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

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

Author
Discussion

jamoor

14,506 posts

215 months

Friday 22nd May 2020
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Fast Bug said:
I can’t remember the last time we had to change an exhaust on one of our cars? Don’t forget it wasn’t all that long ago cars were services every 8k or so and now we’re on long life services or every 2 years. Dealerships haven’t gone bust due to the reduced workshop incomes during that time.
Exhausts needing welding or some other repairs Such as a cat aren’t uncommon.

jamoor

14,506 posts

215 months

Friday 22nd May 2020
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Wooda80 said:
If electric cars require so little maintenance then why are manufacturers investing so much money in technician training and new workshop equipment and infrastructure for the ev model range?
They require some degree of maintenance if something goes wrong but the a lot of the drivetrain is generally designed to last the life of the car.
The same can’t be said about an ICE car.

The engine and gearbox should last the life of the car in most instances but most other stuff is deemed consumables.

Edited by jamoor on Friday 22 May 14:47

Sheepshanks

32,767 posts

119 months

Friday 22nd May 2020
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Limpet said:
I was talking to a Tesla owner from the States last year, who had just had his first set of pads replaced on his model S at 120,000 miles.
As it's a Honda that stirred this topic, then unless they've done something about the brakes you'll really want to have them stripped and cleaned every year - especially as they're not being used much. Hondas are notorious for sticking calipers/sliders and destroying a pad on lightly used cars.

rovermorris999

5,202 posts

189 months

Saturday 23rd May 2020
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Teslas also have cooling systems for the batteries, they're not quite as simple cars as first imagined but granted, much less routine maintenance. Laptops on wheels though, it'll be interesting to see how EVs age when they are more mainstream. I could see me having an EV as a runabout if they get cheap enough with better range and faster charging and an ICE car or two for fun.

Barchettaman

6,309 posts

132 months

Saturday 23rd May 2020
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rovermorris999 said:
I could see me having an EV as a runabout if they get cheap enough with better range and faster charging and an ICE car or two for fun.
This is kind of the route we’ve taken, albeit with electric-assist bikes for shorter runs.

ICE + electric transportation makes a lot of sense, you just have to tailor it to your needs.

CSLM3CSL

321 posts

143 months

Saturday 23rd May 2020
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Why would a main dealer have cars registered in January 2019 with delivery mileage? Would this be a cancelled order and if so why have they taken so long to sell it?

Wooda80

1,743 posts

75 months

Saturday 23rd May 2020
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CSLM3CSL said:
Why would a main dealer have cars registered in January 2019 with delivery mileage? Would this be a cancelled order and if so why have they taken so long to sell it?
Haha, that old chestnut!

Hold off telling us the make and model for the moment but it will likely be a car on which there are really strong new car deals to try and stimulate new car sales. Probably a model near the top of the manufacturer's range? The timeline will run something like this:

Dealer pre-registers the car ( or a batch of cars ) in January to achieve a particular volume bonus from the manufacturer. This might be a substantial five figure sum, or even six figures in some cases.

The car gets advertised at a price equivalent to the dealer wholesale price that the manufacturer charges the dealer for the car .

March is on the horizon, the car is now eligible to be sold and someone enquires about it. But the dealer is a few registrations short of the big March target so the sales manager tells the salesman to offer the customer a brand new 19 plate for the same price as the pre reg 68 plate in order to help meet the March target. Customer opts for the brand new car and everyone is happy.

April and beyond comes around. 19 plate demos start to be advertised at around the dealer wholesale price so the 68 plate really needs to be advertised at less than that, ie at less than it owes the dealer. Rather than sell the car at a loss, every time a customer enquires about it the salesman is encouraged to switch the customer into a different car that will make money rather than lose money.

And so it continues, and every month that passes the financial loss that would ensue from selling the car becomes more and more unpalatable.

How does it end? Sooner or later an accountant will come along, query why a car has been in stock for nearly 500 days and demand that the cars stock value is written back accordingly, Sales Manager and DP lose their profitability bonus for the month / quarter, and once written back the car can be sold without fear of loss.

Now what model is it and where is it? smile

ETA - people from outside the trade will assume that what I've described is pure specualtion or a flight of fancy, but colleagues in the trade will be able to confirm that it's a fairly common occurrence.


Edited by Wooda80 on Saturday 23 May 17:18

Fast Bug

11,689 posts

161 months

Saturday 23rd May 2020
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I'm guessing Vauxhall

CSLM3CSL

321 posts

143 months

Saturday 23rd May 2020
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Wooda80 said:
Haha, that old chestnut!

Hold off telling us the make and model for the moment but it will likely be a car on which there are really strong new car deals to try and stimulate new car sales. Probably a model near the top of the manufacturer's range? The timeline will run something like this:

Dealer pre-registers the car ( or a batch of cars ) in January to achieve a particular volume bonus from the manufacturer. This might be a substantial five figure sum, or even six figures in some cases.

The car gets advertised at a price equivalent to the dealer wholesale price that the manufacturer charges the dealer for the car .

March is on the horizon, the car is now eligible to be sold and someone enquires about it. But the dealer is a few registrations short of the big March target so the sales manager tells the salesman to offer the customer a brand new 19 plate for the same price as the pre reg 68 plate in order to help meet the March target. Customer opts for the brand new car and everyone is happy.

April and beyond comes around. 19 plate demos start to be advertised at around the dealer wholesale price so the 68 plate really needs to be advertised at less than that, ie at less than it owes the dealer. Rather than sell the car at a loss, every time a customer enquires about it the salesman is encouraged to switch the customer into a different car that will make money rather than lose money.

And so it continues, and every month that passes the financial loss that would ensue from selling the car becomes more and more unpalatable.

How does it end? Sooner or later an accountant will come along, query why a car has been in stock for nearly 500 days and demand that the cars stock value is written back accordingly, Sales Manager and DP lose their profitability bonus for the month / quarter, and once written back the car can be sold without fear of loss.

Now what model is it and where is it? smile

ETA - people from outside the trade will assume that what I've described is pure specualtion or a flight of fancy, but colleagues in the trade will be able to confirm that it's a fairly common occurrence.


Edited by Wooda80 on Saturday 23 May 17:18
https://www.hendy.co.uk/lexus/used-cars/lexus-rx-3-5-premium-pack-auto-aetv92983173/

It is a Lexus Rx In Poole.

jonwm

2,520 posts

114 months

Monday 25th May 2020
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Here's a question, I'm a company car driver and change my car every 3 to 4 years, my work tell HMRC and my tax code changes accordingly. What happens with you guys and demo's? Surely you'd be all over the place with tax the amount you change them.

Jabba1977

132 posts

69 months

Monday 25th May 2020
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jonwm said:
Here's a question, I'm a company car driver and change my car every 3 to 4 years, my work tell HMRC and my tax code changes accordingly. What happens with you guys and demo's? Surely you'd be all over the place with tax the amount you change them.
Most places operate a banded tax system based on a set price range. There is normally then a requirement to log usage for particular cars for Tax submittal and fuel charges.

Blakewater

4,309 posts

157 months

Friday 29th May 2020
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Are the dealerships salesman here work at reopening on Monday?

Are there a lot of appointments lined up?

Will it be appointment only, or will walk ins be accepted, provided the dealership isn't too crowded?

Butter Face

30,308 posts

160 months

Friday 29th May 2020
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Blakewater said:
Are the dealerships salesman here work at reopening on Monday?

Are there a lot of appointments lined up?

Will it be appointment only, or will walk ins be accepted, provided the dealership isn't too crowded?
Yes

Yes

Yes.

Short and sweet. We're going to be making appointments for those who enquire but similarly we will be able to deal with walk ins just the same as always.

Toyoda

1,557 posts

100 months

Friday 29th May 2020
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That's great news. How is the test drive conundrum being tackled?

Fast Bug

11,689 posts

161 months

Friday 29th May 2020
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As per Butters.

Test drives will be unaccompanied for us.

crankedup

25,764 posts

243 months

Friday 29th May 2020
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WAVman said:
jamoor said:
https://www.engadget.com/volkswagen-will-only-sell...

Gosh I love being right.

Manufacturers are removing the autonomy of dealerships, I wonder when dealerships will cotton onto the fact that they aren't needed hehe
One manufacturer is direct selling one model!
You can be certain that other manufacturers are looking closely at this new business model. If it works well for VW it’s hard to see them not extending the MO to other car models. Equally difficult. not to imagine that competitors will not follow in the footsteps. Seems to be just another step of progress and change.
Who knows, us car buyers may even be greeted by a salesperson hologram in the near future. yikes

Edited by crankedup on Friday 29th May 15:51

HTP99

22,552 posts

140 months

Friday 29th May 2020
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Fast Bug said:
As per Butters.

Test drives will be unaccompanied for us.
Yep, had clarification today that test drives for us will also have to be unnacompanied, so we'll be much stricter on qualification and affordability and if its anything like lending courtesy cars there will likely be an age limit and a 6 points limit plus we will need NI numbers for the licence check.

I'm back Monday, haven't a clue if we've any appointments lined up but I do know we have a load of new cars that are due to hit next week.


BrabusMog

20,155 posts

186 months

Friday 29th May 2020
quotequote all
HTP99 said:
Fast Bug said:
As per Butters.

Test drives will be unaccompanied for us.
Yep, had clarification today that test drives for us will also have to be unnacompanied, so we'll be much stricter on qualification and affordability and if its anything like lending courtesy cars there will likely be an age limit and a 6 points limit plus we will need NI numbers for the licence check.

I'm back Monday, haven't a clue if we've any appointments lined up but I do know we have a load of new cars that are due to hit next week.
Is the NI thing for some kind of DVLA check? Can you see points etc? Had a hassle with Audi when getting a Q7 loaner for the weekend cos my missus' NI and driving licence (foreign but converted to UK) didn't match up and ended up having to do our own insurance for the weekend. Sales guy couldn't have been better but it really annoyed me at the time laugh

Blakewater

4,309 posts

157 months

Friday 29th May 2020
quotequote all
Butter Face said:
Blakewater said:
Are the dealerships salesman here work at reopening on Monday?

Are there a lot of appointments lined up?

Will it be appointment only, or will walk ins be accepted, provided the dealership isn't too crowded?
Yes

Yes

Yes.

Short and sweet. We're going to be making appointments for those who enquire but similarly we will be able to deal with walk ins just the same as always.
I understand dealers are keen to sell stock cars and get sales through now. With factories working at reduced capacity, will there be longer lead times and more difficulty in getting factory orders for customers and for new stock?

HTP99

22,552 posts

140 months

Friday 29th May 2020
quotequote all
BrabusMog said:
HTP99 said:
Fast Bug said:
As per Butters.

Test drives will be unaccompanied for us.
Yep, had clarification today that test drives for us will also have to be unnacompanied, so we'll be much stricter on qualification and affordability and if its anything like lending courtesy cars there will likely be an age limit and a 6 points limit plus we will need NI numbers for the licence check.

I'm back Monday, haven't a clue if we've any appointments lined up but I do know we have a load of new cars that are due to hit next week.
Is the NI thing for some kind of DVLA check? Can you see points etc? Had a hassle with Audi when getting a Q7 loaner for the weekend cos my missus' NI and driving licence (foreign but converted to UK) didn't match up and ended up having to do our own insurance for the weekend. Sales guy couldn't have been better but it really annoyed me at the time laugh
Yep it's to see points and convictions as the paper part, which had all that info on, is no longer a thing.