Dealer Margin

[Mr Bean]

How can it be ?. If you get discount before VAT, then you don't pay VAT on the money you have saved.

The percentage saving is the same - the cash saving will vary according to the deal.

 

[thebuyer]

I think we moved past that point..............

Al

Sorry ... just woken up

 

[Stevie4scoops]

Dealers must get a huge volume bonus from manufacturers to survive. If you consider all their costs i.e. Modern expensive premises, business rates, electricity, wages, etc etc etc, 3% (after discount to buyer) on bikes simply wouldn't add up.

 

[JJH]

I think the profit is in the finance. Think PCP. Think 10%. No I hear you say. Yes I say. And on the full price. JJH

 

[JohnnyBoxer]

I think the profit is in the finance. Think PCP. Think 10%. No I hear you say. Yes I say. And on the full price. JJH

They will make at least £500/bike on a 3 year PCP.............from finance commission

 

[chasbmw]

Don't BMW give a £500 deposit contribution if you buy with pcp


Sent from my iPhone using Tapatalk

 

[ChazzyB]

How can it be ?. If you get discount before VAT, then you don't pay VAT on the money you have saved.

Try the sums.

 

[Rushy]

They will make at least £500/bike on a 3 year PCP.............from finance commission

I was talking to a dealer last year and he was telling me that commission on finance had been cut, lots of people also don't pass the credit scoring process anymore like they used to but also he told me that the finance companies will claw back all of the commission if the borrower defaults at anytime , even if it's on the very last months payment of say a 4 yr deal.

 

[JohnnyBoxer]

I was talking to a dealer last year and he was telling me that commission on finance had been cut, lots of people also don't pass the credit scoring process anymore like they used to but also he told me that the finance companies will claw back all of the commission if the borrower defaults at anytime , even if it's on the very last months payment of say a 4 yr deal.

BMW PCP users must be poor payers then, I guess

 

[Popell]

Well there seem to be a lot of them....

 

[Rushy]

BMW PCP users must be poor payers then, I guess

Wasn't a Beemer dealer there are others you know , just ask Nutty

 

[richardbd]

Discount before vat is exactly the same as discount after vat, from the buyers perspective! The price you pay is the same.

I assume you were off sick that day in maths then?

 

[richardbd]

Thanks all, so perhaps he's not taking the piss on the price. I was a bit taken aback at the valuation of my 20,000 mile 15 plate TE. OK, it needs a rear tyre and an oil change service in 2000 miles time. The price to change didn't make me bite his hand off, though. In fact, he could see my hurt expression. This is the only new bike I've ever had. Maybe this reflects how many GS's are sloshing around in the used market. The Tiger 1050 I ran for 3 years before this cost me £2k in depreciation (bought for minus sold for).

PCP's your answer - all this trade-in nonsense would go away.

When I traded my 2014 RT for the TB GS, I got a bike 2.5 years newer, no money changed hands and the monthly PCP payment went down. Go figure...

 

[BigRedUn]

Thanks all, so perhaps he's not taking the piss on the price. I was a bit taken aback at the valuation of my 20,000 mile 15 plate TE. OK, it needs a rear tyre and an oil change service in 2000 miles time. The price to change didn't make me bite his hand off, though. In fact, he could see my hurt expression. This is the only new bike I've ever had. Maybe this reflects how many GS's are sloshing around in the used market. The Tiger 1050 I ran for 3 years before this cost me £2k in depreciation (bought for minus sold for).

I was offered £10k for my 65 reg, 9.5k mile TE as part ex on a new exclusive. The cost to change is a bit more than I can justify.

 

[mattgslc]

never done pcp or finance so I wouldn't know on that one

but I do know that if a dealer puts a bike on as a demo say and then registers it to the new owner straight after with 0 mls then they do get a bigger bonus

the actual amount is £1434 on a new one to make absolute 0 profit

 

[JohnnyBoxer]

Well there seem to be a lot of them....

Not wrong there

 

[JohnnyBoxer]

I assume you were off sick that day in maths then?

Lol

 

[Nice 'n' Fat]

but I do know that if a dealer puts a bike on as a demo say and then registers it to the new owner straight after with 0 mls then they do get a bigger bonus

If that is the case why don't the dealers pre-register everything sat on the showroom floor in their name

 

[thebuyer]

If that is the case why don't the dealers pre-register everything sat on the showroom floor in their name

Because it doesn't count as a "retail customer" and dealers are targeted on these as well as registrations

 

[Nice 'n' Fat]

Because it doesn't count as a "retail customer" and dealers are targeted on these as well as registrations

But if the bonus is bigger who cares?