I am in the process of buying a new car. It is a VW Golf, new model and automatic. When I phoned one of the dealers with regard to price, availability etc., he then asked me was it for cash or a trade in. When I told him it was a trade in he said they were only interested in cash as they had too many second hand cars!
Garage only wants (SSIA) cash
- Thread starter Summer
- Start date
K
KalEl
Guest
You mean you're looking to buy a second hand car and want to trade your own car in against it? You'll do better by selling your own car privately (carzone.ie for example) and then getting a cash price from the dealer on the Golf. That dealer was well within his rights if he's carrying too much second hand stock.
I am looking to buy a new car. No doubt the dealer is within his rights to refuse a trade in, it is a real sign of the times with the SSIA cash floating around. But then again maybe VW might not think too highly of their dealerships refusing to sell their cars?
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KalEl
Guest
Sorry, I misunderstood your post...when you emphasised "new model" I thought you meant a second hand car. You know the way we all say I'm getting a "new" car even when it's not new!
Best thing to do is shop around...there are plenty of VW garages. I do think you should try and sell your own privately. You'll get more for it and be able to get a cash discount on the new car-winning out at both ends.
Definitely try and sell privately.
I look at carzone quite a lot and one thing I have noticed more recently is the number of dealers advertising second hand cars and they state in their advert cash deal only and no trade in.
Its gas I went to a garage here in Mayo recently and was looking to buy a car for cash plus a trade in and the guy did not seem too interested in taking cash he wanted me to go on one of their finance packages so it just depends on the garage and best thing is to shop around.
I look at carzone quite a lot and one thing I have noticed more recently is the number of dealers advertising second hand cars and they state in their advert cash deal only and no trade in.
Its gas I went to a garage here in Mayo recently and was looking to buy a car for cash plus a trade in and the guy did not seem too interested in taking cash he wanted me to go on one of their finance packages so it just depends on the garage and best thing is to shop around.
Z
z108
Guest
I can see he has the right to do whats best for his business if hes got too many second hand cars he cant sell.
Maybe its an opportunity to get a nearly new second hand VW. As soon as the wheels of the new car touch the ground youll have lost a substantial amount of money.
I cant understand why he let you walk away completely though
Come to think of it on my travels I've seen a similarly illogical situation at a car dealership where the staff were having a bit of craic with themselves and making tea and cakes etc and ignored frustrated customer(s) who ended up leaving with a bag of money due to inattention.
Garages are on huge commission when they push a finance deal on to you.Last time i changed which was in 2005 to buy a new Kia Sorento( which by the way is a fantastic car) I told the dealer who my outstanding finance was with(Fexco)He said that was fine as he dealt with them every day of the week.Everything fine.
However I ended up talking to Fexco on the phone about a minor detail to do with the changeover.The girl suggesting I deal directly with Fexco as I had a bit of a good record with them.
The moral of the story??????????
Dealing direct I paid €735 per month over 4 years. Through the dealer, same packAGE sAME FINANCE COMPANY €846 PER MONTH.
I rest my case.
However I ended up talking to Fexco on the phone about a minor detail to do with the changeover.The girl suggesting I deal directly with Fexco as I had a bit of a good record with them.
The moral of the story??????????
Dealing direct I paid €735 per month over 4 years. Through the dealer, same packAGE sAME FINANCE COMPANY €846 PER MONTH.
I rest my case.
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KalEl
Guest
I heard a story from a guy I know who owns a garage. One of his "best" salesman got a bit of a shock. Two customers came into the garage...one guy mid-thirties and a really old nun. The "slick" salesman deliberately avoided the nun and went to help the guy. The owner of the garage went to talk to the nun. The guy was buying nothing...the nun on the other hand was the mother superior buying 12 cars for a convent. As these guys work on commission you can imagine how the saleman felt!
The OP should look at buying an 06 VW or even a demo perhaps? And sell his/her own privately through something like carzone.ie
The OP should look at buying an 06 VW or even a demo perhaps? And sell his/her own privately through something like carzone.ie
The reason I am buying new is I want an automatic car with full warranty. It is a lot of hassle to sell privately and to be honest if I did that then it might be just as easy to buy privately why do we need to use dealerships at all? My logic is if I want a new car then I go to the garage of choice, trade my car in and buy a new one. I do not need finance either.
Hi CCOVICH,
I am going to try some other VW garages tomorrow. It is 4 years since I have bought a car but most of the people I know use a garage for a trade in when buying a new car. Of course a garage has a right to refuse business but it seems very short sighted as I nor my family (4 driving) would use this garage, not to mention the ripple effect. Also it might be interesting to phone VW to see if they place any conditions when granting a dealership to a garage.
I am going to try some other VW garages tomorrow. It is 4 years since I have bought a car but most of the people I know use a garage for a trade in when buying a new car. Of course a garage has a right to refuse business but it seems very short sighted as I nor my family (4 driving) would use this garage, not to mention the ripple effect. Also it might be interesting to phone VW to see if they place any conditions when granting a dealership to a garage.
GeneralZod
Registered User
- Messages
- 1,198
I traded in a seven year old golf at my local VW dealer (Grange motors) a couple of months ago without any trouble so it may depend on the dealer. The golf had a nasty vandalism scratchmark too. As the OP says part of the reason for trading in for new is to avoid the hassle of a private sale.
K
KalEl
Guest
Generally it's worth the hassle...whether you need the money or not a couple of grand extra in your back pocket is worth it.
When I bought my last car I got 2 grand more than the dealer was offering by selling my own car on carzone.ie. Then I got about €1500 off by being a cash customer.
Minor hassle for three and a half grand...worth it in my opinion but your call!
Lipstick69
Registered User
- Messages
- 160
I bought a car from Blanchardstown Renault and they told me that whereas last year they went for high volumes, this year they were going for high profit but taking a hit on volumes. Struck me as a little naive to tell me. Mind you, the guy was just as naive when valuing my own car for a trade-in, and I was really happy with his second offer (following the requisite 'I have the money with me today' trick and buying near the end of the month to increase his commission)
I think you are getting confused with the terms
trade-in : garage takes your old car when you get your new one
cash: no trade-in, e.g. garage does not take you old car when you get the new one. My understanding of their jargon is that cash deal has nothing to do with cash (even with the FLA of the year, SSIA!!). You can get financing with a "cash deal" which they actually love as they also make few bobs on the finance package.
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KalEl
Guest
I don't see how the OP was confused?
In fairness to the garage the cycle for them when they take a trade in can run something like this:
Sell car for €25’000
Profit from sale €500 (volume bonuses may arise later in the year as well as revenue from selling credit)
Take in second hand car for €15’000
Result: €14’500 onto their overdraft.
It could take months to get rid of the second hand car. In the meantime it will be taking up room and costing them money.
By April many garages are millions overdrawn. This is the best time of the year to buy a second hand car. Depending on the credit terms that they have from the manufacturer it may also be a great time to but a car for cash (no trade-in) as they may well start to pay interest on the value of the new cars sitting on their forecourts around now as well.
Sell car for €25’000
Profit from sale €500 (volume bonuses may arise later in the year as well as revenue from selling credit)
Take in second hand car for €15’000
Result: €14’500 onto their overdraft.
It could take months to get rid of the second hand car. In the meantime it will be taking up room and costing them money.
By April many garages are millions overdrawn. This is the best time of the year to buy a second hand car. Depending on the credit terms that they have from the manufacturer it may also be a great time to but a car for cash (no trade-in) as they may well start to pay interest on the value of the new cars sitting on their forecourts around now as well.