£700 delivery charge for new car! Is this normal?

£700 delivery charge for new car! Is this normal?

Author
Discussion

Butter Face

30,375 posts

161 months

Tuesday 5th February 2013
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markmullen said:
MarkRSi said:
Shouldn't the delivery charge be part of the 'On the road' price?
It is, it is just broken down on some invoices.
This.

It's just about transparency IMO.

Otherwise known as something else for people to get in a strop over, recently had a chap moaning about the first reg fee..... hehe

AJB

856 posts

216 months

Tuesday 5th February 2013
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Deva Link said:
Wonder when they started charging these amounts - I looked back at the thread where they guy has posted up the invoice for his new Capri in 1978 and there's only a charge for number plates.
Interesting question. Looking at that same 1978 invoice, there seems to be a £50 delivery charge, £50 for 12 months road tax, £9.88 for a tank of fuel and £11 for numberplates, so I'd say they've been charging delivery for ages!

ETA and I think that's £50 plus VAT for the delivery charge.

Edited by AJB on Tuesday 5th February 11:47

HTP99

22,630 posts

141 months

Tuesday 5th February 2013
quotequote all
MarkRSi said:
Shouldn't the delivery charge be part of the 'On the road' price?

I've been looking at a number of cars (from Renault, Ford and BMW) and don't recall seeing any delivery charge on top of the OTR price.
There isn't a delivery charge on top of the OTR price, I am working from a Clio IV price list here, using a Clio Expression as an example:

Total Retail is £9,945.00, Manufacturers on the road RRP is £10,595.00

The different between the two is £650, this is made up of a £55 1st reg fee (first year RFL is £0) and £595 delivery to the dealer.

The OTR price is exactly that On The Road, so includes delivery to the dealer.

Delivery charges have always been there it's just now they are broken down and shown seperately.

As for someone moaning about being charged for fuel, well the cars turn up with about a litre in them, someone has to pay for it, we charge £20 for £20 worth of fuel.

Edited by HTP99 on Tuesday 5th February 11:58

Lunablack

3,494 posts

163 months

Tuesday 5th February 2013
quotequote all
AJB said:
Interesting question. Looking at that same 1978 invoice, there seems to be a £50 delivery charge, £50 for 12 months road tax, £9.88 for a tank of fuel and £11 for numberplates, so I'd say they've been charging delivery for ages!
They have..... Back in the 60's my grandad bought a brand ne vauxhall victor.....delivery was somthing like £5.... I can just about remember him getting a mate to drive him to Luton, to collect the car direct from the factory........he still had to pay the dealer the delivery charge..... He moaned about it for yearshehe


Deva Link

26,934 posts

246 months

Tuesday 5th February 2013
quotequote all
AJB said:
Interesting question. Looking at that same 1978 invoice, there seems to be a £50 delivery charge, £50 for 12 months road tax, £9.88 for a tank of fuel and £11 for numberplates, so I'd say they've been charging delivery for ages!
Doh! I missed the £50 delivery charge. The OPs figure doesn't include road tax so the delivery plus number plate charge for that Capri is ball-park the same percentage to the £700 he's been asked to pay for an M3, and a somewhat better deal if the M3 is supplied full of fuel.

steveo3002

10,544 posts

175 months

Tuesday 5th February 2013
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£11 was alot for numberplates back then...could almost get a pair for that now

BlueMR2

8,660 posts

203 months

Wednesday 6th February 2013
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steveo3002 said:
£11 was alot for numberplates back then...could almost get a pair for that now
Compared to a tank of fuel they should be up at about £150 a pair by now.

After_Shock

8,751 posts

221 months

Wednesday 6th February 2013
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PinkFatBunny said:
Then noticed a £700 delivery charge. What the fk.
Normal im afraid, needs to be transported from the factory to the compound for the port, then shipped then put on another transporter after being stored in a compound again.

Factor in, transporter hire, fuel, insurance, compound storage I doubt you could do it yourself for as cheap in the way they have to ship them.

Deva Link

26,934 posts

246 months

Wednesday 6th February 2013
quotequote all
After_Shock said:
Normal im afraid, needs to be transported from the factory to the compound for the port, then shipped then put on another transporter after being stored in a compound again.

Factor in, transporter hire, fuel, insurance, compound storage I doubt you could do it yourself for as cheap in the way they have to ship them.
You could apply that to absolutely everything physical that you buy though.

Butter Face

30,375 posts

161 months

Wednesday 6th February 2013
quotequote all
Deva Link said:
After_Shock said:
Normal im afraid, needs to be transported from the factory to the compound for the port, then shipped then put on another transporter after being stored in a compound again.

Factor in, transporter hire, fuel, insurance, compound storage I doubt you could do it yourself for as cheap in the way they have to ship them.
You could apply that to absolutely everything physical that you buy though.
Exactly.

If Tesco said you could have a 11p tin of beans delivered to the store, or for 10p you could get them yourself, would anyone go and collect? hehe

Of if on your receipt, they itemised it as 10p for the beans and 1p for the delivery, would people complain I wonder?

Deva Link

26,934 posts

246 months

Wednesday 6th February 2013
quotequote all
Butter Face said:
Exactly.

If Tesco said you could have a 11p tin of beans delivered to the store, or for 10p you could get them yourself, would anyone go and collect? hehe

Of if on your receipt, they itemised it as 10p for the beans and 1p for the delivery, would people complain I wonder?
Well you should tell the manufacturers it's unacceptable to your customers so you won't be paying it in future. I'm sure they'll be fine with that. wink

Butter Face

30,375 posts

161 months

Wednesday 6th February 2013
quotequote all
Deva Link said:
Butter Face said:
Exactly.

If Tesco said you could have a 11p tin of beans delivered to the store, or for 10p you could get them yourself, would anyone go and collect? hehe

Of if on your receipt, they itemised it as 10p for the beans and 1p for the delivery, would people complain I wonder?
Well you should tell the manufacturers it's unacceptable to your customers so you won't be paying it in future. I'm sure they'll be fine with that. wink
Maybe we should. I'll go and fetch the customer orders from the factory myself. I'll just bill the customer directly instead.... Now there's an idea.

Deva Link

26,934 posts

246 months

Wednesday 6th February 2013
quotequote all
Butter Face said:
Maybe we should. I'll go and fetch the customer orders from the factory myself. I'll just bill the customer directly instead.... Now there's an idea.
I doubt furniture salesmen collect 3 piece suites from the factory themselves, and the cheap stuff comes all the way from China.

markmullen

15,877 posts

235 months

Wednesday 6th February 2013
quotequote all
Deva Link said:
Butter Face said:
Maybe we should. I'll go and fetch the customer orders from the factory myself. I'll just bill the customer directly instead.... Now there's an idea.
I doubt furniture salesmen collect 3 piece suites from the factory themselves, and the cheap stuff comes all the way from China.
The cost is absorbed in the price in either case, it is just that the trade tends to itemise it out.

Butter Face

30,375 posts

161 months

Wednesday 6th February 2013
quotequote all
Deva Link said:
Butter Face said:
Maybe we should. I'll go and fetch the customer orders from the factory myself. I'll just bill the customer directly instead.... Now there's an idea.
I doubt furniture salesmen collect 3 piece suites from the factory themselves, and the cheap stuff comes all the way from China.
But you still get charged delivery. I have an invoice at home for a £700 dining room table and chairs that has a £40+ delivery charge.

Deva Link

26,934 posts

246 months

Wednesday 6th February 2013
quotequote all
530dTPhil said:
The fact that the fee is called a delivery charge is misleading. Excluding UK manufactured vehicles sold in the UK, the charge covers:

- taking the vehicle out of the factory and to the port
- taking it off the transporter and possibly storing it ready for shipping
- loading on a boat and then shipping to wherever
- unloading and storing on site (just look at Isle of Sheppey or Avonmouth to see the number of vehicles in storage)
- loading and transporting to the dealer
- unloading, storage, PDI.

Everyone in the chain needs to cover their costs and, dare I say it, make a margin: £800 doesn't go far.
I just did a bit of Googling and in the US they call it "destination charge" and it's typically in the region of $4-800. However that's specifically (by US Government mandate) only for transport within the US. The international part of the delivery is included in the car's list price.

They give BMW as an example of factory collection, and say they'll discount the price by 7% if you choose to collect it from a Europe factory.

A3tdi

268 posts

184 months

Wednesday 6th February 2013
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It wont be long before..

'Car manufacturer in profit making shocker' - Daily Mail

Deva Link

26,934 posts

246 months

Wednesday 6th February 2013
quotequote all
Butter Face said:
But you still get charged delivery. I have an invoice at home for a £700 dining room table and chairs that has a £40+ delivery charge.
That's from the shop (or their warehouse) though, isn't it? You don't get charged (at least not as a separate item) for delivery from the factory to the retailers warehouse.

Anyway, see my other post above. It seems the delivery charge may not cover the international leg anyway.

Edited by Deva Link on Wednesday 6th February 13:45

Deva Link

26,934 posts

246 months

Wednesday 6th February 2013
quotequote all
markmullen said:
The cost is absorbed in the price in either case, it is just that the trade tends to itemise it out.
The motor trade is terrible for doing this - it just invites hassle.

markmullen

15,877 posts

235 months

Wednesday 6th February 2013
quotequote all
Deva Link said:
The motor trade is terrible for doing this - it just invites hassle.
You're right, a lack of transparency is a far better bet....