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New Car Brokers

Are the Big Savings Genuine?

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John Roberts 924/06/2016 14:08:56
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Has anyone here used the services of one of the online new car brokers to acquire a brand new car? I intend to buy a new car in the next couple of months and would be interested to hear the experiences of others.

I tend to be both wary and sceptical about these brokers but the discounts they offer range from 14% up to 22% off the manufacturers full recommended selling price.

I understand that some of the less reputable brokers are effectively selling pre-registered (and therefore secondhand) cars (often using a fleet management/leasing company as an intermediary) but other long standing brokers (with seemingly excellent reputations) are selling genuine, brand new, UK spec cars that are supplied and delivered via high street main dealers.

Maybe the best thing to do is get a quote from the broker for the car I want and take that along to the Main Dealer and ask them to match it?

Percy Verance24/06/2016 14:25:34
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HI John

Does it have to be brand spanking new?

I ask because if you're willing to settle for something perhaps a few months old with minimal mileage, then the bargains are out there. Take the humble Ford Fiesta for example. I noted on Ford's Direct site a 15 reg Fiesta Zetec 1.0litre 5 door, with just 10 miles (yes10 miles) for a snip under 10k. A saving of £4000+ I'd reckon. Having previously bought cars from the Ford Direct site, it's simply a matter of letting your nearest dealer know what you're after, and the car is then brought to your nearest dealer.

Similar savings were available on other Ford models, but of course they need searching for......

chris Bond - Bondaero24/06/2016 15:05:14
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If you know what you are looking for the net can be great for finding demonstrator vehicles that seem to be sold on at 3 months old at good discounts from main dealers, and often have some good options fitted that you can get almost for free. We have just reserved a VW this way.

John Roberts 924/06/2016 15:17:48
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Hello Percy

Oddly enough my starting point was to look at buying a nearly new secondhand vehicle or a pre-registered one on the basis that someone else takes the large initial depreciation hit.

However, once I started to research the car broker deals I discovered that it might be possible to obtain an absolutely brand new car for only ~1500 quid more than a 'secondhand' pre-register. So, whilst I am not fixated on having a brand new one the relatively modest price difference started to make me think about it.

My natural suspicion is that the car broker deals are too good to be true and there must be some hidden pitfalls!

Thanks for responding and I will check out Ford Direct. I assume the other manufacturers have their own equivalent or is it unique to Ford?

Percy Verance25/06/2016 07:23:31
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Hi again John

No, it doesn't seem unique to Ford, as some other makers do have pre-registered cars etc out there. Surprisingly, BMW also do this and are (according to What Car magazine) Britain's third biggest discounter of new cars. Not that I'd choose a BMW personally...........

I've read the odd nightmare story about car brokers. The problems I've read have almost all been regarding the car being supplied was not quite what was originally ordered. The Ford Direct way has certainly worked for my partner. She's a huge fan of the Ford Fiesta, having bought 6 of them in the 24 years we've been together. The last one she bought could be cited as a good example of what's available via Ford Direct. At the time she was ready to change, she'd mentioned this particular colour of Fiesta she'd like. She also said she wanted 5 doors on the car, not three, as this makes seat belt fastening much easier when you're of smaller stature. It also means the car is perhaps a bit more practical while you own it. Anyway, I found a Fiesta on Ford's Direct site at the time, with this particular example being 5 months old but with just 900 miles on the clock. It also had a fair number of extras fitted, which was a bonus. The car was offered at over £2500 less than a brand new one, and proved impossible to resist. She's now owned it for coming up 5 years, which is a bit longer than she usually keeps them. It will almost certainly be replaced in the next year or so though. Good little car for someone, with just 30000 miles clocked.

 

 

Edited By Percy Verance on 25/06/2016 07:26:51

Frank Skilbeck25/06/2016 08:32:58
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Posted by Percy Verance on 25/06/2016 07:23:31:

Hi again John

No, it doesn't seem unique to Ford, as some other makers do have pre-registered cars etc out there. Surprisingly, BMW also do this and are (according to What Car magazine) Britain's third biggest discounter of new cars. Not that I'd choose a BMW personally.........

Edited By Percy Verance on 25/06/2016 07:26:51

My 5 series tourer is a great glider carrier, one thing you should try to, is to get a price off the car brokers site and use that when negotiating with your local dealers.

img_9916.jpg

Richard Edwards 125/06/2016 12:04:16
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Hi John

We had this question asked a couple of months ago and i replied to the the post, as I had used an online broker for a new Citroen two years ago. Everything was great, no problems, please have a look at the thread "Discount New Car Dealers" dated 03/04/2016

Percy Verance25/06/2016 12:52:02
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Apologies for the BMW skit Frank, but I was once quite openly insulted by a BMW dealer many moons ago. I'd called into this particular dealer to look at a car (not a BMW) which had been traded in. As soon as I set foot inside the showroom door, the salesman approached me and asked "how much can you afford?" Without uttering a word I turned on my heels and left........

Steve Hargreaves - Moderator25/06/2016 13:32:15
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Maybe see what the broker can do & then contact a couple of local dealers & see how close they can come to matching it.....a good tip is to try & do the deal towards the end of the month....a desire to hit that months target can mean good deals can be had....

If dealing with the broker then I'd make sure you get absolutely EVERYTHING in writing.....a verbal assurance that "Yes of course it's the Midnight Blue" isn't much good if a white car then turns up.....think of what might go wrong & then try & ensure you have something to prove what was said in case it does. I'm not saying it WILL go wrong but just in case....

Have you thought of Motorpoint...I've had about 3 cars from them. They usually offer cars around 6-12 months old so still plenty of warranty.....be aware that they are not car dealers...they use the car to lure you in & then try & sell you service plans. extra warranties, gap insurance, finance etc etc etc. Sort out your loan or finance before you go so you know where you stand...a personal loan will nearly always be cheaper if you have reasonable credit history...they will always insist that you "talk to their business manager" & this is always fun when he offers you 7% & you can say "No thank you I have a loan arranged at 4%" & watch his little face fall....

When dealing with Motorpoint you should practice the mantra "No thank you....just the car please" & then use it often when you are in there...teeth 2.

Once you understand their business model & how to deal with them the are fine.

Percy Verance25/06/2016 13:48:26
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Chris

It does pay to be careful though. A Peugeot dealer in the nearest town to me has numerous nearly new vehicles for sale. Mostly (understandably) Peugeots, but there are Nissans too. I've heard a whisper some are cars which have been returned under warranty as unacceptable by their buyers, and in some cases have suffered persistent recurring problems, and such-like.

I did spot some of their Nissan stock which could be worth a punt though. A 65 reg Note with 50 miles registered, for 4k less than new. It still had the white protective tape along the door sills. There was also a sprinkling of Quish Quosh that SUV they do, mostly with next to no mileage recorded. Big savings on these, although I noticed they were odd spec cars ( unusual colours, petrol engined autos etc) which may be harder to shift ordinarily.

 

 

 

 

 

Edited By Percy Verance on 25/06/2016 13:55:35

Trevor Crook25/06/2016 20:04:52
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Lots of good advice on the Honest John website

http://www.honestjohn.co.uk/search/?type=question&q=Car+broker

Essjay25/06/2016 20:28:39
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Posted by Percy Verance on 25/06/2016 12:52:02:

Apologies for the BMW skit Frank, but I was once quite openly insulted by a BMW dealer many moons ago. I'd called into this particular dealer to look at a car (not a BMW) which had been traded in. As soon as I set foot inside the showroom door, the salesman approached me and asked "how much can you afford?" Without uttering a word I turned on my heels and left........

Similar thing happened to my late father. He was looking to buy a new BMW, and spent ages wandering around the showroom before anyone even looked in his direction.

Eventually a guy who really looked like he wanted to be somewhere else sauntered up and said "are you looking for anything in particular". Well dad was apparently so disgusted by being ignored for so long that his reply was..........

"As a matter of fact my company was interested in purchasing 6 models for staff cars, but as I've been ignored for so long here I'll recommend we go elsewhere!.", and promptly walked out.

Percy Verance25/06/2016 21:19:10
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Presumably it's part of the training Essjay? Get rid of the riff raff before anyone with deeper pockets walks in......

I can tell you I left distinctly unimpressed when it happened to me.......  Perhaps we're supposed to say " I didn't come here here to be insulted" whereupon they'll ask "where do you usually go"

 

Edited By Percy Verance on 25/06/2016 21:22:52

Former Member25/06/2016 21:51:41
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[This posting has been removed]

Percy Verance25/06/2016 22:04:50
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Maybe we're supposed to feel better about it having been insulted by someone in a more expensive suit Tom?

BMW GB might like to note it's a policy which doesn't appear to work too well. Perhaps that's why they're moving into discounting in a big way?

Edited By Percy Verance on 25/06/2016 22:06:59

Former Member25/06/2016 22:16:08
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[This posting has been removed]

Trevor Crook25/06/2016 22:25:49
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I saw a statistic recently that 80% of all new cars are sold via finance - PCPs seem to be the most popular, and the reason new car sales are increasing each year.

I think the general advice if buying through a broker is to not pay any money up front, except a modest deposit directly to the supplying dealer.

Percy Verance25/06/2016 22:32:30
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Sounds about right Trevor. Until recently I had connections with a large company whom bought/leased company cars (Vauxhalls) by the hundred. In fact they took enough to be able to stipulate a personal company specification.

I often wondered how much discount they secured on these cars? Probably something like £5k to £6k per car I'd imagine.......

Edited By Percy Verance on 25/06/2016 22:36:44

John Roberts 926/06/2016 10:06:54
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Thanks to everyone who has taken the time to add their thoughts here.

If nothing else the cheapest car broker offerings may provide an indication of the maximum possible discount that is likely to be achievable from a Main Dealer. Unlike some I don't mind the haggling process and this kind of information represents a good figure to aim for.

The Motorpoint business model described by Steve above seems to be increasingly common nowadays presumably because it offers the dealer considerably more profit margin than the car itself. The cost of some of these 'add ons' is staggering but this tends to be disguised because it only appears to add a few quid to the monthly payment.

Percy Verance26/06/2016 10:40:00
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The key points to remember John are:

Make certain it's clearly understood what you want.

Get all clarifications/agreements in writing. I'd personally even go so far as to record the deal/discussions on a USB key fob in addition to any paperwork.

Don't be swayed into being sold anything/something they'd rather you bought, be it a warranty, finance or an actual vehicle.

When the car actually arrives, go over it with a fine tooth-comb. Then check it again.......to be sure you're getting exactly what you wanted.

And yes, Motorpoint could indeed be a good way to go as long as you prepare yourself for their MO.......

 

 

 

 

 

Edited By Percy Verance on 26/06/2016 10:49:44

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