Luxury New Car Market
#1
Rennlist Member
Thread Starter
Luxury New Car Market
Recently did some quick shopping around via email (XC90) and in person (new Discovery). Seems that dealers are less willing to give on their big margin. On the Discovery my local dealer advised that they have YTD sold 35 units at full MSRP. Now that may be because the Discovery is a brand new vehicle that just launched in June. I can't imagine this will continue into 2018.
Has supply reached a near perfect equilibrium with demand? OR is the consumer just willing to pay full price in this market segment?
Personally I refuse to let the dealer make $6000+ on a new Discovery.
Next rant - What's with dealers refusing to discuss pricing over email?
Has supply reached a near perfect equilibrium with demand? OR is the consumer just willing to pay full price in this market segment?
Personally I refuse to let the dealer make $6000+ on a new Discovery.
Next rant - What's with dealers refusing to discuss pricing over email?
#2
just part of their game to bring you in and hook you up. Nothing new.
#3
Rennlist Member
Well, if they can sell at MSRP why would they want to haggle?
As for email, if the buyer is simply sending out an email enquiry to every dealer and the seller has a robust market there is no reason to cut a deal.
The market is the market. It's like people selling homes and saying " I won't take less than $xxx for my home". Fair enough...but its only worth what people will pay. Similarly, if the car can be sold at full price the dealer is going to sell it at the price.
if the market softens ( and it may) then of course people will deal.
As for email, if the buyer is simply sending out an email enquiry to every dealer and the seller has a robust market there is no reason to cut a deal.
The market is the market. It's like people selling homes and saying " I won't take less than $xxx for my home". Fair enough...but its only worth what people will pay. Similarly, if the car can be sold at full price the dealer is going to sell it at the price.
if the market softens ( and it may) then of course people will deal.
#4
Rennlist Member
Thread Starter
True and I said as much to the sales person. I've known him since I was 8 years old. My dad has bought cars from him and his dealer for 29 years. So can't begrudge them for that. I was more curious from folks here if this is what they are experiencing.
In this case a dealer said that it is their policy not do discuss price over email. Need to visit a store. I suppose it's harder to build trust over email. They are likely worried that I will take their price elsewhere.
Personally I don't have time these days to sit around at dealers and play lets make a deal. I more or less wanted to know if they will budge off of MSRP before I take the time to go in with my family. But I'm also the guy who won't pay MSRP for a regular production vehicle.
Guess on the Discovery I'll just need to wait till its been in market longer. The competition is coming out with redesigned 7 seaters in the next 1-2 years which will give it some "new" competition.
As for email, if the buyer is simply sending out an email enquiry to every dealer and the seller has a robust market there is no reason to cut a deal.
The market is the market. It's like people selling homes and saying " I won't take less than $xxx for my home". Fair enough...but its only worth what people will pay. Similarly, if the car can be sold at full price the dealer is going to sell it at the price.
if the market softens ( and it may) then of course people will deal.
The market is the market. It's like people selling homes and saying " I won't take less than $xxx for my home". Fair enough...but its only worth what people will pay. Similarly, if the car can be sold at full price the dealer is going to sell it at the price.
if the market softens ( and it may) then of course people will deal.
Personally I don't have time these days to sit around at dealers and play lets make a deal. I more or less wanted to know if they will budge off of MSRP before I take the time to go in with my family. But I'm also the guy who won't pay MSRP for a regular production vehicle.
Guess on the Discovery I'll just need to wait till its been in market longer. The competition is coming out with redesigned 7 seaters in the next 1-2 years which will give it some "new" competition.
#5
The best way to negotiate is to get market information - there must be Canadian Landrover forums? See what others have paid in relation to MSRP. Discount on first model year is obviously not going to be as important as a few years in.
As for email negociating, are you trying to make him move before you offer? Why would he do that?
#6
Rennlist Member
Thread Starter
Originally Posted by Maitre_Absolut
I have no idea how you came up with the number, but its pretty irrelevant.
The best way to negotiate is to get market information - there must be Canadian Landrover forums? See what others have paid in relation to MSRP. Discount on first model year is obviously not going to be as important as a few years in.
As for email negociating, are you trying to make him move before you offer? Why would he do that?
The best way to negotiate is to get market information - there must be Canadian Landrover forums? See what others have paid in relation to MSRP. Discount on first model year is obviously not going to be as important as a few years in.
As for email negociating, are you trying to make him move before you offer? Why would he do that?
Actually I offered (XC90 email) and asked if it was in the realm of possibility. If it was id come in to finalize.
#7
Buying a car can be an extremely frustrating event. A few weeks ago I stood (and sat) in a Ford dealer for 20 minutes waiting for my wife to meet me and look at an F150 for our son. Not one sales rep approached me and then we were ignored for another 10 minutes after my wife arrived. We left and walked across the street to Erin Zpark Lexis and were greeted promptly and had a great experience with our rep Peter. 2 days later my dice owned a new RX350...
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#8
Rennlist Member
Thread Starter
Buying a car can be an extremely frustrating event. A few weeks ago I stood (and sat) in a Ford dealer for 20 minutes waiting for my wife to meet me and look at an F150 for our son. Not one sales rep approached me and then we were ignored for another 10 minutes after my wife arrived. We left and walked across the street to Erin Zpark Lexis and were greeted promptly and had a great experience with our rep Peter. 2 days later my dice owned a new RX350...
#9
Yes, it was. Lots of staff...talking to each other...
#10
Team Owner
Originally Posted by SToronto
Personally I refuse to let the dealer make $6000+ on a new Discovery.
Especially in the car business where margins have to be harvested on the new models.
#11
Drifting
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Being in sales for over a decade, (not car sales, but IT stuff) it obvious that everybody wants a deal. Of course, if everybody gets a deal, then we make less money. The people who "negotiate" for the best price are the first ones to complain loudly if something is delayed, not perfect, or they perceive something is not right. Experience has taught me that I would rather not deal with these people, it's simply not worth it in the long run... of course the auto business is way more transnational, so different lessons probably apply.
The customers who I know I can trust, and who I know are willing to understand that delays and quality issues arise, are the ones who get the best deals. I often tell the team to discount certain customers just because we know they will be less work to manage.
Some customers are just not worth the discount. No implied intent or personal insults or hurt feelings to anyone here... just a message about experience in sales.
The customers who I know I can trust, and who I know are willing to understand that delays and quality issues arise, are the ones who get the best deals. I often tell the team to discount certain customers just because we know they will be less work to manage.
Some customers are just not worth the discount. No implied intent or personal insults or hurt feelings to anyone here... just a message about experience in sales.
#12
I don't know what a Discovery with your config costs but at this (new 911) price point, if you're worried about $5-10k, you're in the wrong game. I'm also not sure what experience people expect. As long as the staff treat me with common courtesy I'm good. I don't expect to be treated like I'm flying first class. You're building a relationship, not buying a car; and a relationship of equals lasts the longest and is the most fulfilling.
#13
Rennlist Member
Agree with that ...I see the relationship as a long term thing. I know the sales and service people well, they are great two deal with. Antje, my sales person has done my last four Porsches and will do the next ones too. I am far from being major customer, just a regular one. A relationship of equals is exactly right.
#14
Rennlist Member
Thread Starter
I don't know what a Discovery with your config costs but at this (new 911) price point, if you're worried about $5-10k, you're in the wrong game. I'm also not sure what experience people expect. As long as the staff treat me with common courtesy I'm good. I don't expect to be treated like I'm flying first class. You're building a relationship, not buying a car; and a relationship of equals lasts the longest and is the most fulfilling.
I don't think it's about sweating 5-10k. Common courtesy should be a given, lacking these days though. First class? Save it for the skies. From my perspective a car like this is transactional which still comes with equal respect and reasonable expectations. I'd be willing to bet that most people buying cars try to save something off MSRP, that the nature of a car transaction. My offer was a 50/50 split on the margin. Reasonable I'd say, dealers need to make money. Keep in mind I'm talking regular production cars not GT3, RS etc.
Are you one of the guys paying full price at my local Land Rover dealer? Keeping me from saving some coin!
#15
Rennlist Member
Thread Starter
Well I guess you refuse to let them make it on you. Unfortunately for you they make it on everyone else so they don't much care about you sitting in the corner while the cool kids play with the new toys. It's just how business works.
Especially in the car business where margins have to be harvested on the new models.
Especially in the car business where margins have to be harvested on the new models.