Mercedes Benz UK bans dealer haggling!

Mercedes Benz UK bans dealer haggling!

Author
Discussion

Dinoboy

2,508 posts

218 months

Friday 9th December 2022
quotequote all
Stuart70 said:
CheesecakeRunner said:
fk haggling. I’m not buying a carpet in an Arabian souk. I just want to know how much it costs, and that I’m paying the same price as anyone else buying it. If I can afford it, and I want it, I’ll buy it. Buying my Tesla was the most pleasant and painless car purchase experience I’ve ever had.
And how much did you overpay as a result?

Given pressure is on demand side, then it is a sellers’ market for new cars, particularly EVs.
That makes it easier for the supply side to firm pricing.

When the market shifts, oversupply will mean price negotiation will be back on the table.

‘Twas ever thus…
This exactly, my dad bought his brand new pre registered 740i M sport in 2020 for £46k!!!!
Similar cars on autotrader aren't much less now with 10-15k miles.

123DWA

1,298 posts

104 months

Friday 9th December 2022
quotequote all
RicksAlfas said:
A big part of it is people searching online for a car "up to £20,000".
Dealers can no longer advertise a car at £20,500 with £500 of haggle built in as it won't come up in the search.
Dealers stopped doing that 15-20yrs ago. These days £500 could be the difference between your car being on page 1 of auto trader or page 4 where nobody looks!

Thats What She Said

1,153 posts

89 months

Friday 9th December 2022
quotequote all
If more and more car manufacturers opt for this business model, where does that leave the likes of Carwow? Will they just focus on the second hand car market?

mikey P 500

1,240 posts

188 months

Friday 9th December 2022
quotequote all
Seems a fairly good idea to me, I like knowing I paid the same price as others not left wondering if I could have bought same item for less. If it cuts out people like carwow etc then hopefully average price will also be at least the average as these companies can't also then be making money for doing very little.

DodgyGeezer

40,577 posts

191 months

Friday 9th December 2022
quotequote all
the question is though if large organisations buy (for example) 500 cars at a time then they'll expect a volume discount - and that is what Carwow base their business model on surely?

The Rotrex Kid

30,353 posts

161 months

Friday 9th December 2022
quotequote all
DodgyGeezer said:
the question is though if large organisations buy (for example) 500 cars at a time then they'll expect a volume discount - and that is what Carwow base their business model on surely?
Carwow don’t buy cars at all. They just put Joe Public in touch with the dealers who will do the most discount and charge the dealer for the transaction.

But yes, there will still be fleet deals for Enterprise, Eurocar and Motability etc, but these are dealt with at manufacturer level anyway, not by dealers.

secret_stu

55 posts

41 months

Friday 9th December 2022
quotequote all
I wonder whether dealers will pre-register cars as a way around it? Once classed as a used car, the dealer would have discretion on pricing.

The Rotrex Kid

30,353 posts

161 months

Friday 9th December 2022
quotequote all
secret_stu said:
I wonder whether dealers will pre-register cars as a way around it? Once classed as a used car, the dealer would have discretion on pricing.
No real benefit to doing so. You only get paid the £500 (or whatever) handling fee, no other support so selling for any less money just loses you cash.

This is assuming there aren’t any target incentives etc, the talk is they won’t be.

akadk

1,499 posts

180 months

Friday 9th December 2022
quotequote all
secret_stu said:
I wonder whether dealers will pre-register cars as a way around it? Once classed as a used car, the dealer would have discretion on pricing.
They are no longer their cars to register

loskie

5,262 posts

121 months

Friday 9th December 2022
quotequote all
I wonder what the legality is of this. Is price fixing legal? Or is that against competition rules?

Panamax

4,089 posts

35 months

Friday 9th December 2022
quotequote all
"Discount" is irrelevant. All that matters is "what you get for what you pay".

Do people go into Tesco and haggle at the checkout over the price of a joint of beef? No, if they don't like the price they go to Lidl instead.

Same with cars.

LF5335

6,024 posts

44 months

Friday 9th December 2022
quotequote all
Portofino said:
LF5335 said:
Portofino said:
Reads suspiciously like price fixing to me.
Not sure you know what price fixing is. It certainly isn’t someone fixing a price for a product, otherwise every business in the world is guilty of it all the time with everything they sell. Think of how many crimes Sainsbury’s or Tesco must commit on a daily basis if it were.
Supermarkets need to be competitive with the branded goods & even with non branded to an extent otherwise people will shop elsewhere.

Mercedes will be telling the dealers the price across the network, no internet deals, no offers, no geographical differences etc. thus removing the supply & demand led price set by the free market.

Sounds like price fixing to me.
Nope. It is absolutely not price fixing. Any manufacturer can set a price for their product and say it can only be sold at that price. The problem comes when people choose to buy a competitors offering instead.

Price fixing is when a couple of competitors get together and set the price for the whole market and remove all competition. Mercedes do not control a market. They control a their product within a market. You can still go and buy a BMW, an Audi, a Porsche a Skoda and so on and negotiate a price if you want to. If you absolutely want a Mercedes then you are limiting yourself, but you go in knowing the price and that there’s no wiggle room.

Tesco set all their prices, it’s clear on the shelf. You can’t go to the checkout and negotiate, it’s a fixed price. If you want to negotiate then you have to shop elsewhere,although I’ve no idea where as it’s not a Turkish bazaar. Ditto when you buy fuel and so on.

Panamax

4,089 posts

35 months

Friday 9th December 2022
quotequote all
LF5335 said:
Any manufacturer can set a price for their product and say it can only be sold at that price.
No, they can't.

LF5335

6,024 posts

44 months

Friday 9th December 2022
quotequote all
Panamax said:
No, they can't.
They can. Whether it gets listened to by the retailer is another thing.

Dingu

3,805 posts

31 months

Friday 9th December 2022
quotequote all
loskie said:
I wonder what the legality is of this. Is price fixing legal? Or is that against competition rules?
Surely it’s no more price fixing than visiting a Tesco.

Chozza

808 posts

153 months

Friday 9th December 2022
quotequote all
The email only appears to apply to the channels they have defined. Carwow and the like could be treated as a different channel ( often the dealer response is from the business/fleet sales department rather than the retail side)

Reckon a carwow query on the 4th would still get a range of offers from dealers

akadk

1,499 posts

180 months

Friday 9th December 2022
quotequote all
Chozza said:
The email only appears to apply to the channels they have defined. Carwow and the like could be treated as a different channel ( often the dealer response is from the business/fleet sales department rather than the retail side)

Reckon a carwow query on the 4th would still get a range of offers from dealers
Nope.

Dealers do not own the cars.

akadk

1,499 posts

180 months

Friday 9th December 2022
quotequote all
Panamax said:
LF5335 said:
Any manufacturer can set a price for their product and say it can only be sold at that price.
No, they can't.
Yes they can if the manufacturer is the one selling the good.

You are not buying from the dealer any more. They just hand it over

1690cc

82 posts

17 months

Friday 9th December 2022
quotequote all
The price may be set but there is still a deal to be done.

On a car they are struggling to move it might be some services, or a few dealer fit options etc.
At the moment it might only be a tank of fuel and an umbrella but there is always something.
I'm too tight not want to ensure I've milked everything I can from any buying situation.
I don't want a Tesla as I like ICE and would loath it but I am sure there is some way to get a better deal than the last guy.
It doesn't need to be a confrontation, I've been a salesman all my life and a fun bit of negotiation is great.

kevinon

816 posts

61 months

Friday 9th December 2022
quotequote all
Although it's panto season, many car buyers hate the panto of having the sales person go through a spiel and maybe even pretend to get a 'discount' OK'd by the boss.

The whole thing is a colossal waste of time, for most people.