Dealer pricing strategy.

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Wdf76
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Joined: Tue Feb 11, 2020 3:44 pm

Post by Wdf76 »

This week I have been talking to a dealer about a particular car they have on their forecourt that I am interested in (dealer & car not important).

After a conversation and supplying proof of a 'we buy any car' trade figure I left said dealer to get back to me.

I make things easy for sales staff, I know exactly what car I want and what spec, there's no spiel, no additional needs and therefore no need to blow smoke up my backside. All they have to work out is how I'm going to pay for it.

A couple of days went by and I hadn't heard anything. I thought I'd call and chase up, which is unlike me. The conversation was awkward and led me to believe that I wouldn't want to buy a car from them anyway. They were £500 quid short on the trade value covering my outstanding. Not so bad I thought especially after 16mts into my PCP deal on a Ford.

I asked what their deposit contribution was, or what they could knock off the car I was interested in, my thinking being £500 off gets me a level playing field. Nothing, ziclh, zip, zero was the reply. The screen price is the price on nearly new vehicles now they said, It's a legal requirement and trading regulation I was told. End of conversation. Ciao I said.

So, is this the new norm? No more negotiating/haggling etc. Have all dealers now moved to the cinch, cazoo model where the price is the price.

If so, I need to change tactics. Advice appreciated.

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NeilS
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Post by NeilS »

I’d imagine that they would also want to charge that wonderful “admin” fee too?

That’s something I refuse to pay. If the price on the screen is the price you pay with no haggling ( as they informed you) then I don’t see how dealers can add a mysterious fee on top.

Either add it to the face value price and say nothing, or remove it altogether.

When I’m informed that an admin fee is payable my response is that I also charge a fee to purchase, and then promptly walk out.

There’s no deals to had anymore for a straight cash deal with no part ex - I tried that with my Puma. There was more incentive to take out their finance and was told that I could pay it off in full the day after. Obviously there’s a dealer kick back from the finance company.
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Deleted User 361

Post by Deleted User 361 »

I don’t believe there’s any legal regulation about this

But dealers do seem to be moving to the no haggle business model now
STer
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Post by STer »

You don't need to change tactics. You walked away when you smelt a rat. In fact, I personally wouldn't have chased them up in the first place, but can understand why many do. I wouldn't be surprised if it's a sales 'tactic' (them not getting back), give the wolf a bite and keep him hungry etc etc.


You commented 'I make things easy for sales staff, I know exactly what car I want and what spec, there's no spiel, no additional needs '

In fact, by doing that (correct) thing, you DON'T make it easy for them, as easy for them is clueless Jill walking in and saying 'hi, I've got £350 a month, can you pick me a car. That red one looks nice. What's that?' lol


It's not necessary 'no haggle' everywhere by default, but a mixture of the current climate with inflated prices, plus supply and demand. If car X had been on the forecourt for X months and the interest had tailed, I wonder if 'no haggle' would apply then lol
About 6 years ago I went to look at a Swift Sport. Been waiting for one at the right price to come along. Scouring AutoTrader daily etc. Anyway, one pops up, nearby and off I went. They were doing the prep photos when I arrived it was that fresh in. 'Salesman' wouldn't do jack on haggling, and I only tried to get £200 off (or £200 more for my part X, pick your poison). Anyway, checking on AutoTrader, he eventually sells it.. about 9 MONTHS on... for over £2K LESS than I offered him ;) Smugness is best served up hot.

Keep up the good work bud and never let them take you alive :)
Last edited by STer on Wed Jun 23, 2021 3:12 pm, edited 7 times in total.
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Sparks
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Post by Sparks »

You did right to walk away....I doubt that there is any legal requirement or trading regulation. If there is then every second hand car dealership is in real trouble.
Surprising how they would be allowed to sell a new car for less than the MRP (screen figure), but, not a used one.
IMO the chap you dealt with is an out and out liar.....
Make them an offer then leave them with it. Then look around for another one at another dealers.
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Rizmo
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Post by Rizmo »

Maybe it's a new dealer cartel in full swing.
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manc
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Post by manc »

Hi, I think whilst everyone was in lockdown, the dealers were offering great deals to get rid of existing stock, a lot were putting new cars on autotrader to shift the stock in the showroom ( we saw ours there just before lockdown ended and was just over 3K off normal price with all extras) . Now lockdown has ended and there are problems with builds (lack of chips for cars) the price of nearly new and new cars have shot up. They don't have to work so hard to sell. I have noticed even the new cars on autotrader have shot up in price and not as good a deal as a few months ago
I am sure that will change in the coming months if more stock arrives
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manc
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Post by manc »

We even managed to get them to throw in a full tank of fuel and boot tray as well as 0% finance on half the price, if we wanted it, not sure if that would be the case at present
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Mike
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Post by Mike »

Dealers get a kick back on finance.
If they won’t budge on the new car price I guess the only thing to haggle over is trade in price and extras.
When I bought my last car I put a deposit down on a bmw but wanted to see service history etc before completing the deal, dealer messed me about and finally they said if I didn’t collect the car by the Friday the price on my trade in would drop because it was into the next month and so was older, I pointed out to them that their car would also be older and since it was worth more I guessed the price would drop more than mine which I think took them by surprise. In the end they didn’t produce the service history so I got my deposit back and went elsewhere.
And car sales people wonder why they have a bad reputation.

Same sort of thing for the puma , agreed a deal with one dealer, went to sign and they suddenly knocked 400 off my trade in which I was getting as cash back. Walked out rang another garage said what deal I was originally getting which they matched and so they got the business.

in the past dealers have said that they cannot drop more than 100/200 off a car, then they have a sale and the price drops by 1500,
You did the right thing and walked out.
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