Is 250 Dealer Discount

[The Mole]

Mr Mole I assume you work in the trade??

To answer 2 questions  - there are in effect 2 margins.  There is a margin that a dealer can give away, say 5% and a further % available which if given away would remove his ability to pay overheads etc.  So in theory if a dealer gives away the whole lot then they will not make any money on a car.

However remember that a dealer will also be making a tidy profit on maintenance and servicing which also pays towards the bills, staff etc.  So please don't expect me to believe any sob stories about poor dealers not being able to feed their kids at Christmas because of evil customers demanding discounts - as I said there is a margin built into the price.  :)

I assume that you wouldn't negotiate on the price of a house either for fear of putting the estate agent out of business???

Secondly. unless demand far exceeds supply which only happens with very very few exotic cars then a car is not a unique or premium product.  It is a mass produced product which may be priced as if it were at a premium.  Lexus/Toyota produce thousands of cars a day - certainly not a unique product.

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Yes I am in the "trade" (Lexus Dealer)

Yes there are "two" margins

The second of which is not guaranteed, it is based on acheiving very tough sales targets, customer satisfaction targets, random dealer inspection targets, telephone and video mystery shop targets, finance targets etc, etc.

I am not compalining about people asking for discounts, feel free, fill your boots, I have no problem with that.

But to 'expect' one automatically as a matter of principal?

I can only speak from my own perspective here, but at our dealer, we have totally sold our allocation for this year, most orders from now on won't be satisfied until Jan/Feb. After the launch, this will be March/ April.

It will be way into next year before the "D" word is even thought about, and even then we might only be talking about a small gesture of good will....

As I've said earlier, to sell on price is not to sell. A good sales person will offer such an exceptional level of service and care to the point that the customer will happily pay the little extra. Not everyone, but many, and enough to fill the order banks.

[dealer-man]

Mr Mole I assume you work in the trade??

To answer 2 questions  - there are in effect 2 margins.  There is a margin that a dealer can give away, say 5% and a further % available which if given away would remove his ability to pay overheads etc.  So in theory if a dealer gives away the whole lot then they will not make any money on a car.

However remember that a dealer will also be making a tidy profit on maintenance and servicing which also pays towards the bills, staff etc.  So please don't expect me to believe any sob stories about poor dealers not being able to feed their kids at Christmas because of evil customers demanding discounts - as I said there is a margin built into the price.  :)

I assume that you wouldn't negotiate on the price of a house either for fear of putting the estate agent out of business???

Secondly. unless demand far exceeds supply which only happens with very very few exotic cars then a car is not a unique or premium product.  It is a mass produced product which may be priced as if it were at a premium.  Lexus/Toyota produce thousands of cars a day - certainly not a unique product.

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Yes I am in the "trade" (Lexus Dealer)

Yes there are "two" margins

The second of which is not guaranteed, it is based on acheiving very tough sales targets, customer satisfaction targets, random dealer inspection targets, telephone and video mystery shop targets, finance targets etc, etc.

I am not compalining about people asking for discounts, feel free, fill your boots, I have no problem with that.

But to 'expect' one automatically as a matter of principal?

I can only speak from my own perspective here, but at our dealer, we have totally sold our allocation for this year, most orders from now on won't be satisfied until Jan/Feb. After the launch, this will be March/ April.

It will be way into next year before the "D" word is even thought about, and even then we might only be talking about a small gesture of good will....

As I've said earlier, to sell on price is not to sell. A good sales person will offer such an exceptional level of service and care to the point that the customer will happily pay the little extra. Not everyone, but many, and enough to fill the order banks.

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I may as well add my comments on this, seeing that I also work for a dealer. I can see both points on this - the customer doesn't need a discount in order to buy the car, after all £600 say on a £20K+ car isn't a make or break amount. But I understand that people want to feel they have got a deal.

To be honest the best market we could have is one where all dealers must sell at list price by law! It would actually benefit the customer as well, as residuals would be higher and you wouldn't have to shop for a "deal" - you buy from the place that offered the best service or could supply the car on time. Discounts actually do more harm than good in many cases, although I appreciate that if you don't ask you don't get!!

Just a tiny point regarding interest rates - look at the offer as a whole and not the APR - pcp rates tend to be higher but they do protect the value of the car, the question is whether the one can be offset against the other - and APR's are funny things to calculate - the APR can sometimes shoot up (especially if the term is shortened) and the monthly payment not change much.

But if I was a customer and someone offered by 3% discount would I take it? Of course I would! I know people think that we all make a fortune when we sell cars and I am sure that was the case years ago, but I think people would be pretty shocked at how low a lot of deals are! And finally please don't compare us to Estate Agents!! ;) They get 1% of something, regardless of how low they go, with us we sometimes get a % of something if anything is left! AND we have to work on Sundays!

[Rillo]

I most humbly apologise if I implied you were like estate agents :D

[discus]

And finally please don't compare us to Estate Agents!! ;) They get 1% of something, regardless of how low they go, with us we sometimes get a % of something if anything is left! AND we have to work on Sundays!

Going off-topic I know, but as a former estate agent of 15 years before I got a 'proper job' there are very few other businesses that will spend hundreds or thousands of pounds marketing their customer's own possession, with no money up front & no guarantee that they will get any money back afterwards. A high percentage of sales fall through & many sellers just change their minds.

British agents charge the lowest fees worldwide & only usually make any money once the sale goes through - often several months or even a year or two later. Many also work Sundays & late into the evening. These days it is a very cut-throat business with loads of stress. One large firm I worked for had a staff turnover of 200% p.a. The image of Estate Agents is way out of date. There are still some underhand agents but these are usually the large firms who dont mind how the money comes in so long as it does.

I now have my own business & still work long hours, but you wouldn't drag me back to Estate Agency.

Got that off my chest - now to paraphrase an old joke:

Q:Why don't car salesmen look out of the window in the mornings?

A:Because they wouldn't have anything to do in the afternoon!

[The Mole]

A day in the life of a car salesman is very misunderstood.

All I can say is that if any of you tried it, it would change your opinion dramatically.

[discus]

A day in the life of a car salesman is very misunderstood.

All I can say is that if any of you tried it, it would change your opinion dramatically.

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Sorry! Was a 'tongue in cheek' joke. the fact is that most jobs & especially sales jobs are really stressful these days.

[The Mole]

Imagine working in a very posh 5 star hotel.

In comes Mr Bloggs who is looking for a comfy bed and a good nights sleep.

No problem, we can help, but so can the travel lodge down the road, who can offer the same comfy bed and good nights sleep.

However, for some reason, Mr Bloggs fancies having his good nights sleep in your 5 star hotel, but only wants to pay the same as the travel lodge.......

[lexus boy]

yeah well companies can take it right down to base rate if they do well

i know with capital bank this is how you can do

so the rest iis for lexus profit

yeah ask for a discount, my mum just bought a new merc and got plenty thrown in for free.

[smyggy]

Imagine working in a very posh 5 star hotel.

In comes Mr Bloggs who is looking for a comfy bed and a good nights sleep.

No problem, we can help, but so can the travel lodge down the road, who can offer the same comfy bed and good nights sleep.

However, for some reason, Mr Bloggs fancies having his good nights sleep in your 5 star hotel, but only wants to pay the same as the travel lodge.......

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I ask for discounts in 5 star hotles too. and it works nearly every time.

[The Mole]

I ask for discounts in 5 star hotles too. and it works nearly every time.

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Not if they are fully booked... :winky:

As for discounts of Mercs, they are into volume sales, and must have felt the need to discount?

You'd never hear a Lexus centre offering a car at "cost plus £1!" on the radio. Very sad for them.

[Parthiban]

I understand what you're saying, but I don't think anyone here is suggesting that it is wrong if there is no discount available, but there is no harm in asking. When we bought a merc cls earlier this year (which was also right on release) we didn't get a discount, but I personally would've felt quite stupid if I hadn't of even asked, and having said that, it isn't much, but did get a phone cradle thrown in for free :P

[chriso]

Has anyone tried this place

http://www.autoebid.com/newSelect.asp?Make...Manual&Search=2

......£1200 off all models...allegedly 6-8wks delivery from a UK dealer

[lexus boy]

I ask for discounts in 5 star hotles too.  and it works nearly every time.

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Not if they are fully booked...  :winky:

As for discounts of Mercs, they are into volume sales, and must have felt the need to discount?

You'd never hear a Lexus centre offering a car at "cost plus £1!" on the radio. Very sad for them.

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the amount of profit on cars

they can offer a damn good discount

and the demand for an is250 is not as great as all other new cars that come out

[Kent]

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the amount of profit on cars

they can offer a damn good discount

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Dealer profit on new cars is laughable, they make their money on servicing etc. Used cars are a different kettle of fish.

A few years ago when I dabbled in buying and selling computer parts a typical £200 inkjet printer made just £10 for the retailer. The real profit was made on ink which cost something like a zillion pounds a bottle for coloured water.

[lexus boy]

ive never known of a car that hasnt been able to knock a few thousand off

hence why i ask

[javaboss]

That's why I haven't purchased an IS250 - *yet*. My car is 3 years old in March. I don't expect to get any cash off when the car first comes out. However, the situation might be different in March - you just never know. Like everyone is saying... if you don't ask, you don't get :-)

Personally, I think Lexus are great. I'll deffo replace my IS with an IS 250 at some point next year. My wife has a Honda CRV and she wants an RX in 18 months when her's is 3 years old. I'm sure my Lexus dealer will want to keep a regular customer, so will be willing to discuss the price when we come to trade-in.

[Kent]

ive never known of a car that hasnt been able to knock a few thousand off

hence why i ask

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As far as used cars are concerned then yes I would always haggle hard. But the markup given to the dealer on most brands of new car is very very little these days. You might get a decent discount at the end of a month if the dealer needs to shift a couple of cars to meet his target quota which will in turn earn him a bonus based on monthly sales. If a model is selling well enough for him to meet all his targets then there is no incentive for him to discount. Hence the position with the new IS which will be discounted as soon as the market dictates it.

[saracen]

Drivethedeal.com are currently offering an IS250 SE-L with Auto, Multimedia and Metallic for £30848.20 saving £1336.80 on list.

The cars come from a UK dealer and have the standard three year warranty etc. Has anyone used them before or had any experience with them?

[Bocabar]

Drivethedeal.com are currently offering an IS250 SE-L with Auto, Multimedia and Metallic for £30848.20 saving £1336.80 on list.

The cars come from a UK dealer and have the standard three year warranty etc.  Has anyone used them before or had any experience with them?

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Give these people a try www.onlinecarslimited.com

I have just ordered an IS250 SE auto for delivery later this month & saved myself 850 pounds on original order, ask for Nigel or Emma they were most heplful and very pleasent to deal with. this will be my first lexus so looking forward to the car very much, I was previously looking at an A4 or 3 series but just got back from the USA were the new IS is selling very well, especially the IS350 that is unavailable here.

[saracen]

Drivethedeal.com are currently offering an IS250 SE-L with Auto, Multimedia and Metallic for £30848.20 saving £1336.80 on list.

The cars come from a UK dealer and have the standard three year warranty etc.  Has anyone used them before or had any experience with them?

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Give these people a try www.onlinecarslimited.com

I have just ordered an IS250 SE auto for delivery later this month & saved myself 850 pounds on original order, ask for Nigel or Emma they were most heplful and very pleasent to deal with. this will be my first lexus so looking forward to the car very much, I was previously looking at an A4 or 3 series but just got back from the USA were the new IS is selling very well, especially the IS350 that is unavailable here.

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Thanks for the tip. Onlinecars were very close in price to drivethedeal. I will give both companies a ring on Monday.