the sort of deal you can get on some cars, including EVs. Indeed you are likely to get the best deals on EVs. Just watch the APR if financing, some "deals" involve very high interest rates.

Interesting. It will be 0% or nothing. Did a search on a Capri as we did a test drive recently and I was quite impressed. Would happily have one instead of a Tesla.

What we haven't done is take those numbers to a local dealer just to see what they'd do.

[Sheepshanks]

Have a look at https://www.new-car-discount.com

Got our Kona EV through them, with £11K off. I saw someone link to them the other day and Ioniq6 was discounted over £20K, but that car is something of an acquired taste.

They don’t do all marques, but they do have Ford.

[redstar1]

Sheepshanks said:

Have a look at https://www.new-car-discount.com

Got our Kona EV through them, with £11K off. I saw someone link to them the other day and Ioniq6 was discounted over £20K, but that car is something of an acquired taste.

They don’t do all marques, but they do have Ford.

Crikey. Some savings on there. Thanks for that, will have a good poke around

[Sheepshanks]

I did used CarWow some years ago for wife’s Tiguan - I got offers from several dealers, including our most local two. One of them told me the dealers price their offers based on how close you are. I used the lowest price and got the local dealer to match it. I did take the finance though - first time I’ve ever done that.

I got the impression the dealer would have done almost anything to sell me the car as all they really care about is selling finance. Soon as I had it I paid the finance off.

If CarWow still works like that, does it throw up NI dealers for you?

[CoolHands]

If you don’t get 20% off the rrp of an ev, you’re being had

[redstar1]

Sheepshanks said:

I did used CarWow some years ago for wife’s Tiguan - I got offers from several dealers, including our most local two. One of them told me the dealers price their offers based on how close you are. I used the lowest price and got the local dealer to match it. I did take the finance though - first time I’ve ever done that.

I got the impression the dealer would have done almost anything to sell me the car as all they really care about is selling finance. Soon as I had it I paid the finance off.

If CarWow still works like that, does it throw up NI dealers for you?

I haven't seen any NI dealers. Tends to just give 5 offers though, unless I'm missing something.

[Wills2]

redstar1 said:

We're on the hunt for a new car, and I've been poking around looking for deals etc - on new EVs so not expecting much - but some of the offers you get via Carwow from dealers seem too good to be true.

I understand there's almost always a better price to be had in GB (am in Northern Ireland) but looking at a Premium spec Ford Capri for instance, which I don't think is an old car but they're offering 9k off RRP in some cases which seems mad.

I might be out of touch as I've not bought a car for 11 years, and when I did I used GB prices to get a discount from a local dealer but this seems like a massive discount, or maybe the margins are crazy and the cars aren't selling....

Any pitfalls/things to look out for if we were to go this way?

The pitfall is thinking you've got a deal that is ahead of the market, the depreciation once you buy it is still there, a 12month old Capri that is £40k after a 24% is worth less than £25k trade after a year and 10k miles.

This isn't a concern if you're keeping the car for 10 years but don't think the discount protects you from the loss of value the car will suffer.

[redstar1]

Wills2 said:

The pitfall is thinking you've got a deal that is ahead of the market, the depreciation once you buy it is still there, a 12month old Capri that is £40k after a 24% is worth less than £25k trade after a year and 10k miles.

This isn't a concern if you're keeping the car for 10 years but don't think the discount protects you from the loss of value the car will suffer.

Yeah understand that. Never gave depreciation much thought because the plan would be to keep it until it falls apart, which hopefully would be 10+ years away.

[CoolHands]

Then surely better to buy a 1-year old one that’s already lost a lot of depreciation?

[ThingsBehindTheSun]

redstar1 said:

What we haven't done is take those numbers to a local dealer just to see what they'd do.

I was looking for a Seat Leon pre Covid and got some car wow quotes that were £5k under list.

I test drove one at the local dealer and he came out with a quote of list price with gap insurance, tyre insurance, supaguard etc. When I told him I wasn't paying list or for the extras he sent out the senior salesperson.

Blue suit, pointy shoes, probably played rugger at uni, you know the type.

I told him I wasn't paying list and I told him I had a quote for £5k under list. He didn't believe me, so I got out the car wow quote and showed him.

"ah, that isn't a real price" he said, and then tried to explain why I should buy from him. His final quote was "we have a relationship now, isn't that worth something?". "Not £5k I replied"

I got the impression they were not interested in selling me a a car unless I paid list and picked one that was available on the system. Even ordering a colour I actually wanted was too much effort.

I walked.

My local Renault dealer on the other hand were happy to match any car wow quote on a clio.

Edited by ThingsBehindTheSun on Monday 25th August 12:26

[Sheepshanks]

redstar1 said:

I haven't seen any NI dealers. Tends to just give 5 offers though, unless I'm missing something.

I think I got 5 offers too.

[ThingsBehindTheSun]

CoolHands said:

Then surely better to buy a 1-year old one that’s already lost a lot of depreciation?

Some people want a car that hasn't had someones kids, dogs, takeaways, garden rubbish etc in.

Or the previous owners bogies and dead skin on the controls.

Or that hasn't been bashed up kerbs and treated like a piece of crap.

Most second hand cars I see are in an appealing state, I can see why people want new.

[Sheepshanks]

CoolHands said:

Then surely better to buy a 1-year old one that’s already lost a lot of depreciation?

If you buy through a broker then the discounted new ones often seem to be cheaper. And if you need finance the rate will usually be lower too.

[Sheepshanks]

Wills2 said:

The pitfall is thinking you've got a deal that is ahead of the market, the depreciation once you buy it is still there, a 12month old Capri that is £40k after a 24% is worth less than £25k trade after a year and 10k miles.

This isn't a concern if you're keeping the car for 10 years but don't think the discount protects you from the loss of value the car will suffer.

The trade price will be terrible but you can’t buy it for that - that £25K (even that might be optimistic) trade price will be low to mid £30’s at a dealer.

[Wills2]

Sheepshanks said:

Wills2 said:

The pitfall is thinking you've got a deal that is ahead of the market, the depreciation once you buy it is still there, a 12month old Capri that is £40k after a 24% is worth less than £25k trade after a year and 10k miles.

This isn't a concern if you're keeping the car for 10 years but don't think the discount protects you from the loss of value the car will suffer.

The trade price will be terrible but you can’t buy it for that - that £25K (even that might be optimistic) trade price will be low to mid £30’s at a dealer.

What you can buy it for is irrelevant for the purposes of my post it's the loss via the realisable value (trade price) I was pointing at, it perfectly illustrates the point I was making.

[redstar1]

ThingsBehindTheSun said:

Some people want a car that hasn't had someones kids, dogs, takeaways, garden rubbish etc in.

Or the previous owners bogies and dead skin on the controls.

Or that hasn't been bashed up kerbs and treated like a piece of crap.

Most second hand cars I see are in an appealing state, I can see why people want new.

This mainly. Lot of value for me in having a new one.

[Sheepshanks]

Wills2 said:

What you can buy it for is irrelevant for the purposes of my post it's the loss via the realisable value (trade price) I was pointing at, it perfectly illustrates the point I was making.

I know the OP asked if any pitfalls but I don’t think what you wrote is a pitfall. It’s obvious that if you buy a heavily discounted car then it’s going to lose money, but it is what it is, so to speak. You just have to make sure you get the max discount so you don’t lose as much as those paying nearer to list.

A pitfall would be something like finding out the warranty isn’t valid as it was bought through an unapproved source. Or you get shown as the second owner.

[uktrailmonster]

Sheepshanks said:

CoolHands said:

Then surely better to buy a 1-year old one that’s already lost a lot of depreciation?

If you buy through a broker then the discounted new ones often seem to be cheaper. And if you need finance the rate will usually be lower too.

I agree. Broker new prices are sometimes as cheap as up to 1 year old approved used.