Reply To: Prioritising retail sales over motability

#224121
Glos Guy
Participant

    This come up time and time again on this forum and, whilst frustrating, it’s not discrimination. It’s business.

    Dealers make far less money from a Motability sale than they do from a private sale or a private PCP lease (which is effectively still a sale) as they get a set fee rather than a profit margin. The way that they make a Motability sale become far more profitable is by doing a factory order, as the new order also counts towards their volume targets, which generate dealership group and manufacturer bonuses. Cars that are already built have already qualified, so if any of these cars go to Motability customers they get nothing more than the handling fee. Selling to a private customer, even through a PCP lease, will generate many times this amount.

    It is perfectly possible for some dealers to allow Motability customers to pick up ‘in stock’ cars, but this will usually be when they are struggling to shift stock, have replacements on order and need to clear stock, or have newer  models due in.

    • This reply was modified 2 years, 10 months ago by Glos Guy.