New transporter will not be a Cali!

[Barry Chuckle]

I get that sense too but how many of the existing commercial dealerships have good Cali reputations? Birmingham? Liverpool? Any others?

My experience of Birmingham was if I don't pay list price I don't get one. Spun me some yarn about being short of allocation etc. Some guidance from the kind souls on this site and I bought new elsewhere saving nearly 10k......

 

[Elmo3]

My experience of Birmingham was if I don't pay list price I don't get one. Spun me some yarn about being short of allocation etc. Some guidance from the kind souls on this site and I bought new elsewhere saving nearly 10k......

Interesting, as they’re part of the same group as Liverpool. I’ve had 2 Cali’s from Liverpool and at the time their deals were the best out there, they did the biggest volume of Cali’s by some margin IIRC. Things seem to have changed, our new one is coming from Breeze.

 

[Barry Chuckle]

Interesting, as they’re part of the same group as Liverpool. I’ve had 2 Cali’s from Liverpool and at the time their deals were the best out there, they did the biggest volume of Cali’s by some margin IIRC. Things seem to have changed, our new one is coming from Breeze.

Let's say a dealer margin is £15k on an generously spec'd Cali. The volume dealers like EV & Breeze make roughly £3k with their substantial discounts, but get big volumes. Whereas dealers like Birmingham only need to sell a fifth of that volume and make the same profit. To be charitable, the latter relies on customers who perhaps haven't done sufficient due diligence on values, shop around etc (rather than believe the tall stories car salespeople tell to secure the deal)

The only injustice to me is the poor buyer who pays list will take a much bigger hit come resale/part ex.

 

[Corradobrit]

Sort of makes sense that the new T7 will be 'outsourced'. The financials for VW core group are not looking good.

https://edition.cnn.com/2023/11/27/business/volkswagen-brand-no-longer-competitive/index.html?utm_source=business_ribbon

 

[dspuk]

Let's say a dealer margin is £15k on an generously spec'd Cali. The volume dealers like EV & Breeze make roughly £3k with their substantial discounts, but get big volumes. Whereas dealers like Birmingham only need to sell a fifth of that volume and make the same profit. To be charitable, the latter relies on customers who perhaps haven't done sufficient due diligence on values, shop around etc (rather than believe the tall stories car salespeople tell to secure the deal)

The only injustice to me is the poor buyer who pays list will take a much bigger hit come resale/part ex.

To elaborate your point - dealer margin on a DTD will be virtually nothing. 4% at best. Depends on how you play it. For high cost vehicles dealer margin is around 12%. Depending on time of year etc DTD can be between 8 and 10%, so between 2 and 4% is what the dealer gets.

People seem to have a number between 15 and 20% in their heads but it's not 1980 anymore and dealer renumeration more complex and tightly linked to sales volumes.

The higher % numbers are for Nissan Micras, the lower numbers for GTRS. Or Calis.

DTD and Breeze make their money from volume bonus, not from margin profit. In the end the dealer profits will end up being the same ish between and margin and bonus dealer, but once you start the bonus game it's hard to escape.

Top put it in numbers, EC and Breeze likely make between 2 and 3K on a Cali. But if they hit volume bonus this can be 100K +. For EV they also need to take the DTD payment out of this.

Brum make whatever margin they manage to haggle out of you - if they manage to keep 8 to 10% then they make between 6 and 8K. They will still get a volume bonus but it will be substantially less than EV and Breeze. No-one is making 15K on a Cali.

 

[Kayleigh]

To elaborate your point - dealer margin on a DTD will be virtually nothing. 4% at best. Depends on how you play it. For high cost vehicles dealer margin is around 12%. Depending on time of year etc DTD can be between 8 and 10%, so between 2 and 4% is what the dealer gets.

People seem to have a number between 15 and 20% in their heads but it's not 1980 anymore and dealer renumeration more complex and tightly linked to sales volumes.

The higher % numbers are for Nissan Micras, the lower numbers for GTRS. Or Calis.

DTD and Breeze make their money from volume bonus, not from margin profit. In the end the dealer profits will end up being the same ish between and margin and bonus dealer, but once you start the bonus game it's hard to escape.

Top put it in numbers, EC and Breeze likely make between 2 and 3K on a Cali. But if they hit volume bonus this can be 100K +. For EC they also need to take the DTD payment out of this.

Brum make whatever margin they manage to haggle out of you - if they manage to keep 8 to 10% then they make between 6 and 8K. They will still get a volume bonus but it will be substantially less than EC and Breeze. No-one is making 15K on a Cali.

When you say EC, do you mean Eurovans? Is that another acronym for them???

 

[dspuk]

When you say EC, do you mean Eurovans? Is that another acronym for them???

Yeah, sorry, EV. Edited.

 

[Corradobrit]

Yeah, sorry, EV. Edited.

Nah, I think was fine first time.

 

[Kayleigh]

Yeah, sorry, EV. Edited.

Oh thats good! I was really struggling to find a suitable word beginning with ‘C’.!!

 

[Corradobrit]

Oh thats good! I was really struggling to find a suitable word beginning with ‘C’.!!

Here, I'll help you out...... EuroCali

 

[Barry Chuckle]

To elaborate your point - dealer margin on a DTD will be virtually nothing. 4% at best. Depends on how you play it. For high cost vehicles dealer margin is around 12%. Depending on time of year etc DTD can be between 8 and 10%, so between 2 and 4% is what the dealer gets.

People seem to have a number between 15 and 20% in their heads but it's not 1980 anymore and dealer renumeration more complex and tightly linked to sales volumes.

The higher % numbers are for Nissan Micras, the lower numbers for GTRS. Or Calis.

DTD and Breeze make their money from volume bonus, not from margin profit. In the end the dealer profits will end up being the same ish between and margin and bonus dealer, but once you start the bonus game it's hard to escape.

Top put it in numbers, EC and Breeze likely make between 2 and 3K on a Cali. But if they hit volume bonus this can be 100K +. For EV they also need to take the DTD payment out of this.

Brum make whatever margin they manage to haggle out of you - if they manage to keep 8 to 10% then they make between 6 and 8K. They will still get a volume bonus but it will be substantially less than EV and Breeze. No-one is making 15K on a Cali.

My example was just to illustrate the principle, if Brum flatly refuse to discount like they did for me they get to keep 12% margin using your example. Add on holy trinity as it's know in the motor trade, GAP insurance, paint & fabric ceramic coating & tyre/alloy wheel protection and they can another £1,000 on their margins at least....

You're absolutely right with your comments, the volume bonus game is extremely risky as if they don't hit the requisite numbers they miss out on the manufacturer bonus. Dealers have been known to go out of business because of this practice in the past....