Part-ex stitch up?
Discussion
First things first, the story.
Having decided its time to upgrade my bike, I went to my local dealer who had just what I wanted at a fantastic price, £6999. Not wanting the hassle of selling mine privately I decided to trade it in. The salesman inspected it and quoted me £3500 for it (which was more or less what I expected), leaving £3499 to pay.
I then went away to think about it (And to look round for any better deals elsewhere) before coming back with my £100 deposit later that week. In the meantime I saw an advert in the Motorcycle News for the same bike, at the SAME DEALER for £6499.
When I went back with my £100 in my hot little hands I showed the salesman this ad and asked why I was being charged £500 more. He told me I could have it for £6499 if I wanted but that would mean my bike was suddenly only worth £3000, still leaving the "price to change" standing at £3499.
When I asked him to explain why he said that the price of £6499 was geared to a straight purchase without P/X however when he first quoted me a price of £6999 no mention of my bike or a P/X was made. He said that if they lose £500 profit on the newbike they have to get it back elsewhere, i.e. on my part-ex. However I don't see how they've lost that profit when the advertised price was £500 less the week prior to and the week after my initial inquiry?!
In the end, after 1/2 hour or so of arguing I gave in and gave him my £100 (I know I should've walked away as a matter of principle but cutting off your nose to spite your face and all that).
Now in my possesion I have an order form saying £6999 and an advert saying £6499. Do I still have any comeback with trading standards or by agreeing to the deal have I forfeited any rights I once had? If anyone has any knowledge (or even just opinions) on this sort of thing I would be very grateful for any advice you can give me.
Many thanks, Darren.
Having decided its time to upgrade my bike, I went to my local dealer who had just what I wanted at a fantastic price, £6999. Not wanting the hassle of selling mine privately I decided to trade it in. The salesman inspected it and quoted me £3500 for it (which was more or less what I expected), leaving £3499 to pay.
I then went away to think about it (And to look round for any better deals elsewhere) before coming back with my £100 deposit later that week. In the meantime I saw an advert in the Motorcycle News for the same bike, at the SAME DEALER for £6499.
When I went back with my £100 in my hot little hands I showed the salesman this ad and asked why I was being charged £500 more. He told me I could have it for £6499 if I wanted but that would mean my bike was suddenly only worth £3000, still leaving the "price to change" standing at £3499.
When I asked him to explain why he said that the price of £6499 was geared to a straight purchase without P/X however when he first quoted me a price of £6999 no mention of my bike or a P/X was made. He said that if they lose £500 profit on the newbike they have to get it back elsewhere, i.e. on my part-ex. However I don't see how they've lost that profit when the advertised price was £500 less the week prior to and the week after my initial inquiry?!
In the end, after 1/2 hour or so of arguing I gave in and gave him my £100 (I know I should've walked away as a matter of principle but cutting off your nose to spite your face and all that).
Now in my possesion I have an order form saying £6999 and an advert saying £6499. Do I still have any comeback with trading standards or by agreeing to the deal have I forfeited any rights I once had? If anyone has any knowledge (or even just opinions) on this sort of thing I would be very grateful for any advice you can give me.
Many thanks, Darren.
I would suggest that your bike was really worth only £3000 to him originally, but he had inflated the valuation on your bike by £500 on your P/x to get the sale of the new bike at "Full" price........
This is standard practice in the motor trade, if he had allowed you your full £3500 on yours, IN ADDITION to discounting the new bike £500 he would be cutting his profit margin to the bone........
If that makes sense.......
This is standard practice in the motor trade, if he had allowed you your full £3500 on yours, IN ADDITION to discounting the new bike £500 he would be cutting his profit margin to the bone........
If that makes sense.......
danhay said:
I would say it depends on what the bike you're trading in is really worth. If he is bidding high for it to get the sale, then it's fair enough that he won't give the lower purchase price of the new bike.
Yeah maybe, but my initial inquiry was made over a weekend. Both editions of MCN from both the prior and subsequent Wednesdays carried the ad with the lower price. So I suspect I was quoted the wrong price to start with by mistake and this dealer is cashing in on that.
406 said:
Did you get a cooling off period? If so, cancel at the last minute and offer to buy at the lower rate.
I thought about that, but I would say I don't have this option as the bike is brand new and has now been allocated a registration number and registered in my name.
I'd have been perfectly happy with the deal had I not seen this ad so I'm still satisfied with it (And over the moon about the bike) but obviously I could've been £500 happier. Still won't hurt to inquire at trading standards I guess, nothing to lose.
tiger said:
If your happy with the Cost to change then don't worry too much
Yeah I guess you're right, and as I say I'm more than happy with my new bike (collecting Thursday by the way
). Just uncomfortable with the thought I may have been ripped off. I'm sure it'll be the last thing on my mind come Thursday, Cheers.It works like this.
Your PX has a value, a real value to the dealership which will allow it to recondition the bike (MOT, valet, service, tyres etc), stick a warranty on it and get it saleable. This is known as the SIV of the bike.
By using a SIV it makes sure we don't bring vehicles into stock too dear meaning they would sit around depreciating because they are overpriced.
As an example your swapper is worth £3000 to the trade. The bike you are going to buy is £6999 with £600 retained margin for the dealership. You barter hard on your PX and get offered £3500 for it. Rather than bringing the bike onto stock at £3500 and then having to retail it out at £4500 instead of £4000 the dealership overallows on your bike by SIVing the bike at £3000 and using £500 of the retained margin to bring the PX price up to your £3500.
Now you come in and demand the new bike at £6500 instead of £7000. If the dealership stood by its £3500 bid on your bike they would end up blowing money on the deal.
Sorry if you already know this but I know a lot of people don't understand why we can't just give any old figure for a swapper.
Your PX has a value, a real value to the dealership which will allow it to recondition the bike (MOT, valet, service, tyres etc), stick a warranty on it and get it saleable. This is known as the SIV of the bike.
By using a SIV it makes sure we don't bring vehicles into stock too dear meaning they would sit around depreciating because they are overpriced.
As an example your swapper is worth £3000 to the trade. The bike you are going to buy is £6999 with £600 retained margin for the dealership. You barter hard on your PX and get offered £3500 for it. Rather than bringing the bike onto stock at £3500 and then having to retail it out at £4500 instead of £4000 the dealership overallows on your bike by SIVing the bike at £3000 and using £500 of the retained margin to bring the PX price up to your £3500.
Now you come in and demand the new bike at £6500 instead of £7000. If the dealership stood by its £3500 bid on your bike they would end up blowing money on the deal.
Sorry if you already know this but I know a lot of people don't understand why we can't just give any old figure for a swapper.
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