Have to say Audi UK offered me the SQ5 for a weekend test drive when I requested but I cancelled it as a had already bought one the day after emailing.
New SL not selling - Massive discounts
Have to say Audi UK offered me the SQ5 for a weekend test drive when I requested but I cancelled it as a had already bought one the day after emailing.
leef44
Active Member
D
Deleted member 6183
Guest
While dealer margins might be reducing in some ways their profits must be through the roof when you take into account income from finance plus the fact that new cars are selling in higher numbers than ever.
Dealers have taken to diversification with enthusiasm, profitable products like paint/tyre/upholstery protection are heavily promoted.
Large volume sales mean that the service department is kept very (profitably) busy.
In this light I think that it's fair to expect the trade to make moves to try and keep their customers happy, nothing would make me happier than to think that I wasn't getting stitched up when I try and get a part-ex value from them.
Dealers have taken to diversification with enthusiasm, profitable products like paint/tyre/upholstery protection are heavily promoted.
Large volume sales mean that the service department is kept very (profitably) busy.
In this light I think that it's fair to expect the trade to make moves to try and keep their customers happy, nothing would make me happier than to think that I wasn't getting stitched up when I try and get a part-ex value from them.
- Joined
- May 17, 2010
- Messages
- 3,557
- Car
- S65, CLK5.6TT (WIP) & RRS 5.0 SC
Given all the above it saddens me when I hear people putting me in the same tarnished pot as the stereotype LR owner. We're not all the same either.
D
Deleted member 113659
Guest
- Joined
- May 17, 2010
- Messages
- 3,557
- Car
- S65, CLK5.6TT (WIP) & RRS 5.0 SC
I know that, it was a lil private joke between Stu & I.
Ant.
Ahhhh, that joke... Okay then
PenelopePitstop
Active Member
More and more cars is coming through fleet departments or sold to Finance Houses, so not a lot of margin on theses sales.
If you look at latest stats, you will notice that private sales when down and fleet went up.
D
Deleted member 6183
Guest
The first paragraph is pretty much where I am coming from on this subject.
All industries are changing, online competition is squeezing margins for all types of sales and this is why nearly every industry is showing signs of change.
Amazon is killing off the high street, just go into any normal town centre and see what it's like, it's horrible to see all the scuffers hanging about outside Greggs spitting and smoking.
Banks and building societies are moving away from traditional retail, branches have very few staff and a lot of technology, don't bother trying to get regulated investment advice it largely doesn't exist through this sales channel.
Estate agents are evolving with the likes of Purple Bricks and so on.
I've been at conferences where credible business advisers have predicted that the high street will simply cease to exist in the future, they did say 10 years but that's probably a little hysterical.
Back to car retailing. It's accepted that many more consumers now buy via lease or other, formerly niche lending, products. This is very often arranged through a lender independently from MB who have the buying power to negotiate keener discounts.
Where does this leave the poor consumer who, mistakenly, feels compelled to deal directly with a large brand dealer?
In a pretty poor place it seems, little buying power to negotiate a big discount, just one lender if they need finance (who doesn't these days when cars cost £30k or more?) which results in offensive rates of interest being offered to the less savvy buyer and to cap it off an insulting part ex value.
Is it any wonder that the leasing brokers are cleaning up and the dealers need to cream off as much profit as possible from the unwary retail punter?
By the way this is not a pop at those who sell the cars as they are in the same pool as the customer in my eyes.
carnut
Active Member
It would be interesting if they brought back Retail Price maintenance on cars...the price advertised is the price you pay. No discounts
I bet there would be drastic changes in the retail price across all manufacturers, especially the Premium brands
Of course its only a theoretical idea
I bet there would be drastic changes in the retail price across all manufacturers, especially the Premium brands
Of course its only a theoretical idea
Dryce
Hardcore MB Enthusiast
- Joined
- May 17, 2006
- Messages
- 11,534
- Car
- GLE
So the wheeling and dealing would simply refocus on the tradein value or finance or extras or special editions ..... hang on a mo ..... doesn't that happen already?
A major instrument of change these days is the likes of Webuyanycar - where there is a sort of commoditised service for used cars to be processed outside or in parallel to the main dealers (who themselves may use the same route for some tradeins).
I suspect that the focus will gradually move further towards leasing/rental over the next decade or two.
Dryce
Hardcore MB Enthusiast
- Joined
- May 17, 2006
- Messages
- 11,534
- Car
- GLE
The high street is also being killed by congestion and eco-policies that end up making it unecessariy inconvenient to actually travel in to an urban centre, park, shop, go home with goods.
What's happening also isn't just down to the internet. One of the shifts that was already happening was that things like electricals were becoming homogenised. So you get big electrical retailers basically stocking the same (but sometimes not quite the exact same) products.
There is another factor. What I call 'the good stuff' - ie. distinct or better products just were or are often not available on the high street. This started 20+ years ago. It still happens. If I want to buy say a laptop or a printer or a camera or a watch or whatever chances are the model I want won't actually be stocked. Mail order used to be the solution - it still is but now we call it the internet and it's more convenient and more widely used.
SWMBO still likes going out shopping but I find it a waste of time. It doesn't really matter whether it's a retail park or urban centre - I just can't be bothered - my comment to her is that apart from the very occasional need to buy clothes I have no interest - it's hard to spend even an hour without getting really bored. And even with clothing - I buy my shoes over the net because of that 'good stuff' aspect where the ones I want invariably won't be on sale at the local stockists.
Cars are not much different to me. I find most sales staff a hindrance - and if I encounter good ones then if I go back in a year or two they will have moved on. My previous car was bought from a different branch than we had planned because the no-nonsense sales manager we dealt with previously had moved there so we followed him to his new branch. Now he and his team have moved on to a completely different brands.
D
Deleted member 6183
Guest
Without wanting to sound like I have a bee in my bonnet about part ex values I just don't understand the dealer logic over this. They will rarely want to retail my part-ex due to age or service history or whatever so I look at their car with a view to buy:
'Is there a p/ex sir'
Yes
'Can't offer discount for p/ex'
OK, how much to change?
'Hang on, I'll phone around a few traders and underwrite your car'
If you have to, so how much to change?
'Well, I can only get trade price on yours so take that from full sticker price on ours and there we are'
So, the dealer has it both ways, no detriment to them by offering a p/ex service but full asking price on theirs. No thanks.
'Is there a p/ex sir'
Yes
'Can't offer discount for p/ex'
OK, how much to change?
'Hang on, I'll phone around a few traders and underwrite your car'
If you have to, so how much to change?
'Well, I can only get trade price on yours so take that from full sticker price on ours and there we are'
So, the dealer has it both ways, no detriment to them by offering a p/ex service but full asking price on theirs. No thanks.
