On 08/12/2016 08:23, harry wrote:

I buy my cars around a year old from a dealer, ex demo cars.
These have low mileage, have not been thrashed and there is an upper
limit on price. Typically they are 25% less than new.
And there is often manufacturers guarantee on them.
My last car had done just over 300 miles when I bought it.
Mine had 10 (ten) on it. - mind you it was a Landrover Defender in
Birmingham. Never been out the showroom. About £4k of list price
--
bert

I was told the price you pay for it in these circumstances is what the dealer paid.
ie, his profit margin is the difference.



Its quite simple..

the dealer has a target set by the manufacturer, if he meets that target
the dealer gets a discount on *all* the cars he has sold that period.
So if the dealer is just short of his target he has three options..

Do nothing and lose the extra discount on *all* the cars he has sold.

Pre register some cars and pretend they have been sold as required.

Give a buyer a good discount (maybe even less than cost) to ensure the sale.