Am I being thick, but what does that mean, from a car dealer?
Just received a text from my local BMW dealer, I can have any stock car for "Cost + £100" in the next 48hrs?
?
Any car they have in stock for their cost value plus £100 admin fee.
"Cost" will be what the dealer paid for it
Normally means -
The item is marked up @ £1000 and they will add £100. You pay £1100.
It won't, but he'll tell you it was. Lol
"Cost" will be what the dealer [b]say they[/b] paid for it
Cost is what they claim they are paying cost for, and then £100 on top for them.
Largely BS. Just trying to make out you're getting a bargain by you thinking they're not making much profit out of it, or that "cost" is the trade cost from supplier.
Simply look around and get a sniff of the real trade prices, or if it's second hand just compare prices to get an idea of how genuine the price really is.
Oh right. So even if I saw the car I wanted on thier website, they are likely to reduce the price, albeit they make a profit?
There's a nice black 2.0i 3 series touring red leather Msport xdrive I wouldn't mine, would prefer diesel though. £20k, I wonder what it comes down to, if at all...
Just ask for the proof of what they paid. I don't imagine for a minute they'd actually show you, but it'd be fun to make them squirm for a while
Setting aside the cynicism of my previous post.
Surely if they're advertising at cost plus £100 then they're obliged to disclose what cost is, as that is then a factual number, and if it isn't cost plus £100 then they'll be guilty of misrepresenting?
Although i expect there's all sorts of get outs as well - like cost also includes valeting (at their rate), a check over service (at their rate), administration (at their rate) and so on.......
Just ask for the proof of what they paid.
I vote for this. call them out.
Typical dealer markup on a new car is between 5% and 10% apparently - so on a car retailing at £20k that would suggest the markup is in the region of £1500 to £3000 and that 'cost' would be somewhere between £17,000 and £18,500. So that should give you an idea of the prices / discounts to expect - if its not in that range then a leg is being pulled somewhere.
+1 ask for the copy of the invoice from their supplier, then call them to verify
I know the chap who sold me a new car so I asked him how much margin there was, he showed me the actuals...it was about 200 quid on a 15k car. All the money is in people just walking in not knowing anything, finance and servicing.
Cost, or cost after volume rebate?