If it was the car model/variant/colour/spec etc I wanted I'd be happy to buy a new car for cost + £1. Where's the catch? Where, within the purchase price, would they getting more out of me than what I'm aware of?
--
L\'escargot.
|
|
It comes because its not as simple as buying the cars for (say) £10k and selling for £11k. The dealer might also get a £10k bonus back at the end of the month for every ten cars sold. In this example, they can afford to sell to you for £10k as long as they still hit the targets. Indeed, if they've sold 9 and the month end is close, you might get even better than £10k.
|
|
|
Where, within the purchase price, would they getting more out of me than what I'm aware of?
There are many layers in the cake. Most businesses, as in my own, generate invoices for products or services that are dependent in some way on other aspects of the business relationship. That is, what you see isn't always what you get. In the case of franchised car dealerships it could be: bonus payments for units shifted per unit time, largesse in the form of 'ex-management' cars, preference in new model allocation, improved warranty compensation - there are 101 different ways to gain (effective economic) advantage beyond the flat invoice price.
The VW 'promotion' on servicing reminds me of that sign beloved of jovial landlords a few years when they wished to discourage 'on the slate' requests: 'Credit offered to customers over 85, when accompanied by both parents'
|
Which independent in his/her right mind would give a written estimate fully knowing that it will be used to take business away from them and be given to VW.
Independents will already know about this offer and will react accordingly if they wish to stay in business.
Carse
|
We bought a brand new Mitsubishi Colt on a 'cost price plus £200 handling charge' in 2000. (Total was around £8k - a good deal at the time, but it just shows how much car prices seem to have fallen).
The manager showed us the invoice but readily admitted that his profit came from meeting the quarterly sales targets. I agree it is a bit misleading in that you are not really getting a car at cost, but if it gets you a better deal than elsewhere that seems okay to me.
|
If people are fool enough to swallow this then they don't deserve the wisdom of an independent. It is interesting that apart from BMW there are more independent specialist for VAG cars than any other make (I stand to be corrected)
The majority of these have gained experience in large numbers at VAG dealers and in the case of a local to me have a former workshop manager and two technicians in there building but here lies the difference they will use genuine or oem only and will fix you car based on the fact that if you are happy you will gow back.
Where as one VW garage I know has a daily target on servicing sales, part sales, air-con sales etc this all adds up to a £35K turnover target to meet. But the building they work out of did cost £4.5 million !!
Back to the independent who has 3 wage bills to meet and a lot lower overhead.
|
|
|
|
|
