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What IS the Dealer's Profit...............

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........no trade in, Cash purchase, what does the dealer make. With the so called Credit Crunch dealer's should be giving them away.......SO how much can you actually buy a new car for. Not just Skoda but other makes............say a Renault Clio Sport 197 On the road £15995 " How much can you get it for ".......If the dealer only makes £50, It's £50 and a car sold, no one else will make that £50 and the chances are it will come back for servicing, so more money. A car sold is a car sold " what do you reckon.........."

It varies from day to day because they get additional promotional bonuses when they sell more cars. The other thing to bear in mind is that Manufacturers offer additional promotions for business customers (a straight 15% discount is common) and finally you have to factor in any profit they may make on a finance deal they sell you.

I reckon as a private buyer, you will be doing very well to get 10% off list, but I have got much better - I got 30% off a brand new, metallic brown (special order colour), poverty spec. Mercedes 230SLK that was a cancelled order bought on MB(UK) finance, so miracles are possible.

8% on a Skoda AFAIK, but that's 8% of the pre VAT and OTR price and not 8% of RRP. Then there are various registration bonus offers and incentives for certain models which can change monthly or quarterly.

I got an email from drive the deal today offering a brand new Dodge Avenger for 50% of list price :eek:

Not the greatest choice , but at that price.....

8% on a Skoda AFAIK, but that's 8% of the pre VAT and OTR price and not 8% of RRP. Then there are various registration bonus offers and incentives for certain models which can change monthly or quarterly.

I think its nearer 5% IIRC.

I got an email from drive the deal today offering a brand new Dodge Avenger for 50% of list price :eek:

Not the greatest choice , but at that price.....

I got that one too, some cheap cars. 170 CR VRs Octy Brand New (not pre reg) for £15.5K

To go back to the OP

I always try to get at least 10-11% discount on a new car, but at the moment, I imagine dealers will be getting manufacturer support in order to keep the metal rolling. Cash is once more King again, at least for a little while. The average car has 7-8% that the saleman can access and a few % more that the Sales Manager/Business Manager know about (often target driven) but don’t tell the salesmen who would give it all away if it meant a sale. Then there a productivity bonus that can vary and at the moment who knows what the Manufacturers are offering the Dealers. BMW was injecting hundreds of millions into its dealer network to help keep them afloat.

Also GAP and Superguard make profit. In fact sometimes a car can be sold for cost and the dealer is very happy with just the GAP/Superguard sale on it. I remember a Sales Manager saying he would be happy with around £500 profit per Nissan Micra sold new (several years ago).

its about 7 percent from list price, but as has been said thats off the basic price, before you add all the government rubbish. plus you cant discount factory addons either, they stay the same.

come on though, i know times are tough but would you sell a car, prep it, clean it, do all the paperwork, chase it through all the various stages from factory order to customer ready order for £50 DEALER profit?

if you got 10 percent as a sales guy, thats a £5 commision for selling someone the second biggest purchase they will ever buy. i used to get more selling a pay and go mobile phone!

but back to the OP as had been said you need to buddy upto your dealer and find out what has the best offer on at that time. ive got several people who will buy the car they want the moment skoda do a bit of extra support. the moment i rign them with the good news i know they will be leaving deposits. make sure you keep them on side and any good dealer or sales person will keep you happy!

happy bargin hunting!

and how much can you expect to get off haggling with them?

  • Author

If you look in some car mags you get the RRP say £12K and then the Aim To Pay Price which is say £10.5 K.......can you expect more off that price or is that it. As I said in the 1st Post dealers should be giving them away, a sale is a sale and another garage ain't going to get your custom..... Buy off garage A and Garage B looses out

and how much can you expect to get off haggling with them?

Don’t forget, you can buy an Octy II 17-CR VRs for £15.5K BRAND NEW at the moment!!!!!!!!!

Oh it seems that deal is no longer apparent………either DTD made a mistake or they have sold their allotted cars

EDIT....The deal still is there, it just isn't on the Specials page.

Wow :eek: they are now doing a 2.0 TDi Ambient for £12,200 (pre reg 57 plate but delivery miles only)

Edited by Lady Elanore
Update

I'm suprised this thread hasn't escalated like the other thread in Superb II forum.

Back on topic, I agree with woodspatulas. Like Dean said £50 profit from selling the second biggest purchase of customers life is not very fair I don't think, I wonder what estates agents earn.

  • Author
I'm suprised this thread hasn't escalated like the other thread in Superb II forum.

Back on topic, I agree with woodspatulas. Like Dean said £50 profit from selling the second biggest purchase of customers life is not very fair I don't think, I wonder what estates agents earn.

I do agree to a point of what your saying about profit but If you get my custom another garage looses out, If the service,customer relations etc are first class you would get my custom next time I need a new car, even if it meant a 500 mile round trip. In these financial times a car sold is a car sold. [so, whats my discount ;) ]

Whilst I do agree that a car sold is a car sold and I'm all for doing deals for the right people. But at the end of the day we are no different from any other business, and we course aim to make profit to keep ourselves in business.

But going back to your line 'a car sold is a car sold', at the moment I'd never turn any business away.

  • Author

Thanks for that........We may be in the market around, just after Xmas so I'll bear you in mind.

I wonder what estates agents earn.

At the moment , about four fifths of bugger all!

I'd say estate agents are about the only people making less than car salesmen! :rofl:

Is finance getting harder to come by? Presume thats where a lot of profit comes from?

Maybe people will understand that £20,000 cars aren't 'only £199 a month'

(with a 10k deposit, £500 first payment,£500 arrangement fee,£500 smiling at you fee,£199 for umpteen months then £25,000 final bunch of balloons payment)

Is finance getting harder to come by? Presume thats where a lot of profit comes from?

Maybe people will understand that £20,000 cars aren't 'only £199 a month'

(with a 10k deposit, £500 first payment,£500 arrangement fee,£500 smiling at you fee,£199 for umpteen months then £25,000 final bunch of balloons payment)

Mortgages are the only type of credit that has become hard to get.

Personal loans and car finance are still pretty easy to get , albeit at rates a few percent higher than they were six months back

I haven't found that people are getting declined on finance at all but I have found the rates have slowly crepted up over the last couple of months.

With the high rates dealers making money out of finance is pretty impossible, but I imagine the lenders enjoy it though...

I dare say no credit is harder to get, theyre just giving to the right people who can actually afford it for once. The previous system was unsustainable, giving mortgages to people who have made the effort to save for a deposit is just common sense IMHO. I would never dream of taking a 100% mortgage at 6 times my salary, or buying a car with payments i couldnt afford. People seem to have been under the impression that this is all easy money. And know they have got themselves into trouble they are asking what can you the bank do to help me.

Think the whole credit thing is the reason why there are just thousands of second hand cars around.I think the deals got a bit out of hand

To some extent I think it has ruined the market.Your trade in is worth hardly anything so people will probably hang on to their cars for longer.

I don't know.I do however see a really shaky car industry both on the new and used front (which I suspect will be battered a bit more with the VED stuff next year....nice of the government to kick everyone while they are down:()

I do think that people have forgotten that owning a car is a luxury and a privelige not afforded to everyone. Its not a compulsary thing that everyone should and must have, yes it is getting expensive, but cars get more expensive to make and they are fueled by an expendable resource. I work hard so that i can afford a nice car, one which is budgeted for monthly. People have seen the easily attainable credit available and bought cars that 6-12 months later they can no longer afford.

Becoming more choosey about who gets credit ie making the credit score required to get good rates higher, is a good thing. It is partly to blame for the mess we are in, that credit has been given away too lightly. Living within your means is an important life lesson, I have had the odd taste of exceeding it myself.

As for dealers making a lot of money, I always think, just look around you and see how many go bust and that is not just at present, but during the good times too. It is a tough business to remain successful in and I can’t imagine the Interweb brokers help at all. My old Sales Manager used to say, ‘how many cars gave ever been sold on the Interweb?..............I’ll tell you……………none!’ How I bet he regrets his short sightedness.

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