New Car Planning

[johnsimcox]

Don't think there has been any rule change that is affecting this. Looking at the Audi UK website it looks as if they are only offering PCP contributions on 2.0 cars and whilst it is £6750 on the A7 it is now only £3k on the A6 (maybe the release of the A7 facelift is sooner than the A6). I guess if you can only make so many cars due to component shortages, why would you give profit away with incentives?

[danclyon]

We got my wifes Toyota from DTD, and the dealer that supplied the car told me all about how/why they use DTD. Basically they were one of the Toyota dealers that always hit it's monthly quota for new car sales. Fleet + Retail, they were always on plan or above it. When they went above it instead of getting a sliding scale payment from Toyota, they got a flat fee, plus a handsome "over plan" payment at year end. Basically they were on DTD because they could let cars go out at £1 more than their buy price, as Toyota paid them a flat £1k per vehicle over plan. The more they sold over plan, the more £1k's they got, and the bigger the year-end bonus was. According to the sales manager I spoke to they did about an extra 75 cars a month via DTD, and since only about 10% of people wanted them delivering, they literally had to enter an order onto their system, take the covers off and do the 15 min PDI and give it a wash before handover - easy money, and he reckoned with their costs they probably made £500 margin on the car. As they were Toyota and Lexus, all up they were about 85-90 extra new car sales a month - which is good money. As nearly all the cars they sold via DTD were on Toyota finance as well, they got an additional kick-back from that too, which although small, made them up to about 125k a month of "easy money". Not small change, but not earth shattering. But, apparently, the year-end bonus for units sold vs plan was quite significant, and made the little bit of faffing with paperwork well worth the effort.

I guess at the moment, hitting plan on new car sales is easy, but, delivering the cars is difficult, and for the mfrs they are probably in a somewhat compromised position of paying commission on deals that may be delivering up to 12 months out (or more in some cases). I guess any "wiggle room" in the system has probably basically gone now, and things have all become a lot more challenging...

[Gmonster]

Thanks for the responses guys.. and some good info there around almost selling cars at cost prices to get extra bonuses.

The extra discount for taking the finance package I always viewed as an indicator of the extra interest money that manufacturers made out of the finance packages (for those that took them out and kept them going etc) So why remove that extra discount incentive now? .. car delivery /supply /component supply issues ongoing or not. Seems strange.

I used DTD and always payed the full price of the car off within the first month to take advantage of the extra discount. (Discount for the A6 A7 was sitting around 20% mark previously)

I had thought of contacting DTD to query the changes and get there take on it.


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[danclyon]

I'm pretty sure they'll just tell you they have no control over it, as they only get a slice (I think it was 250 quid or something) from the sale price as a kick-back from the dealer as being an introducer etc......but it's worth asking, don't ask, don't get

[Gmonster]

Quick update/question: looking at Audi uk website building a new Audi A7 model etc: Question: Has the Matrix LED headlights been dropped in new models build? Looks like a new LED headlight that is now offered. (Reason for asking is that I prefer the old type etc) New type is the top one in the attached picture)


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