5% off for cash ?

RobAMerc · 20-01-2010 4:33pm #1

I know he says margins are tight - but it looks mean no ?
Its a 20k car.

Drummerboy08 · 20-01-2010 4:39pm

5% is a good discount on a new car. Typically, margins are only around 8% on a new car, so judge it from that.

alias no.9 · 20-01-2010 4:42pm

New or second hand? From stock or special order? If it's second hand or new but from stock then selling at breakeven or even a small loss is no big deal if it helps to maintain cashflow, reduce inventory, reduce overdraft and associated interest payments but if it has to be ordered from the distributor or factory then there's no point in entertaining any kind of loss leader unless it's a known repeat customer and you know they'll give you their servicing work too.

RobAMerc · 20-01-2010 5:08pm

Its a 2nd hand car - to be fair its a good price already compared to others of the same make / model - but I would prefer a bigger wedge off - would make me feel better !

robtri · 20-01-2010 5:09pm

Drummerboy08 wrote: »

5% is a good discount on a new car. Typically, margins are only around 8% on a new car, so judge it from that.

is that 8% taking into account the volume incentives from the manufacturer??

Drummerboy08 · 20-01-2010 5:24pm

robtri wrote: »

is that 8% taking into account the volume incentives from the manufacturer??

No. Dealer margin is what I'm talking about. I would presume (not always right though) that any extra discount would be passed on. I do anyway.

I think 5% off an already well priced car is about all you'll get tbh. I think your being a bit unreasonable just to make yourself feel good...

It BeeMee · 20-01-2010 5:37pm

RobAMerc wrote: »

Its a 2nd hand car - to be fair its a good price already compared to others of the same make / model - but I would prefer a bigger wedge off - would make me feel better !

I think your view is distorted by the fact that 5% seems so small.

If he'd said "I'll give you an extra grand off for cash", would you feel so bad?

Anan1 · 20-01-2010 5:45pm

Forget the discount, the only thing that matters is the end price.

Gurgle · 20-01-2010 5:48pm

'5% off' is meaningless - either you're getting the car for a decent cash price or you're not.

alias no.9 · 20-01-2010 5:51pm

RobAMerc wrote: »

Its a 2nd hand car - to be fair its a good price already compared to others of the same make / model - but I would prefer a bigger wedge off - would make me feel better !

So you'd be happy to pay what he's asking or even a little if he had a higher sticker price in the first place and you'd knocked 10% off that?
I know where your coming from, wanting to feel like you've bargained him down but if the price is right, that's the most important thing.