Ask a car salesman anything...anything at all (Vol. 2).

Ask a car salesman anything...anything at all (Vol. 2).

Author
Discussion

Fast Bug

11,643 posts

161 months

Tuesday 12th January 2021
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jamoor said:
Why are the bonuses less on the ID3? Is there less margin in them or something?
You'd have to ask someone senior at VW that question. Every single electric vehicle* I've sold gets less front end margin, less back end (bonus) money and customer terms are far lower than they are for an ICE vehicle.
















  • Bar the Renault Fluence, they paid us a bucket load to get rid of those laugh

jamoor

14,506 posts

215 months

Tuesday 12th January 2021
quotequote all
Fast Bug said:
You'd have to ask someone senior at VW that question. Every single electric vehicle* I've sold gets less front end margin, less back end (bonus) money and customer terms are far lower than they are for an ICE vehicle.
















  • Bar the Renault Fluence, they paid us a bucket load to get rid of those laugh
I will quote this here for the future.

Fast Bug

11,643 posts

161 months

Tuesday 12th January 2021
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You're more than welcome to. I'm not sure why you'd want to, but if that makes you feel warm and fuzzy inside, knock yourself out laugh

dibblecorse

6,874 posts

192 months

Tuesday 12th January 2021
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jamoor said:
Why are the bonuses less on the ID3? Is there less margin in them or something?
Probably because VW like most the car manufacturers realise that they have a limited number of years to recoup all the R&D and tooling costs for ICE manufacture and therefore will likely be looking to maximise their ROI before the next wave of future investment which will be EV in a much bigger way than now, its a clear business decision, they will have years yet for EV R&D cost recoupment.

Also I suspect EV cars will go the same way as flat screen TVs, 2 or 3 factories in the world creating the powertrains then each manufacturer overlaying their software look and feel before implementing in their cars.

Only have to look at the amount of platform sharing we have now, it will be like that but on steroids.

PS - Love this thread and glad to see the abusing of the sales people has seems to have stopped.

HTP99

22,520 posts

140 months

Tuesday 12th January 2021
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Typically (not currently due to Covid), back end bonus for Renault dealers is heavily electric sales based, we have banded targets typically hitting 90%, 100% or 110% of targeted units but a certain percentage has to be electric sales, don't hit that percentage then no or a greatly reduced back end bonus.

The supposed thing of only VW UK handling the sales of ID.3 and using the dealer as the handover point, I don't believe is a thing (anymore) as there are plenty of ID.3 available on CarWow through dealers. This says to me that direct sales via VW hasn't worked.

As for dealers not pushing the ID.3, there may well be an element of a dealership not earning as much as an ICE car at point of sale of the unit (it will be nothing to do with on-going service and repair costs being lower than an ICE car as a dealer won't look that far ahead, it is certainly something that I've never heard of being discussed at the dealership I work for and we do embrace electric and have done since the launch of ZOE), I would say VW dealers are now in a similar position to where Renault dealers were in 2013, with this new technology, that they aren't used to, which needs a different approach to selling, different knowledge, having different questions asked (without knowing the answers) and just being different from the norm, so the salesmen/women just stick with what they know, plus I bet VW haven't been forthcoming with much training and ongoing support, likely just shoving the cars at dealers and telling them to get on with it.

I am surprised with the whole VW approach as electric is a huge thing for manufacturers in Europe, given CAFE, manufactures have to sell electric to keep/get their average CO2 down, the fines can run into €billions.

Edited by HTP99 on Tuesday 12th January 17:31

stevemcs

8,644 posts

93 months

Tuesday 12th January 2021
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Do you think VW are basing there pricing around its a VW people will buy it purely because of the badge whereas Renault have to discount and sell because people want money off or because they are trying to build the brand of manufactures of electric vehicles, almost trying to be the working persons Tesla ?

Renault and Nissan went electric far earlier than any other manufacturer, yes you could argue Toyota started long before that but a car that covers 1 mile on pure electric isn't really in the same ball park as the Zoe or Leaf.

For me if I wanted a small city car i'd buy a Zoe.

NMNeil

5,860 posts

50 months

Tuesday 12th January 2021
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I'm in the market for a replacement car, and have settled on the Chevy Bolt. Odd name especially when it's all electric but the more aptly named Chevy Volt, is a hybrid. confused
Anyway, I'm seeing more and more dealer ads like this, which appear to be their latest ploy to get you on their database.
https://www.iseecars.com/used_cars-t5989-used-chev...
Anyone spot what's missing?

Blakewater

4,308 posts

157 months

Sunday 17th January 2021
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How do dealers choose the cars they have in stock?

I've seen that sometimes every Audi dealer, for example, will have an identical car in the showroom. Lots of Audi dealers have pre-registered an A7 in this exact Audi Exclusive spec as if they were all obliged to take a car like this into stock.

https://usedcars.audi.co.uk/usedcar/audi/a7/a7-spo...

I've also read about a BMW dealer securing build slots and changing the spec of the car to be built so it can get BMW Individual spec cars into stock.

Also, who decides on the specs of cars factories build when they're building cars on spec? Who decides they should build so many silver manual R.S. Line Meganes or whatever.

Do dealers pick up what's in factory yards, get told what to stock or is it a bit of both?

Osinjak

5,453 posts

121 months

Tuesday 19th January 2021
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Any chance that at the next Lodge meeting of the pointy-shoed brotherhood an agenda item can be, 'How to write an ad that doesn't make a prospective buyer's eyes bleed.'






The Rotrex Kid

30,277 posts

160 months

Tuesday 19th January 2021
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‘PRINCE OWNED’



You want it just for that right!

Osinjak

5,453 posts

121 months

Tuesday 19th January 2021
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The Rotrex Kid said:
‘PRINCE OWNED’



You want it just for that right!
Well without that crucial piece of information I'd have never bought it!

wink

loskie

5,191 posts

120 months

Tuesday 19th January 2021
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little red Corvette?

Fast Bug

11,643 posts

161 months

Tuesday 19th January 2021
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Blakewater said:
How do dealers choose the cars they have in stock?

I've seen that sometimes every Audi dealer, for example, will have an identical car in the showroom. Lots of Audi dealers have pre-registered an A7 in this exact Audi Exclusive spec as if they were all obliged to take a car like this into stock.

https://usedcars.audi.co.uk/usedcar/audi/a7/a7-spo...

I've also read about a BMW dealer securing build slots and changing the spec of the car to be built so it can get BMW Individual spec cars into stock.

Also, who decides on the specs of cars factories build when they're building cars on spec? Who decides they should build so many silver manual R.S. Line Meganes or whatever.

Do dealers pick up what's in factory yards, get told what to stock or is it a bit of both?
It's possible that Audi UK had a pile of A7 in that stock that they wanted to get shot of, so 'encouraged' the dealers to take some and register them.

The days of fields full of cars are mainly behind us. Most of the manufacturers I sold carry very little stock themselves, although you do find some order stock for large fleet (rental) customers. If these are starting to go overage (usually 90-180 days after landing), they'll push them out in to the dealer network.

For factory orders, your vanilla stuff is easy enough to change. Each country will have an allocation of vehicles (10,000 Megane as an example), model and engine specs don't need to be ordered that far in advance. Models like the RS might have more limited numbers though, and not be counted as standard factory order.

We're told our allocation of vehicles at the start of the year, and what models will be built each month. So X number of Citan, X Vito, X Sprinter panel and X Sprinter chassis for each build month and we'll spec them about 6 weeks before they're built.

HTP99

22,520 posts

140 months

Wednesday 20th January 2021
quotequote all
Blakewater said:
How do dealers choose the cars they have in stock?

I've seen that sometimes every Audi dealer, for example, will have an identical car in the showroom. Lots of Audi dealers have pre-registered an A7 in this exact Audi Exclusive spec as if they were all obliged to take a car like this into stock.

https://usedcars.audi.co.uk/usedcar/audi/a7/a7-spo...

I've also read about a BMW dealer securing build slots and changing the spec of the car to be built so it can get BMW Individual spec cars into stock.

Also, who decides on the specs of cars factories build when they're building cars on spec? Who decides they should build so many silver manual R.S. Line Meganes or whatever.

Do dealers pick up what's in factory yards, get told what to stock or is it a bit of both?
With Renault, each dealer has to have a specific range of cars on display in the showroom, (dependant on showroom size and type of dealer, ie main or satellite) but generally we have free reign to choose spec and colour, as long as the basics are there.

When a new model is launched, generally this is auto allocated as a showroom car, plus if the new model comes with a new colour, the auto allocated car tends to be in that colour too, this happens with demos too of a new model, problem with this is once if can be sold, there are hundreds available across the country, all in the exact same spec and colour

Cars in general national stock are specced up by someone who works for the manufacturer, dealers have to do a "stock" order of certain mix of cars and spec but these can be left sitting at the import centre for any other dealer to grab if its a car that they want, we can call if off for delivery to us if we want it, but if not fussed we'll leave it until we need/want it (sold, or a showroom or demo replacement) or another dealer wants it.

Factory orders generally have windows; get your orders in by x date otherwise you'll need to wait for the next window, however the dates given for factory ordering opening up always shifts, so it can't ultimately be relied upon, however cars in the pipeline that aren't built yet can usually be modified to suit a certain spec.

Blakewater

4,308 posts

157 months

Saturday 23rd January 2021
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If you get a showroom car that's a new model, is there a restriction on when you can sell it?

Could you sell it on the understanding with the customer that it can only be released and handed over on a certain future date because it's still needed for showroom display?

The Rotrex Kid

30,277 posts

160 months

Saturday 23rd January 2021
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Blakewater said:
If you get a showroom car that's a new model, is there a restriction on when you can sell it?

Could you sell it on the understanding with the customer that it can only be released and handed over on a certain future date because it's still needed for showroom display?
Normally you have to have a specific model/trim level in the showroom so you can’t sell that exact car if it’s the only one you’ve got/can get.

No reason you couldn’t agree with a customer to sell them that car as soon as you are allowed to release it.

rehab71

3,362 posts

190 months

Saturday 23rd January 2021
quotequote all
The Rotrex Kid said:
Blakewater said:
If you get a showroom car that's a new model, is there a restriction on when you can sell it?

Could you sell it on the understanding with the customer that it can only be released and handed over on a certain future date because it's still needed for showroom display?
Normally you have to have a specific model/trim level in the showroom so you can’t sell that exact car if it’s the only one you’ve got/can get.

No reason you couldn’t agree with a customer to sell them that car as soon as you are allowed to release it.
When Mustang first came to the UK we sold our showroom unit for £4,000 over list, the fine from Ford would be less than the profit so we sold the showroom unit!

jason61c

5,978 posts

174 months

Saturday 23rd January 2021
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Any Toyota dealers on here?

Looking at a land cruiser, anything to look for? Anyone driven the one with a revised engine?

Blakewater

4,308 posts

157 months

Saturday 23rd January 2021
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jason61c said:
Any Toyota dealers on here?

Looking at a land cruiser, anything to look for? Anyone driven the one with a revised engine?
It's a bit more money, but Toyota are launching a new Highlander in the UK which looks a little more upmarket and plush than a Land Cruiser.

https://www.toyota.co.uk/new-cars/highlander/

jason61c

5,978 posts

174 months

Saturday 23rd January 2021
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Blakewater said:
It's a bit more money, but Toyota are launching a new Highlander in the UK which looks a little more upmarket and plush than a Land Cruiser.

https://www.toyota.co.uk/new-cars/highlander/
Its actually a bit less money than the top spec landcruiser(list price). `Its the landcruiser I'd prefer.

Any toyota dealers on here want to discuss selling one?