I got told by my local dealer that his profit margin is 8% on the basic car (New Octavia) but 0% on optional extras, does anyone know cos internet sites seem to give a % off on options?

Sounds about right to me, as I understand it factory options dont generate us any profit other than as a sweetner to sell a car.

I was told 8% at our dealers too.

When I worked at Vauxhall they had a huge 16% profit margin at the dealer, thats why so many staff got really good deals on cars though the Vauxhall partner sceme. The I left Vauxhall to start at Audi, my dad was after a new car and really liked the A4, dealer margin even on Audi is 7-8% so discounts over 5% are very very rare indeed.

I suppose I'd believe him then, and take his 7% he's offered me

think I got more than that off mine, I paid

Well, I've just ordered my Octy 2l tdi elegance with

my mate just got 25% of a new VW Golf (which is what they really make across all brands... and what you get if you are related to the DP)...

dealers always whine.. but they are the only one who make money...

Agree with ffelan on the dealer margins .....................if they really are on only 8% , then they are hardly likely to give away 7%.........I was always led to believe that dealer margins were 20-25% .

A lot can also depend on the rest of the deal, with regard as to how much discount you'll get.

Dealers can make money on finance pakages and your trade-in motor, if applicable - they may give you an extra few percent discount but undervalue your existing car.

Also, manufacturers often give bonuses to dealers for meeting sales targets; if it's close to the 'cut-off date' for the sales target and the dealer only needs to sell a couple more cars to get their bonus they may be more generous with the discount to clinch the sale.

Well, I think they get 8% on each car but can make up on sales bonus's and manufacturer incentive's which he knows if it happens before delivery I'll know about it so will pass on. I had no part-ex (he wouldn't take the risk cos of the high mileage!) and it's a straight cash deal. I know I could get better on the net but speaking face to face you know have a bit more confidence passing over a large amount on money.

My wife suggested offering him the trip to london that I gave to Paul ffelan (have they phoned you up at all about accom) a bit late I thought.

tis about 8%

8-10% they have to discount to "normal" custs... but they do make much more - it just tends to be fleets that get it..

Yes Loz they have spoken to me! cant wait!

The bigger discounts offered to fleet companies are usually provided by the manufacturer not the dealer and are subject to the fleet company running a minimum number of vehicles. Dealers are provided with a profit margin (of around 8%)and this does not change dependant upon the customer.

A discount of more than 8% means he is using some of his target bonus to 'buy' the deal - if he doesn't hit his target he will have lost money on the sale.

Towards Christmas drivethedeal.com quoted a price for a new Octy 1.9 TDI Elegance which I made 11.25 % off the price the delivery charge etc., etc. They have a long standing good reputation. They put you in touch with their supplying dealer to finalise the detail and most importantly you pay the supplying dealer.

Towards Christmas drivethedeal.com quoted a price for a new Octy 1.9 TDI Elegance which I made 11.25 % off the price the delivery charge etc., etc. They have a long standing good reputation. They put you in touch with their supplying dealer to finalise the detail and most importantly you pay the supplying dealer.

I checked out drivethedeal and used it to barter the price, before Xmas they were showing the