New car sales margins

[Jules360]

My local dealer has sent out mail claiming they are selling cars at cost until the end of Sep. However, upon enquiring they tell me that "cost" is 5% below RRP. I find this very hard to believe, anyone got an idea what the true figure is?

[Bish]

I wouyld have though Land Rover dealers would get 10% minimum. Used to get 12% in several of the dealerships I worked along with an extra 5% if registered as a demo. Although I just got 22% on an Audi A8 but I reckon that was sold at a lost to boost figures etc.

[David911RSR]

Jules360 said:

My local dealer has sent out mail claiming they are selling cars at cost until the end of Sep. However, upon enquiring they tell me that "cost" is 5% below RRP. I find this very hard to believe, anyone got an idea what the true figure is?

I got 10% discount on a new Discovery 3 2 years ago, so I would have thought their dealer margin (including bonuses etc) is 15% +

[Storer]

Just bought an 11 month old Discovery 3 which listed at over £41000 for £24000. Those 11000 miles gave me a discount of over 41% on list new.

I think you want at least 25% off a new one to make it worth having. Mine looked like it was new when I collected it.

[JohnnyHayward]

Front end margin with Land Rover is 5%, ie the price they pay for the car, the dealer's can then get an extra 8% back end bonus for meeting standards etc, plus they might get extra registration bonuses for certain models too.