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main dealers - how do they sell cars??? - Hew
how is it that main dealers are still able to sell cars? go to a ford dealer for example, and ask for a price on a car, and for a high spec focus / mid spec mondeo, the price they qoute (after a cash discount) will be in the region of £2.5K more than somewhere like motorpoint / trade sales!! ok, typically the cheaper car will be need an extra warranty purchased to be a direct comparison, but even with this, there is roughly a £2K difference, or in other words 12%.

so do people really pay these prices, and if so, why?
Re: main dealers - how do they sell cars??? - Tom Shaw
It's an amazing quirk of human nature that someone who will walk the lenght of the high street twice to see if he can find the cheapest can of beans will walk into a car showroom and pay ten grand without quibbling for a discount or shopping round for a lower price elsewhere. This is why we constantly pay over the odds for cars in this country, there are enough people round who make it worthwhile for the manufacturers to keep prices high.
Re: main dealers - how do they sell cars??? - Steve G
It is puzzling, why after all the huge TV publicity of Rip-Off Britain do people go to main dealers and pay way over the odds ?
I guess some people are just lazy.
Re: main dealers - how do they sell cars??? - dan
Ah grasshoppers,
This is pure psychology. People weigh up that its worth saving a few quid on a shopping trip by going slightly out of their way, but not so for larger purchases.

SCENARIO 1 - grocery shopping
Going to cheaper non-high street vendors with unknown reputations is not a big deal in this situation because if the goods turn out to be faulty it's only a few quid lost/minor inconvenience even in the worst case scenario.

SCENARIO 2 - brand new car
People will pay full wack to ensure peace of mind and a perceived sense that the vendors (Main dealers) will provide an adequate level of after sales service. If not the entire infrastructure of legal recourse is there. Main dealers can't disappear, and if taken to court, can and will pay up (or whatever) if they lose.

This is to do with risk aversion and the consequence of risk, not just the chance of it happening. (e.g. Nuclear catastrophe less likely to occur than being hit by a runaway car, but the consequence of the former is greater. Therefore people will show a greater aversion to nuclear power etc.. than cars).

There are other factors like the perception of control, (people know cig's could kill them but at least they have decided to take that risk rather than being exposed to risk without a say) Again people will pay more for that extra 'control' they (may) have by buying from a Main Dealer.

Take the marvelous Japanese imported car company, No1 Japan Direct, in Norwich that has mysteriously disappeared having legged it with the remaining stock and quite a few customers' part-exchanged vehicles. These bargain hunters had misguidedly traded their working Jap cars in for extremely shady examples of used grey imports. Theres a few people who'll be main-dealering in the future methinks.

Personally l say sloblocks to main dealers, give me the stress and uncertainty of a second hand private sale any day... ooh that warm tingle when you realise your car isn't a lemon after all and you may well have got it for £100 less than market value.

dan
Re: main dealers - how do they sell cars??? - Tomo
It depends on the car, too. If you are in the home counties and a sort of general specification is acceptable, it seems you can do very well. If you are in the sticks and want an exact model with full security, for example Satria GTi, there is no choice other than the main dealer, really. And the perks like the runs home and back, or courtesy car, when leaving your car have to be paid for!

(I'm wish Littlewoods would do their duty; there's a very flash limited edition Skoda in Fairweather's at the moment that I rather fancy being ashamed to be seen in!)

Ah well, never happy!

Cheers, Tomo
Re: main dealers - how do they sell cars??? - Bono Estente
Great read from night owl dan. Where else on a motors site could you find this
sort of stuff? Methinks not on 4-cars.

Don't understand the address to grasshoppers - is that a Disney reference?

Anyone see that programme two nights ago about those two young guys afflicted with Tourettes? The 30 year old was having trouble finding a job;
I believe it's a legal requirement for large companies such as our main dealers to employ a
ratio of people with disabilities.
I bet they'd try to resist these chaps though:
"Yes, that's right, this new model has all the latest features
, now will that be on the finance?"

Bono
Re: main dealers - how do they sell cars??? - Tomo
"Tourettes" - yes I think I have an idea, but it sounds like open Austin 7s!
Re: main dealers - how do they sell cars??? - Bono Estente
Tomo, are you sure you shouldn't be looking for that well kept V4 Saab?

Unusually durable for the time (needs inspecting though!)
RAC rally winning pedigree - late 60s - good in snow, comfortable.
Almost as much of a hoot to drive as a 2CV, but it had good crash test performance and it keeps up with the traffic. Best suited for short runs,
as I remember it being even noisier than a flat-out deux chevaux!
Re: main dealers - how do they sell cars??? - Tomo
Bono,

I'd like one - and several other models!

Apart from anything else our road is stacked out now, parked end on. I'd be lynched.

Cheers, Tomo
Re: main dealers - how do they sell cars??? - Moosh
"ah grasshopper!"

I think this is from the 70's tv show Kung Foo where the 'teacher' (mentor) always started his psychological advice to the young student 'grasshopper' by these same words.

Perhaps Dan would enlighten us?
Re: main dealers - how do they sell cars??? - dan
Yeah moosh that's the one.
I was trying to set a non-patronising tone.
Re: main dealers - how do they sell cars??? - Flat in Fifth
Bono,

Not wishing to encourage or approve of the use of language such as you used but I didn't see the programme on Tourettes. Knowing what the syndrome is I have this mental picture.

Scenario : somewhere in the North East of England (you *know* where!)

Mark (Brazil) has had difficulty recruiting.
Vladimirs got flu, sent his Mum instead.
Rosa Klebbs forgotten the special knife tipped shoes.
Just Mark, Vladimir's Mum and the Tourettes guy left now.

They creep down this street, ahead is a collection of sundry Lada's and other dubious vehicles. A light flickers from the TV in the front room, the picture is getting a bit fuzzy, after all the Nude Workout video is getting a bit worn now.

Mark's team is about to leave the scene quietly and unobserved having gathered enough evidence for a devastatingly funny and Bafta award nominated post later in the day when his oppo suddenly shouts "OI PINK PRAT"
Re: main dealers - how do they sell cars??? - Dave N
It's a known fact that dealers don't make a lot of money selling cars, but make it on the servicing and other services. Therefore they will make money no matter where the car was bought from. You also get a 3 year warranty that's worth having, not the usual aftermarket rubbish. And not everybody wants to drive to Slough or up the M6, plus you know it's guaranteed latest UK spec, all the keys are there, service book stamped with PDI etc. And don't forget, just because car supermarkets are big, doesn't mean they won't go under, look at Enron!
Re: main dealers - how do they sell cars??? - Steve G
I know what you mean Dan but companies like Motorpoint/Trade sales are hardly fly by night operators.All imports come with a 2 year warranty now so its strange people still see the main dealers as a safer place to buy.
Wonder what will happen when Tesco start selling new cars ?
Re: main dealers - how do they sell cars??? - Tomo
Own brand?


Steve G wrote:
>
> I know what you mean Dan but companies like Motorpoint/Trade
> sales are hardly fly by night operators.All imports come with
> a 2 year warranty now so its strange people still see the
> main dealers as a safer place to buy.
> Wonder what will happen when Tesco start selling new cars ?
Re: main dealers - how do they sell cars??? - pete
Motorpoint do not supply all Audi models for eg.
They offer a low trade in value which can be inconvenient. My present car was bought from a Audi main dealer at 20% discount (old avant) but pre registered with zero miles and with 3 years cover.
A broker failed to match that .
Oneswoop was £1000 cheaper but six months to wait and only one year cover and i suspect only six months tax, along with the instant availability the assurance of main dealer backup with out hassle , complete UK spec down to the last detail , a car available to inspect for problems was enough for me.
Re: main dealers - how do they sell cars??? - Steve G
They might do a value range 'white with blue stripes' ;-)