"The end of haggling with a used-car salesman" ?

"The end of haggling with a used-car salesman" ?

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Discussion

PistonAFC

120 posts

47 months

Tuesday 30th June 2020
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WonkeyDonkey said:
But amazon were lucky to be quick to a new market. They offered a more efficient way to purchase everything usually at a lower price than every other retailer. Besides, Amazon's retail side is just small piece of their income compared to AWS.

Cazoo is entering an already saturated market where their only USP is that they deliver. Since coronavirus I've seen a lot more retailers offer delivery. They aren't cheaper than other places and they don't offer anywhere near the variety that Evans Halshaw or Arnold Clark do, let alone Auto trader.

There have been many of these new car marketplaces in the past, each one fails quite quick as they don't offer the ease and quantity that Autotrader does, and they don't offer the low cost of advertisement that Facebook, gumtree or eBay do.
Amazon started with just books in a ssaturated market and ppl wondered how they would survive, and for a long time they lost money but just look at them now. Some of these things like Uber are the same, now they are losing money but it won't be that way for ever

NGee

2,378 posts

163 months

Tuesday 30th June 2020
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kevinon said:
Andrew[MG] said:
Wow - the ones that go wrong and post reviews are pretty shocking. That's about 1 a week.


1% give average, 4 % give poor or bad. 95% are excellent or great; https://uk.trustpilot.com/review/cazoo.co.uk?langu...

On balance, if I were looking for reassurance , I'd say that it is pretty reassuring.
If you look carefully at the reviews you will see that nearly all the good reviews have been written by people who have only reviewed 1 company. But if you look at the bad reviews you will see that, in most cases, they are from genuine reviewers that have left a lot of other reviews.

I wonder how much they pay their staff to keep signing up and leave a good review.

anonymous-user

53 months

Wednesday 1st July 2020
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Warranty! What do they offer?

Butter Face

30,191 posts

159 months

Wednesday 1st July 2020
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anonymous said:
[redacted]
90 days. Unless it’s got manufacturers warranty obvs.

HTP99

22,443 posts

139 months

Wednesday 1st July 2020
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Mexman said:
The 7 day, no quibble returns policy with Cazoo will be their downfall.
Doesn't really mean much though as any Cazoo sale would be governed by the 14 day distance selling rules.



Johnnytheboy

24,498 posts

185 months

Wednesday 1st July 2020
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Andrew[MG] said:
The Cazoo responses are textbook "apologise without really saying anything" apologies.

jonwm

2,504 posts

113 months

Wednesday 1st July 2020
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I've been looking at 18 - 19 plate Kugs's for the wifes next car and they seem between £1k and £2k more on here then on Autotrader, only exception being ford dealer stock where they seem about the same.

Throttlebody

2,348 posts

53 months

Thursday 2nd July 2020
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Another new player entering the market will be Carzam. A new venture backed by the Big Motoring World.

Big investment, bold claims to capture a large slice of the used car market via seamless and quick online sales. They will be popular with the many that find playing the traditional ‘salesman’s game’ distasteful.

anonymous-user

53 months

Thursday 2nd July 2020
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Butter Face said:
anonymous said:
[redacted]
90 days. Unless it’s got manufacturers warranty obvs.
That's sod all really.

Justin Case

2,195 posts

133 months

Thursday 2nd July 2020
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Throttlebody said:
Another new player entering the market will be Carzam. A new venture backed by the Big Motoring World.

Big investment, bold claims to capture a large slice of the used car market via seamless and quick online sales. They will be popular with the many that find playing the traditional ‘salesman’s game’ distasteful.
Carzam's future looks a lot more promising than Cazoo's. With owners who have a successful track record in running car supermarkets, accounts filed over several years and a state of the art preparation centre they should be able to hit the ground running. If they can get the sales model right and people are happy to buy cars online without seeing them first then they have every chance of success, which is now more than you can say about Cazoo. Often it is the second entrant to the market and not the first who reap the rewards. Facebook and Google anyone?

Mexman

2,442 posts

83 months

Thursday 2nd July 2020
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Throttlebody said:
Another new player entering the market will be Carzam. A new venture backed by the Big Motoring World.

Big investment, bold claims to capture a large slice of the used car market via seamless and quick online sales. They will be popular with the many that find playing the traditional ‘salesman’s game’ distasteful.
At least buying from a reputable local to you dealer, and a decent salesperson, if you do have a problem, you have half a chance of something being done about it, either by visit or a quick call, and a courtesy car if required.
I wouldn't fancy my chances phoning a nationwide company that I cannot visit, or even speak to the same person that sold the car.
There are no "salesmans games" that I can think of, that I "play", all i want to do, is sell you a car that you are happy with, for a fair price and have a bit of a laugh and banter whilst doing it.
Sometimes it's the customer who tries to make it hard work, by trying to play mind games and being untruthful.

Edited by Mexman on Thursday 2nd July 20:31

Throttlebody

2,348 posts

53 months

Friday 3rd July 2020
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Coincidentally, The Telegraph have run a similar theme article, ‘Death of a car salesman’. Seems a popular topic fuelled by the online buying surge -

https://www.telegraph.co.uk/business/2020/07/02/de...

Justin Case

2,195 posts

133 months

Friday 3rd July 2020
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Perhaps 'death of a car showroom' would be a more apt title. I looked at two cars last year that I found on Autotrader. Both were in farm outbuildings in the middle of nowhere and otherwise were very professional, although one was meet the dealer in the next town and follow him to his barn ! Why bother with plate glass showrooms, receptionists and business managers, when a one-man band with a tame mechanic and possibly a valeter on call can provide an excellent service with minimal overheads. I can see this model becoming more common, especially as I would guess that most people initially look for their next car by means of the internet, even if they don't actually buy online. Anyway, to keep on topic, does this mean lower prices or bigger profits?

Mexman

2,442 posts

83 months

Friday 3rd July 2020
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A doorstepper trader, plenty of them already around.

theclutch

1,112 posts

158 months

Friday 3rd July 2020
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Mexman said:
Totally different to a mechanically complicated, used item such as a car, that sits outside in hostile conditions, heat, cold, snow, rain etc.
The 7 day, no quibble returns policy with Cazoo will be their downfall.
The costs involved in preparing the car, delivering it, collecting it back, re prepping it etc, will be a disaster.
These are used cars, give a member of the public an inch and they will take a mile.
Aren't you a car dealer? You do realise that a customer has the legal right to return a vehicle if sale transacted off premises for 14 days?

Mexman

2,442 posts

83 months

Friday 3rd July 2020
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theclutch said:
Mexman said:
Totally different to a mechanically complicated, used item such as a car, that sits outside in hostile conditions, heat, cold, snow, rain etc.
The 7 day, no quibble returns policy with Cazoo will be their downfall.
The costs involved in preparing the car, delivering it, collecting it back, re prepping it etc, will be a disaster.
These are used cars, give a member of the public an inch and they will take a mile.
Aren't you a car dealer? You do realise that a customer has the legal right to return a vehicle if sale transacted off premises for 14 days?
Yes I do, but having that option to return it purely because "I dont like it" is different to a fault developing.
That's why, we do not offer delivery or get involved with long distance selling.
More hassle than it's worth, on used cars.

av185

18,433 posts

126 months

Friday 3rd July 2020
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Justin Case said:
Perhaps 'death of a car showroom' would be a more apt title. I looked at two cars last year that I found on Autotrader. Both were in farm outbuildings in the middle of nowhere and otherwise were very professional, although one was meet the dealer in the next town and follow him to his barn ! Why bother with plate glass showrooms, receptionists and business managers, when a one-man band with a tame mechanic and possibly a valeter on call can provide an excellent service with minimal overheads. I can see this model becoming more common, especially as I would guess that most people initially look for their next car by means of the internet, even if they don't actually buy online. Anyway, to keep on topic, does this mean lower prices or bigger profits?
Fords of Winsford who actually pioneered the pile em high sell em cheap basic model of nearly new/used car supermarkets started selling from their farm in Cheshire approaching 40 years back so it is nothing new. I remember going there with my father many years back and the cars were all lined up in fields. The magazine Car published an article on it at the time saying how it would revolutionise car sales. They are still going today and volume wise are very strong.

This actually coincided with Carcraft establishing a similar but urban model who bought the old mill in Rochdale previously occupied by Asda and traded from there with a similar business model.

Fords of Winsford were no frills the price was non negotiable and displayed at the top of the windscreen simply by dynotape.... who remembers that lol.

They merely bought sub 2 year old ex lease and contract hire cars from BCA and added £200. No warranty or add ons no valeting or prep needed either.

Trouble is there are always a proportion of car buyers who favour the psychological comforts of expensive showroom and this selling approach and are prepared to pay for it all too. Until there is a major shift away from this approach I reckon its here for a few years yet although Covid could well be the catalyst and ultimate watershed for many younger profile buyers in particular in preferring a purely online buying process.

Edited by av185 on Friday 3rd July 16:55

theclutch

1,112 posts

158 months

Friday 3rd July 2020
quotequote all
Mexman said:
theclutch said:
Mexman said:
Totally different to a mechanically complicated, used item such as a car, that sits outside in hostile conditions, heat, cold, snow, rain etc.
The 7 day, no quibble returns policy with Cazoo will be their downfall.
The costs involved in preparing the car, delivering it, collecting it back, re prepping it etc, will be a disaster.
These are used cars, give a member of the public an inch and they will take a mile.
Aren't you a car dealer? You do realise that a customer has the legal right to return a vehicle if sale transacted off premises for 14 days?
Yes I do, but having that option to return it purely because "I dont like it" is different to a fault developing.
That's why, we do not offer delivery or get involved with long distance selling.
More hassle than it's worth, on used cars.
No, the customer can return the car within 14 days regardless of fault or not. If they decide they dont like the colour, they are legally entitled to return.

It blows my mind that you dont know this as a 'professional's car dealer.

Regarding your approach - you may be fine for now but if the market changes the market changes. Adapt or become irrelevant.


Edited by theclutch on Friday 3rd July 21:13

Deep Thought

35,724 posts

196 months

Friday 3rd July 2020
quotequote all
Throttlebody said:
Coincidentally, The Telegraph have run a similar theme article, ‘Death of a car salesman’. Seems a popular topic fuelled by the online buying surge -

https://www.telegraph.co.uk/business/2020/07/02/de...
The online buying surge lasted approx 2 months. Any dealer feedback i've seen has said that online sales have dropped back to practically zero again now that people can again go see the cars they may wish to buy.


Deep Thought

35,724 posts

196 months

Friday 3rd July 2020
quotequote all
theclutch said:
Mexman said:
Totally different to a mechanically complicated, used item such as a car, that sits outside in hostile conditions, heat, cold, snow, rain etc.
The 7 day, no quibble returns policy with Cazoo will be their downfall.
The costs involved in preparing the car, delivering it, collecting it back, re prepping it etc, will be a disaster.
These are used cars, give a member of the public an inch and they will take a mile.
Aren't you a car dealer? You do realise that a customer has the legal right to return a vehicle if sale transacted off premises for 14 days?
Hes right - its exactly why it wont succeed. Waifer thin margins and then factor in the percentage of people who WILL just return it because they dont like the colour, its too big, its too small, changed their mind, etc, etc, etc, etc will kill it.

If people want to buy a used car purely online they can and have been able to for many years. There are very good reasons why the vast majority of people dont.