I'm interested to know how much profit the dealer makes for each 500 that gets sold. Does anyone know? I've been trying to get some form of discount but they won't budge or throw in anything for free.
General Dealer profits on the 500
- Thread starter FloJo
- Start date
Currently reading:
General Dealer profits on the 500
You're not going to find that out on a forum. There are discounts available on 500's if you actually look online
- Joined
- May 15, 2011
- Messages
- 3,769
- Points
- 568
Your discount is getting the Finance deal.
Freebies - mats & tank of petrol judging by other postings.
Re how much profit being made...from an IRISH perspective on the scrappage scheme (over 30th June) I don't think much money is being made. The 500 POP is being marketed at physiological €9,995 mark.
If you add on delivery €250-€500 + government rebate of €1,250 the dealer gets €11,495 whilst the customer pays €10,245.
Get the impression from speaking with one dealer in particular that he has little margin commenting that he would make more money from selling 5-year-old Micra off the forecourt. A factor for them is getting you back for the servicing. I can also see a tightening of the belt on the 3rd year dealer warranty (a lot of discreption takes place here - so keep them sweet).
OP
OP
There are discounts available on 500's if you actually look online
Believe me I've been looking, and that's the main reason I've put off ordering for so long (over 4 weeks!). Dealdrivers haven't had anything for the 500 since April and the other places I've looked into all involve a broker fee and dealing with them directly rather than a dealer or witholding the logbook and me not being down as first owner even on a factory order to my spec.
If anyone has any suggestions or ideas please do PM me!! I'm desperate to get the car ordered now!
OP
OP
See my previous comment - I've been through them all, they involve a brokers fee and paying them rather than the dealer (which knocks out any discount) or the V5 logbook being retained and I'm not down as the first owner. Some others have dodgy reviews and I'm relucant to risk them.
I've spent over 4 weeks researching on a daily basis
Buy a pre-reg 500, only way you will get alot knocked off the price or save up abit longer!
loveshandbags is correct, profits are very small and other second hand cars can make alot more which is why most forecourts are filled up with all types of cars leaving it hard to find the Fiats there sometimes!
loveshandbags is correct, profits are very small and other second hand cars can make alot more which is why most forecourts are filled up with all types of cars leaving it hard to find the Fiats there sometimes!
- Joined
- May 15, 2011
- Messages
- 3,769
- Points
- 568
See my previous comment - I've been through them all, they involve a brokers fee and paying them rather than the dealer (which knocks out any discount) or the V5 logbook being retained and I'm not down as the first owner. Some others have dodgy reviews and I'm relucant to risk them.
I've spent over 4 weeks researching on a daily basis
I have no experience of the UK market but this is what I have done in Ireland.
Print off the Fiat configuration the exact car that you want.
Pick a dealer close to you that gives good service and that you are happy to deal with (remember the 3rd year
)EDIT: Pick a Dealer that you reckon will stay in business and keep the Fiat brand
Bring £200 cash down with to demonstrate that you are going to place an order.
Ask them from their best price and that you have already have someone else who is going to do you a deal.
OR
pick one of the Supermarket things as the 2nd owner and a car that is near enough to the spec that you are looking for.
If I remember right you're looking for TA in Volare with Tan leather and white ambiance.
Last edited:
OP
OP
I guess I'd just like to know exactly how much the dealer is getting really. I've done all the research I know what I want, how much it will be, etc etc and answered my own questions through research online.
If I could I'd just order the thing online!! It's a shame Fiat don't offer that option for all of the versions really
Yes, it's the volare blue but with extras so it's a factory order. Which is the reason I am not having any joy trying to negotiate the £400 discount I asked outright for
If I could I'd just order the thing online!! It's a shame Fiat don't offer that option for all of the versions really
Yes, it's the volare blue but with extras so it's a factory order. Which is the reason I am not having any joy trying to negotiate the £400 discount I asked outright for
Last edited:
- Joined
- May 15, 2011
- Messages
- 3,769
- Points
- 568
I guess I'd just like to know exactly how much the dealer is getting really. I've done all the research I know what I want, how much it will be, etc etc and answered my own questions through research online.
If I could I'd just order the thing online!! It's a shame Fiat don't offer that option for all of the versions really
Yes, it's the volare blue but with extras so it's a factory order. Which is the reason I am not having any joy trying to negotiate the £400 discount I asked outright for
To give you a real figure on the 500 I might have one for Ireland.
The eco-bonus figure of €1,250 (this is given along with the goverment subsidy) plus the service delivery of €500 which is generally negotiated by to €250 gives a real figure of €1,500. So that the list price minus what you paid and then take this off the €1,500 gives the Gross profit minus all the overheads in running the garage gives the Net. It doesn't leave that much
.The real area of discount will be on the extras - the more the merry.
The problem at the moment is that the sales offers are all pcp based and if you don't need/want the pcp then there is no discount option.
Dealer makes about £147 per new car.
Cheers
D
Dealer makes about £147 per new car.
Cheers
D
Speaking to a Fiat dealer earlier this year he claimed his margin was only 6%. However that won't include the bonuses which no doubt will be on offer when sales targets are met. If the 6% figure is correct then Fiat themselves must have a very good margin on the 500 given they can sell a similar car (Panda) for much less.
I was going to suggest trying broadspeed but looking at a quote they gave me this week, by the time you have added on their fee, commission and delivery you only save 1.6%. That's not enough to make it worthwhile IMO.
There's also Arnold Clark. They had some good deals a few months ago but now appear to be towing the party line as they are quoting list prices. Might be worth a phone call though.
Have you seen the list of deals on the honestjohn website http://www.honestjohn.co.uk/deals/?cat=new&make=FIAT&mod=500 Perry's might be worth a call too. I was speaking to them last week about availability although we didn't get as far as prices.
I would be interested to hear if you find any good deals although perhaps best not to publicise too widely as I have a suspicion Fiat are trying to stop anyone discounting.
I was going to suggest trying broadspeed but looking at a quote they gave me this week, by the time you have added on their fee, commission and delivery you only save 1.6%. That's not enough to make it worthwhile IMO.
There's also Arnold Clark. They had some good deals a few months ago but now appear to be towing the party line as they are quoting list prices. Might be worth a phone call though.
Have you seen the list of deals on the honestjohn website http://www.honestjohn.co.uk/deals/?cat=new&make=FIAT&mod=500 Perry's might be worth a call too. I was speaking to them last week about availability although we didn't get as far as prices.
I would be interested to hear if you find any good deals although perhaps best not to publicise too widely as I have a suspicion Fiat are trying to stop anyone discounting.
I guess I'd just like to know exactly how much the dealer is getting really. I've done all the research I know what I want, how much it will be, etc etc and answered my own questions through research online.
If I could I'd just order the thing online!! It's a shame Fiat don't offer that option for all of the versions really
Yes, it's the volare blue but with extras so it's a factory order. Which is the reason I am not having any joy trying to negotiate the £400 discount I asked outright for
I walked into the dealer before scrappage was formally announced with a printout, salesman went to his manager and the manager OK'ed matching the discount. Scrappage came along and of course was a bigger discount.
If they don't want to discount then move on to the next dealer.
- Joined
- May 15, 2011
- Messages
- 3,769
- Points
- 568
The impression I get is that the deals that were been given on the 500 were unsustainable. One Dealer remarked to me that the scrappage was a curse because he couldn't sell 1 year old 'stuff' and he preferred if it would end. I got the '09 for the price I did last March because I showed him what I could buy a new one under scrappage for. Price dropped from the advertised price of €11,995 to €9,800. Still got a year's warranty (Audi centre in Ballsbridge) and of course have the 3rd fiat one.
We had a garage called Maxwell Motors go out of business not so long ago. Very popular garage. In business for as long as I remember and was a popular 'drive in' place for dreamers. Business deteriorated when they lost the BMW franchise. This garage had the Black 1.2 Sport that I was after last March and when out of business the following month.
http://www.irishtimes.com/newspaper/finance/2011/0504/1224296004354.html
A lesson to learn about garage warranties.
Last edited:
- Joined
- Jun 23, 2011
- Messages
- 40
- Points
- 58
I recently ordered my 500 after shopping around to try and get the best deal.
Firstly I tried Startin who where very helpful but would not move on the price.
I visited another large fiat dealership which was called Aubry I think, the salesman was nice but was reluctant to take me on a test drive unless I was going to place and order that day with himself. Naturally this annoyed me somewhat and left me feeling like more of a walking £ symbol rather than a potential customer. When it came to getting figures he would not move on price either adding that the dealerships only receive a small handling sum and that no dealership regardless of franchise would offer a discount.
Finally I went to Arnold Clarke who offered me an impressive £500 discount which helped towards the extra options I had added.
Needless to say I placed the deposit and ordered the car which will be a full factory order.
There are offers out there but apparently the prices will change at the beginning of next month when the new quarter begins.
Firstly I tried Startin who where very helpful but would not move on the price.
I visited another large fiat dealership which was called Aubry I think, the salesman was nice but was reluctant to take me on a test drive unless I was going to place and order that day with himself. Naturally this annoyed me somewhat and left me feeling like more of a walking £ symbol rather than a potential customer. When it came to getting figures he would not move on price either adding that the dealerships only receive a small handling sum and that no dealership regardless of franchise would offer a discount.
Finally I went to Arnold Clarke who offered me an impressive £500 discount which helped towards the extra options I had added.
Needless to say I placed the deposit and ordered the car which will be a full factory order.
There are offers out there but apparently the prices will change at the beginning of next month when the new quarter begins.
Arnold Clarke were offering some very good discounts a few months ago and were openly advertising them on their website. Checking now they are advertising list prices. I suspect Fiat have had a "friendly" word and told them they cannot discount, at least not openly.
I'm looking to buy a car at the moment. From my experience there are deals out there. A little inside knowledge and some phone calls helps find them. Perhaps buying at the end of the quarter helps too.
Having spoken to several dealers one thing that I think is very important is to be discreet, at least today while Fiat are trying to stop discounts. So don't go advertising where you get your deal from on the internet and particularly here on this open forum. Also don't go telling other dealers which dealer has made you the best offer as they may pass details onto Fiat.
If Fiat find out about a dealer offering discounts then the impression I get is that they will act against that dealer to stop the discounting.
I'm looking to buy a car at the moment. From my experience there are deals out there. A little inside knowledge and some phone calls helps find them. Perhaps buying at the end of the quarter helps too.
Having spoken to several dealers one thing that I think is very important is to be discreet, at least today while Fiat are trying to stop discounts. So don't go advertising where you get your deal from on the internet and particularly here on this open forum. Also don't go telling other dealers which dealer has made you the best offer as they may pass details onto Fiat.
If Fiat find out about a dealer offering discounts then the impression I get is that they will act against that dealer to stop the discounting.
Last edited:
- Joined
- May 15, 2011
- Messages
- 3,769
- Points
- 568
Cartels never work - someone will always 'break rank'. And I don't think that dealers really care. In some countries any kind of advertising can be 'turned to your advantage'.
That's a good point. If Fiat are indeed stopping any discounting effectively forming a cartel, then are they not breaking the competition laws?
As for dealers not caring, I know from my conversations with at least two of them that they do care. They don't want Fiat or other dealers knowing they are offering discounts. I guess Fiat can sanction the dealer in some way if they offer discounts. In the worse case Fiat could withdraw their support so the garage would no longer be an official Fiat dealership.
Yesterday I was speaking to the Mangoletsi dealership. I thought they were a Fiat dealership but apparently that's no longer the case. According to http://www.honestjohn.co.uk/forum/post/index.htm?t=65232 fiatsupasaver.com was a front for Mangoletsi. I wonder if there's any connection between Mangoletsi not selling Fiats now and fiatsupasaver.com...?
- Joined
- May 15, 2011
- Messages
- 3,769
- Points
- 568
In the past it was well know that you never paid list price and to 'save' all the 'jockeying back and forth' Opel and I think Fiat brought out the term 'Open book policy' - the price advertised was what you paid. On a different thread on 2012 prices & specs, etc there are postings of the kind of money that have been poured into the 'car' business. I can emphathise with the manufacturers and dealers in trying to survive the current economic situation and unlike some other professions where the consumer got taken to the cleaners paying inflated prices. If you cannot get a WIN WIN situation where consumer gets a good price and the supplier stays in business then the 'arrangement' cannot sustain itself - you need your car serviced and bits bought for it after you've made the big purchase. You cannot blame a directive from the top to keep the dealer network in line so that they are not under-cutting themselves. They have enough competition out there in the 'run of the mill' cars with mega warranties but they still have the edge on the premium market. The US spec which IMHO is been sold cheap in the States (probably at zero profit to get on the ladder) is a more expensive car than ours and will have to be sold for around the same price that has been set at July 2011 levels. IMHO there could be a high price to pay in the future if they drop their prices now.
Re the dealer who clinched that previous individual on price - they are in business for a reason
and because of their presence in the market can take a lash from the top.
Last edited:
