Dear all, anyone have any idea what a Skoda octavia VRS would be at cost price to the dealer?

 

I've been offered an 'appointment' at my local dealer who, apparently, have to get shot of a load of cars as the place is being refurbed.  The deal is the 'Cost price + £99' one.

 

Any ideas as it sounds good?

 

Thanks

Edited 5 June, 201412 yr by whurfc

Is that £99 above cost price or an extra £99/month on PCP?!

£99 above cost price apparently.  No mention of PCP.  It sounds great but what is cost price these days?

Can't help you with the price they pay but are they new and unregistered? If they are either pre registered or ex demo then you'd have to take that into account as they loose the VAT as soon as the wheels turn. Depends on what they want. IIRC you can get about 12% off with carefile or drive the deal on a brand spanker of your choice so might be worth bearing that in mind when you see what they are offering Good luck.

Sounds very tempting if you are after one as a factory order is 6-months+.......

15-20% below retail is my understanding...

Thanks for the replies. 

 

I guess the answer is to compare with carfile etc and see what they offer on the day.  Would be nice to have a rough idea as it might save a wasted trip.  Those order dates are a crime too.  How can they make you wait that long.  6 months lost before you even see it!

well I got a 22% discount, so start from that.

Not that I work for Skoda, but the Subaru dealership for which I currently work gets, for the most part, a 7.5% margin on new cars, plus a per-model ladder bonus depending on how many of that model we sell that quarter. On that basis, we only have (give or take) around a £1.75k margin in most models. Some are a little more, some a little less. 

However, economies of scale might suggest bigger margins for Skoda dealers: Skoda UK is shifting so many units, they can afford to give more to the dealers. Alternatively, one might suggest that because a Skoda dealer is shifting a hell of a lot more units than a niche market Subaru dealer, the margins can be much smaller, and they'll still make a lot more profit. 

Not saying anyone is right or wrong, because I don't know. But, that's how Subaru works...

 

I was told it was around 14% as a margin on a new car against retail, they usually have to give something away, but, sometimes they get people like on here and me, that can and have screwed as much as possible out of the deal, so they try to make the profit back with the part exchange, plus any kick backs from the manufacturer, however, the 14% I mention is what I was told, it could be a lot higher, or less, it also depends on what deals and offers are being offered by the manufacturer, this affects margins.

 

These 'cost plus £99' deals may sound great, but in my view, its to get you in, they will want to flog you anything and everything to go with the car to a make it back.

 

Personally, for me, I like to negotiate my deal regardless of offers and get to a price point that I am happy with and with a deal that I am happy with.

My understanding of 'cost price' or 'invoice cost' as the dealer will likely convey it to you, is what it states as the nominal value on the delivery invoice for that particular vehicle, which the dealer will likely be happy to show to you, however, this not what they will ultimately pay for it, their true cost (which you will never know) being additionally reduced by way of the manufacturer rebate they later receive based on their their overall sales volumes and target achievement within a specified period in accordance with their franchise or other agreement(s).

This I understand is also the reason for the flurry of sales promotions at certain times of the year when dealers are desperate to clear as many of the vehicles supplied within their agreements or as part of their 'enforced' or other quotas as possible, prior to their deadline, in order to achieve the maximum rebate level on the vehicles previously sold within that period. Hence it makes sense for them to clear as much stock as possible, rapidly, at seemingly 'giveaway' prices - such as 'cost + £99'.

I can't say what difference exists between the RRP and the 'cost price' or 'invoice cost' as this will vary from manufacturer to manufacturer, but I seem to recall having heard mention of a figure of 10-12% with certain VAG group vehicles.

As previously stated this is my understanding of the term, based on information given to me (some time ago) by a 'senior' employee of a franchised dealership, but which I have never otherwise sought to verify... so I do of course stand to be corrected!

I think everyone is focusing on the wrong question - it doesn't matter what the cost price of a new vRS is unless they've actually got one they're trying to shift on that 'offer'...

 

My guess is that they're trying to offload all their used cars at cost + £99.  They're not going to have a massive inventory of new cars in any case - no manufacturer who uses a build-to-order system is ever going to have lots of surplus stock, usually at most one of each model for use as a demo plus possibly one or two cars from cancelled orders.  And if they do have a vRS, I'd put money on it not being in the offer as the sales manager will be using it and will want to keep hold of it until they get another one through...

When I worked in the NHS we used to buy cars direct from Ford and it was a straightforward 25pc discount all the time - would assume dealers are the same if not more.

Drive the deal currently has the VRS hatch at £20,932 so it should be around that figure I'd guess (their supplying dealer will be making more than cost + £99). I've seen these sales before and they aren't what they appear. At a guess Id reckon the dealer has around 18% in a VRS with maybe 2-3% additional to gain by hitting targets and sales incentives from Skoda UK.

I think everyone is focusing on the wrong question - it doesn't matter what the cost price of a new vRS is unless they've actually got one they're trying to shift on that 'offer'...

My guess is that they're trying to offload all their used cars at cost + £99. They're not going to have a massive inventory of new cars in any case - no manufacturer who uses a build-to-order system is ever going to have lots of surplus stock, usually at most one of each model for use as a demo plus possibly one or two cars from cancelled orders. And if they do have a vRS, I'd put money on it not being in the offer as the sales manager will be using it and will want to keep hold of it until they get another one through...

This. I doubt they actually have a vRS for sale. Give them a ring and find out before making a wasted journey.

Agreed, likelihood given the relative scarcity of stock vRS's due to their known build delays highly unlikely they'll have one to offer......Elegance, SE or S maybe though.

I have been told the margin in Octavia's is 14%. That is on the base price of the car before VAT, road fund and the delivery charge are added.

 

If you are looking at getting the free servicing or 0% PCP then the dealer pays for that out of that 14% margin, 6.5% is about the best you will get on 0% PCP.

OP, let us know what their prices are, be nteresting to see if its a good sale or good salesmanship.