New Car Advice

Started by Dinny Breen, March 06, 2018, 11:56:22 AM

Previous topic - Next topic

Milltown Row2

Quote from: illdecide on February 11, 2020, 11:07:29 PM
Just out of curiosity...If a dealer has a car up for sale for £20k how much does a dealer expect to make profit of a car and what % do you haggle for without insulting them...lol. I suppose each car has it's individual price and some will have more profit than others but it would be nice to know (any dealers on the board here) just what % you can take them below their asking price.

That's like asking a magician how he does his tricks ffs!
None of us are getting out of here alive, so please stop treating yourself like an after thought. Ea

balladmaker

Have a PCP deal coming to an end after 4 yrs in April.  Car is in good shape, almost, apart from needing a new bonnet due to an O'Neill's ball  >:( Going to cost approx 550 for fixing it going by prices I've got so far.  Car is under the 4 yr mileage allowance by approx. 1k miles, so no issues on that front.  When I check the price of a like for like car, same miles, in good shape, they're between 6250 and 7000 at dealerships.  (I can buy it outright as part of the PCP deal for 4700)

So my options are:

1: Use car as a trade in for a new one at same dealership.  Don't fix bonnet, when bringing it back and see what they say.
2: Use car as a trade in for a new one at same dealership.  Fix bonnet before returning it.
3: Hand car back and walk away, with bonnet fixed.
4: Buy car outright, will cost 4700, and own the car (prob get that back as a trade-in elsewhere hopefully)

I'm preferably looking for a change, and not necessarily with the same car type/dealership. 

Any thoughts on the most efficient way financially to exit a PCP deal?

JohnDenver

Quote from: balladmaker on February 12, 2020, 09:25:23 AM
Have a PCP deal coming to an end after 4 yrs in April.  Car is in good shape, almost, apart from needing a new bonnet due to an O'Neill's ball  >:( Going to cost approx 550 for fixing it going by prices I've got so far.  Car is under the 4 yr mileage allowance by approx. 1k miles, so no issues on that front.  When I check the price of a like for like car, same miles, in good shape, they're between 6250 and 7000 at dealerships.  (I can buy it outright as part of the PCP deal for 4700)

So my options are:

1: Use car as a trade in for a new one at same dealership.  Don't fix bonnet, when bringing it back and see what they say.
2: Use car as a trade in for a new one at same dealership.  Fix bonnet before returning it.
3: Hand car back and walk away, with bonnet fixed.
4: Buy car outright, will cost 4700, and own the car (prob get that back as a trade-in elsewhere hopefully)

I'm preferably looking for a change, and not necessarily with the same car type/dealership. 

Any thoughts on the most efficient way financially to exit a PCP deal?

What about fixing the bonnet yourself, buying the car outright for £4700 from the dealer, then trying to sell it privately for around £5750 to £6000?

Depends if the bit of hassle of fixing and selling privately is worth the extra £500 or so to go towards deposit on a next car.

With the PCP deals, where you often get discount on the car cost and possibly extras thrown in too - you can still buy out the finance on the car outright, even after a few days. (If you have a means to borrow the lump sum at a lower rate for example)

illdecide

Quote from: Milltown Row2 on February 12, 2020, 08:47:31 AM
Quote from: illdecide on February 11, 2020, 11:07:29 PM
Just out of curiosity...If a dealer has a car up for sale for £20k how much does a dealer expect to make profit of a car and what % do you haggle for without insulting them...lol. I suppose each car has it's individual price and some will have more profit than others but it would be nice to know (any dealers on the board here) just what % you can take them below their asking price.

That's like asking a magician how he does his tricks ffs!

Lol... :D
I can swim a little but i can't fly an inch

GetOverTheBar

Quote from: illdecide on February 11, 2020, 11:07:29 PM
Just out of curiosity...If a dealer has a car up for sale for £20k how much does a dealer expect to make profit of a car and what % do you haggle for without insulting them...lol. I suppose each car has it's individual price and some will have more profit than others but it would be nice to know (any dealers on the board here) just what % you can take them below their asking price.

If your paying cash, on the day....it's not out of the question to go 10/15/20% below asking, depends how much front you have really.

You'll obviously be countered but start as cheekily as you wish I suppose. don't ask - don't get but I wouldn't present it as a take it or leave it absurdly low. 

illdecide

I was also told the car dealers prefer people coming in getting finance rather than someone coming in to pay car in full, they make more money of you getting it financed. The days of the old hard currency (cash is king) is almost over.
I can swim a little but i can't fly an inch

johnnycool

Quote from: illdecide on February 12, 2020, 11:25:37 AM
I was also told the car dealers prefer people coming in getting finance rather than someone coming in to pay car in full, they make more money of you getting it financed. The days of the old hard currency (cash is king) is almost over.

I'd heard the same too.

They want finance deals rather than cash but if you are using the finance deal as leverage do your homework and get other third party offers and ask them to match or better them.

Itchy

Dealer mark up all depends on the type of dealer. Small fella with a few cars at side of his house doesnt have the overheads of the main dealer.

screenexile

Quote from: illdecide on February 12, 2020, 11:25:37 AM
I was also told the car dealers prefer people coming in getting finance rather than someone coming in to pay car in full, they make more money of you getting it financed. The days of the old hard currency (cash is king) is almost over.

Last 2 cars I bought they woulnd't accept cash... I was f**king raging!

JohnDenver

Quote from: screenexile on February 12, 2020, 12:01:52 PM
Quote from: illdecide on February 12, 2020, 11:25:37 AM
I was also told the car dealers prefer people coming in getting finance rather than someone coming in to pay car in full, they make more money of you getting it financed. The days of the old hard currency (cash is king) is almost over.

Last 2 cars I bought they woulnd't accept cash... I was f**king raging!

Had similar experience that they were determined to set me up on a PCP deal, even though i wanted to buy car outright. I looked into it a bit, and agreed to PCP deal (think it was possibly £750 off car and 2 free services). Once i had car home, after a few days I rang VW finance and settled the outstanding debt, which possibly cost an extra fiver or something with the interest.

If you've a long standing relationship with a dealer, then I wouldn't really advise this, as it means the salesman won't get his commission which kicks in after a few months i think. But they had annoyed me with their insistence on PCP, so i figured they could suck it up.

Milltown Row2

Quote from: JohnDenver on February 12, 2020, 12:16:38 PM
Quote from: screenexile on February 12, 2020, 12:01:52 PM
Quote from: illdecide on February 12, 2020, 11:25:37 AM
I was also told the car dealers prefer people coming in getting finance rather than someone coming in to pay car in full, they make more money of you getting it financed. The days of the old hard currency (cash is king) is almost over.

Last 2 cars I bought they woulnd't accept cash... I was f**king raging!

Had similar experience that they were determined to set me up on a PCP deal, even though i wanted to buy car outright. I looked into it a bit, and agreed to PCP deal (think it was possibly £750 off car and 2 free services). Once i had car home, after a few days I rang VW finance and settled the outstanding debt, which possibly cost an extra fiver or something with the interest.

If you've a long standing relationship with a dealer, then I wouldn't really advise this, as it means the salesman won't get his commission which kicks in after a few months i think. But they had annoyed me with their insistence on PCP, so i figured they could suck it up.

He'll have got some commission, just not the full amount, they do alright though, so I wouldn't be too worried or concerned
None of us are getting out of here alive, so please stop treating yourself like an after thought. Ea

Tony Baloney

Quote from: screenexile on February 12, 2020, 12:01:52 PM
Quote from: illdecide on February 12, 2020, 11:25:37 AM
I was also told the car dealers prefer people coming in getting finance rather than someone coming in to pay car in full, they make more money of you getting it financed. The days of the old hard currency (cash is king) is almost over.

Last 2 cars I bought they woulnd't accept cash... I was f**king raging!
Your cash was in punts and pound notes so hardly surprising.

delgany

Quote from: illdecide on February 12, 2020, 11:25:37 AM
I was also told the car dealers prefer people coming in getting finance rather than someone coming in to pay car in full, they make more money of you getting it financed. The days of the old hard currency (cash is king) is almost over.

Agree with that point , paid cash for a Golf , would've got a better discount from dealer for finance( not an option for me at the time). The salesman is on a bonus for finance / gap insurance / extras.

Look around a dealership for the sales targets boards . See how they are getting on for the month. Obviously,  you can get a better deal closer to the end of the month .

Main Street

#193
Quote from: Tony Baloney on February 12, 2020, 01:44:37 PM
Quote from: screenexile on February 12, 2020, 12:01:52 PM
Quote from: illdecide on February 12, 2020, 11:25:37 AM
I was also told the car dealers prefer people coming in getting finance rather than someone coming in to pay car in full, they make more money of you getting it financed. The days of the old hard currency (cash is king) is almost over.

Last 2 cars I bought they woulnd't accept cash... I was f**king raging!
Your cash was in punts and pound notes so hardly surprising.
Not surprising that the cash was in a bag labelled Swag?

bigarsedkeeper

Quote from: balladmaker on February 12, 2020, 09:25:23 AM
Have a PCP deal coming to an end after 4 yrs in April.  Car is in good shape, almost, apart from needing a new bonnet due to an O'Neill's ball  >:( Going to cost approx 550 for fixing it going by prices I've got so far.  Car is under the 4 yr mileage allowance by approx. 1k miles, so no issues on that front.  When I check the price of a like for like car, same miles, in good shape, they're between 6250 and 7000 at dealerships.  (I can buy it outright as part of the PCP deal for 4700)

So my options are:

1: Use car as a trade in for a new one at same dealership.  Don't fix bonnet, when bringing it back and see what they say.
2: Use car as a trade in for a new one at same dealership.  Fix bonnet before returning it.
3: Hand car back and walk away, with bonnet fixed.
4: Buy car outright, will cost 4700, and own the car (prob get that back as a trade-in elsewhere hopefully)

I'm preferably looking for a change, and not necessarily with the same car type/dealership. 

Any thoughts on the most efficient way financially to exit a PCP deal?

I had a similar problem on PCP, couple of marks on different parts of the car. Dealer tried to take about 2k off the lowest value instead of money off the car value when I went to get another car off them. Told him to stick and bought the car outright. I'll get it fixed myself sometime before I trade in again. Put me off PCP completely. Think the salesman was being a knob though as opposed to the system - the dealers manager phoned me flat out after to get me to change my mind.

Anybody any good experiences with PCP? Maybe the car I bought at the time wasn't worth it. Might have been better if it was with a new or newish Merc/BMW/Audi to make it worthwhile