dealer margins

[CupraR1]

Gary you beat me I only have 32 years in customer service, 25 years with the same company.
Right let’s start lol
Car dealers are on a par with Bankers as they have both had to be bailed out by the government with my cash (and everybody else’s cash) the government brought out the scrappage scheme to save their as*** so what did most dealers do because they had a Q of customers with 4k discount? They put their prices up to full retail and some.
Someone far more intelligent than me should start a poll that could be used to car dealer benefits and find out what they do good and what they are bad at. If you read the comments on this thread most people have gripes rather than compliments.
Hopefully your dealership is exactly what you say it is and I may have to try you one day.

 

[Gary@Cookies]

Gary you beat me I only have 32 years in customer service, 25 years with the same company.
Right let’s start lol
Car dealers are on a par with Bankers as they have both had to be bailed out by the government with my cash (and everybody else’s cash) the government brought out the scrappage scheme to save their as*** so what did most dealers do because they had a Q of customers with 4k discount? They put their prices up to full retail and some.
Someone far more intelligent than me should start a poll that could be used to car dealer benefits and find out what they do good and what they are bad at. If you read the comments on this thread most people have gripes rather than compliments.
Hopefully your dealership is exactly what you say it is and I may have to try you one day.

Naivety again I'm afraid as far as the scrappage scheme is concerned.

It was actually a very clever way for the government to appear as is they were giving away money when in fact they were gaining revenue. It also of course, revitalised the motor trade at one of the lowest points it had ever seen.

The government aimed the scheme at people who wouldn't, under normal circumstances, buy a brand new car and therefore the government would only be gaining the usual taxes these people contribute. But, if they could induce these people into buying a new car the government would rake in 17.5% in VAT (later reduced to 15%).

Now, if you consider that they government was only paying to the manufacturers a £1,000 contribution per car (on the proviso that the manufacturer had to match the £1,000) it would mean that on any car costing £7,000 OTR or more the government would draw more back in VAT than they had contributed in scrappage allowance. I think you'll find that most of the cars sold cost more than £7,000 but it didn't stop there, because a high percentage of the cars sold were from outside the EU the government also gained the 10% import duty from each car. It was, as I said, a very clever scheme that benefitted both individuals and businesses.

As for manufacturers putting up their prices that was an unconnected issue mostly due to currency exchange rates and applied to scrappage or retail cars, the scrappage scheme stipulated that the £2,000 had to be off retail prices but many manufacturers, SEAT included, actually took up to £4,000 off retail prices for scrappage deals. The dealer incidently was on a fixed margin of 3% of pre-VAT list price with no bonuses.

These are, whether people want to believe it or not the facts.

 

[Jarre]

Actually the main reason for the scrappage scheme was to increase the incentive to purchase in the economy. This was to increase demand in the economy, to stop the recession being as bad.

The truth is the scrappage scheme LOST the government billions of pounds, prolonged the recession, but in the end made it worse.

How do i know all this? Just studies it in A level economics. The scrappage scheme wasnt a way of increasing revenue for the government, just trying to stop deflation in the economy and the total collapse of it

 

[Gary@Cookies]

Actually the main reason for the scrappage scheme was to increase the incentive to purchase in the economy. This was to increase demand in the economy, to stop the recession being as bad.

The truth is the scrappage scheme LOST the government billions of pounds, prolonged the recession, but in the end made it worse.

How do i know all this? Just studies it in A level economics. The scrappage scheme wasnt a way of increasing revenue for the government, just trying to stop deflation in the economy and the total collapse of it

Yes of course it was a way of boosting the economy, as I said it was a brilliant scheme in every aspect. A recession is always based on not only financial reality but also on perception and confidence in the marketplace - those of us who in business when "Black Monday" occurred can testify to that - and the scrappage scheme boosted both. More importantly, despite what a modern day A level paper might say, it didn't cost the tax payer a bean, the revenue from VAT and import duty more than covered it.

To have cost "billions" work out the maths, there were approximately 385,000 scrappage registrations, the government contributed £1,000 per vehicle, I make that a gross contribution of £385,000,000 without taking into account the VAT, Import duty, the corporation tax paid by companies that would otherwise have been in a loss position, the income tax and NI contributions of employees who would have been otherwise unemployed and claiming benefits. Cost billions? The sums simply don't add up, George Brown isn't really my cup of tea but the scrappage scheme was an unmitigated success for the consumer, the economy and the motor trade.

Just goes to prove the point that modern day A levels aren't in the same league as the real ones I took back in the 70s!

 

[m0rk]

Just goes to prove the point that modern day A levels aren't in the same league as the real ones I took back in the 70s!

 

[CupraR1]

Gary I know the hardest feedback is the negative type but you have to listen to the majority? If you and your dealership (that I actually believe in) want to evolve you have to listen to “The buyers”
Absolutely love this thread for several reasons. 1) Gary I believe in 100% and would buy a car off him tomorrow and 2) Everyone on here believes dealers are (Most dealers) pants. I have worked with customers (In Liverpool & Skem etc. the hardest customers.) and know what customer want and you will not find a dealership in the UK that can deliver what the customer wants?? Time for dealers to reinvent themselves??

 

[CupraR1]

Actually the main reason for the scrappage scheme was to increase the incentive to purchase in the economy. This was to increase demand in the economy, to stop the recession being as bad.

The truth is the scrappage scheme LOST the government billions of pounds, prolonged the recession, but in the end made it worse.

How do i know all this? Just studies it in A level economics. The scrappage scheme wasnt a way of increasing revenue for the government, just trying to stop deflation in the economy and the total collapse of it

Spot on