Ask a car salesman anything...anything at all.

Ask a car salesman anything...anything at all.

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twing

5,026 posts

132 months

Friday 17th August 2018
quotequote all
RaineyDays said:
Seems like the all use the WBAC valuation tool.

Traded my last car in and get a pretty derisory price, asked the dealer if there was anything he could do as I felt that was pretty low. (£13k)

“That’s the auction price that we will get for it. We aren’t interested in selling it so will just pass it on.”

2 weeks later it appears on their website for £3K more than they me gave for it and it took a week to sell.
I don’t know what car it was so can’t really comment but £600 to the VAT man, say £600 to prep & valet, £100 for the salesman, turning on the lights, advertising,admin, etc, etc....doesn’t sound unreasonable does it?

RaineyDays

240 posts

101 months

Friday 17th August 2018
quotequote all
twing said:
I don’t know what car it was so can’t really comment but £600 to the VAT man, say £600 to prep & valet, £100 for the salesman, turning on the lights, advertising,admin, etc, etc....doesn’t sound unreasonable does it?
£600 to prep and valet. Have a word...

And probably the £5k or £6k they made on the RS.

Why lie that it’s going straight to auction?

Fast Bug

11,734 posts

162 months

Friday 17th August 2018
quotequote all
RaineyDays said:
£600 to prep and valet. Have a word...

And probably the £5k or £6k they made on the RS.

Why lie that it’s going straight to auction?
£600 of prep is easily done, workshop usually charge retail or close to retail hourly rates. Few hours for a check over, possible MOT and/or service add a warranty and that's £600 done

twing

5,026 posts

132 months

Friday 17th August 2018
quotequote all
Again take the VAT, prep, etc out of the RS, plus the money they put against warranty for it and £5000 isn’t much on the bottom line. Why “have a word” about £600 prep/valet? What do you think it would cost? Like I said, I don’t know what the p-ex was but £50 for an alloy refurb, 60 for a smart repair, full service, a couple of ours to valet & detail? And as for saying it’s going to auction does that matter to you? You could have put it to BCA & taken your chance or you could have sold it privately & put up with the tire kickers et al. You decided to chop it in, what happens after that is irrelevant

talksthetorque

10,815 posts

136 months

Friday 17th August 2018
quotequote all
RaineyDays said:
£600 to prep and valet. Have a word...

And probably the £5k or £6k they made on the RS.

Why lie that it’s going straight to auction?
This annoys me - btw I'm not a trader.

They "did" you on the car you bought from them and they "did" you on the car you sold them

No, they only "did" you on your new car.
They "did" someone else on your old one.


In answer to your final question, it's because it made you think you wouldn't get any more for it - and it worked.

Some sales people lie, some change their minds. same as any section of the poplutation ( except maybe nuns)







Save Ferris

2,687 posts

214 months

Friday 17th August 2018
quotequote all
Fane said:
Hashtag Kesh hehe
If only there was somewhere you could get a sticker? whistle

twing

5,026 posts

132 months

Friday 17th August 2018
quotequote all
Save Ferris said:
Fane said:
Hashtag Kesh hehe
If only there was somewhere you could get a sticker? whistle
clap

twing

5,026 posts

132 months

Friday 17th August 2018
quotequote all
talksthetorque said:
RaineyDays said:
£600 to prep and valet. Have a word...

And probably the £5k or £6k they made on the RS.

Why lie that it’s going straight to auction?
This annoys me - btw I'm not a trader.

They "did" you on the car you bought from them and they "did" you on the car you sold them

No, they only "did" you on your new car.
They "did" someone else on your old one.


In answer to your final question, it's because it made you think you wouldn't get any more for it - and it worked.

Some sales people lie, some change their minds. same as any section of the poplutation ( except maybe nuns)

I’m insulted that you compare us to the Catholic Church tbh, we’re not THAT bent!

talksthetorque

10,815 posts

136 months

Friday 17th August 2018
quotequote all
twing said:
talksthetorque said:
This annoys me - btw I'm not a trader.

They "did" you on the car you bought from them and they "did" you on the car you sold them

No, they only "did" you on your new car.
They "did" someone else on your old one.


In answer to your final question, it's because it made you think you wouldn't get any more for it - and it worked.

Some sales people lie, some change their minds. same as any section of the poplutation ( except maybe nuns)
I’m insulted that you compare us to the Catholic Church tbh, we’re not THAT bent!
I didn't say if you were better or worse than the nuns though. hehe


Rick101

6,971 posts

151 months

Friday 17th August 2018
quotequote all
Workshop charges retail.

That has to be the biggest load of bull I've ever heard.
They might do on paper for accounting and to keep you on your toes but I simply do not believe that a business actually bills itself to its own detriment.

If you are paying retail why not just go down the local hand car wash for a £40 valet and nip to kwik fit for the oil change? You would make more profit.

silentbrown

8,867 posts

117 months

Friday 17th August 2018
quotequote all
twing said:
I don’t know what car it was so can’t really comment but £600 to the VAT man, say £600 to prep & valet, £100 for the salesman, turning on the lights, advertising,admin, etc, etc....doesn’t sound unreasonable does it?
£500 to the VAT man on £3K markup, surely? - but you're also reclaiming input VAT on parts, etc.

Nickp82

3,196 posts

94 months

Saturday 18th August 2018
quotequote all
Rick101 said:
Workshop charges retail.

That has to be the biggest load of bull I've ever heard.
They might do on paper for accounting and to keep you on your toes but I simply do not believe that a business actually bills itself to its own detriment.

If you are paying retail why not just go down the local hand car wash for a £40 valet and nip to kwik fit for the oil change? You would make more profit.
This is the Salesman thread remember so from their point of view they are paying retail or close to it, they can't go elsewhere as they will be under strict instruction not to!
Of course from an overall business point of view the true cost of prep is the parts required and the wages of the tech, 'wooden dollars' was the phrase rolled out by our DP when we used to query the rates we paid to our service department.

Rick101

6,971 posts

151 months

Saturday 18th August 2018
quotequote all
I quite agree. I understand the limitations and why they would be told to do it that way.
However if you are charging 'retail' for workshop, then workshop is also making a healthy profit with a steady steam of guaranteed work.
Discounting £1k for prep off their bottom line is the sales bottom line. I would imagine in reality, to the business, that prep cost is substantially less.

FiF

44,177 posts

252 months

Saturday 18th August 2018
quotequote all
I'm not a trader or in the motor business, but just from my perspective on these complaints about charging retail (ish) workshop rates to the sales department.

Assuming it's a normal outfit with servicing, repairs etc as main part of business, what would the workshop be doing if it wasn't working for sales department. It would be working on customer cars charging retail rates and earning profit. That profit is required to maintain the earnings to capital employed ratio for the workshop, especially if the management run a business split into profit centres concept. Regardless of that, said earnings are needed to make up the overall earnings to capital employed ratio. Doing stuff at cost or below hurts one centre to the benefit of the other and ultimately loss of profit opportunity. Personally I can understand completely why places use retail rates for making a decision what to do, however they might not treat it that way in the management accounts if one centre needs a bit of support in the figures.

twing

5,026 posts

132 months

Saturday 18th August 2018
quotequote all
silentbrown said:
£500 to the VAT man on £3K markup, surely? - but you're also reclaiming input VAT on parts, etc.
My bad, £500 it is. You’re right about reclaiming VAT on parts but my prep figures were net

Wooda80

1,743 posts

76 months

Saturday 18th August 2018
quotequote all
FiF said:
I'm not a trader or in the motor business, but just from my perspective on these complaints about charging retail (ish) workshop rates to the sales department.

Assuming it's a normal outfit with servicing, repairs etc as main part of business, what would the workshop be doing if it wasn't working for sales department. It would be working on customer cars charging retail rates and earning profit. That profit is required to maintain the earnings to capital employed ratio for the workshop, especially if the management run a business split into profit centres concept. Regardless of that, said earnings are needed to make up the overall earnings to capital employed ratio. Doing stuff at cost or below hurts one centre to the benefit of the other and ultimately loss of profit opportunity. Personally I can understand completely why places use retail rates for making a decision what to do, however they might not treat it that way in the management accounts if one centre needs a bit of support in the figures.
Exactly right

tharriso

108 posts

126 months

Saturday 18th August 2018
quotequote all
If the workshop costs were not priced properly the incentive for the salesmen would be to take in part exchanges that need lots of work. To the detriment of the business overall.

Wildcat45

8,077 posts

190 months

Saturday 18th August 2018
quotequote all
The way I buy cars from my soon to be joined in a single site JLR dealer is about to change apparently.

I bought my last new Land Rover last year by Facebook Messenger while walking the dog.. The salesman messaged me with a deal to change to a brand new car. We talked paint and trim and I popped along the next day to sign stuff. The car arrived from the factory in due course. PDI done, sign more stuff, get some goodies, hand shake and away.

Apparently in future when considering a new car I will be met and greeted. I will be asked if it's a Jag or Landy I'm after and I will then be introduced to a product specialist or some such titled person. They'll tell me all about the cars and let me drive one.

Then if I want to go ahead I'll meet a salesman and do the deal.

Then when the car is ready a handover specialist will make a big song and dance and unveil the car etc etc.

What a load of old crap!

I already predict a problem. My next new car may be a new Discovery, Velar or F-Pace. I'm also considering the possibility of getting a used FFRR instead.

I guess the days of being a long standing customer who knows the staff and who can turn up for a chat about a potential future purchase or who buys a car by text are over.

I'm not the sort of customer who goes into car buying in a confrontational manner. The best deals are where everyone is happy and a business relationship is maintained or created.

Anyone got experience or opinions of the above?

Mexman

Original Poster:

2,442 posts

85 months

Saturday 18th August 2018
quotequote all
Wildcat45 said:
The way I buy cars from my soon to be joined in a single site JLR dealer is about to change apparently.

I bought my last new Land Rover last year by Facebook Messenger while walking the dog.. The salesman messaged me with a deal to change to a brand new car. We talked paint and trim and I popped along the next day to sign stuff. The car arrived from the factory in due course. PDI done, sign more stuff, get some goodies, hand shake and away.

Apparently in future when considering a new car I will be met and greeted. I will be asked if it's a Jag or Landy I'm after and I will then be introduced to a product specialist or some such titled person. They'll tell me all about the cars and let me drive one.

Then if I want to go ahead I'll meet a salesman and do the deal.

Then when the car is ready a handover specialist will make a big song and dance and unveil the car etc etc.

What a load of old crap!

I already predict a problem. My next new car may be a new Discovery, Velar or F-Pace. I'm also considering the possibility of getting a used FFRR instead.

I guess the days of being a long standing customer who knows the staff and who can turn up for a chat about a potential future purchase or who buys a car by text are over.

I'm not the sort of customer who goes into car buying in a confrontational manner. The best deals are where everyone is happy and a business relationship is maintained or created.

Anyone got experience or opinions of the above?
More and more dealers are now employing product geniuses or whatever they are called.
Certain manufacturers now such as Mercedes have so many products, engine choices, trim levels, options and accessories that is becoming increasingly frustrating for dealers to keep up and abreast of it all.
Hence these geniuses whose sole job is too know these product lines inside out and leave the actual selling/test drive/availability/financing to the sales team.

skip_1

3,461 posts

191 months

Sunday 19th August 2018
quotequote all
Just after a bit of guidance please, I appreciate from following this thread that this question may be a bit 'how long is a piece of string'.

We are looking to purchase an MPV from a main dealer, a few years old and been on sale for approx 1 month. These don't seem to be selling but holding onto value.

We have a car to part exchange. On Auto trader these are priced at £5700-£6500 for comparable year, mileage and model. Ours will need a machine polish, a repair to bumper edge where a scrape is and a general good valet. It has 1.5-2 year transferrable OEM warranty remaining. It also has a fsh.

WBAC suggests £4885 for I assume perfect condition. I was hoping for a average CAP condition over poor but the Ford consumer CAP tool isn't working so I can't check what those values are.

I appreciate that some money may be taken off the sale car but in roughly what area should we be looking at for a P/X value or is it simply aim for £4885 and £4300-4500 would be a great deal as that only leaves a little profit for the dealer? Or are we likely to be offered less? I would like a figure in mind before we test drive the MPV and sit down with the dealer as I'm rubbish at negotiation and would like to state realistically what I'd like.

Thanks in advance.

Deal will be done this month if that makes any difference, I understand it could be a slow month for sales.
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