it's usually the manufacturer that makes a contribution (because it's usually their finance company used) e.g. atm Toyota will give you £2650 contribution towards a Corolla on a PCP but heehaw if you pay cash.

I am well aware that I can enter into a finance agreement, take the manufacturer's contribution & then withdraw within the 14 days cooling off period & pay it off in it's entirety - but why should you have to do that?

This is good advice. Scoop up the sweeteners then pay off the loan. I nearly did that some years ago but in the end I just couldn't justify changing the Focus when I do so few miles. But when the grim reaper does take it away to the sc-rap yard then this is what I will do. Others on the forum have done the same from memory.

Someone raised the concern that cancelling the deal early affects one's credit rating but the research I did suggested that wasn't the case as you're only exercising your legal right to cancel.

Edited by Xileno on 27/07/2024 at 17:30

I have noted similar with Toyota on Carwow- there is some slight variation but the same discount levels keep popping up from multiple dealers.. To a certain extent that is to be expected as many will have similar fixed costs & trade pricing from the manufacture but it is suspicious when the quotes are to the £ on a £30,000 vehicle.

Toyota build vehicles to a confirmed customer order OR dealer demonstrator / showroom vehicles only.

They don't just churn out vehicles to park up on an airfield unlike a lot of other manufactures.

If you want a discount on a new Toyota & not to fussy on spec / colour you can ask to see the cancelled order list as the vehicle has been built but original customer has decided not to buy.

Franchised dealers usually hold stock (often on manufacturers' credit for a period e.g. 60-90 days). Not so much atm presumably because of the upcoming licence plate change & expected influx of part-ex. I have been tracking this for months because I am at the stage where I could be prepared to change if a good deal comes up (as happened with my current car). Even to order I can still get a discount (not massive) on a new Toyota (less for cash, more with finance due to manufacturer contribution).

Previously franchisees tended to service only their local market. Increasingly, "local" is becoming unimportant - longer service intervals, on-line vehicle sales, lease and PCP, vehicle delivery services etc.

Old style of franchised dealers competitively discount to win a sale. This reduces franchisee profits and puts pressure on the manufacturer to subsidise individual franchisees.

Like banks, the traditional dealer in every major town is under threat. Increased reliability, online connectivity, updates and fault reporting, service once a year, etc,. Even the volume manufacturers will be reduced to a handful of outlets in the next decade.

With a fixed price the franchisee/agent can get a reasonable margin. The manufacturer can set price and promotions nationally having regard for competition, stock levels, target markets etc etc. The manufacturer gets back control and eliminates expensive showrooms.

Edited by Terry W on 29/07/2024 at 13:13

Meanwhile Honda Australia Agency Selling

The brand subsequently posted its two weakest sales years on record in Australia, dropping from 29,040 vehicles sold in 2020 (the last full year before going non-negotiable) to 14,215 sales in 2022, and 13,734 sales in 2023.

They have stopped selling the Jazz which was their best seller and massively increased the price of the Civic. They seem to be going for a low sales, high profit strategy. At this rate I would expect them to leave the Australian market in the next few years. A pity as they used to make good cars but not at the price they are currently asking.