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No tears for dealers - Costs - oldroverboy.

www.dailymail.co.uk/money/cars/article-5357909/Car...l

I suppose that the loss of the smaller independent Dealerships is contributing to this effect

Those "Glass palaces" cost a lot of investment, and there will be fewer of them, costs go up for servicing and repairs.

My Kia dealer has an hourly rate of £140....

No tears for dealers - Costs - gordonbennet

I went past the huge Landrover/Jaguar dealership just outside Boston (Lincs) yesterday, twice, had the look of a closed palace despite the sheer number of cars there, the site is one of the biggest i've seen though land is probably as cheap there as anywhere in the country.

Irony that there is a maker who specialised in vehicle for the land, yet has no working vehicle to offer the working area, it would not surprise me to see that one disappear.

No tears for dealers - Costs - RobJP

My Kia dealer has an hourly rate of £140....

Can't remember where you are in the country, but that's ridiculous !

My local BMW dealer has an hourly rate of £120, and that's highway robbery !

No tears for dealers - Costs - Falkirk Bairn

Stratstone announced a month or so ago that they would be closing some Premium Brand outlets & concentrating on more 2nd hand sales - the reason? Margin & profitability maybe 25% on a 2nd hand sale Vs single figure margins on new cars.

High value showrooms + high running costs does not make for profits.

It is often assumed that £50K car = huge gross profit - which may be true i the car is sold at list BUT most are fleet sales @ tight margins.

The likes of DTD buying for the man in the street & Big Lease Companies tying up prices with the manufacturer leaving the franchise with a "handling fee" margin.

No tears for dealers - Costs - argybargy

I read somewhere recently that Pendragon/ Evans Halshaw plan to move away from the new car market into flogging more used cars.

Judging by my recent experience, they need to do a lot of work to get that change right. For example, pointy shoes, a luxuriant crop of slicked back hair and a permanent tan are not necessarily the best set of qualifications for a successful sales manager. A commitment to honouring valuations already established would impress customers much more.

No tears for dealers - Costs - SLO76
“Stratstone announced a month or so ago that they would be closing some Premium Brand outlets & concentrating on more 2nd hand sales - the reason? Margin & profitability maybe 25% on a 2nd hand sale Vs single figure margins on new cars.”

Firm I used to sell for had 3 sites and two new car franchises when I was working for them. They binned both the Mitsubishi and Proton franchises to focus on used cars as there was no money in new cars. Dealers will giving huge discounts, often selling at zero profit aiming instead to live off bonuses for volume. Plus manufacturers were slashing margins and making ever more onerous demands for investment in facilities. The sums simply don’t add up anymore. I can see a day when you buy/lease direct from the manufacturer with cars picked up/delivered for servicing and repair. New car dealers will only exist in major towns and cities.

Used cars had higher margins and you can’t compare directly on price alone unlike with new stock. Profit from finance is also much higher. My old firm are now a thriving 8 site chain which will no doubt expand further by buying up further bankrupted new car dealerships.

Edited by SLO76 on 09/02/2018 at 10:49

No tears for dealers - Costs - movilogo

You don't really need estate agents to buy a house and car salesman to buy a car.

You can now spec a car and buy online. It will be delivered to your doorstep just like a normal Amazon delivery.

Few dealerships will still be required for repair, warranty claim etc. However, in future single dealership will deal with multiple brands (a trend already started).

Most car salesman turn the buying experience a bitter one rather than a pleasant one. They try to sell finance products instead of a car. They are rearely knowledable about cars. Talking with them is just waste of time.

No tears for dealers - Costs - Engineer Andy

Most of the time now I just use main dealerships for the test drive, and, if I buy a car from that make (whether through a broker [new] or supersite [nearly new/second hand]), I would then use it for servicing, but I wouldn't bother listening to all their spiel and sales patois (finance etc), as I would've gleaned far more from doing my research here (including via the forum) and on similar useful websites.

I suspect in the not-too-distant future, franchised dealers will be few and far between (maybe in the larger cities only) and we will pay local indie dealers to 'rent' a car for a look around/test drive after they advertise to see what people want. As others have said, things wouldn't be so dire if the manufacturers weren't incessantly squeezing dealers on new car sales whilst the dealers themselves encourage poorly trained (in the cars themselves) sales staff, ending up with glorified estate agents who know diddly-squat and who mainly want to flog optional extras and finance customers neither want or need, never mind the mechanics whose knowledge extends to basics and plugging in an OBD port.

It doesn't now help either when, via the (in my opinion) utterly stupid, government-led commercial property revlauations and changes to how they calculate business rates badly penalises organisations and business that have low rise buildings covering large areas, but low usage (relative to useful floor space or numbers of employees) of local government services. Car dealerships selling new cars on small margins with huge forecourts and glass palaces cannot reasonably survive as they are now, in my view.

No tears for dealers - Costs - oldroverboy.

My Kia dealer has an hourly rate of £140....

Can't remember where you are in the country, but that's ridiculous !

My local BMW dealer has an hourly rate of £120, and that's highway robbery !

Colchester sunny essex. additional cost at service of £140 to remove road wheels and remove clean brake pads and replace original pads. (do not need changing!)

Don't forget, the car is already on the lift.....

No tears for dealers - Costs - galileo

My independent charges about £60/hour and can actually diagnose and fix faults even when the plug-in shows nothing. Computers not necessarily a substitute for years of experience.

Unfortunately, he and others like him are a dying breed, don't know where I'll go when he retires.

No tears for dealers - Costs - Andrew-T

My independent charges about £60/hour and can actually diagnose and fix faults even when the plug-in shows nothing. Computers not necessarily a substitute for years of experience.

Unfortunately, he and others like him are a dying breed, don't know where I'll go when he retires.

I am probably in a similar boat. My indie charged £50 last spring, but he has just let his chief mechanic retire early, and now opens for only 4 days in the week (but longer hours). His main interest is touring car racing, working in the pits, but he still does MoT's and has a bunch of loyal customers like me.