Why is discount now so taboo?

[Andrewdiverman101]

Hi everyone- A newby from Sheffield looking to take the plunge and order a new Ocean after many years of deliberation.

Just checking in with the group as I know it can be a very sensitive topic of ‘what is a reasonable dealer discount’, especially where members are now owners or deals in tow and no one wants to feel like they could have driven a better deal

I have spoken to a couple of dealers who all seem very cagey about ’Doing a Deal’.
Pre covid I would here never paid full price for a significant purchase and would have always expected the dealer to split the mark up with me. No problem and always obtained a mutually agreeable deal. However since COVID and protracted deliveries it seems like discount has become a dirty word. Appreciating that supply and demand is always a significant factor. Surely it’s not unreasonable to obtain a discount as the world adapts.

I see the site Autoebid is indicated potential 9% savings- sounds a tad ambitious however surely some where in the 5 to 8% range is workable.


I would be grateful to hear from anyone who has managed to agree ‘a deal’ on their order.
Looks like my spec build up totals £84k - ouch! There must still be some significant margin in that for the dealer. Let me know.

I also am being told 10 to 14 months on delivery. I guess we now just need to adapt to becoming very patient.

Andrew.


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[Ozzy Pete]

You really won’t find many dealers that will give you even a penny off.
To get any discount you will have to go through a company like Autoebid and such like.Good luck.

 

[Sad]

Indeed, you need to use your online quotes as bargaining. If not, just go with the online quote. Plenty of people seem to have had good service through them...

 

[Shuftie]

I got a good quote from DTD, and shopped it around a bit, Breeze Poole beat it, and have a good reputation, so went with them. Nearly 9% discount.

 

[Amarillo]

Five years ago I got a 14% discount on a Beach to my specification that could be used as a road demonstrator for up to 3 months or 3000 miles before delivery.

£42,222

 

[OGII]

I also am being told 10 to 14 months on delivery. I guess we now just need to adapt to becoming very patient.

Your post answers itself. Long lead times, unprecedented demand and discount are not phrases that go together, however unpalatable an £84k list price appears.

With inflation and supply chain issues you will find many posts referring to VW only guaranteeing order prices up to certain dates again making the idea of a decent discount a distant memory.

It seems that used prices are only slowly softening and maybe then only on vehicles with less desirable spec/ colour/ condition. All in all it isn't a buyer's market yet.

 

[calimera]

We bought our California Ocean using drivethedeal (VW Eurovans). Excellent service.
More difficult to find a good VW commercial garage for services near us. Nearest decent one is Breeze Poole , 3 hrs drive away.
Recent bought my new 2022 t-roc through drive the deal. No VW garage could match the discount..

 

[66tim99]

Make life easy and get an order in with Drive the Deal. I got a 9% discount in 2020.
Refundable £1000 deposit so don’t delay and get in the queue.
I presume you’ve checked the classifieds though? It’s nice to spec a new one, but if I’m honest, saving £15k and having an extra year with a newish van should have received more thought by me…

 

[phil keegan]

I ordered a Coast via AutoeBid (arrived in June) and got a significant discount that I essentially spent on options. If you are happy to have a van delivered to your doorstep (with delivery miles) and not get a showroom handover then this is worth considering. I found various online videos, this forum and phoning a friend answered most of my questions (but am still discovering things!). I did ask my local dealer if they could price match but they advised going with the cheaper deals available via internet brokers.


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[kp64zl]

I got about 9% on autoebid in 2018 -worked well

Spoke with a few dealers - none would give discounts on either new or their poorly specced overpriced second hand vans.

 

[Adamocean1989]

I ordered in June and got just shy of 9%

 

[BugglePopples]

Breeze Poole were matching the online discounts earlier in the year

 

[Honestviking1]

As per Shuftie, DTD quoted just short of 9% in June '22 and Breeze matched. We ordered before the end of June on VW finance deal/2 services with Breeze, no dramas. Andrew, good luck in your search.

 

[dspuk]

Was hard a year ago. Even harder now. Supply and demand. When demand outstrips supply there is no incentive for a dealer to give discounts.

Ringing around last year I got from 0 - 4% from main dealers. Using DTD I got just under 9%. I found a dealer to almost match it, but they started to play silly b*ggers with things like paint protection and other extras so went with DTD. They were spot on and honest from the off. What we paid on 1st July 22 was exactly what we were quoted 23rd July 21.

If you can get 8-9%, that is likely the best you will get.

Bear in mind dealer margins are not what they used to be and many dealers live off manufacturers volume bonuses rather than the individual sale itself. Depending on the model and timing dealer margins are anywere between 10 and 18%, with the larger being for cars no-one really wants to buy or mass market smaller models. I’d be surprised if dealers get more than between 10-12% from a Cali, just enough to cover overheads at the lower end.

 

[SusiBus]

I recently have had chats with a couple dealers. Both said they had been instructed to tighten up on giving discounts. So the good deals that are being offered, especially through DtD, and AutoeBid may soon be disappearing.

 

[Andrewdiverman101]

Thanks everyone- great feedback and very reassuring to know that a deal still can be done. Just a shame about the wait.


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[2into1]

There is a new development to consider.... That is that the actual price payable is now determined at delivery, not when placing the order. Not sure if the OP is aware of that.

Also, It opens the possibility that Dtd, autoebid etc, MAY treat you differently to a dealer when it comes to the price correction to be applied 14 months down the line.

9% broker discount off a final price that has gone up 20% while waiting, might have to be compared to a dealer willing to soak up part of the change in list price.

Who knows what prices and demand will look like in 14 months, so I'd definitely be looking at the very smallest deposit and seeing how you feel once built.

 

[SusiBus]

I have been told that the future sales strategy on vehicles sales will be no discount, like Testla and iPhones. Perhaps someone can confirm, can you get a discount off a Tesla?

 

[cryptomapcali]

I have been told that the future sales strategy on vehicles sales will be no discount, like Testla and iPhones. Perhaps someone can confirm, can you get a discount off a Tesla?

Tesla won't do any discount in my experience (M3, July 2021).

 

[dspuk]

There is a new development to consider.... That is that the actual price payable is now determined at delivery, not when placing the order. Not sure if the OP is aware of that.

Also, It opens the possibility that Dtd, autoebid etc, MAY treat you differently to a dealer when it comes to the price correction to be applied 14 months down the line.

9% broker discount off a final price that has gone up 20% while waiting, might have to be compared to a dealer willing to soak up part of the change in list price.

Who knows what prices and demand will look like in 14 months, so I'd definitely be looking at the very smallest deposit and seeing how you feel once built.

Might be the case for AEB but not for DTD, after the agreement with DTD you’re then passed to a dealer. Everything from there is as if you had walked into the dealer in the first place and you never heard from DTD again. They are a handover broker, no more.

Good point on the end price though. The deal you sign with VW and the dealer is pretty clear that the price can change at any time. They were good with us and honoured the price even after 2 rises while we waited, but the speed of inflation on cars atm means that may not always be so.

End advice? Today, tomorrow, the future - makes no difference. The only thing the OP needs to do is get their discount sorted, deposit down and on the waiting list. The longer you wait to do that, the longer it takes to get your Cali and the more expensive it will be.

 

[SusiBus]

I was told on Friday the price you now pay is the list price at the point of delivery, less the % discount you agreed at the point of placing the Vehicle Order. This is off the total Vehice and Factory Options, and is stated on the Vehicle Order and signed by both parties. The discount total is clearly stated on the signed order as a sum in £ not as a percentage.
Any discount on accessories agreed with the dealer is only shown as a final price on the Vehicle Order form.

 

[larrylamb]

Try Swansway at Liverpool and Preston, use dtd as leverage.

 

[couplands]

I have been told that the future sales strategy on vehicles sales will be no discount, like Testla and iPhones. Perhaps someone can confirm, can you get a discount off a Tesla?

No discount, they don't even have anyone to negotiate with. Its all online, you pay the price (£200 deposit now) and off you go. However the price is fixed at time of order, so there is protection from subsequent price rises.

They can sell more than they can produce and last year they did 1million cars, so no need for discounts, they are supply constrained not demand constrained.

And their prices are going up and up, so the sooner you order the better...;-)

 

[SusiBus]

NO DISCOUNTS!!!

QUOTE:
"Retail Price Maintenance in the EU
PUBLISHED
OCT 12 2020

A classic price-fixing arrangement typically takes the form of a cartel, i.e. a price fixing arrangement between competitors. Price fixing is also prohibited for companies in a vertical relationship (active at different levels of the supply chain such as a manufacturer and a retailer).

In a vertical relationship, the practice is known as Retail Price Maintenance (‘RPM’). A manufacturer or supplier is prohibited from restricting the ability of a retailer to determine its own resale price, such as imposing minimum or fixed prices. The EU Vertical Restraints Block Exemption Regulation classifies such restriction as hardcore.

EU competition law prohibits both direct and indirect forms of RPM. Examples of indirect forms of RPM include: fixing margins, setting a maximum discount, requiring that retailers obtain the manufacturers' consent to revise their prices, intimidation, the use of price reporting and monitoring systems putting pressure on retailers to deter discounting, warnings and similar practices. Importantly, EU competition law does allow recommended and maximum resale prices (the latter act as a ceiling for prices, thereby benefit consumers).

There are two examples of recent enforcement action in relation to RMP. In July 2018, the Commission fined four consumer electronics companies €111 million in July 2018. The companies had allegedly restricted online retailers from deciding on the price of their products by using pricing algorithms. The Commission also fined a fashion manufacturer €40 million in December 2018, who, among other unfair practices, had restricted retailers to independently decide on the price of Guess products".

But, oh, we're not part of the EU any more!!

 

[Elmo3]

There seems to be a huge assumption that demand for Cali’s is inelastic. I wouldn’t necessarily assume this will be the case.