20% off a new car? Really?
Discussion
Should I be filing this under 'too good to be true', or are these kinds of discounts really available?
http://www.orangewheels.co.uk/enquiries/c2b1c0/enq...
http://www.orangewheels.co.uk/enquiries/c2b1c0/enq...
Car list prices have a lot of margin in. For some brands its normal to inflate the price by 25%. This allows them to boast of 'free' finance and other such tricks.
Sometimes when a car is new/in demand it will sell at/close to list, but when it's old and due a refresh, the price can be cut. Or if rival cars are selling better. Vw will give only £700 off a base Up!, but £15k off a Pheaton.
Sometimes when a car is new/in demand it will sell at/close to list, but when it's old and due a refresh, the price can be cut. Or if rival cars are selling better. Vw will give only £700 off a base Up!, but £15k off a Pheaton.
thelawnet said:
Car list prices have a lot of margin in. For some brands its normal to inflate the price by 25%. This allows them to boast of 'free' finance and other such tricks.
Sometimes when a car is new/in demand it will sell at/close to list, but when it's old and due a refresh, the price can be cut. Or if rival cars are selling better. Vw will give only £700 off a base Up!, but £15k off a Pheaton.
And some will be at the full retail price (and without much reduction on a nearly new one)Sometimes when a car is new/in demand it will sell at/close to list, but when it's old and due a refresh, the price can be cut. Or if rival cars are selling better. Vw will give only £700 off a base Up!, but £15k off a Pheaton.
thelawnet said:
Car list prices have a lot of margin in. For some brands its normal to inflate the price by 25%. This allows them to boast of 'free' finance and other such tricks.
Sometimes when a car is new/in demand it will sell at/close to list, but when it's old and due a refresh, the price can be cut. Or if rival cars are selling better. Vw will give only £700 off a base Up!, but £15k off a Pheaton.
There is a big difference between inflating a price and having a margin. 25% is very rare to have on cars. You can be assured that Tesco and the like have lots more than 25% margin in tins of beans etc.Sometimes when a car is new/in demand it will sell at/close to list, but when it's old and due a refresh, the price can be cut. Or if rival cars are selling better. Vw will give only £700 off a base Up!, but £15k off a Pheaton.
thelawnet said:
Car list prices have a lot of margin in. For some brands its normal to inflate the price by 25%.
Really? Can you name those brands because I'm looking for a new car and I'd really like to know which ones are inflated by 25% so that I can do the best deal for myself. You sound like you're a well informed individual so help a brother out and give me the inside scoop on these brands. Breath well and truly baited in anticipation.
unrepentant said:
Really? Can you name those brands because I'm looking for a new car and I'd really like to know which ones are inflated by 25% so that I can do the best deal for myself. You sound like you're a well informed individual so help a brother out and give me the inside scoop on these brands.
Breath well and truly baited in anticipation.
If 25℅ is the dealer's gross margin, I feel it is unfair to say a price is 'inflated' by this amount.Breath well and truly baited in anticipation.
£20k off a new big Audi is quite easy. I bought one at 6 months old for £25k off and a year old for £35k off list.
That the six month old one was then traded in for £1k less at 12 months was gratifying given the bath it could have been.
That the six month old one was then traded in for £1k less at 12 months was gratifying given the bath it could have been.
Edited by john banks on Monday 10th November 22:15
thelawnet said:
Car list prices have a lot of margin in. For some brands its normal to inflate the price by 25%. This allows them to boast of 'free' finance and other such tricks.
Sometimes when a car is new/in demand it will sell at/close to list, but when it's old and due a refresh, the price can be cut. Or if rival cars are selling better. Vw will give only £700 off a base Up!, but £15k off a Pheaton.
Righto.Sometimes when a car is new/in demand it will sell at/close to list, but when it's old and due a refresh, the price can be cut. Or if rival cars are selling better. Vw will give only £700 off a base Up!, but £15k off a Pheaton.
Normal dealer margin is roughly 9% with 4-5% back end bonus.
If a manufacturer decides to offer a deal on a car to move some stock it is expected that the dealers will pass all that bonus on. Leaving them with only their margin, most of which they will have to give away in order to do the deal.
To suggest that the list price has 25% margin in it is laughable.
john banks said:
£20k off a new big Audi is quite easy. I bought one at 6 months old for £25k off and a year old for £35k off list.
That the six month old one was then traded in for £1k less at 12 months was gratifying given the bath it could have been.
I'm perhaps missing something here, but aren't those examples both secondhand cars ? That the six month old one was then traded in for £1k less at 12 months was gratifying given the bath it could have been.
Edited by john banks on Monday 10th November 22:15
unrepentant said:
thelawnet said:
Car list prices have a lot of margin in. For some brands its normal to inflate the price by 25%.
Really? Can you name those brands because I'm looking for a new car and I'd really like to know which ones are inflated by 25% so that I can do the best deal for myself. You sound like you're a well informed individual so help a brother out and give me the inside scoop on these brands. Breath well and truly baited in anticipation.
timberman said:
we got roughly 20% off list price on my wifes Vw through drive the deal.
when we approched the local dealers to see if they would match it or get somewhere near, they didn't even seem interested in trying.
If a dealer is no where near target they probably won't want to do the deal as it could lose them money. If the dealer has hit, or is near to target then they'l do the deal as they'll get back end bonus monies for hitting targetwhen we approched the local dealers to see if they would match it or get somewhere near, they didn't even seem interested in trying.
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