Can anyone offer any guidance about how much lower a main dealer would be prepared to sell a used car than the the asking price?
Picking a random example, a VW dealer is offering an X-reg 1.8 SE Passat for around 9300 pounds. This is very similar to the amount quoted by the valuation service on the AA website as a dealer asking price for that model/age. The AA website gives a value about 1700 pounds lower as the maximum trade-in price that the dealer would pay for that car. Any idea how much of this margin a dealer would be prepared to lose (probably depends on several factors, but any general guidance would be appreciated...)?
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I understood it to be 15% but Someone may know better.
Simon T.
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I think it depends on too many things;
1) Is it a main dealer selling one of their own brands ?
2) is it an easily sellable car ?
3) Is the colour, condition, extras supportive of an easy sale ?
4) Do they have too many cars on the lot ?
5) Has it been a quiet/busy month ?
6) Did he do a good deal on whatever he traded it in against ?
7) What did he pay for it ?
And so on.
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Do you want to trade in a vehicle?
Sometimes these places offer silly trade ins to lure the public to their forecourts, but then load the screen prices accordingly. So, if the dealer hasn't got to get rid of a trade in, they may be more willing to negotiate. On the other hand if they're offering you £3000 for an E reg Mazda 323 (as one Plymouth dealer was advertising) snap their fingers off!
What are you prepared to pay for the car?
Do searches on the net and see what dealers around the country are offering. Also look at private ads. Reckon you can get about 500 off any advertised price and use that as your base. Use this info when you go in for the kill. In addition, reserch how much a new car would cost you if you imported it or bought it from one of these car supermarkets.
What time of the year is it?
These guys all have targets to meet and, apart from the handfull of lucky so and so's who will get cars for Christmas, things will be very quiet. I simply walked into PC World on the 19th of December and suggested they knocked off £100 from the price of a PC system to encourage me to buy it. To my astonishment it worked! Mind you that day was very quiet - 2 sales staff to every 3rd of a customer!
How long has the car been in their stock?
If its approaching 3 months, you are in a very strong position. They will be desparate to turn it over by then. We're talking a few quid above auction price and you get warranty, tax service and smile through gritted teeth from the sales manager - from personal experience I can tell you that would be a great feeling to start the new year! I bought my mum's old G reg Escort at 2 and a half years old for her this way. I paid about £150 above Glasses Guide for Auction from a main Dealer, I got 6 months RFL, 3 months Warranty and a full service. They were even polite to me when I joked I had a private buyer at £500 profit!
Are you desparate?
Do not let on if you are. The only way the price of that car will ever go is down!
Also Mark's point about whether it is a VW dealer offering that Passat, A Peugeot Dealer for example may value it lower to shift it of their forecourt, especially if it's taking up the Lion's share of the space ;-)!
Above all decide what you want, be flexable with model, trim and even make. There are some cracking deals out there. The problem is that most of them are posing as mediocre ones. For example, if a dealer is asking £9300 for your dream car, take it for a drive, find out when and why they got the car etc etc, position yourself well then offer £7500 or less if you're really cheeky. Be prepared to settle at around £8000??
See where that gets you.
All the best and happy new year!
Hugo
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Thanks for the info, this is v useful advice! The comment about the sales people having targets to meet is interesting - are the targets set on a per calendar month basis typically or do they sometimes cover some other period (eg quarter year?)
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Thanks for the info, this is v useful advice! The comment about the sales people having targets to meet is interesting - are the targets set on a per calendar month basis typically or do they sometimes cover some other period (eg quarter year?)
The dealerships I worked for have monthly targets. Obviously they are under pressure to turn over as much stock as they can. In addition, the salesman will be on some sort of commission and maybe a bonus if he exceesd his personal target or a bonus for the dealership if they exceed their targets.
When you first make contact with the dealer you'll find that the same salesman will deal with you until a sale is closed. This is because they 'own' the opportunity to sell to you. Most of their income is made up of sales commission, so the territory within the showroom is clearly defined.
It's pot luck whether or not you actually get on with the salesman and are able to strike up a banter with him. I find that there are salesmen and women that I can really get to work for me and are on my side, and others that I cannot make any progress with at all. Use the good opportunities, but don't waste too much time on the bad ones, unless they get you what they want.
H
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£37,933was £38,233Details
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£39,850was £41,250Details
