20% off a new car? Really?
Discussion
Orangewheels said:
It hasn't happened for years - the only time I can remember is back in 2008 when the credit crunch turned up, one or two American brands getting rid of their fairly dreadful stuff like the Dodge Avenger:
http://www.dailymail.co.uk/news/article-1082181/Bu...
There really has to be something horribly wrong for a discount like that to happen.
I was at a CJD dealer at that time.http://www.dailymail.co.uk/news/article-1082181/Bu...
There really has to be something horribly wrong for a discount like that to happen.
Buy one, get one free.
Support money on Crossfire meant it was cheaper to lease one as a demo than the monthly write down on owning it.
Fast Bug said:
Sheepshanks said:
Fast Bug said:
Can you show me a new, unregistered car with 50% off please?
Still clutching at straws? 
The generalgist seems to be the following as percentages of list price: 45 manufacturing, 20 R and D and other overheads, and 35 various commissions. Obviously this will vary between manufacturer and model and also how you classify it so using the same figures you could say: manufacturing, R & D and other overheads and manufacturer's profit 73%, dealers and others commission 27%; or yet another way would be to say manufacturing cost 45%, gross margin over 50%. From what I've heard over the years I was under the impression that the 45/20 cost for the manufacturer was more like 30/45. An informed view on guidance of the real figures would be a nice post
Let me try and clarify some stuff on this:
- The factory design and then put together the basic spec of the car.
- This gives a price for the std car - the price will be different for different engines.
- the UK importer / NSC will then decide on the relative specs that they want for the UK - so the UK SE model will be different to the French, to the German etc. Each piece of equipment that is added has a cost and this is added to the original std price.
- Each trim level and engine variant will then have a cost price that will the price the UK importer pays (this will include a factory levy - development costs. This reduces as the vehicle gets older in its life cycle).
- The UK NSC will then agree with the parent company the RRP that they want to charge in the UK. This will be based upon the competitor prices, equipment values + the amount of Profit that needs to be returned. This price will have the std dealer margin built into it.
- the UK will then have to forecast the mix of engines / versions etc they are going to sell.. Every single variant will have a different profit in it for the NSC. The more of the higher specs they sell, the greater the overall contribution... There will clearly be a greater contribution the more they sell...
- All pricing is done around the basic price (excluding VAT, delivery and RFL etc)
- the invoice price to the UK is done in Euros, so if the exchange rate falls - the profit is hit massively. A small decrease can have Millions of £s worth of impact...
- The std dealer margin is fixed and can vary by model and trim level. This is known as the guaranteed margin - regardless of the volume of cars the dealer sells, they will have this on every car.
- The dealer can also earn money based on volume, sales satisfaction, dealer stds etc - this margin is not guaranteed and cannot be relied upon to come in.
- there may also be additional support on cars - Deposit contributions or even additional %tage support. This be on a by model or by version basis and generally will increase as demand drops or the car gets further into its life cycle.
- the NSC will also have fixed expenses per model - advertising and marketing costs normally! The margins and support are variable expenses.
Apologies if this is going on a bit, but hopefully might add some clarity to it...
- The factory design and then put together the basic spec of the car.
- This gives a price for the std car - the price will be different for different engines.
- the UK importer / NSC will then decide on the relative specs that they want for the UK - so the UK SE model will be different to the French, to the German etc. Each piece of equipment that is added has a cost and this is added to the original std price.
- Each trim level and engine variant will then have a cost price that will the price the UK importer pays (this will include a factory levy - development costs. This reduces as the vehicle gets older in its life cycle).
- The UK NSC will then agree with the parent company the RRP that they want to charge in the UK. This will be based upon the competitor prices, equipment values + the amount of Profit that needs to be returned. This price will have the std dealer margin built into it.
- the UK will then have to forecast the mix of engines / versions etc they are going to sell.. Every single variant will have a different profit in it for the NSC. The more of the higher specs they sell, the greater the overall contribution... There will clearly be a greater contribution the more they sell...
- All pricing is done around the basic price (excluding VAT, delivery and RFL etc)
- the invoice price to the UK is done in Euros, so if the exchange rate falls - the profit is hit massively. A small decrease can have Millions of £s worth of impact...
- The std dealer margin is fixed and can vary by model and trim level. This is known as the guaranteed margin - regardless of the volume of cars the dealer sells, they will have this on every car.
- The dealer can also earn money based on volume, sales satisfaction, dealer stds etc - this margin is not guaranteed and cannot be relied upon to come in.
- there may also be additional support on cars - Deposit contributions or even additional %tage support. This be on a by model or by version basis and generally will increase as demand drops or the car gets further into its life cycle.
- the NSC will also have fixed expenses per model - advertising and marketing costs normally! The margins and support are variable expenses.
Apologies if this is going on a bit, but hopefully might add some clarity to it...
Flibble said:
If you're missing it, so am I. Getting £35k off a secondhand car, even a nearly new, isn't that exceptional I'd think.
BMW seem to on a big discount drive on new cars recently though, 15-20% discounts all over the place.
Sorry should have explained more. Being able to get £20k off new meant I was demanding more off used. There were many used deals I ignored. Depreciation figures seem to quote from list too, misrepresenting many cars.BMW seem to on a big discount drive on new cars recently though, 15-20% discounts all over the place.
Sheepshanks said:
Fast Bug said:
Can you show me a new, unregistered car with 50% off please?
Still clutching at straws? This thread is about the margin available to the customer from the retailer.
What you said was:
Sheepshanks said:
There's typically slightly more than 50% gross margin in a car.
Which has been shown as nowhere near the amount of margin a retailer can offer the customer.Worth noting that drive the deal dont show consistent pricing across all makes.(mentioning as they have been referred to a few times.) For Ford in particular they show 'business' prices net of vat not available to the man in the street. BMW pricing assumes a 'BMW loyalty bonus' of 1k which you will not get if your current motor isnt a BMW.
regprentice said:
Worth noting that drive the deal dont show consistent pricing across all makes.(mentioning as they have been referred to a few times.) For Ford in particular they show 'business' prices net of vat not available to the man in the street. BMW pricing assumes a 'BMW loyalty bonus' of 1k which you will not get if your current motor isnt a BMW.
I can't be bothered to register to check the Ford prices but I think that's most unlikely to be correct. It might even be illegal under price marking regulations.And DtD haven't listed BMW at all for some time.
regprentice said:
Worth noting that drive the deal dont show consistent pricing across all makes.(mentioning as they have been referred to a few times.) For Ford in particular they show 'business' prices net of vat not available to the man in the street. BMW pricing assumes a 'BMW loyalty bonus' of 1k which you will not get if your current motor isnt a BMW.
It clearly says the terms. for Ford, for example, it says that the prices will be £250 higher if you can't complete before the end of November, and there's a £1100 incentive based on taking at least 2k on HP.
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