When, would you say is the best time to get a truly cracking deal on a car?
What cars are dealers desperate to get rid of and when may be the right time to capitalise?
Obviously the big, petrol engined stuff springs to mind.
Has anyone out there been to a dealer recently and bullied out a terrific bargain?
|
In Glasgow area, dealers don't seem to keen to haggle. It could be that we are limited in the number of big dealers we have. Yes they have reduced their p/x offers but most dealers when buying new say demand for the car is high or there's little profit in it for us!?! The only exception seems to be the usual basic cars without air con eg corsa life, panda active and the likes. However, prices are still bigger than England. Also noticed recently that their all trying to sell off used 4x4's but still not giving them away as the press claim... and that's a shame!!!
|
I meant higher than England...
|
If you were a dealer in hard times, what would you do - let every punter (not many of them mind) slash as much money off every deal. Or because there are few punters, the ones that do come in do you play it hard in the hope you can make a bit more out of the deal.....
Suppose it comes back to the old "a bird in the hand is worth two in the bush". Is it better to sell 10 cars at £200 profit each, or 5 cars at £10 profit each.
|
If you were a dealer in hard times what would you do
That may depend on your bankers. If they don't see any turnover, they'll be unhappy about you retaining a credit line.
It may be better to keep the business turning over without any markup on the stock than to have no trade at all.
|
I recently hired a car (from a dealership as opposed to Avis etc), and on returning the car to a drop off area, the field surrounding the portacabin was full of new cars and used cars going back several years. One can only assume that this dealer is using the space to stockpile cars rather than sell on at a reduced figure... which they can do considering the profit they have been making out of us for years!!! So it's about time they passed it on. People will start spending again if they believe they are getting a good deal, whether or not they 'need' to replace their car.
|
|
|
Is it better to sell 10 cars at £200 profit each or 5 cars at £10 profit each.
I'm not a car salesman, but I would think it's better to sell 10 cars at £200 profit each than 5 cars at £10 profit each.
Edited by L'escargot on 13/10/2008 at 08:33
|
>> Is it better to sell 10 cars at £200 profit each or >> 5 cars at £10 profit each. I'm not a car salesman but I would think it's better to sell 10 cars at £200 profit each than 5 cars at £10 profit each.
I used a bad example. What I probably meant to say was 10 cars at £200 profit, or 2 cars at £2k profit.
Are dealers going to be hanging out for a large profit on fewwer sales or are we now in a period where dealers will be happy to sell for virtually no or little profit just so they look busy.
Factor in servicing and warranty work and maybe selling more vehicle is the way to go, but I just wondered with cars that are popular at the moment (small, low tax etc) are dealers going to hold out for maximum profit?
|
New cars being no more than value added 'commodities' will fall in price sooner or later - probably with a mixure lower retail unit profit & lower wholesale cost to retailer. My impression is that some dealers are still in denial & playing hard-ball, but with sales staff standing around playing paper darts & those fixed costs still having to be paid, I think they'll realise that lower profit on higher turnover still equals profit.
|
You have to remember though that as their turnover of cars declines so does the extra profit they can make from buying more cars. (manufacturer turnover targets)
Therefore they will have to make more money per car short term to even survive.
No business can last long selling at a loss, so maximum profit per car, less expenses (salesmen) carried will be the way of the financially secure outfit. As for the lesss secure; well would you buy from them anyway, knowing they may be out of business with your money before you get your car?
If the deal is right buy it; if not dont. Its always been like that surely?
|
This credit crisis is going to get a whole lot worse before it gets better. A lot of car dealers who think they are safe and solvent today will find themselves out of business next year due to this liquidity crisis. I have just been reading on various financial websites that this mess is far from over and that loads of retailers will go bust in the coming year - car sales are a luxury that many will put off now that we are in a recession from now till the end of 2009 at least.
|
The transport situation in this country means that cars will still have to be bought. in lesser quantities most likely.
The fittest and secure dealers (with sense) will survive. Others wont. All that is agreed?
So who would you buy from? The answer to that will answer what price you will expect to pay?
There is nothing wrong in paying a fair price if you need/want a car. Not buying it may even cost more money long term?
|
|
|
I used a bad example. What I probably meant to say was 10 cars at £200 profit or 2 cars at £2k profit.
I'm not a dealer, but I should think that it must be better to make 4k than 2k.
|
|
|
|
|
|
Has anyone got a success story to share? What sort of deal did you get?
|
I got an 18% discount from a main dealer on my Renault Clio in May. I would expect nearer 20% now...
|
A scottish Motor Group (not the biggest) was on the radio earlier today.
All trade-ins for sale at the price they paid for the car.
Obviously the price they gave as a T/I included money from the new car sale so the deal is not necessarily cars for sale at the trade price!
|
Taggarts
New car £12,000 discount 10% for no T/I = £1200
Instead give £6000 as T/I (£4800 +£1200)
New buyer buys T/I for £6000
Dealer makes £1200 on 2nd hand sales and effectively sold new car at list less 10% Magic for the garage!
|
|
|
3 weeks ago my wife bought one of the run out Fiestas. It was a new 5 door 1.4L Zetec Blue with metallic paint and the electric and sports packs.
She paid £8560 for the car. I don't know if it was a good deal or not but it certainly seemed good value against the other cars on offer locally.
|
|
|