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Buying a new car - should we go for the best price?

My wife has decided to trade in her four year old Ford Focus 1.6 Zetec diesel with 29,000 miles on clock for a new Nissan Qashqai. We have been customers of the local Ford/Nissan dealer for the last eight years and bought a number of cars from them. We’ve also had all service work done there and are very happy with the standard of customer care.

However, they are asking £22,000 for the car, while a nearby garage can do exactly the same deal for £20,000. Obviously, £2000 is a big price to pay for loyalty to my current garage, but they won't match the price and say they can't understand how the other dealer can make any money on the deal. What should I do?

Asked on 26 February 2014 by P.A.

Answered by Honest John
Financially you can't afford to go with your local garage's deal. The cheaper deal is the result of volume discounts. The cheap dealer sells more cars, so gets them cheaper.
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