sense at last. Didn't think about it being 13% and not 15% that goes to enforce my argument. The main thing with car pricing, as it has been for years is the RRP means nothing. Two people could buy identical cars and be charged a 20% difference in price so it most definately isn't an honourable trade but as said before that's what sales is about, not satisfying the customer but selling your product at the highest possible product.

Regarding price I tend to haggle on most higher value products I buy TV, white goods and hotel rooms, I try to be civilised and not offensive about it and still expect the retailer to make some profit. Sometimes I am successful sometimes not. But a fair bit of money can be saved.

www.honestjohn.co.uk/forum/post/index.htm?f=2&t=72268#fnew

This link may be of interest.

Edited 19 February, 200917 yr by loskie
Added link

It's not only Car Sales who will sell for the highest possible price, it's pretty much everyone. My wife works in Sales and she will asses the potential customer and essentially identify what she thinks she can get away with charging based on a number of factors, like most sales people she has a revenue target to meet and giving the stuff away doesn't pay the bills. It's also prevelent in your supermarkets, one will advertise an item for a bargain price (commonly termed a loss leader) and draw you in to do your weekly shop - do you think they play fair? No.

So in essence I don't think I've disagreed with your sentiments but what I'm trying to say is that please just try to apprecite that you've been offered an effective 15% discount on a new car without even having to haggle, if you can haggle further then all the better.

There is an old saying which I am sure you are more than aware of that goes something along the lines of - Never Look a Gift Horse ....................................

The link you posted doesn't really clarify anything it's just a few bitter tales about people not getting what they want.

Of course most salesmen have no allegiance to their customer, the customer is just there to facilitate him or her earning a wage and putting a roof over their head. Anyone who thinks differently is in a dream world. I'll use the supermarket example again, does ADSA respect you because you buy your potatoes off them - like hell they do, you just put money over the counter. Does Comet respect you when you wander in to buy your new washing machine - I think not.

That is the problem with people in this country, they often live in a dream world where everything is perfect and they can pay the minimum price whilst getting the best service. Much like those that buy from a car supermarket and then bleat about poor service from their local dealer when a warranty job needs doing.

As for the guy wanting to pay cash and gain a discount, deluded!! Cash is not king anymore, of course dealers want to sell finance they make commision, they sell GAP and Paint Protection to increase bonus - they are only human.

Sometimes I actually wish I was a car sales person, I probably wouldn't be very successful but I'd love to tell some of these clowns some home truths.

Stu, I think we're getting to the point where we agree. Yes peolpe are gullible, the media has led them to think that profit is a dirty word, of course it isn't it's what drives business and the economy. I have always winced when reports slate fuel companies, banks etc on the x billion £ profits they have made. The critisism is wholly unfounded especially when there is no reference to turnover in the articles.

I think Sliders original point was the useage of the term "VAT free" and he is quite right to question that.

Cheers

Graham

This thread is making me chuckle, a respected member (ok ... I mean Stu) post's up that there is a legitimate way to save 15% on what to most of us is the second most expensive purchase we will ever make, and then people are getting their knickers in a twist over the way that Skoda are providing the discount. 15% is 15% ........ get over it, who cares how it's worded if it saves you 15%?

There are more important things going on in people lives than arguing over the wording of an offer from Skoda ..... well I would hope there are

I wouldn't bother again Stu

They couldn't do that and that's kinda what loskie is saying, legally they cannot not charge the VAT but what they do is give you an discount which is effectively equivlent to the VAT on the purchase.

It's too early for me to think straight about this but I think there is a slight twist to the way it's done -

If for instance a car was priced at £10k and VAT @15% were charged it would cost £11500 inc. However if you discount a £10k car by 15% thus making it £8500 and then add the VAT it becomes £9775 inc so actually to keep the price at £10k they don't actually have to give you 15% discount but approximately 13% which makes the car just about £10k when the VAT is added which will have given you an effective 15% discount and hence my use of the word effective in my posts above.

The consumer sees an effective 15% which costs the manufacturer and dealer approximately 13% and the treasury 2%.

So as we've been saying if the consumer sees VAT free and thinks oooh nice, a 15% discount, it's better than advertising a 13% discount.

Thanks for that Stu, cleared that up, Actually looking at it I can't see them being allowed to do that as it's not a treasury thing, just a skoda thing....

13% is still 13% and like you say, if you haggle then even better, saves paying another say £1000+ to the dealer/skoda etc.

......lets hope this is now cleared up

If you look at Skodas "VAT free equivalent" pricelist HERE it clears up how the invoicing is done.