Expected discounts for demo models

Elessar

I'm looking at getting a 2011 VW Golf 1.2TSI and my local dealer has a demo model for sale. The price is €22,400 (new price around €24,000). I'm trading in a 10 year old BMW for which he has given me 2500 making €19,900 cost to change. Now, this is expensive to me as every other Dublin dealer has offered 3500 on my trade in, but they don't have this specific model and colour. Surely he can offer the same...

He asked me what price I had in mind and I told him I would pay €18,000 cash plus my car and would buy it off him now. (I would go so far as to haggle to 18,500 and would take it off him tomorrow, happily) I got a vague response.

Am I asking too much? Is it wrong to expect a discount like the above? I thought he would be happy to do a deal considering it's October and it's a petrol car, and if January comes and no sale, he'll have to drop the price again anyway. Would it be worth ringing him back? Or am I way off?

Jimmy Bottlehead

Elessar wrote: »

I'm looking at getting a 2011 VW Golf 1.2TSI and my local dealer has a demo model for sale. The price is €22,400 (new price around €24,000). I'm trading in a 10 year old BMW for which he has given me 2500 making €19,900 cost to change. Now, this is expensive to me as every other Dublin dealer has offered 3500 on my trade in, but they don't have this specific model and colour. Surely he can offer the same...

He asked me what price I had in mind and I told him I would pay €18,000 cash plus my car and would buy it off him now. (I would go so far as to haggle to 18,500 and would take it off him tomorrow, happily) I got a vague response.

Am I asking too much? Is it wrong to expect a discount like the above? I thought he would be happy to do a deal considering it's October and it's a petrol car, and if January comes and no sale, he'll have to drop the price again anyway. Would it be worth ringing him back? Or am I way off?

If you got a vague response and not an outright 'no', I reckon you're definitely still in the game.

If he thought you were taking the piss, I'd imagine he'd have said it there and then.

colm_mcm

What cost to change figures are you getting against the same model. Asking price, trade in price are all irrelevant really

Have you considered or done the maths on a megane diesel?

lomb

I think they get a 15% discount on demos on top of another 15% gross margin making 30%. Now Im not sure how it works here I assume its on the pre VRT price but includes the VAT element as that would be discounted also. So Im sure its easy to work out whats mutually beneficial.
Invariably you would be better selling your BMW yourself as otherwise the garage will have to account for the cost of disposing of that as theyl probably not want to retail it.

mickdw

Some of the vw demo pricing I see appears crazy. local dealer is looking for around 26k for 1.6 tdi comfortline passats when they are not alot more new.

1600 off retail is no way good enough imo. If you went in for a straight deal, you would surely get something near that off a brand new one.
Considering this guy is stealing €1000 on the trade in too compared to everyone else, it would appear he has you paying practically full retail for the demo model. A bad deal imo.

Drummerboy08

Just remember, it's all about supply and demand at the minute.

VW stock levels are ****e, so people are turning to demos, and used cars which in turn pushes up the price.

What model Golf is it? I assume it's a 5dr Highline at that money? What cost to change have the other dealers asked you for?

Don't concentrate too much on the trade in value, What a dealer gives on a trade in, he can take on discount.

Cost to change is where it's at.

-Chris-

Elessar wrote: »

I'm looking at getting a 2011 VW Golf 1.2TSI and my local dealer has a demo model for sale. The price is €22,400 (new price around €24,000). I'm trading in a 10 year old BMW for which he has given me 2500 making €19,900 cost to change. Now, this is expensive to me as every other Dublin dealer has offered 3500 on my trade in, but they don't have this specific model and colour. Surely he can offer the same...

Can you give us more info on your BMW so we can put a trade value on it - miles, spec etc.?
When you say every other Dublin dealer, what brands are you talking about? Were you talking to them about demos or new cars?

Elessar wrote: »

He asked me what price I had in mind and I told him I would pay €18,000 cash plus my car and would buy it off him now. (I would go so far as to haggle to 18,500 and would take it off him tomorrow, happily) I got a vague response.

As above, vague is better than "no", but I'd doubt he'd build €1,400-€1,900 haggle room into his pricing. That'd be madness.

Elessar wrote: »

Am I asking too much? Is it wrong to expect a discount like the above? I thought he would be happy to do a deal considering it's October and it's a petrol car, and if January comes and no sale, he'll have to drop the price again anyway. Would it be worth ringing him back? Or am I way off?

It's not wrong to ask the question, the worst he can say is "no". Just make sure you ask in such a way as that you don't leave yourself anywhere to go if he turns you down.

lomb wrote: »

I think they get a 15% discount on demos on top of another 15% gross margin making 30%. Now Im not sure how it works here I assume its on the pre VRT price but includes the VAT element as that would be discounted also. So Im sure its easy to work out whats mutually beneficial.
Invariably you would be better selling your BMW yourself as otherwise the garage will have to account for the cost of disposing of that as theyl probably not want to retail it.

I'm not sure how 15% on pre-VRT price translates into real figures, but I'd imagine you're way off. I'd think the demo discount on a car like that is probably in the region of 4% off the retail price.

I'd be fairly sure the €2,500 the garage are offering is trade price + discount. When they take the car in, it'll go right out the back door to the trade for the trade value. There'll be no cost of disposing of it.

L-M

mickdw wrote: »

Some of the vw demo pricing I see appears crazy. local dealer is looking for around 26k for 1.6 tdi comfortline passats when they are not alot more new.

1600 off retail is no way good enough imo. If you went in for a straight deal, you would surely get something near that off a brand new one.
Considering this guy is stealing €1000 on the trade in too compared to everyone else, it would appear he has you paying practically full retail for the demo model. A bad deal imo.

I'm sure if you went straight deal on the demo the price gap would still exist.

It's not like having an extra owner on the car in three years time is going to make a difference on price, so if it didn't have massive mileage, it's the car you wanted and the the reg wasn't of concern, then €1,600 is a nice saving.

Elessar

I've dropped him an email to say my offer still stands and if he is willing to work out a deal to ring me. Worst he can do is ignore me. I would have imagined being October he would have a bit more haggle room in order to make the sale?

Reason I say 18000 is because a dealer outside dublin recently offered me a cost to change of 19500 for a brand new model now, or 20,200 new in January. 4500 and 3800 trade in respectively.

The trade in is a 2001 bmw 320 coupe, 90k miles leather, climate, sound system, etc. Dublin dealers offering 3000 trade in for new in Jan.

I don't care much about depreciation so the less I spend on the outset is the main consideration.

lomb

-Chris- wrote: »

I'm not sure how 15% on pre-VRT price translates into real figures, but I'd imagine you're way off. I'd think the demo discount on a car like that is probably in the region of 4% off the retail price.

I'd be fairly sure the €2,500 the garage are offering is trade price + discount. When they take the car in, it'll go right out the back door to the trade for the trade value. There'll be no cost of disposing of it.

Hiya, a few VAG trade guys on the UK TT forum have advised re discount availability on new TTs. Standard demo discount is 15%. I persume they are only allowed one at a time. On top of this a garages margin on a new car is 15% allowing people to negotiate 10% cars over there. Of coruse there is no VRT there. The demo discount is there to pay for financing the demo, after all why would a dealership buy a demo for customers if its going to cost them? I assume figures here are the same. Of course the showroom and staff cost $$$ so it all has to be paid for.

-Chris-

lomb wrote: »

Hiya, a few VAG trade guys on the UK TT forum have advised re discount availability on new TTs. Standard demo discount is 15%. I persume they are only allowed one at a time. On top of this a garages margin on a new car is 15% allowing people to negotiate 10% cars over there. Of coruse there is no VRT there. The demo discount is there to pay for financing the demo, after all why would a dealership buy a demo for customers if its going to cost them? I assume figures here are the same. Of course the showroom and staff cost $$$ so it all has to be paid for.

The margins and pricing between ROI and UK wouldn't be the same.

L-M

Elessar wrote: »

I've dropped him an email to say my offer still stands and if he is willing to work out a deal to ring me. Worst he can do is ignore me. I would have imagined being October he would have a bit more haggle room in order to make the sale?

Reason I say 18000 is because a dealer outside dublin recently offered me a cost to change of 19500 for a brand new model now, or 20,200 new in January. 4500 and 3800 trade in respectively.

The trade in is a 2001 bmw 320 coupe, 90k miles leather, climate, sound system, etc. Dublin dealers offering 3000 trade in for new in Jan.

I don't care much about depreciation so the less I spend on the outset is the main consideration.

Knowing some Irish dealers, unless you've had contact with him via email previously, I wouldn't hold your breath for an email back!

lomb

-Chris- wrote: »

The margins and pricing between ROI and UK wouldn't be the same.

Wouldnt think it was a million miles off though. VRT distorts the price a bit so the discount wont be as good but I negotiated 2000 off a brand new factory order 27500 golf in 2006 so I dont think Im far out.
There is alot of price fixing that goes on in car sales. A few years ago I was pricing up a Yaris on the phone and every dealer I rang had the same discount!

R.O.R

lomb wrote: »

Wouldnt think it was a million miles off though. VRT distorts the price a bit so the discount wont be as good but I negotiated 2000 off a brand new factory order 27500 golf in 2006 so I dont think Im far out.
There is alot of price fixing that goes on in car sales. A few years ago I was pricing up a Yaris on the phone and every dealer I rang had the same discount!

Discount differences between the UK and Ireland are huuuuuuge. I've seen the VW discount offered to UK customers and know what is offered to Irish customers. UK VW discount is 10 times the Irish VW discount - yes 10 times :eek:

Irish dealers have a larger margin than their UK counterparts, but that still doesn't come close to closing the gap between UK and Irish total discounts.

lomb

R.O.R wrote: »

Discount differences between the UK and Ireland are huuuuuuge. I've seen the VW discount offered to UK customers and know what is offered to Irish customers. UK VW discount is 10 times the Irish VW discount - yes 10 times :eek:

Irish dealers have a larger margin than their UK counterparts, but that still doesn't come close to closing the gap between UK and Irish total discounts.

That makes no sense, If the UK discount is larger than the Irish then how do dealers have a larger margin to play with?

R.O.R

lomb wrote: »

That makes no sense, If the UK discount is larger than the Irish then how do dealers have a larger margin to play with?

Because VW UK keep a lot of their discount themselves, and can then offer it to large customers as an enticement to put lots of VW's on fleet. The retail customers get a much worse deal in comparison to Irish customers.

Casati

Elessar wrote: »

I've dropped him an email to say my offer still stands and if he is willing to work out a deal to ring me. Worst he can do is ignore me. I would have imagined being October he would have a bit more haggle room in order to make the sale?

Reason I say 18000 is because a dealer outside dublin recently offered me a cost to change of 19500 for a brand new model now, or 20,200 new in January. 4500 and 3800 trade in respectively.

The trade in is a 2001 bmw 320 coupe, 90k miles leather, climate, sound system, etc. Dublin dealers offering 3000 trade in for new in Jan.

I don't care much about depreciation so the less I spend on the outset is the main consideration.

Realistically a Golf with a 12 plate is going to be worth 3000 more than an 11 plate in another 12/24 months. As such the better deal is for you to order a brand new car from this dealer outside Dublin- that way you can pick the exact colour and options that you want and will get a brand new car rather than one that might have been used by numerious test pilots. Your warranty will also begin from the date of reg so depending on how old the demo is you will have 6 months extra warranty on the 12 plate

I'd offer this dealer outside Dublin 19.5k firm for the 12 plate and sees what he does.

Your car sounds lovely but the market for 2.2 petrols is tiny so the bids are going to be low- it might not be the easiest car to sell privately

Elessar

Maybe buying new is the best option.

But what reasons would a dealer have for not pursuing a sale in October? From what others dealers in Dublin offered me (3500 trade in as opposed to his 2500), he has only a €400-€900 difference from what I offered to what he wants. Surely for a sale this late in the year, for a petrol car, he would be wiling to do a deal? I haven't even received a callback in reply to my email, no wonder the motor industry is in trouble if discounts of that level are not even considered.

mickdw

Dont use him if he is not willing to deal. His deal sounds like crap anyway selling as you say you can get a new car for little more. Getting a 12 reg is better value than any of the other deals you have mentioned imo

johnf2020

From what I hear and see at the moment as regards deals, because sales volumes are just not happening because of Finance problems, lack of consumer cash etc, dealers seem to be more about profit on individual deals rather than volume--correct me if I'm wrong:rolleyes:

Stevie Dakota

As someone who had downsized from a six cylinder BMW enjoy every minute of the time you have left together. You'll appreciate the lower running costs but you will miss that car big time. A 1.2 Turbo? Sweet Jesus.

Celtic Mech

Stevie Dakota - I would have to disagree with your post in certain circumstances to be honest. I had a BMW 318 (2 Liter). Nice bit of power - although nothing massive at all. Would be averaging 30MPG in general. I changed and downsized for a Jetta 1.4TSI (140BHP)...I find the Jetta to be the better engine by far. For the first 1000KM driven so far, i have averaged 46MPG and thats combined Motorway and City driving. A lot more torque in it and a nicer response time due to the supercharger. Also, the BMW was a heavier car. Without doing the sums, the power to weight Ration of the Smaller and Lighter Jetta is a lot higher than the BMW.
Without arguing with you Stevie Dakota, i suppose it all depends on what you downsize to being honest. Out of curiosity - what car did you get?

silver campaign

lomb wrote: »

I think they get a 15% discount on demos on top of another 15% gross margin making 30%. Now Im not sure how it works here I assume its on the pre VRT price but includes the VAT element as that would be discounted also. So Im sure its easy to work out whats mutually beneficial.
Invariably you would be better selling your BMW yourself as otherwise the garage will have to account for the cost of disposing of that as theyl probably not want to retail it.

This is absolute rubbish. Maybe with some other brand, but Irish Volkswagen dealers do not operate with these kind of margins.

OP, you keep talking about what other dealers are offering and what you can get outside Dublin. Have any of these dealers got the car you are looking for? If they have, buy off them. If not, there is no point quoting them, they could tell you they will give you €5k for your car, but its all hypothetical if they can't supply you with the car your looking for. Maybe this dealer knows he has the only one of these cars available in the country, and if so, he's entitled to hold out for a better price.