Buying a used car - free tax from dealer

[Hugo911]

A lot of people say they negotiated free road tax from the dealership.

Is this something the dealers are happy to fund rather than give a discount on ticket price?

Why would that be the case? Does it cost them less?

[BertBert]

It costs them the same as you. I've not particularly seen it as a thing that happens often though.

[DuraAce]

Physcology. People think something for free is better than something reduced in price?

It's part of the old thought of free mats, tax and a free tank of petrol = a great deal.
It doesn't always, I'd rather have £500 off instead!

[Magic919]

Some dealers will entertain sweetners rather than drop the aaking price. Road tax, next service, fuel and accessories are all potential negotiation fodder.

[griffter]

I imagine the dealer can account for the car as sold at screen price and the reduction in the profit margin appears somewhere down the line in the books. I can't see there being any financial advantage (e.g. for tax) but maybe "head office" only see the high level transaction figures and the salesman gets salesman of the month.

[Cheib]

Hugo911 said:

A lot of people say they negotiated free road tax from the dealership.

Is this something the dealers are happy to fund rather than give a discount on ticket price?

Why would that be the case? Does it cost them less?

If you're going to negotiate something "free" with the OPC make it something that has more monetary value to you than it does to them....road tax is a hard cash cost to them. Parts/Servicing etc are things that cost them a lot less than they are potentially worth to you so they're probably do a deal on them that is worth more to you on absolute £ terms.