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

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

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Mexman

Original Poster:

2,442 posts

83 months

Monday 20th May 2019
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xjay1337 said:
Because it's pretty stupid to buy a car without looking at the engine!

It may have happened once 30 years ago, but not a common occurrence....... certainly not if you have a few brain cells :-)
Yeah, I think he learnt his lesson after that, but I will be the first to admit that I don't drive every single px I come across.
People leave babies/kids, and pets in cars when looking to replace and sometimes it isn't always that easy to drive a p/x.
Whether some people do it deliberately, i don't know, I certainly wouldn't put it past some people.
Obviously not a common occurrence no, but it happened in 1997, hasnt happened since, not anywhere else I have worked anyway.
The car ended up parked in the dumping ground around the back for around 3 years, with parts gradually being pulled off it to repair customers cars/other Xantia part exchanges, trim panels, seats, bumpers, body panels etc..
There wasn't much left of it by the time I moved on, but the dealership obviously still took a heavy loss on that one.
Customers eh,?...and we are often branded dishonest, amongst other things.

Butter Face

30,191 posts

159 months

Monday 20th May 2019
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Any more of them and I’ll pay £200 for them hehe

The Li-ion King

3,766 posts

63 months

Monday 20th May 2019
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I bought a car on finance last August. Does the negative equity drop the longer I hang onto it as I was looking to PX, but have been told the interest rates are higher in the first year or so, and would need £6k to clear it frown Was not sure as I didn't want it do depreciate too much.

Mexman

Original Poster:

2,442 posts

83 months

Monday 20th May 2019
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How many months is the agreement over?
Don't tell me, I'll take a guess.....5 years?

kelevraz

107 posts

129 months

Monday 20th May 2019
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Im completely willing to accept that some faults won't be picked up with a test drive, fair enough. You take in a car and find out down the line somethings wrong with it. Although, id never expect someone to walk in and produce a mechanics report confirming their car is completely sound, why would they?

I'm no salesman, so i don't know the 'tricks of the trade' other than what i see online. But i certainly know enough about contract law to know that a contract is 2 way street.. If you agree to take someones car at X value, i assume that it will be subject to you viewing it and agreeing with what they've told you about the car (unless your offering X value unconditionally, which just makes you an idiot frankly)

If they show up and the car is obviously significantly not as described, why wouldn't you very simply turn around and tell them - no, this drops the value of your trade in, the agreement we had is void. You now need to make up for the shortfall thats now been lost?

I've been told numerous times that half the reason WBAC does as well as it does, is that people overstate (LIE) about the condition of their vehicle, so they get an amazing valuation, they then for some reason convince themselves their lies wont be noticed, they show up, get a hefty amount knocked off the 'agreed' price, and simply cant be bothered, so they just accept the lower valuation

kelevraz

107 posts

129 months

Monday 20th May 2019
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As a much more generic question...

As a dealer, assuming your potential buyer is the nicest person ever and you'd LOVE To sell them a car for the best deal available etc etc etc

Whats the most damaging thing in a prospective sale? I saw this question asked on another forum, and the OP replied saying a smartphone, and that smartphone's ability to very quickly show how competitive (or not) your being has proven to be a major blow over the years

Wooda80

1,743 posts

74 months

Monday 20th May 2019
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@ kelveraz

We do! Many is the time we will have taken an overpayment as a bond until the promised second key / service history / parcel shelf turns up.

Other times we will turn a blind eye as it's something that we should have checked when the car was first presented ( nav disc present / convertible roof works properly etc ) but for whatever reason omitted to do so.

It's not so straightforward when the delivery of the new car depends on accepting the px in the condition that it's now in. Sometimes there are financial considerations greater than the value of the profit in the individual unit that depend on the transaction not just being completed but completed today. If we have been careless in failing to spot the problem then we'll take it on the chin. If the customer has tried to deceive us then we need to have a chat.

Wooda80

1,743 posts

74 months

Monday 20th May 2019
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I've no issues around price transparency.

If you pull your smartphone price on me then, if we are not already the cheapest, if I can't make you see that it's worth you spending an extra 2 or 3% (at least) to deal with ME, in the garage that it was most convenient for you to walk into then either I have failed or to be blunt your business isn't worth it, or both.

For you to be able to check price competitiveness while you are still on site, or even before you come in, rather than have to go away and do it actually helps us.

ETA - If we are thousands of pounds apart then I'd happily shake your hand and tell you to go and buy it elsewhere.

Edited by Wooda80 on Monday 20th May 19:20

Mexman

Original Poster:

2,442 posts

83 months

Monday 20th May 2019
quotequote all
kelevraz said:
As a much more generic question...

As a dealer, assuming your potential buyer is the nicest person ever and you'd LOVE To sell them a car for the best deal available etc etc etc

Whats the most damaging thing in a prospective sale? I saw this question asked on another forum, and the OP replied saying a smartphone, and that smartphone's ability to very quickly show how competitive (or not) your being has proven to be a major blow over the years
Not really, if my car is not competitive on price in the first instance, then my phone will not ring.
Occasionally do have people phone up on a car, and ask numerous questions, and then state that they have also found the indentical car £300/£400/Whatever, cheaper elsewhere and what are we prepared to do on price?
Inevitably though, this identical car, isn't identical at all, different year, miles, spec, and it's 200 miles away.
In that case, if my car isn't well priced, and conveniently located, why are you ringing me?
Normally, once you get the bottom of it, it's bullst, there isn't a cheaper better car, locally at all.
I don't really have people price checking once they are on the premises.
I think you have to remember that those of us who do this for a living, know how to price cars competitvely, we know our markets, we know at what price a car will sell at and at what price it won't.
There is no point sitting on an obviously overpriced car waiting and waiting for some uneducated half wit to give you your asking price, it VERY rarely happens.

Edited by Mexman on Monday 20th May 19:27

HTP99

22,442 posts

139 months

Monday 20th May 2019
quotequote all
kelevraz said:
I've been told numerous times that half the reason WBAC does as well as it does, is that people overstate (LIE) about the condition of their vehicle, so they get an amazing valuation, they then for some reason convince themselves their lies wont be noticed, they show up, get a hefty amount knocked off the 'agreed' price, and simply cant be bothered, so they just accept the lower valuation
See this is a funny one as with Dacia Buy Online a customer can get an agreed valuation of their part ex online, presumably by using a similar set up as obtaining a valuation through WBAC, when we were told about Dacia Buy Online and then part ex valuation aspect we all said that it will be a nightmare as people always overstate the condition and service history of their trade ins, we were told that, this wasn't the case and typically when obtaining an online valuation, people err on the side of caution, we've not come across one with a part ex yet, however I still think its bks and people will overstate the condition and history.

Mexman

Original Poster:

2,442 posts

83 months

Monday 20th May 2019
quotequote all
How is other dealers May going so far?
We started off great guns, first 2 weeks, but last 7 days has been hard work.
Very quite, 1 on Saturday and another 1 today.
It's gone a bit strange last 7 days or so, all the weirdos and unrealistic Norbert's have been out in force recently.
Have spent most of the day pulling cars off the pitch, jetwashing this nasty dusty crap that comes down with the dew off them, vaccuming and fueling them up.
Repriced a dozen or so cars, to try and keep the momentum up a little, and given some of the lurkers a spring clean.
The glamour of it all.

Edited by Mexman on Monday 20th May 19:50


Edited by Mexman on Monday 20th May 19:54

Wooda80

1,743 posts

74 months

Monday 20th May 2019
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@ Mexman

Yep,all the makings of a good month up until this weekend and then it has fallen off a cliff. Resorted to checking that our adverts were still online and ringing our number myself a couple of times, just to make sure the phone lines weren't down!

Doesn't matter whether things are going well or going bad, they won't stay that way for long!

Flibble

6,470 posts

180 months

Monday 20th May 2019
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The Li-ion King said:
I bought a car on finance last August. Does the negative equity drop the longer I hang onto it as I was looking to PX, but have been told the interest rates are higher in the first year or so, and would need £6k to clear it frown Was not sure as I didn't want it do depreciate too much.
Interest should be fixed for the loan. However the amount owing drops fairly smoothly, while the value of the car drops like a stone then levels off. So you'll have more negative equity early on and progressively less as the term runs.

kelevraz

107 posts

129 months

Monday 20th May 2019
quotequote all
How does this guaranteed future value thing work?

The dealer im going to asked me how id feel about protecting the future trade in value of my vehicle?

Ive done a fkload of searching on google and still cant get my head around what EXACTLY it is and how EXACTLY it works?

First i thought it was an add-on like GAP insurance, but clearly its nothing like that at all?

DuraAce

4,240 posts

159 months

Monday 20th May 2019
quotequote all
Ask the dealer for a full written explanation.

Sounds very odd to me.

Fast Bug

11,595 posts

160 months

Monday 20th May 2019
quotequote all
That's the optional final payment part of a PCP. Round figures, if the GMFV is £5k and at the end of the agreement the car is worth £6k, then you have £1k equity for the next car (assuming you don't want to pay the £5k and keep the car) to put towards a deposit when you prt exchange it. If the part exchange value is £4k, then you hand the car back to the finance company and start again from scratch and duck the negative equity in it. It becomes the finance companies problem and not yours

marine boy

766 posts

177 months

Monday 20th May 2019
quotequote all
I enjoy reading this thread, thanks to all the dealers that post

Have a question for you guys....

I'm interested in buyinging a big, nasty, eco-unfriendly 4x4 diesel, Nissan Pathfinder or Patrol at the top of my shopping list at the moment

Was wondering where you see this market going with regards price and would you expect buying when the weather is sunniest be the best time to maximise my spending power (budget around the £10k mark)

Really interested to know your thoughts before I go off shopping

Cheers,

HTP99

22,442 posts

139 months

Monday 20th May 2019
quotequote all
kelevraz said:
How does this guaranteed future value thing work?

The dealer im going to asked me how id feel about protecting the future trade in value of my vehicle?

Ive done a fkload of searching on google and still cant get my head around what EXACTLY it is and how EXACTLY it works?

First i thought it was an add-on like GAP insurance, but clearly its nothing like that at all?
This is a bit of an old school way of selling PCP; we've come away from selling it like this as it can sound a bit misleading and almost lead someone to think that they will be getting that "guaranteed future value" at the end of the agreement so if the GFV is £5k they think they will actually have that £5k at the end of the agreement.

Basically it's a balloon payment; what's left at the end to pay, but its guaranteed (subject to condition and any mileage restrictions of course) so if the car is worth anything over and above that figure the difference or equity can be used toward a deposit for the next car, if the car is worth less then hand it back with nothing more to pay and the manufacturer/finance house takes the loss.

They are all the same thing:

  1. GFV or Guaranteed Future Value
  2. Balloon payment
  3. OFP or Optional Final Payment

Edited by HTP99 on Monday 20th May 22:27

Dr Jekyll

23,820 posts

260 months

Tuesday 21st May 2019
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HTP99 said:
They are all the same thing:

  1. GFV or Guaranteed Future Value
  2. Balloon payment
  3. OFP or Optional Final Payment
Except for the guarantee of course. I wonder how many people have assumed their car will cover the balloon or optional payment then found it won't.

Butter Face

30,191 posts

159 months

Tuesday 21st May 2019
quotequote all
Dr Jekyll said:
HTP99 said:
They are all the same thing:

  1. GFV or Guaranteed Future Value
  2. Balloon payment
  3. OFP or Optional Final Payment
Except for the guarantee of course. I wonder how many people have assumed their car will cover the balloon or optional payment then found it won't.
Well it will. If you’re in negative equity at the end of term you just give the car back. That’s the ‘guarantee’




As long as you’ve kept it nice and under the mileage obvs.
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