New Car Sales Margin

I am not sure if Cash is King. I know that because of Financing the dealership gets a cut of the financing rate and thus can have more wiggle room in negotiating when the car is on finance.

Though look at new BMW / Merc prices in the North vs Ireland and you already have a discount on the price. Can often be better to buy a 2nd hand 1 year old car in the North and pay the VRT down here and still save or get a better spec'd car.

I was with a main dealer this morning pricing a January change of car for the boss, finance was quoted as 5.6% on a PCP, there was no discount if I opted for finance.

If I sell my current car and come all cash they will knock €2000 off my trade in price.

I also will not have the interest payment.

Cash is King.
 
I was with a main dealer this morning pricing a January change of car for the boss, finance was quoted as 5.6% on a PCP, there was no discount if I opted for finance.

If I sell my current car and come all cash they will knock €2000 off my trade in price.

I also will not have the interest payment.

Cash is King.

Apples and oranges...........apples and oranges.
 
New Car Sales Margin is the original question but there's not too many convincing answers. Anyone thinking there's thousands out of a new car needs a complete checkover, change of oil and a new head gasket. Some cars have barely a margin at all for numerous reasons. I'd well believe a lot of dealers are on the brink and in serious trouble.
 
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I was with a main dealer this morning pricing a January change of car for the boss, finance was quoted as 5.6% on a PCP, there was no discount if I opted for finance.

If I sell my current car and come all cash they will knock €2000 off my trade in price.

I also will not have the interest payment.

Cash is King.

Cash is not always king

 
Related to the car market in the US, this article goes on to say how important cash can be for the dealer, I read it through, very different here, in any regard I only have a life's experience buying cars and that has been my experience perhaps not others, in life generally cash is king and I have found that to be the case again and again buying cars for the reasons alluded to previously.
 
a car on finance at 0% from Volkswagen Bank?

I wonder if dealers have to hit quotas of manufacturer finance? Most major manufacturers have or are in the process of setting up fully licensed financial services arms to monetise their cash reserves. So they offer some initial 0% deals and flip customers over to highly profitable rates when the initial low interest rate period expires. They aim to make it easy for people to trade up to improve customer retention.
 
That sounds like a disaster waiting to happen if they are a bit too loose with their lending criteria and the follow on rate is too much for a high enough percentage of people to deal with. We just don't learn with the bonus chasing culture and a recession looking likely to hit in the next 12-24 months.
 
I’m not aware of any such practice.

0% means 0% in my experience.

I have to say, I think PCP is great in certain circumstances. If it’s used as a means to buy a car which one couldn’t otherwise afford, it’s bad. But for people with the means to purchase the car, it can be very handy.
 
If someone were to complete the transaction in December 2019 and make payment for delivery in January 2020 would there be extra room for negotiation if the salesperson were trying to meet year end targets while the buyer gets a 2020 registered car?
 
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