Used car dealer tactics

1981trouble

Was all set to buy a used car yesterday and dealer (very well known main dealer) started increasing the price. We walked away as I wasn't happy and they were pushing us over the budget.

The car was advertised at 6500. Despite us saying no they kept putting gap on the price, 200 of admin charges, 65 road tax, (plus warranty, supaguard, breakdown etc on a 12 mth old car which they did remove). So advertised at 6500 but 7100 to buy (almost 6800 without gap) was minimum we would buy it at.

Plus, they then said price was going up over night to match competition (it has gone up to 7250).

We start the search again today in other garages. What I want to know though is this common practice? Do I need to knock 500 off my price to accommodate this? The whole process is so exhausting I am fed up of it already.

knightstyle

Sharp practice you were right to walk away. Always ask early on what the "on the road" price is then later find reasons to knock this down.
Dealers expect this and the first price always exceeds the minimum they can take for the car. Never pay the garage for a waranty unless you have checked out an independent one first.

colino

If the salesman wasn't upselling like this (or trying to) he would be sacked in no time. The add-ons aren't compulsory, your paying for them after all, so don't be surprised when you next venture into a professional trader that you'll get more of the same. Haggle!

Alias_Omega

Test drive car, say you like the car, offer them a price for the car, leave name & number, leave the showroom and move onto next car dealer.

The last car we purchased, the first dealer that refused our price was ringing us up later that week. However we had purchased a higher spec car for the price we wanted.

gilbert_and_sullivan

At large chain dealerships the sales staff make the most money by selling the add ons, finance, GAP, warranties, accessories, superguard etc...they are pushed to sell this stuff but you don't have to buy any of it.

Its a ritual to them, personally i avoid such places as i don't wish to take part in their lucrative little money mind games, they gamble on ignorance of the average buyer to make a big wedge.

the quip about the price going up overnight sounds like a stereotypical double galzing wide boy...i wouldn't give that dealership chain the time of day after that little gem.

kirkofski

Buying a car can be very exhausting, it really wore me down when we were looking for one for my partner late last year.

We were at a well known garage and were trying to bully us into having all these extra's. We'd been there for about 20mins and had just pulled up from a test drive when the salesman said, "what do you think then", my partner replied "yes its nice but we need to go away and think about it", the salesman replied "what is there to think about, you like the car". The car was 7k!, clearly nobody wants to think about parting with that amount of money, idiot!!

Just take your time, don't rush into anything and you'll eventually find the right car at the right price.

motorguy

gilbert_and_sullivan wrote: »

At large chain dealerships the sales staff make the most money by selling the add ons, finance, GAP, warranties, accessories, superguard etc...they are pushed to sell this stuff but you don't have to buy any of it.

With margins squeezed due to buyers comparing prices online, the real profit is in selling the add ons.

A main dealer could be averaging as little as £250-£300 net profit on a car on their forecourt, which is a relatively small return for their investment, so an easy £500 by selling a few add ons in what they hope for. To the point whereby if you walked into a dealers, no trade in, paid cash and didnt take any add ons it would hardly be worth the dealers while selling to you.

withabix

motorguy wrote: »

To the point whereby if you walked into a dealers, no trade in, paid cash and didnt take any add ons it would hardly be worth the dealers while selling to you.

Hard luck to dealers like that then.

That stock on their forecourt will be worth less tomorrow....and their bank finance will cost more.

Tick tock tick tock tick tock....

Their loss, not mine.

1981trouble

"A main dealer could be averaging as little as £250-£300 net profit on a car on their forecourt, which is a relatively small return for their investment, so an easy £500 by selling a few add ons in what they hope for. To the point whereby if you walked into a dealers, no trade in, paid cash and didnt take any add ons it would hardly be worth the dealers while selling to you."

That is possibly the problem then!

I am getting more and more annoyed at them because they were refusing to take off the add ons and saying the admin fee was compulsary etc and then the overnight price story made us make the decision to definitely walk away.

1981trouble

Oh and this was followed by the ignorance and patronising of telling me that if I went to look at a 308 (the next car on our list to view elsewhere) then my costs would go up as it will cost more in insurance and to run. He had forgotten to ask me what I had driven previously obviously seeing as my cars range from fiestas to golfs and focuses. Don't assume!

motorguy

withabix wrote: »

Hard luck to dealers like that then.

That stock on their forecourt will be worth less tomorrow....and their bank finance will cost more.

Tick tock tick tock tick tock....

Their loss, not mine.

Well you need to look at the price of the car relative to others.

Most places that do the admin fee are the car supermarkets and its a tactic to make their cars look the cheapest online BUT if one dealer is charging £7000 + admin fee of £200 its still a better deal than someone charging £7500 for the same car and no admin fe..

Where they 'catch' people most is when they've the car 'bought' and their guard is down - then they introduce tyre insurance, gap insurance, scotchguard, etc, etc.