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This might be in Consumerwatch, but it's more a discussion than advice.
My local car dealer, a fairly big local franchise, has announced a massive fall in profits last year, just I am about to order a new car.
Now, is this likely to work in my favour, as they will be keen to get all the sales they can, or will it work against me in that they will be keen to wring every last pound of profit from the deal?
The danger is always getting 'comfortable' in the showroom and being 'pressured' by the ambience and sales techniques, or giving off the vibes of "I really do want this".
Decide what figure you want to offer, then, be prepared to 'make your play and walk away'.
They will contact you if they want to deal, and at present they will want a deal.
Enjoy, you hold all the cards at the moment!
[My local car dealer] If you have the make and model of the car you require shop around on the Internet and you will usually find that you can save a few Thousand pounds by buying elsewhere. When I was looking for a new van I went to the dealers showroom and it was priced about £10.750 for the basic model and shopping around I got the same model with extra add-ons for £4.000 cheaper. Now that was about 7 years ago and I would do the same if looking for other transport.
There are a lot of factors that determine what if any discount you can wring out of a car dealer.
Visiting numerous dealers is a time consuming process that will wear you down.
I'd get quotes from internet brokers, who often arrange supply via a local dealer and then visit your preferred dealer armed with the best price obtainable and start from there. You may be happy to pay a little more for the relationship, but you know how much it's costing you.
Also don't use phrases like, need this, want to change, hoping for this. It puts the positive in the dealers court.
Stick to, thinking of, might change, could if the the deal is right. They leave the dealer working against a negative vibe.
Regarding getting the best deal, then it would all depend on the discounts the dealer is getting from the manufacturer, and what they can pass on to the customer. Most dealers will keep that 'little bit more' back for themselves, if they can.
The deal would also have to take into account how a finance package is arranged. We have dealers in our location who are offering an extra £1000/£2000 discount on a part exchange, if the vehicle can be driven, pushed or towed in, providing it as a current MOT. Which sounds very similar to the previous 'get the old car off the road' scheme.
Then there would be the possibility of a Mobility vehicle arrangement, and the procedures for obtaining a vehicle on the scheme, with profit margins of supplying something special.
But looking back over time, when as a vehicle dealer, franchise or otherwise, never moaned about loss of profits, especially when other peoples belts are becoming tighter, when looking for that 'must have' bargain replacement latest model?.
Apparently, most vehicles on the roads nowadays are leased, manufacturer or company owned. Car auctions of yesterday are in the past, and a visit to such a place would be an experience as to prices obtained today, for that nearly new car with perhaps higher mileage. Most of these new auction sites, make it into a 'family day' with free meals and drinks on offer. So someone must be attracting the spending public and making a profit?.
Just remember you're the one in charge.
Never mention what you have to spend because they will find a car for that price, set your maximum amount, decide what "extra's" you want, and be prepared to walk away. If they want you're business badly enough you'd be surprised what you could get, and remember to let them do the work, seeing as they're the ones with the monthly targets, and not you.
I think you're all missing the point.
This one individual car dealer has suffered a massive fall in profits.
Is this likely to work in my favour or not?
Is he likely to be more desperate for sales or profit?
I understood the questions, but the only person that can answer is yourself, after you've tried and seen what he'll offer you, which is why I wrote what I did. If you're aware that the business is looking really that bad, do you want to buy a car from somewhere that could be shut soon? Because it does happen. Also, you haven't mentioned if there is a part ex in the equation?
My Son just brought a new German car. He visited 3 main dealers for the same car playing them against each other, another trick he informed me of is he called all the garages and asked when he could visit the sales manager and noted the days he was not available, he then visited on those days so they had to call him on his day off or the salesman had to decide for themselves what price. Then after he got a deal I would have been very happy with he informed them that it would cost more to insure the new car than the old model so he got the difference on that also. It’s defiantly a buyer’s market at the moment and for sure they still made something out of it.
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