LBS does 18 months 0% finance, now i’m guessing (but could be wrong here!) that this will cost them something, so if i didnt want finance and pay it all when i collect, do you think i might be able to get a discount?

Looking at £3000-3500

Just wondering where to start any negotiations as i’m crap at all this! If its unlikely i’ll get a discount i’ll go with the 0%

Prob about 10% I imagine as the finance will cost them something.

I thought with cars finance was cheaper for the dealer, not the same with bikes then?

10%

More if they offer you it in accessories !

I previously offered Hitachi Capital Finance, and paid 9.7% for 12 months through to 15.5% on the 36 month interest free option (hence didn’t offer it to clients). Other thing for them to factor in is the delay in getting the funds through from their credit provider which adds strength into your corner.

Higher APR rates are more attractive to the retailer, with a 12.9% actually returning a commission.

Remember though that what ever card you use, will also incur a charge so take that out of the equation.

Playing to the letter of the law, you are not allowed to offer discount for alternative payments but Im sure most retailers would do so if it was kept low key, especially in light of the current retail climate.

10% last time I did it for Mrs NBT’s bike

Is it a 2011 bike or 2012? Most 2011 bikes tend to have about 15-20% at least off them.

Sorry. The finance costs the shop nothing. The finance house make money from the % of people who get to the end of the 0% period and then don’t pay off the balance. This is profitable enough for them to take the hit on those that do pay it off.

Thus, it’s not leverage for a discount, I don’t think. Saving them filling the forms in may be worth something, though!

I’ve had ten percent of the value in goods on a couple of occasions, never actually got money off though. Got to be worth asking. Something along the lines of “So this is £3,500 with interest free, how much for cash?”.

If the interest free really did cost the shop 10% then they’ve lost nothing giving you that same discount and they’ll have had to spend less time filling out forms, and you’re probably more likely to tell your friends about their shop in the future.

Aiming to get more than the cost of the credit to the shop would be taking the piss though everyone needs to make a living.

Sorry. The finance costs the shop nothing.

Utter bollocks, as above.

I think a bike shop owner friend told me it was about 10%.

What used to wind him up is when the customer would agree the price for a bike, they would get to the till, and then they would see the 0% sign and say I might as well have it on 0% then! 10% down the drain.

mightymarmite – my mistake. I thought bike shops may be the same as other consumer goods as far as their financing goes, but evidently not!

they would see the 0% sign and say I might as well have it on 0% then

Should have took the sign down then 🙄

Fadda, theres only 4-5 credit providers in the market and all follow the same practice, Barclays and Hitachi are the larger of the retail lenders (after Blackhorse’s demise).

The motor industry has its own providers, often associated with the manufactures themselves and their business model is geared more towards getting units shifted than turning profit (hence the prevalence of 0% or similar low APR rates)

All lending to the retailer is done on a table, which varies based on the term of the loan, and the APR rate applied. 0% ALWAYS cost the retailer, as their is no earnings to the lender direct.

As part of a larger national account I’d say our rates were fairly typical, with the 0%’s as above. The deferred payment options (i.e. 0% for xxx months then xx% if its not fully paid) still incurred a surcharge unless over 36 months or longer.

They are the most horrific of policies for the consumer as well, as typically if you have ANY balance outstanding at the end of the grace period, then the APR charge is applied to the total amount borrowed (not the balance outstanding), often at a much higher comparable APR rate than similar policies. Your right in that very few people pay off the full about and then get smashed with months of interest being added on.

The commission policies we had started at 12.9% over 24 months, so if your using similar terms you’ll have a harder fight to get discount for cash (to the contrary the retailer will push finance as an option to avoid credit / debit card fees).

What is also worth arguing though is the retailer has a 14 day period before they can apply for the funds from the lender, during which time the customer can cancel the finance agreement without having to give any reason.

The retailer then has the job of chasing payment from the client or trying to get the goods back, which is proving a huge ball ache for some industries.

cool i’ll see if he’ll do about 10% price reduction and i’ll make it clear thats only if i dont take the 0% finance. (its a 2012 model so not reduced like some 2011 stuff). Dont need any riding kit or accessories as i already have everything i need, but dont want to take the p*ss as its a good shop and i know them all very well.

I think it’d be easier asking for a discount if i wasnt such a regular customer (first names, coffee, chat and regular shop rides!) 😳

How about just asking them.

I’m thinking of getting this on 0%, is there a deal to be had for not taking the finance?
Simples.

yeah but i wanted to know what sort if discount is reasonable to expect, as if its only tiny i’d just take the 0%, and i didnt want to go asking for a big discount that might offend!

or just take the 0% and blow your 3 grand on other stuff!

yeah but i wanted to know what sort if discount is reasonable to expect, as if its only tiny i’d just take the 0%, and i didnt want to go asking for a big discount that might offend!

I think it’d be easier asking for a discount if i wasnt such a regular customer (first names, coffee, chat and regular shop rides!)

😐

The summary of the sensible answers is 0% neither costs nor earns the dealer anything other than helping him/her shift bikes.

Why then expect a discount?

The summary of the sensible answers is 0% neither costs nor earns the dealer anything other than helping him/her shift bikes.

Why then expect a discount?

Not a great summary really.

0% finance always costs the bike shop something – 5-12% dependent on size of shop/turnover through finance etc and the deal they’ve managed to strike with a credit provider.

If you pay hard cash then you save them the 5-12% less any banking fees they may incur.

If you pay card you save them the 5-12% less any card fees they may incur (typically 1-3% depending on card)

So you can argue that, if you turn up with 3.5k in cash you should be able to get some kind of discount assuming you aren’t rubbish at negotiation.

I think 10% would be good going, 5% more likely. Also very dependent on how desperate the LBS is to get 3k in the till. Can swing things massively.

Jane I’m assuming you didn’t read the thread. If I was a regular customer I’d be expecting 10% discount anyway, though that’s another subject…..

10% would be the minimum I would expect, I bought a frame earlier in year and got it for £1350 instead of £1650 because I paid in full. I would say in this present climate when shops re closing all the time they should bend over backwards for a £3000+ purchase.

what bike is it? I know a few shops that have given me serious discounts of current MY bikes, some equivalent to 20%.

Why then expect a discount?

I don’t think the OP is, he was asking about the chances of getting one.

And where is the harm in asking, for that value I would ask an LBS in the same way I would ask a car dealer or a jeweller or anything else for that matter. They can always so no.