Dealers cut!

  • Creator
    Topic
  • #164268 Reply
    Steve

    How much do main dealers make in commissions when dealing with Motability

Viewing 10 replies - 1 through 10 (of 10 total)
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  • #164271 Reply
    Wigwam
    Participant

    They get a fee, Steve, not commission. But Glos Guy will probably be along shortly with a fuller answer.

    #164277 Reply
    Rhodgie

    Why?

    #164278 Reply
    Rene
    Participant

    They barely get anything. They do, as Wigwam mentioned, get a payment for each sold Motability car – around £230 if i recall the numbers right.

    Someone in another thread said, that it’s no wonder that they don’t really care for Motability customers, because why would they. There’s barely an incentive for them to do so.

    Current: SEAT Ateca Xcellence Lux 1.5 TSI DSG MY19
    On Order: VW Golf GTE PHEV DSG MY22

    #164279 Reply
    Mm5

    230 pounds on top of a weekly wage is good, no? Try to get 2 deals a week and that is very good imo.

    #164280 Reply
    Rene
    Participant

    230 pounds on top of a weekly wage is good, no? Try to get 2 deals a week and that is very good imo.

    That’s not how it works.

    It’s £230 in total. The salesman will make £45 to £50. The dealership gets £100 for giving the car to you, £75 for taking your old one back, and £40 for the first service in addition to the servicing costs.

    This is from a member (Trev).

    Again. Compared to what they make on a private sale, it’s barely anything.

    Current: SEAT Ateca Xcellence Lux 1.5 TSI DSG MY19
    On Order: VW Golf GTE PHEV DSG MY22

    #164283 Reply
    Glos Guy
    Participant

    So as not to disappoint Wigwam (😂), there is a bit more to it. Yes, it’s true that they get a set handling fee of around £230, of which the sales person probably gets a small proportion. However, that’s not the whole story. Motability sales count towards dealer, group and manufacturer sales targets. So your lowly Motability order may be the one that triggers a substantial bonus for them, which can be many thousands of pounds. Either way, it counts towards these targets. I got £500 discount off the AP of our BMW ordered recently (plus 15% discount off the options) and rest assured that the dealership still made a profit out of that transaction. So the moral of this story is never to believe a car salesperson who tells you that all they get is a small handling fee. That’s all they get from Motability but it’s far from all they get in total!

    #164284 Reply
    Rene
    Participant

    If we’re talking about “not the whole story”, you might wanna point out that a Motability sale nets the dealership less than 10% of a normal sale, regardless of targets. On average a dealership makes around 5%-7% per new car sale, which amounts to £1000-£1500 per new car sale to a private buyer.

    20 Motability cars in a dealership might make them meet their targets and receive the full bonus of £10000-£20000 (depending on the dealership) – but you left out the fact that on those 20 cars they only earned £2000 through sales, rather than £20000.

    Your argument of “that lowly sale could tip the scale” only becomes important at the very end of the month/quarter/year. It certainly can become important (when you know there’s only a few cars missing to meet the target) – but until that point, it’s not.

    Current: SEAT Ateca Xcellence Lux 1.5 TSI DSG MY19
    On Order: VW Golf GTE PHEV DSG MY22

    #164285 Reply
    Glos Guy
    Participant

    Rene – you are splitting hairs. In earlier posts you clearly said that all that a Motability sale generates is the £23o. I was simply pointing out that this is not the case, something which you now appear to agree with!

    #164319 Reply
    James

    Hi Rene, most manufacturers don’t count Motability orders towards overall retail quarterly sales targets. BMW and Mini do, which is why you often see AP discounts from those brands.

    #164332 Reply
    struth
    Participant

    i was told they get £500 a deal.

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