dealer trying to pull leg on margins?

Soldato
Joined
13 Feb 2003
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6,157
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.
 
Soldato
Joined
19 Apr 2009
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3,159
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.
 
Associate
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By the river
...there's several thousand pounds difference between part-ex price and re-sale price!

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.
 
Tea Drinker
Don
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Sunny Sussex
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.


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

Mark up is not profit :)
 
Soldato
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30 Jul 2005
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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.
 
Soldato
Joined
18 Oct 2002
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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
 
Soldato
Joined
11 Jun 2011
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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
 
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