This topic contains 17 replies, has 6 voices, and was last updated by Mossfinn 9 months ago.
November 9, 2019 at 7:44 pm #95843
i was wondering how much a sales person gets in commission for leasing a new car on Motability
i was told today Motability only pay the dealer a handling fee of £45 per deal
November 9, 2019 at 8:20 pm #95847
From what I have been told me a dealer it’s £400November 9, 2019 at 8:32 pm #95848
If they only get £400, how can some dealers give £500 discounts…November 9, 2019 at 8:59 pm #95853
My guess is to meet their quota for end of month, quarter etc where they will get a bonus from their manufacturerNovember 10, 2019 at 12:41 am #95874
I was told it was £600 , but it could be less depending on the value of the Car obviously
But I think the way the dealers look at this is the more cars they can order then it boosts their figures/targets ultimately resulting in possibly a bigger discount/quota allocation from the manufacturer which would help grow their business in a very competitive industry
then you have all the servicing , repairs , Mot, warranty recalls etc that also bring in money if the customer decides to use that dealer as their main nominated repair centre
so it leaves you scratching your head as to why all dealers don’t adopt a similar attitude towards deals/discounts/incentives after all if you walked, hobbled or wheeled your way in off the street after a PCP or leasing deal you’d shop about an haggle for the best deal possible
I know Motas official line is they don’t encourage this type of thing, but they aren’t losing out, it’s not an illegal practice and I’m all for us having a few extra bucks in our back burner ( wallet for the posh folk lol )November 10, 2019 at 1:34 am #95879
It’s a set amount and incentives, Motability has a back office system linked to every dealership called MDP (Motability Dealer Partnership) every stage is a payment, but they also get penalised, if a dealership fulfills its obligations then from memory I believe (and I may be wrong as I’m sure someone will correct me) it’s £580 combined stages they then get follow up payments for services etc, but they also get fined or have to cover costs for delays etc, salespeople as individuals are not that keen on Motability because they only get a set amount and can not earn extra for finance etc. The reason some dealerships offer discounts over others is because of targets, to be a franchise for a manufacturer you have to commit to certain sales to receive a set discount, if they don’t hit targets then the basic price goes up. So if timings suit or if sales are needed to hit targets deals are available, some will even take a loss because overall it’s about quarterly and yearly targets,
example if a dealership receives X amount discount if they sell say 150 cars a year but the manufacturer gives them less discount if they sell less then it pays for the dealerships to hit targets and the reason some pre register carsNovember 10, 2019 at 2:51 am #95882
I suppose the best bloke to ask is the chap from hull dealership maybe he’d tell you exactly how muchNovember 10, 2019 at 5:03 am #95886
So having checked my figures and print out from a dealer (a document kindly given to me) the overall amount is variable as depends on the franchise discount from manufacturers so the £580 I quoted was for my individual vehicle for my dealership, but overall Motability standard payment on there internal MDP is for successful completion of
End of contract £70
Obviously they receive a percentage from the manufacturers and incentives for a sale but the above is what they paid by Motability the service payment is successful completion of service the cost of service is an extra. Strict terms and conditions apply and they can get fined also,November 10, 2019 at 8:32 am #95905
JackNovember 10, 2019 at 4:31 pm #95952
The reason that you see a difference between the different manufacturers is that that for some franchises Motability orders count towards their quarterly target AND they earn a volume bonus from the order, for others Motability orders count towards their quarterly target but they DON’T receive any volume bonus money from the order, and finally others don’t count towards VN or pay and are totally separate.
I think most manufacturers fall into the final category so they only receive a fixed amount for the initial deal and then servicing which can go down if they don’t hit certain standards.November 10, 2019 at 4:59 pm #95956
All the information is readily available if you use a search engine to look for the Motability dealer supply guide that is publically available to download.November 10, 2019 at 5:24 pm #95962
Yes Jack but as we are a website we are governed by certain rules and laws and their terms and conditions clearly set out under intellectual Rights unless with prior written permission is granted we can not link etc. We were not granted permission unfortunately and as a forum ran by volunteers we can not afford the court case, or want to risk closure.November 10, 2019 at 5:28 pm #95963
That’s fine and is why I didn’t link it again, just gave general directions so other users can find it for themselves.November 10, 2019 at 5:34 pm #95965
Thank you it would be very ironic a Mobility helpful site getting sued by Motability.November 10, 2019 at 5:41 pm #95966
It would, although I think it’s something every customer should be reading so they know exactly what to expect of a dealer when joining the scheme.
Things like – the statement of needs is a document that has to be signed in order to be FCA compliant and if the PIN is entered by anyone other that the customer or an appointee then the contract is NOT legally binding.November 10, 2019 at 6:52 pm #95981
That point is the one I think dealers try and skip past, some on here have said that the rep has actually got hold of their paperwork and put the pin in for them, totally wrong.November 10, 2019 at 8:26 pm #95992
In response to the original question, I was told (by one of the Motability specialists who said he has recently moved from doing Motability at Hyundai) that at my local skoda dealership, the SALESMAN gets £100 per lease.
I’ve also had figures of £250, £400 and £500 from different dealers as the amount the dealership gets out of a deal.
"Man is born in freedom, but he soon becomes a slave, in cages of convention, from the cradle, to the grave."November 11, 2019 at 3:56 pm #96107
I would imagine that the manufacturer negotiated with Motobility to determine a purchase price and therefore the AP. As most dealers are independent franchises who buy their cars from the manufacturer at a discount which is dependant on volume and other incentives, each manufacturer would have its own payment schedule for Motobility cars sold. It may well change with occasional promotions on certain vehicles
This all means that different dealerships pay their sales Ent different amounts depending on the incentives.
When I got my Mazda, the salesman told me that the dealership got £500 per CX5 but it didn’t count towards their unit volume.