Motoring Discussion > Manufacturer's "cost price". Buying / Selling
Thread Author: Crankcase Replies: 4
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New Thu 3 Jun 10 11:49 
 Manufacturer's "cost price". - Crankcase
I've had a promotional email from a local dealer for the usual blather - one off event, limited time, hurry hurry hurry.

Anyway, the spiel is that the cars will be sold at "manufacturer's cost price plus £1.00".

In very general terms, what do we think that might be in terms of percentage off? 20%? 30%?

Or is the variance too wide between manufacturers to come up with any kind of ballpark figure?

I don't want to call them (yet) because I'm not really in the market, just nosy.
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New Thu 3 Jun 10 12:07 
 Manufacturer's "cost price". - Chris S
When the Mini came out in 1959 it was initially sold at a loss.

The manufacturer's cost price might that you're being offered might be more than the retail one!
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New Thu 3 Jun 10 12:36 
 Manufacturer's "cost price". - FotheringtonTomas
>> Anyway, the spiel is that the cars will be sold at "manufacturer's cost price plus
>> £1.00".

I am very sure it won't be the price which many people would interpret that as - the cost of production + £1.
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New Thu 3 Jun 10 13:06 
 Manufacturer's "cost price". - Falkirk Bairn
Manufacturer's have gone away from big % markups (17.5-20% was common 30/40 years ago) - they now have smaller "dealer price" but the true margin for the main dealer is not the % margin BUT the Bonus payment which can be £000's after they have mde their quota.
EG Margin 12.5% on list price + target 50 cars for a quarter or "new reg month" - meeting taget = £50,000 £75,000 i.e. £1000 or £1500 per car.

If the dealer is at 45 cars with 1 week to go then their will be a good deal avaialble as they scramble to make the magic number - pre-reg in their own name may not count towards the target.
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New Thu 3 Jun 10 14:13 
 Manufacturer's "cost price". - Crankcase
That's useful, thank you. They are quite upfront in the email about doing this so as to hit their quota.

Gives me an idea about probable prices anyway. Ta.

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