Mike Cad Posted December 18, 2016 Report Share Posted December 18, 2016 Just wondered with the people who'd already purchased, what kinds of discount were you able to negotiate? I was quite happy this time around that the APR for PCP is a lot lower than my previous purchase. 6.4% APR was quite a surprise and tempted me off the fence. So far my spec comes to £61,643.00 for a 718S Cayman. No one needs to mention dealerships. I was offered £500 off which is a very tiny amount admittedly Link to comment Share on other sites More sharing options...
Rufus Posted December 18, 2016 Report Share Posted December 18, 2016 If the dealership know you I think you can push for 1,500 ish my dealer voulenteered a grand without me asking, we settled on 1,600 in the end but that was after me walking and them ringing me the next day, he told me the grand is given to all customers who buy a second car from them so maybe the 500 there offering you is about right Looking at prices in the dealers I'm starting to think the boxster is easier to get discounts and caymans are pretty difficult even tho the prices have been realigned this time. personally I'd ask for 60 grand flat for your car or shop around.... I imagine you'll get it after talking to a few dealers Link to comment Share on other sites More sharing options...
Whaleblue Posted December 18, 2016 Report Share Posted December 18, 2016 £800 and a free "£600" Swissvax. My first (and likely last!) ever new Porsche. I was happy with that. Link to comment Share on other sites More sharing options...
Mike Cad Posted December 19, 2016 Author Report Share Posted December 19, 2016 This is my third Porsche from them so I think I need to push for more then Link to comment Share on other sites More sharing options...
Greenman Posted December 19, 2016 Report Share Posted December 19, 2016 Maybe try this guys technique. Link to comment Share on other sites More sharing options...
Mike Cad Posted December 19, 2016 Author Report Share Posted December 19, 2016 I've seen his video but our techniques are polar opposites, I tend to spend around 4-5 hours in the dealership going back and forth with prices, finance details, APR etc until I have the monthly payments where I want them. I got a significant saving on my first Boxster, less on my second but still decent. I take plenty of spreadsheets with me so I don't have to rely so much on their finance systems. This time around I've been a bit lazier but I'm looking to secure more discount, I've made my case this morning so will hear back later. Link to comment Share on other sites More sharing options...
Paul O Posted December 20, 2016 Report Share Posted December 20, 2016 I wonder which option is better, whether to allocate a full day of negotiating, or to go in hard with the pre-designed spreadsheet? There must reach a point where them wasting your time turns into you wasting theirs, and therefore more efficient for them to just agree? Link to comment Share on other sites More sharing options...
topradio Posted December 20, 2016 Report Share Posted December 20, 2016 I worked out the OTR price of my car, rang the sales guy at the dealership with what I wanted to pay, he rang back 5 minutes later to say they agreed to the price and I gave him the order. £ was a lot stronger then so they probably don't have quite the same room for manoeuvre these days. Link to comment Share on other sites More sharing options...
topradio Posted December 20, 2016 Report Share Posted December 20, 2016 I have just watched Nick Murray's video and that's pretty much how I play it. I worked out that at the time it was a bit of a buyers market and I decided on the discount I wanted and was quite prepared to walk if I didn't get it. I was surprised that they came down to my price so easily but with hindsight I figure that they thought they could make it back with extras/finance and, I now realise, they also had an unallocated build slot to fill. Just before I took delivery of the car I got a call from the dealer principle offering a finance deal that would have made them £12K if I had taken them up on it & I rejected all the extras (coatings/insurance etc). They obviously didn't make a loss on the sale but I suspect that it grieved them not to make as much as they wanted. Link to comment Share on other sites More sharing options...
Stuart21UK Posted December 21, 2016 Report Share Posted December 21, 2016 are you saying the finance deal have made the dealer £12000? or was that the interest payable over the duration? (in which case the dealer won't make that much at all) Link to comment Share on other sites More sharing options...
Araf Posted December 21, 2016 Report Share Posted December 21, 2016 15 hours ago, boxsternoob56 said: are you saying the finance deal have made the dealer £12000? or was that the interest payable over the duration? (in which case the dealer won't make that much at all) I think you'll find that was the combined profit including on the car. Link to comment Share on other sites More sharing options...
Menoporsche Posted December 21, 2016 Report Share Posted December 21, 2016 I wonder what is the most profitable extra(s) you could get for free, ie the one that costs them little to give but would normally cost you a lot to buy. Parts and/or labour charges. Link to comment Share on other sites More sharing options...
topradio Posted December 21, 2016 Report Share Posted December 21, 2016 16 hours ago, boxsternoob56 said: are you saying the finance deal have made the dealer £12000? or was that the interest payable over the duration? (in which case the dealer won't make that much at all) You are correct that was the interest on the loan. But as money is so cheap these days the dealer would be pretty poor if they didn't make the lions share of that. Link to comment Share on other sites More sharing options...
Happy Days Posted December 21, 2016 Report Share Posted December 21, 2016 Lucky you. Only one dealer here in NI so no discounts available. Mind you, they do throw in a Porsche Driving Experience in silverstone though. Link to comment Share on other sites More sharing options...
topradio Posted December 21, 2016 Report Share Posted December 21, 2016 Fortunately NI is in the UK so you just have to pop over the water and shop around to take any advantage of any available discounts. Obviously as the NI dealer has a monopoly he will try to maximise his profit. When you realise what discounts have been available you see just what sort of mark-up the dealers can make selling at list. I am sure that Porsche UK understand that some will want to bargain and set the RRP accordingly. Link to comment Share on other sites More sharing options...
Araf Posted December 21, 2016 Report Share Posted December 21, 2016 1 hour ago, topradio said: You are correct that was the interest on the loan. But as money is so cheap these days the dealer would be pretty poor if they didn't make the lions share of that. Link to comment Share on other sites More sharing options...
topradio Posted December 21, 2016 Report Share Posted December 21, 2016 I couldn't believe it either. You would have to be certifiable to take them up on that deal (HP over 3 years inc the balloon) Link to comment Share on other sites More sharing options...
Rufus Posted December 21, 2016 Report Share Posted December 21, 2016 ive an old pal who was the dealer principle at Leeds a few years back, dealers don't provide the finance themselves so don't have anything to do with the interest, they get approx 5 - 8 percent of the interest on finance agreements ( depending on what Apr they charge you ) as a kick back from the 3rd party finance company with with Porsche is generally provided by VW group and underwritten by Zurich bank, but essentially they are just middle men selling a financial product. In fact when I bought my car it was actually on finance as the OPC uses lloyds finance to buy their stock cars. They just pay the finance off the day you pick it up. So not only do they not provide the finance themselves they actually finance their own forecourt stock. So on yours they probably had 600 quid profit in you taking finance out, as well as any other ' hit so and so target for the month bonuses ' still nice money for essentially spending half hour filling in a finance application on the computer. Link to comment Share on other sites More sharing options...
topradio Posted December 21, 2016 Report Share Posted December 21, 2016 They are nearly all independent businesses so their financial model will vary from company to company. They would have been crazy to be only making a few hundred quid on the deal given what they could get it for themselves. We underwrite our own finance and can often make nearly as much money on the loan as on the original deal. Link to comment Share on other sites More sharing options...
Stuart21UK Posted December 21, 2016 Report Share Posted December 21, 2016 3 hours ago, topradio said: You are correct that was the interest on the loan. But as money is so cheap these days the dealer would be pretty poor if they didn't make the lions share of that. To put into context: on a mortgage a broker gets between 0.3 - 0.4% (average about 0.32% net) on a secured loan about 1 - 2% net on a car HP I'd doubt they would make anywhere near 5 - 8% of loan, more like £500 to £1000 (although I guess they may have other bonuses on top for combined targets from the manufacturer?) What they make on the car sale itself I have no idea... Link to comment Share on other sites More sharing options...
Rufus Posted December 21, 2016 Report Share Posted December 21, 2016 7 minutes ago, boxsternoob56 said: To put into context: on a mortgage a broker gets between 0.3 - 0.4% (average about 0.32% net) on a secured loan about 1 - 2% net on a car HP I'd doubt they would make anywhere near 5 - 8% of loan, more like £500 to £1000 (although I guess they may have other bonuses on top for combined targets from the manufacturer?) What they make on the car sale itself I have no idea... 5 to 8 percent of total interest not value hence the 600 quid I said mate Link to comment Share on other sites More sharing options...
Rufus Posted December 21, 2016 Report Share Posted December 21, 2016 26 minutes ago, topradio said: They are nearly all independent businesses so their financial model will vary from company to company. They would have been crazy to be only making a few hundred quid on the deal given what they could get it for themselves. We underwrite our own finance and can often make nearly as much money on the loan as on the original deal. You need to be a registered bank to do this. Which I've never heard of for a car dealer. Don't want so sound argumentative but seriously that never happens. Link to comment Share on other sites More sharing options...
topradio Posted December 21, 2016 Report Share Posted December 21, 2016 I probably haven't described the deal accurately. When you added the deposit + 36 repayments + balloon the total price I would have to pay to own the car was £12K more than just paying cash. They never actually broke down the deal in detail or even quote the APR. I would think that the dealer profit would be in the balloon. Link to comment Share on other sites More sharing options...
topradio Posted December 21, 2016 Report Share Posted December 21, 2016 20 minutes ago, Rufus said: You need to be a registered bank to do this. Which I've never heard of for a car dealer. Don't want so sound argumentative but seriously that never happens. Why do you need to be a bank to offer finance? Link to comment Share on other sites More sharing options...
Rufus Posted December 21, 2016 Report Share Posted December 21, 2016 51 minutes ago, topradio said: They are nearly all independent businesses so their financial model will vary from company to company. They would have been crazy to be only making a few hundred quid on the deal given what they could get it for themselves. We underwrite our own finance and can often make nearly as much money on the loan as on the original deal. https://www.gov.uk/offering-credit-consumers-law car dealers never fall into this category, mainly because they don't need to. why on earth would a car dealer mix a business model of selling cars and banking ?? seriously they don't ... show me a car dealer that offered their own money and does their own credit checks and then has a asset recovery team for when the person defaults and I'll show you a 20 grand gt4 mate. It it never happens. Porsche dealers take out all their finance with vag group finance, seriously it's not a big secret ... it's pretty common knowledge. Im actually suprised we're having the conversation to be honest. Link to comment Share on other sites More sharing options...
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