Dealer discount - what do YOU expect when buying
Discussion
With the market the way it is at the moment, what sort of discounts do people look to get from dealers (BMW or Independent).
I can’t imagine too many buyers out there at the moment, but I’m constantly hearing “that’s the best I can do, it’s already been reduced last week” etc
I’m looking at Z4s with screen prices between 12-14k, but is it realistic to be able to haggle a decent chunk off these at the moment? I appreciate it’s a case of different age, spec, garage etc making each case unique, but as a rule of thumb, what % discount would you be expecting the dealers to knock off if you were buying now?
I can’t imagine too many buyers out there at the moment, but I’m constantly hearing “that’s the best I can do, it’s already been reduced last week” etc
I’m looking at Z4s with screen prices between 12-14k, but is it realistic to be able to haggle a decent chunk off these at the moment? I appreciate it’s a case of different age, spec, garage etc making each case unique, but as a rule of thumb, what % discount would you be expecting the dealers to knock off if you were buying now?
I'd like to know the same, the 1 Series car's Im looking at have sticker prices that vary by as much as £3k for same spec cars, yet when speaking to the dealers of those cars advertised higher, they can't get anywherere near the lower prices, let alone using that price as a starting point for negotiation. The thing is though, even some of the lower priced cars have been advertised for a couple of months with no sale, so its not as if they're one off bargains being snapped up in an instant.
It seems a lot of the dealers rigidly stick to the "It owes us X therefore it can't be sold below that" mindset which possibly works with niche models where there's not many for sale, but if other dealers can sell equivalent cars significantly cheaper then they're either going to have to take a loss to sell and treat it as a lesson learned, or have it sit on the forecourt for ages and hope that the other dealers run out of stock at the cheaper level.
It seems a lot of the dealers rigidly stick to the "It owes us X therefore it can't be sold below that" mindset which possibly works with niche models where there's not many for sale, but if other dealers can sell equivalent cars significantly cheaper then they're either going to have to take a loss to sell and treat it as a lesson learned, or have it sit on the forecourt for ages and hope that the other dealers run out of stock at the cheaper level.
Haggle hard.. Recent price reductions are not your problem, you weren't there a week ago so what does that price have to do with anything.
If your a cash buyer make that clear and make it obvious you want to do the deal soon. Put the pressure on them to meet your price.
Go in with a low offer and see what happens.. If they don't budge walk away.. It's a buyers market right now so you've got all the leverage.
If your a cash buyer make that clear and make it obvious you want to do the deal soon. Put the pressure on them to meet your price.
Go in with a low offer and see what happens.. If they don't budge walk away.. It's a buyers market right now so you've got all the leverage.
Edited by Slurms on Tuesday 6th January 11:09
LocoBlade said:
The other thing Ive noticed is that compared to prices in November, they haven't really dropped even though on a £20k car there's £500 less VAT to pay now. Not sure if thats the same across the board or not.
Depends if the car is vat qualifying or notNew cars are subject to VAT and some dealer cars will be vat qualifying but used cars aren't something you pay vat on.
LocoBlade said:
The other thing Ive noticed is that compared to prices in November, they haven't really dropped even though on a £20k car there's £500 less VAT to pay now. Not sure if thats the same across the board or not.
Depends if the car is vat qualifying or notNew cars are subject to VAT and some dealer cars will be vat qualifying but used cars aren't something you pay vat on.
£20k non vat qualifying car ie a normal used car VAT is paid on the selling margain... if its been in stock a while they wont be paying any VAT! if they paid £17k for it then the saving on VAT is about £55!!!!
Regards what discount I'd expect.... well more a question of looking at the market place and seeing if you can buy a better of eqivalent car for the same or less.
Decide if its a car you want to buy and what its worth to you in comparison to others in the market place, if theres a p/x involved cost to change is what matters
Yep of course, I wasnt considering that the dealer will only pay VAT on the difference between the price they bought it at and the price being sold at, so won't make much difference. Sorry
Having said that though, a lot of the cars I'm looking at say "VAT qualifying vehicle", so what does that mean to the dealer / me in terms of pricing, sounds almost like the VAT will be paid as if its a new car?
Having said that though, a lot of the cars I'm looking at say "VAT qualifying vehicle", so what does that mean to the dealer / me in terms of pricing, sounds almost like the VAT will be paid as if its a new car?
Edited by LocoBlade on Tuesday 6th January 12:44
Depreciation hits due to our current economic issues would always be hard, but remember, a car loses about 20% per annum, or on your £12,000 cars, about £200 a month anyway.
You might not budge them much because some of their two month old stock despite being valued at £13,000 trade when they bought it, might now be worth £12,000 trade three months later, so their profit margin has gone quickly...
I'd haggle for longer warranty, tyres if they are about ready to be replaced, tax, tank of fuel, longer mot if needed, things like that you will be more likely to get if they are unwilling to budge, but have your dream car
Dave
You might not budge them much because some of their two month old stock despite being valued at £13,000 trade when they bought it, might now be worth £12,000 trade three months later, so their profit margin has gone quickly...
I'd haggle for longer warranty, tyres if they are about ready to be replaced, tax, tank of fuel, longer mot if needed, things like that you will be more likely to get if they are unwilling to budge, but have your dream car
Dave
Edited by Mr Whippy on Tuesday 6th January 12:56
paoloh said:
2nd hand the dealer should have at least £1500 in every £10k.
New: 8% front end with maybe 6% backend.
Surely that's for normal times. Dealers who have money tied up in used stock have to get their money out, even at a loss. If they are crying now they will be howling soon.New: 8% front end with maybe 6% backend.
waremark said:
paoloh said:
2nd hand the dealer should have at least £1500 in every £10k.
New: 8% front end with maybe 6% backend.
Surely that's for normal times. Dealers who have money tied up in used stock have to get their money out, even at a loss. If they are crying now they will be howling soon.New: 8% front end with maybe 6% backend.
The overheads don't drop with downturns.
Dont worry about the % discount. If the car you are looking at is what you want is already well priced, be happy with a small amount off.
If it is the spec you want but does not seem that keenly priced compared to others and the dealer is not giving much away, then give it 7/10days and try again.
If you are right the car wont shift, and the dealer will eventualy have to move more on the price.
If the dealer is right it will be sold, and you will have to re-adjust your expectations.
There is a real lack of available stock at the moment, and I think prices will firm up for a while. I have personally seen several cars sell at auction this weel for literally thousands more than I paid for similar cars in Nov/Dec.
Whilst the general economic climate is pretty poor, used cars have been falling in value for a while now. They look excellent value compared to a year ago, and are now selling well. All the traders I have spoken to seem to have been quite busy over the Christmas holidays. I also sold quite a lot of cars over the holidays. The problem is because new car sales are down, there is a lack of part exchanges being generated for the used car market.
If it is the spec you want but does not seem that keenly priced compared to others and the dealer is not giving much away, then give it 7/10days and try again.
If you are right the car wont shift, and the dealer will eventualy have to move more on the price.
If the dealer is right it will be sold, and you will have to re-adjust your expectations.
There is a real lack of available stock at the moment, and I think prices will firm up for a while. I have personally seen several cars sell at auction this weel for literally thousands more than I paid for similar cars in Nov/Dec.
Whilst the general economic climate is pretty poor, used cars have been falling in value for a while now. They look excellent value compared to a year ago, and are now selling well. All the traders I have spoken to seem to have been quite busy over the Christmas holidays. I also sold quite a lot of cars over the holidays. The problem is because new car sales are down, there is a lack of part exchanges being generated for the used car market.
kentmotorcompany said:
There is a real lack of available stock at the moment, and I think prices will firm up for a while. I have personally seen several cars sell at auction this weel for literally thousands more than I paid for similar cars in Nov/Dec.
Whilst the general economic climate is pretty poor, used cars have been falling in value for a while now. They look excellent value compared to a year ago, and are now selling well. All the traders I have spoken to seem to have been quite busy over the Christmas holidays. I also sold quite a lot of cars over the holidays. The problem is because new car sales are down, there is a lack of part exchanges being generated for the used car market.
It's a bit hit and miss I think. I've been watching for about 8 weeks now and generally there has been a gap of maybe £3000 for similar spec cars, from £9000 through to £12,000Whilst the general economic climate is pretty poor, used cars have been falling in value for a while now. They look excellent value compared to a year ago, and are now selling well. All the traders I have spoken to seem to have been quite busy over the Christmas holidays. I also sold quite a lot of cars over the holidays. The problem is because new car sales are down, there is a lack of part exchanges being generated for the used car market.
The £9000 ones have all sold, the £12,000 are still sat there gathering dust.
I think you are right that demand is higher, cheaper petrol, crappy rates for savers, and a good year of depreciation last year means they are a good buy now... also, less owners trading in because of the terrible offers.
Still, generally, their values are way lower than the middle of last year, even at £12,000 for good trade examples, never mind the £9k bargains!
I'll really be wanting one over the next few weeks/months, and am happy to pay a bit more. If demand is rising then residuals will be stronger anyway, so less overall cost to own over time anyway if that holds up
Dave
kentmotorcompany said:
There is a real lack of available stock at the moment, and I think prices will firm up for a while. I have personally seen several cars sell at auction this weel for literally thousands more than I paid for similar cars in Nov/Dec.
Whilst the general economic climate is pretty poor, used cars have been falling in value for a while now. They look excellent value compared to a year ago, and are now selling well. All the traders I have spoken to seem to have been quite busy over the Christmas holidays. I also sold quite a lot of cars over the holidays. The problem is because new car sales are down, there is a lack of part exchanges being generated for the used car market.
Holy thread resurrection Batman!!Whilst the general economic climate is pretty poor, used cars have been falling in value for a while now. They look excellent value compared to a year ago, and are now selling well. All the traders I have spoken to seem to have been quite busy over the Christmas holidays. I also sold quite a lot of cars over the holidays. The problem is because new car sales are down, there is a lack of part exchanges being generated for the used car market.
Hate to say I told you so, but with what has been happening to prices this year I couldnt resist finding this old quote of mine, and blowing my own trumpet.
As you were.
I bought a 3 year old A6 3.2 Quattro avant back in Feb and managed to get them down from £17k to £13k including a service, 4 new pilot sport 2 tyres, and the £400 Audi Music Interface fitted.
Things were desperate back then, Mercedes had 9000 new cars sat in a field that were being offered on contract hire for £199 a month for a C Class and £239 a month for an E Class, which in turn meant buying used for £400 a month seemed daft, and also meant you could contract hire a new 318d for £229 a month as BMW wanted to shift new metal too, and we contract hired a 118d for £169 a month over 2 years. Why would we have even considered buying a 2 year old one at £12k, it would have cost us nearly £300 a month to finance?
But now!!??
I have loads of dealers shop with me and they are all moaning that they can't get any stock, a nightmare. Cars going through auctions for £35k when they book at £30k etc.
I was thinking about the M3 I was offered, 10 months old, 5k miles and all the right options for £33k. I only didn't as I had bought the A6 a week beofre and promised my better half that I wouldn't buy any more this year. But even now that 08 plate would be £40k+.
Oh hindsight!!
Things were desperate back then, Mercedes had 9000 new cars sat in a field that were being offered on contract hire for £199 a month for a C Class and £239 a month for an E Class, which in turn meant buying used for £400 a month seemed daft, and also meant you could contract hire a new 318d for £229 a month as BMW wanted to shift new metal too, and we contract hired a 118d for £169 a month over 2 years. Why would we have even considered buying a 2 year old one at £12k, it would have cost us nearly £300 a month to finance?
But now!!??
I have loads of dealers shop with me and they are all moaning that they can't get any stock, a nightmare. Cars going through auctions for £35k when they book at £30k etc.
I was thinking about the M3 I was offered, 10 months old, 5k miles and all the right options for £33k. I only didn't as I had bought the A6 a week beofre and promised my better half that I wouldn't buy any more this year. But even now that 08 plate would be £40k+.
Oh hindsight!!
I was negotiating on an AUC 530i MSport Touring a few months ago. It was up for £25,995 which seemed well priced based on the research I had done. However the cost to change was a bit steep so I declined to take up the offer.
8 weeks later the car was still for sale. I called the dealer back and he said it was imminently going to be dropped to £23,995 (on the Monday – I think I called on the previous Thursday) and I could take that price. For a number of reasons I didn’t buy it.
However the moral of the story is that the discount you can get is more than likely going to depend on how long the stock has been lying around and how close you are to the end of the month/quarter.
8 weeks later the car was still for sale. I called the dealer back and he said it was imminently going to be dropped to £23,995 (on the Monday – I think I called on the previous Thursday) and I could take that price. For a number of reasons I didn’t buy it.
However the moral of the story is that the discount you can get is more than likely going to depend on how long the stock has been lying around and how close you are to the end of the month/quarter.
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