Dealer tricks and PX questions

[marting]

Hi guys,

I'm currently in the process of buying my first new car after owning used for a number of years.

After a number of test drives of various brands/models (small hatchbacks, sadly), I've decided on the car and have begun negotiations with the dealer. I'm not in too much of a rush to buy, but I'd like to PX my old car to take the hassle out of a private sale.

The dealer that I'd like to buy from has given me a figure for my PX that is slightly lower than other figures I've been given. I've pointed this out to the dealer and they've agreed to match the competitors figure by reducing the base price but not increasing the PX figure. Why would they do this? Is it simply that the dealer will make more profit/it will look better on the books? Something smells fishy...

Is there anything else to watch out for? The dealer wont put anything in writing yet, so I'm interested to see what they present when they think they've got the deal in the bag.

Cheers,
Martin

[LHD]

It's more VAT efficient to discount the new car than to over allow on your P/X.

Don't get hung up on P/X value, just look at cost to change.

[miniman]

All you really need to look at is the cost to change - it doesn't really matter whether they discount the new car or nudge up the p/x value if the result is the same, does it? The p/x has probably been underwritten by another trader and your dealer doesn't want to pay more than that number.

[crankedup]

Which ever way the dealer wants to cut it is fine, you should just be interested in the bottom line, in your case how much is my new car costing me from dealer X after trading my old car with him.

[marting]

Ah i see, that makes sense now. They did mention something about VAT but I wasn't sure.

Will dealers ever let you sell privately after agreeing to PX? By this I mean, could I potentially get the offered discount but benefit by getting the retail price of my old car? Perhaps this sounds underhand, but I imagine the car wont make them any profit and will end up going to auction.

[waterwonder]

It can be for VAT reasons or simply because they don't want to over value thier used or auction stock. Often dealers will do it the other way round over value a px in order to get the deal but invoice at a lower price with greater discount when you pick the car up.

It also relatively common for purchasers not to end up part exchanging and it shouldn't change the figures. I.e you should just be able to bring cash of a equivalent amount to the part ex price. However I would recommend asking if this is an option before you agree to the deal so both parties know where they stand.

Do unto others....etc etc.

[LukeSi]

When we were getting the BMW it was the other way round, because BMW had set the lowest figure they would sell for the dealer knocked us another £250 off that figure and then rather than putting the sold the car for a lower price they said they bought the PX for a higher price.

[stuwalsh]

Just look at the difference to change...............i.e. your car = £XXXX. They will state the new car purchase price, and from that you can deduct the p/x price. get more you're in front, otherwise you've a guarenteed deal. Especially if your p/x is auction fodder!