"Cost Price" promotion from my local dealer

[hernibles]

Hello,

Some propaganda landed on my doorstep this week from Barons Mini: Your chance to purchase a new mini at "cost price"

Out of curiosity I called to ask what that means, and was told it would be a discount of about 6%.

A quick check on Broadspeed indicates that shopping around I can get about 5% easily, in any event.

I know times are tight, but I find it hard to believe that a dealer could survive on a 6% margin. Surely the "real" margin must be twice that.

Does anybody know?

David

[The Nun]

The true cost price is around 33% off at the factory so not quite right and as you say it is reasonably easy to get around 5%, I think its just something to get you to contact the dealer?

[hernibles]

Thanks. As i suspected the promotion is utterly misleading then......

Hey ho. If they were talking about 15 or 20 percent, I could have been persuaded to look at a quotation for a loaded JCW.

[ging]

Cost price means what they are supplied to the dealership for, not how much it cost the factory to produce
dealer margins are very complicated
5-6% is far more than a lot of car dealers would make on a basic car from some other manufacturers,
the money is made up by far higher margins on extras, and bonuses for meeting sales targets. They can also make as much money selling finance packages as they can selling the car.