Ask a car salesman anything...anything at all.
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Probably covered off before, but what is the real reason(s) why manufacturers incentivise the finance deals rather than offer it as extra discount off the car?
Mercedes are offering £2,925 "deposit contribution" on a C Class at the minute. Why not just offer an extra discount instead?
(I think i know the answer(s) to this but want to hear from the sales people as to why its actually done)
Mercedes are offering £2,925 "deposit contribution" on a C Class at the minute. Why not just offer an extra discount instead?
(I think i know the answer(s) to this but want to hear from the sales people as to why its actually done)
R Mutt said:
Do you swerve aftersales?
Just noticed my emails to the dealer on a car I bought last year in my inbox, querying small issues, all unanswered compared to the immediate responses on my initial sales enquiry.
I don't, I want thing sorted and out of my hair, dragging things on, ignoring issues etc is just a ball ache and invariably ends up biting you on the arse.Just noticed my emails to the dealer on a car I bought last year in my inbox, querying small issues, all unanswered compared to the immediate responses on my initial sales enquiry.
Deep Thought said:
Probably covered off before, but what is the real reason(s) why manufacturers incentivise the finance deals rather than offer it as extra discount off the car?
Mercedes are offering £2,925 "deposit contribution" on a C Class at the minute. Why not just offer an extra discount instead?
(I think i know the answer(s) to this but want to hear from the sales people as to why its actually done)
Discounting the price distresses the product which damages profitability across the network and has a knock on effect with residual values, bla bla bla. Offering the discount as a Finance Deposit Contribution creates extra value in the finance product without impacting the value of the metal.Mercedes are offering £2,925 "deposit contribution" on a C Class at the minute. Why not just offer an extra discount instead?
(I think i know the answer(s) to this but want to hear from the sales people as to why its actually done)
I can't say this with absolute certainty but I expect that finance companies receive reimbursement from the manufacturer for deposit contributions and subsidised finance offers, so ultimately it's the manufacturer paying for the incentives.
Additionally, providing incentives for finance will increase the number of customers who choose to use the manufacturer's finance company.
It's been well documented in these forums that manufacturers are encouraging customers to move to a monthly payment model for purchasing which gives a more predictable and often more frequent repeat purchase cycle. Deposit contributions help to convert people to this, even if some people settle early.
Maximising finance volumes is important because as well as providing funding for retail customers the manufacturer's finance company in many cases also provide funding to dealers for new and used stock. Writing more business for the finance company on the retail side will give the manufacturer leverage to negotiate lower stock funding costs on the wholesale side.
You will have noticed that the manufacturer is no longer satisfied that you just buy a car from them, nor for that matter just buy a car on finance. They want you to have their branded Insurance, Accident Management, Service Contract and god knows what else as well. The more you have, the more likely you feel tied to the brand and the more avenues they have to market a wider range of goods and services to you and the more likely you are to become a repeat customer. Unless of course the dealer fails to sufficiently flatter your ego on your next visit, in which case all bets are off.
Deposit contributions are a lot more powerful than simple bonnet money!
Edited by Wooda80 on Thursday 30th May 14:20
Deep Thought said:
Probably covered off before, but what is the real reason(s) why manufacturers incentivise the finance deals rather than offer it as extra discount off the car?
Mercedes are offering £2,925 "deposit contribution" on a C Class at the minute. Why not just offer an extra discount instead?
(I think i know the answer(s) to this but want to hear from the sales people as to why its actually done)
A car bought outright doesn't have any particular obligation to come back into the dealership at any later point. Mercedes are offering £2,925 "deposit contribution" on a C Class at the minute. Why not just offer an extra discount instead?
(I think i know the answer(s) to this but want to hear from the sales people as to why its actually done)
When there is an agreement, there is a term and usually a lump of an end value that needs to be reconciled one way or another.
It's also there to swallow up the average amount of negative equity being carried over from the previous deal, assuming you bought the predecessor model...
Wooda80 said:
Deep Thought said:
Probably covered off before, but what is the real reason(s) why manufacturers incentivise the finance deals rather than offer it as extra discount off the car?
Mercedes are offering £2,925 "deposit contribution" on a C Class at the minute. Why not just offer an extra discount instead?
(I think i know the answer(s) to this but want to hear from the sales people as to why its actually done)
Discounting the price distresses the product which damages profitability across the network and has a knock on effect with residual values, bla bla bla. Offering the discount as a Finance Deposit Contribution creates extra value in the finance product without impacting the value of the metal.Mercedes are offering £2,925 "deposit contribution" on a C Class at the minute. Why not just offer an extra discount instead?
(I think i know the answer(s) to this but want to hear from the sales people as to why its actually done)
I can't say this with absolute certainty but I expect that finance companies receive reimbursement from the manufacturer for deposit contributions and subsidised finance offers, so ultimately it's the manufacturer paying for the incentives.
Additionally, providing incentives for finance will increase the number of customers who choose to use the manufacturer's finance company.
It's been well documented in these forums that manufacturers are encouraging customers to move to a monthly payment model for purchasing which gives a more predictable and often more frequent repeat purchase cycle. Deposit contributions help to convert people to this, even if some people settle early.
Maximising finance volumes is important because as well as providing funding for retail customers the manufacturer's finance company in many cases also provide funding to dealers for new and used stock. Writing more business for the finance company on the retail side will give the manufacturer leverage to negotiate lower stock funding costs on the wholesale side.
You will have noticed that the manufacturer is no longer satisfied that you just buy a car from them, nor for that matter just buy a car on finance. They want you to have their branded Insurance, Accident Management, Service Contract and god knows what else as well. The more you have, the more likely you feel tied to the brand and the more avenues they have to market a wider range of goods and services to you and the more likely you are to become a repeat customer. Unless of course the dealer fails to sufficiently flatter your ego on your next visit, in which case all bets are off.
Deposit contributions are a lot more powerful than simple bonnet money!
Edited by Wooda80 on Thursday 30th May 14:20
4941cc said:
Deep Thought said:
Probably covered off before, but what is the real reason(s) why manufacturers incentivise the finance deals rather than offer it as extra discount off the car?
Mercedes are offering £2,925 "deposit contribution" on a C Class at the minute. Why not just offer an extra discount instead?
(I think i know the answer(s) to this but want to hear from the sales people as to why its actually done)
A car bought outright doesn't have any particular obligation to come back into the dealership at any later point. Mercedes are offering £2,925 "deposit contribution" on a C Class at the minute. Why not just offer an extra discount instead?
(I think i know the answer(s) to this but want to hear from the sales people as to why its actually done)
When there is an agreement, there is a term and usually a lump of an end value that needs to be reconciled one way or another.
It's also there to swallow up the average amount of negative equity being carried over from the previous deal, assuming you bought the predecessor model...
Got a few points to make.
Firstly about part ex cars, I know you all think we expect thousands for our part ex’s but I took my car (08 300c 110k miles, good condition apart from wheels) to a garage looking at an x5. The x5 is on at £27490, all I wanted was my part ex to bring the price to just under £25k, but he offered £1.5k for it!
Looking on auto trader, my model (srt design) and year with similar mileage are up for £5-6k, whatCar valuation thing says they should sell for £3750 trade and auto trader part ex valuer tool tells me I should get around £2990. Why is this guy so down on my car!!? Like I’d be happy with £2.5-3k.
Secondly about emails, I noticed none of you like them. If I email a dealer it’s because I’m interested, but also I’m just no good on a phone. I forget questions I want to ask and just generally rush through things and it just never seems to go well. I email places a good distance away, just wanting to know if the car is still there and if I can drive it and usually other stuff specific to the car.It’s quite rare that I get a reply and unless I really like the car I just don’t bother with them.
When it comes to autotrader how come a lot of places have cars on it where you ask if it’s still there and they say oh that sold last week? Why keep it on there!?
Also have you ever thought about offering your demo cars for paid test drives for none customers? Sometimes I’m not sure what car I want and have a list of 5 or 6, some financed and some lease deals I’m looking at. I’d happily pay to test drive them without having to go through the whole ‘pretending I’m a buyer’ dance. Either I ask the wrong questions or due to me looking pretty young salesmen never take me seriously and I rarely get to test drive cars unless they think I’m buying it there and then!
Firstly about part ex cars, I know you all think we expect thousands for our part ex’s but I took my car (08 300c 110k miles, good condition apart from wheels) to a garage looking at an x5. The x5 is on at £27490, all I wanted was my part ex to bring the price to just under £25k, but he offered £1.5k for it!
Looking on auto trader, my model (srt design) and year with similar mileage are up for £5-6k, whatCar valuation thing says they should sell for £3750 trade and auto trader part ex valuer tool tells me I should get around £2990. Why is this guy so down on my car!!? Like I’d be happy with £2.5-3k.
Secondly about emails, I noticed none of you like them. If I email a dealer it’s because I’m interested, but also I’m just no good on a phone. I forget questions I want to ask and just generally rush through things and it just never seems to go well. I email places a good distance away, just wanting to know if the car is still there and if I can drive it and usually other stuff specific to the car.It’s quite rare that I get a reply and unless I really like the car I just don’t bother with them.
When it comes to autotrader how come a lot of places have cars on it where you ask if it’s still there and they say oh that sold last week? Why keep it on there!?
Also have you ever thought about offering your demo cars for paid test drives for none customers? Sometimes I’m not sure what car I want and have a list of 5 or 6, some financed and some lease deals I’m looking at. I’d happily pay to test drive them without having to go through the whole ‘pretending I’m a buyer’ dance. Either I ask the wrong questions or due to me looking pretty young salesmen never take me seriously and I rarely get to test drive cars unless they think I’m buying it there and then!
Theguy5 said:
Got a few points to make.
Firstly about part ex cars, I know you all think we expect thousands for our part ex’s but I took my car (08 300c 110k miles, good condition apart from wheels) to a garage looking at an x5. The x5 is on at £27490, all I wanted was my part ex to bring the price to just under £25k, but he offered £1.5k for it!
Looking on auto trader, my model (srt design) and year with similar mileage are up for £5-6k, whatCar valuation thing says they should sell for £3750 trade and auto trader part ex valuer tool tells me I should get around £2990. Why is this guy so down on my car!!? Like I’d be happy with £2.5-3k.
I have found only one 300C SRT Design similar to how you describe yours, it has 120,000 miles and is up for £3990.00, your car CAP's at £2,250 average; CAP is what the industry use and is is a "guide" and I can imagine a 300C is probably not the best car to buy into the trade.Firstly about part ex cars, I know you all think we expect thousands for our part ex’s but I took my car (08 300c 110k miles, good condition apart from wheels) to a garage looking at an x5. The x5 is on at £27490, all I wanted was my part ex to bring the price to just under £25k, but he offered £1.5k for it!
Looking on auto trader, my model (srt design) and year with similar mileage are up for £5-6k, whatCar valuation thing says they should sell for £3750 trade and auto trader part ex valuer tool tells me I should get around £2990. Why is this guy so down on my car!!? Like I’d be happy with £2.5-3k.
Theguy5 said:
Secondly about emails, I noticed none of you like them. If I email a dealer it’s because I’m interested, but also I’m just no good on a phone. I forget questions I want to ask and just generally rush through things and it just never seems to go well. I email places a good distance away, just wanting to know if the car is still there and if I can drive it and usually other stuff specific to the car.It’s quite rare that I get a reply and unless I really like the car I just don’t bother with them.
We do like e-mails, decent ones not poorly worded ones or ones asking the earth or ridiculous things, I think everyone has mentioned here that all are answered, it's just that the vast majority never receive a response, conversion rates on e-mails are very low, sometimes single figures and generally in low double figures whereas walk ins and telephone enquiries are where the vast majority of sales are made, we have to prioritise.Theguy5 said:
When it comes to autotrader how come a lot of places have cars on it where you ask if it’s still there and they say oh that sold last week? Why keep it on there!?
The feed from our website can take a few days to come off, it is nothing that the dealer is or isn't doing, obviously sometimes some do get missed and remain on the dealers website but generally it's the feed delay between the dealers website and Autotrader.Theguy5 said:
Also have you ever thought about offering your demo cars for paid test drives for none customers? Sometimes I’m not sure what car I want and have a list of 5 or 6, some financed and some lease deals I’m looking at. I’d happily pay to test drive them without having to go through the whole ‘pretending I’m a buyer’ dance. Either I ask the wrong questions or due to me looking pretty young salesmen never take me seriously and I rarely get to test drive cars unless they think I’m buying it there and then!
No as we would rather the cars were here for people who are actually buying as opposed to being rented/lent out to someone who clearly isn't.Theguy5 said:
Got a few points to make.
Firstly about part ex cars, I know you all think we expect thousands for our part ex’s but I took my car (08 300c 110k miles, good condition apart from wheels) to a garage looking at an x5. The x5 is on at £27490, all I wanted was my part ex to bring the price to just under £25k, but he offered £1.5k for it!
Looking on auto trader, my model (srt design) and year with similar mileage are up for £5-6k, whatCar valuation thing says they should sell for £3750 trade and auto trader part ex valuer tool tells me I should get around £2990. Why is this guy so down on my car!!? Like I’d be happy with £2.5-3k.
Secondly about emails, I noticed none of you like them. If I email a dealer it’s because I’m interested, but also I’m just no good on a phone. I forget questions I want to ask and just generally rush through things and it just never seems to go well. I email places a good distance away, just wanting to know if the car is still there and if I can drive it and usually other stuff specific to the car.It’s quite rare that I get a reply and unless I really like the car I just don’t bother with them.
When it comes to autotrader how come a lot of places have cars on it where you ask if it’s still there and they say oh that sold last week? Why keep it on there!?
Also have you ever thought about offering your demo cars for paid test drives for none customers? Sometimes I’m not sure what car I want and have a list of 5 or 6, some financed and some lease deals I’m looking at. I’d happily pay to test drive them without having to go through the whole ‘pretending I’m a buyer’ dance. Either I ask the wrong questions or due to me looking pretty young salesmen never take me seriously and I rarely get to test drive cars unless they think I’m buying it there and then!
the problem is the car is as popular as the really bad Aids and will be way "off book" when it goes through the auctionFirstly about part ex cars, I know you all think we expect thousands for our part ex’s but I took my car (08 300c 110k miles, good condition apart from wheels) to a garage looking at an x5. The x5 is on at £27490, all I wanted was my part ex to bring the price to just under £25k, but he offered £1.5k for it!
Looking on auto trader, my model (srt design) and year with similar mileage are up for £5-6k, whatCar valuation thing says they should sell for £3750 trade and auto trader part ex valuer tool tells me I should get around £2990. Why is this guy so down on my car!!? Like I’d be happy with £2.5-3k.
Secondly about emails, I noticed none of you like them. If I email a dealer it’s because I’m interested, but also I’m just no good on a phone. I forget questions I want to ask and just generally rush through things and it just never seems to go well. I email places a good distance away, just wanting to know if the car is still there and if I can drive it and usually other stuff specific to the car.It’s quite rare that I get a reply and unless I really like the car I just don’t bother with them.
When it comes to autotrader how come a lot of places have cars on it where you ask if it’s still there and they say oh that sold last week? Why keep it on there!?
Also have you ever thought about offering your demo cars for paid test drives for none customers? Sometimes I’m not sure what car I want and have a list of 5 or 6, some financed and some lease deals I’m looking at. I’d happily pay to test drive them without having to go through the whole ‘pretending I’m a buyer’ dance. Either I ask the wrong questions or due to me looking pretty young salesmen never take me seriously and I rarely get to test drive cars unless they think I’m buying it there and then!
QuartzDad said:
You've sold a 2.5yo car for 12.5k. During final checks before delivery you notice two of the four matching Michelins are borderline.
What do you do, what do you tell the customer and when do you tell them?
Most dealers will have standards regarding tyres, ours are 3mm minimum, or replaced.What do you do, what do you tell the customer and when do you tell them?
Edited by QuartzDad on Saturday 1st June 16:33
QuartzDad said:
You've sold a 2.5yo car for 12.5k. During final checks before delivery you notice two of the four matching Michelins are borderline.
What do you do, what do you tell the customer and when do you tell them?
This isn't a loaded question at all, is it? What do you do, what do you tell the customer and when do you tell them?
Edited by QuartzDad on Saturday 1st June 16:33
They're can't be borderline, they either meet the retailer's standards or they don't.
If they are at the limit of the retailer's standards then they stay on the car. It doesn't warrant a particular mention but if the customer asks then they will be told that all the tyres meet or exceed the standard, or shown a report that says the same.
If they don't meet the retailer's standards then they will be replaced with a safe and legal tyre which does meet the standard, usually brand new.
What happened to you, and what would you have preferred to have happened?
Theguy5 said:
I guess it’s un desirable for dealers, I’m gonna have to sell it myself then to make it worth while, if I can be bothered anyway!
Pretty undesirable car to be honest, at that age and miles, most dealers are not going to be interested in retailing it.It will go off to a trader or auction, but its certainly not a "book" car.
Wooda80 said:
This isn't a loaded question at all, is it?
They're can't be borderline, they either meet the retailer's standards or they don't.
If they are at the limit of the retailer's standards then they stay on the car. It doesn't warrant a particular mention but if the customer asks then they will be told that all the tyres meet or exceed the standard, or shown a report that says the same.
If they don't meet the retailer's standards then they will be replaced with a safe and legal tyre which does meet the standard, usually brand new.
What happened to you, and what would you have preferred to have happened?
They're can't be borderline, they either meet the retailer's standards or they don't.
If they are at the limit of the retailer's standards then they stay on the car. It doesn't warrant a particular mention but if the customer asks then they will be told that all the tyres meet or exceed the standard, or shown a report that says the same.
If they don't meet the retailer's standards then they will be replaced with a safe and legal tyre which does meet the standard, usually brand new.
What happened to you, and what would you have preferred to have happened?
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