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dealer trying to pull leg on margins?

Discussion in 'Motors' started by Amleto, Oct 20, 2018.

  1. Amleto


    Joined: Feb 13, 2003

    Posts: 6,144

    Was at a Think Ford dealer looking at new shape fiestas and the salesman got round to saying how they rely on selling volume as opposed to high profit margin, so there's only a few hundred quid max to haggle over. However looking at honest john's used prices there's several thousand pounds difference between part-ex price and re-sale price!

    So did he just get an early negotiating shot it, or is there really not much room to negotiate on price these days?

    It doesn't help my position that wife is leaning towards an auto, which are pretty rare.
  2. Maccapacca


    Joined: Apr 13, 2010

    Posts: 16,847

    Location: Sunny Sussex

    You won't get much off a fiesta. Plenty of people walk in and buy them at screen price.
  3. matthab


    Joined: Apr 19, 2009

    Posts: 3,155

    There are small margins on the every day brands like fords/renault/skoda etc. In the prestige market there is more room to haggle.

    If it was me I would haggle free servicing packages or longer warranty.
  4. WoodyUK


    Joined: Dec 29, 2009

    Posts: 6,397

    Location: Warwickshire

    Get on Broadspeed, Carwow and the like for a proper idea of the very bottom price.
  5. vertica

    Wise Guy

    Joined: Apr 21, 2008

    Posts: 1,075

    Location: By the river

    Now factor in their overheads: keeping the premises open; paying the admin staff to sort the paperwork; paying the salesman's wages; paying the mechanics to service/MOT; cost of any parts, tyres, consumables etc. to get it to approved used level; any depreciation whilst sat on the forecourt ageing; the list goes on! Oh and don't forget about paying the Saturday boy to scratch wash it with a dirty sponge. :p

    There will be a margin, but it wont be the gap between the part-ex and sticker prices.
  6. Maccapacca


    Joined: Apr 13, 2010

    Posts: 16,847

    Location: Sunny Sussex

    Don't forget the one in twenty odd ish that comes back for warranty work

    Mark up is not profit :)
  7. CraigN


    Joined: Jul 30, 2005

    Posts: 2,551

    Location: Bristol

    Ford told me that ford owned dealers (such as trust ford) cant do much on individual vehicles but franchises can do what they want. That was the reason they could not match carwow prices.
  8. Amleto


    Joined: Feb 13, 2003

    Posts: 6,144

    aight, cheers guys.
  9. Abyss


    Joined: Oct 18, 2002

    Posts: 4,368

    Location: Nottingham

    To give you a rough idea on margins:

    Drive the deal - FORD FIESTA HATCHBACK 1.0 EcoBoost Zetec 3dr - £2,520 off list price

    It all comes down to how much the dealer wants to sell the car, but the margins won't be £100s they will be £1,000s
  10. Regy53


    Joined: Jun 11, 2011

    Posts: 3,714

    Location: Northampton

    When I was selling Vauxhall’s many years ago we would do deals at cost or below to hit manufacture set targets as a group. There was obviously some sort of kickback

    They are dictated to by the manufacture a lot

    Didn’t help my commission mind you

    Used cars are different because they are bought at trade price so to speak so free to do what they want
  11. [TW]Fox

    Man of Honour

    Joined: Oct 17, 2002

    Posts: 155,705

    Warranty work is paid for by the manufacturer on something like a new shape Fiesta.
  12. jamoor


    Joined: Jun 22, 2005

    Posts: 8,634

    Location: Nottinghamshire

    Dealers make most profit on servicing and used car sales not new cars.
  13. delta0


    Joined: Oct 21, 2012

    Posts: 4,990

    Location: London

    Margins are very small on most vehicles (a few hundred would be a very good margin). SUVs have high margins though (can be a few thousand).