Wife has had a letter from the Honda dealer who sold us her Jazz. They're offering Hondas (well Jazzs, Civics and CRVs) at cost price with the Honda invoice taped to the screen to prove it. Minor catch, you have to buy with one of 2 credit packages, though the rate on one is 1.9%, or a service package. Next weekend only. If they don't have what you want they will show you their cost price and allow you to order at that price.
As I said following the last offer, my money's staying where it is!
JH
Edited by JH on 16/11/2008 at 16:38
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What dealership is it - just so I can say to my local dealer tomorrow "Well, such and such dealership is offering this.." Just wish to ring them up and wind them up over their prices again. Got bored ringing them up and asking why their CRV prices are 5K more than another dealer 60 mins up the road.
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Am I allowed to say "Saunders in Chester"? Naming but not shaming.
JH
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Yes - unless you're sales there !
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Saunder's have a good reputation but we use TwoMills just up the road from them.
They emailed the other days offering Honda's at below cost price by way of a "Golden Ticket" (which I would be sure is just marketing rubbish).
www.twomillsoffers.co.uk/goldenticket/
I have no connection with them other than being a satisified customer.
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As a Honda CRV III owner I was somewhat surprised by a recent local BBC Points West news item which showed cars ex Swindon Honda, being parked at the disused RAF Wroughton airfield site, which is not far from Swindon.
Additionally, Honda issued a statement for the benefit of Wroughton villagers, indicating that they would restrict deliveries by car carrier to the airfield between certain hours (which I cannot recall) but were something like 07.30 to 1600 hours.
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Does the letter say whether the new model Jazz is included in the offer?
We are looking to buy one in the next month or so, and at the moment reductions and finance offers on the new style Jazz are thin on the ground, so it would be worth a trip up to Chester for me if they are included.
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Does the letter say whether the new model Jazz is included in the offer?
Be realistic! It's not.
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The heading above is a bit misleading
The offer is INVOICE PRICE, not the cost price!
The difference might be a £20K bonus for shifting 10/12 old model Jazz or the garage bought 5 and got the 6th free.............
If a deal looks good then there might still be a deal to get it for less than the INVOICED PRICE!
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>> Does the letter say whether the new model Jazz is included in the offer? >> Be realistic! It's not.
I realise I was being optimistic. Just thought the line "If they don't have what you want they will show you their cost price and allow you to order at that price." in JH's original post might give me some hope.
I will just keep waiting for the start of December when the current Honda offers end in the hope they do something for the new Jazz - the pay half then 1.9% APR offer that was on the old Jazz would do me if they move that across to the new one when the deal runs out.
Edited by pennepacker on 17/11/2008 at 10:43
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Dealers pay a "cost price" then get large bonus's for meeting sales targets
When we bought our new model Subaru five years ago I think we paid "cost price" which was about £500 less than retail price.
I wouldn't get too excited ;)
MVP
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Minor catch you have to buy with one of 2 credit packages though the rate on one is 1.9% or a service package.
I got the letter from Saunders this morning.
You've misread it - there's no suggestion of any requirement to take a credit package and, if you don't and therefore choose the servicing package instead, then that's free.
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To be frank, some of the 12 month old low mileage CRVs I am seeing for 15K make this 'offer' look pricey.
At the end of the day you are going to lose more than 5K on the new prices in a year anyhow and this may accelerate in the credit crunch of 2009.
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I have had this offer a number of times from both Honda and Toyota.
In today's market I reckon you might get even more off on the basis that they sell more cars and get a bonus to make up the loss. At least they are shifting stock that way.
The dealer also makes money on the finance commission and it's an opportunity to rip you off with supagaurd and accessories.
I am always suspicious of what they declare as their costs as well.
Edited by Pendlebury on 17/11/2008 at 18:54
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I had a similar 'flyer' from a local VW dealer earlier this year. I think the truth of the matter is that most dealers make a lot of their 'profit' from volume bonuses. So cars can be sold at manufacturer's invoice price, but the profit follows later.
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I think qxman is right - to hit the sales target whicj triggers a bonus they can be better off losing money on a few car sales.
If anyone saw Top Gear last night - there was a very large field full of Land Rovers unsold so some bargains to be had down the line. And on the transport museum thread it mentions the location of the vulcan is closed because of all the cars parked there!
Very sadly I have to say I (personally) think there will be some bargains out there but the effect on these businesses will take some time to recover from... assuming they do.
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Here's how targets and bonuses work in my experience, if on a smallish scale. I may be slightly out on the figures after all the years.
Many years ago I worked in a petrol station one summer. We were paid commission on sales of bits and pices but the biggest earner was oil. IIRC the commission began at 6d per gallon but went up in stages through 1 shilling, then 1/6 to 2 shillings. But that was two shillings on EVERY gallon we'd sold in the month.
Didn't take an Einstein to work out that when we got near the 2 bob a gallon point we had to make sure we sold the oil to make the money. So what we did was to unofficially discount the oil. IIRC it was 10/6 a gallon and when the 2 bob point approached we'd discount by a shilling to 9/6 to sell the stuff.
There was a banner about the size of a small car saying it was 10/6, so the punters buying at 9/6 were happy and me and all the other lads on the pumps were happy too when the commission came in.
Course we had to put the extra shilling in the till ourselves but the difference between, say, 3d and 2 bob made it worthwhile.
I imagine it's something similar with motor cars.
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Optimist - you have lost me - I cannot work our whether your were saving money, losing money or what ?
What did bob do in all this, why is it all in 2d and not 3d and how can you have 9 sixths ?
Edited by Pendlebury on 18/11/2008 at 17:43
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Making money - in a fairly small way but quite substantial if you were pumping gas (as they say) for a bit of a living.
Bob was crucial to the whole plan. Better still was two bob. Then there was two and a kick. And what about half a bar? Or even a tanner? We still have thruppeny bits in rhyming slang.
Oh dear. I knew the whole education system had failed when "nelsons" was causing a problem the other day.
I should, however, like to make it clear that all procedures were correctly followed.
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