Why do car dealers not compete with each other for motability leases

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  • #131207 Reply
    Martinod

    <p style=”text-align: left;”>with there being different car dealers using motability like Taggart, Arnold Clark etc for I was wondering why different car dealer were not trying to out do each other to give motability customer a better deal so we would go with them and not their competitors, like they do if your a retail customer</p>

Viewing 12 replies - 1 through 12 (of 12 total)
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  • #131211 Reply
    72 dudes

    It’s annoying for the likes of us Martino’s, but car dealers make very little profit from Motability sales.

    The Volvo Motability specialist told us that she personally would make £90 from the sale.

    OK, that’s hearsay and less popular brands may make a bit more, but basically there’s no motivation for dealers to compete with each other, apart from occasionally needing to boost volume to achieve volume sales targets.

    #131212 Reply
    ChrisK
    Participant

    I’ve read it here and elsewhere that dealers will do deals if a particular dealer are down on there sales for a given month as the franchise dealer agrees with the manufacture to sale so many unit a month so you can be lucky and hit the dealer at the right time but there’s been no shortage of buyers the past 5 years so most don’t need to do deals.

    #131213 Reply
    Rob4321

    If the dealers only make £90,

    it makes you wonder, why do they bother with mobility cars?

    #131214 Reply
    Landyman

    As far as I know dealers charge full rate for servicing plus any warranty work which may be required, probably a fair bit of revenue. which is why I think dealerships have motability.

    #131215 Reply
    Carl

    The £90 quoted above is the sales person’s commission for selling the car.  I have a good friend who works at a Nissan dealership and he gets £100 per sale as commission.  The dealership and getting full value for the vehicle with mobility…. As a cash sale, and mobility then lease to us customers.

    So don’t be folled, dealerships are getting a full cash sale for the vehicles they sell to mobility.

    #131217 Reply
    Glos Guy
    Participant

    If the dealers only make £90, it makes you wonder, why do they bother with mobility cars?

    Because they don’t only make £90! In the example 72dudes gave I suspect that’s what the sales person would make personally. The dealer would make a lot more. Dealers often spout this hard luck story that they don’t make much money out of Motability, but it’s to deter customers from asking for any discount on the AP or options. As ChrisK rightly says, dealers have sales targets set by both their owners (e.g. Marshall’s) and the brand. Motability sales still count towards these and, as ChrisK says, if you time it right, your ‘lowly’ Motability sale could tip them over the line for a big bonus. Also, if dealers didn’t have big margins to play with, how come some can offer £250 or £500 off AP’s? Rest assured that they still make money on those sales.

    So, to answer Martinods original question, there are some dealers that offer deals that their competitors don’t, but as dealerships generally control the brand in an area there is often little incentive to do so, especially as the vast majority of Motability customers won’t even consider asking for a discount as they won’t realise that deals can be done (or wouldn’t have the nerve to ask). We fell into that trap with our first Motability car, but have haggled a deal every time since, even when not advertised. The bigger issue, IMO, is the fact that Motability Operations seem to be pretty hopeless at driving good deals. Savvy private buyers can easily get 10-20% off a new car, yet the AP’s that Motability sometimes quote for mainstream cars makes me wonder how hard they actually try. I suppose when it’s not your own money the incentive isn’t as strong. Then again, given the profit that Motability Operations makes on each car leased through Motability, perhaps they do get better deals than we think, but just don’t pass them on through AP’s.

    #131218 Reply
    Martinod

    Yeh because mobility buy the car from the dealer

    #131341 Reply
    ajn

    Waiting in a queue in a supermarket few years ago with my Wife, only to over hear a younger lad saying to an older chap, Gotta get back for my 2pm appointment, older chap replied with, I’m not f*****g rushing back for a motability customer…. the guys had Ford coats and a ford dealer almost next door to the supermarket.

    They had like 2 mins before 2pm..

    sad really that attitude, didn’t take much notice, until now as Were a motability customers ourselves now. Real eye opener..

    #131358 Reply
    Martinod

    ajn terrible that story is I don’t think it’s far from the truth with a lot of people including car motability sales people , it’s the old they are getting a new fancy expensive free car and all the trimmings  it’s a jealousy thing , the problem is when it has a nock on effect with disable person . Any time iv called a car dealer asked them to call me back I don’t think iv ever had a call back.. when you ask for a discount its the look of disgust from  them, . I don’t know why people are so against disabled people getting the money and exchanging it for a car .  if there was a pip equivalent for able bodied people I don’t think may people would say no to it , so it is just jealousy and I can’t see it change . That’s why after the daily mail story about disabled people getting fancy cars they put a cap on it .. rant over .

    #131362 Reply
    Glos Guy
    Participant

    Just a little tip that I use when looking to renew my wife’s Motability car. When dealers ask the inevitable ‘is it a private purchase or a fleet / Motability car’, I always say “well my wife is eligible for a Motability car but we may buy one privately”. I used the same line when I was looking for company cars, as I learned from experience that if I said it was a fleet car they weren’t interested. Once we had decided on what we wanted, after test drives etc, we would then say “OK. I think we will order one of these through Motability. I’m going to check a few dealers to see whose going to offer the best discount on AP and options – what’s the best you can do?” They’ve done all the work by then so are usually open to a degree of negotiation!

    #131379 Reply
    72 dudes

    Perfect reply Glos Guy

    Treat the salesman as though you’re a professional and generally you’ll get treated with respect.

    #131382 Reply
    Martinod

    72 dudes yes that is a good idea in theory that might work  , I have asked for a discount before and have been told no in different way no we can’t give a discount motability does not allow us to give a discount, iv said I’ll go to an dealer see what deal they  can offer they a basically said they don’t care if you go elsewhere

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