Greggspies wrote: ↑Sat Dec 04, 2021 11:36 am
Retails profits are being hit by the likes of CarWow enabling people to easily shop around for best prices and use that knowledge to negotiate harder with their dealer. Moving sales online means the manufacture becomes the retailer and controls the price. The dealer becomes an agent working on commission. He then provides a showroom display, test drive and service operation, with only trade in values, used car sales and finance left to negotiate with the customer. It's the way ahead...
It doesn't change... I worked as a Volvo GM for Lex at Streatham Hill in the mid 80's during which time the 740 was launched. At the time I joined, the site was selling near on 1000 new cars a year and was loss making. It didn't take long to spot that 750 of those cars were fleet sales to two major leasing companies and a major brewer, and we were making only 0.5% gross profit on each of those and that was eaten up by the costs of delivering them all over the country. Obviously they then didn't come back for service either...
With our inner London location we started to focus on local sales, used cars and service (gross profit on Service was 80%!) and had turned the loss into an equivalent profit inside 18 months.
New car prices were always controlled by the manufacturer (dealer margin in my day was 17.5%, and most cars went out the door about 15%), about the only thing we were working for in sales was "Dealer Achievement Bonus" from Volvo.
Greggspies wrote: ↑Sat Dec 04, 2021 11:36 am
Retails profits are being hit by the likes of CarWow enabling people to easily shop around for best prices and use that knowledge to negotiate harder with their dealer. Moving sales online means the manufacture becomes the retailer and controls the price. The dealer becomes an agent working on commission. He then provides a showroom display, test drive and service operation, with only trade in values, used car sales and finance left to negotiate with the customer. It's the way ahead...
It doesn't change... I worked as a Volvo GM for Lex at Streatham Hill in the mid 80's during which time the 740 was launched. At the time I joined, the site was selling near on 1000 new cars a year and was loss making. It didn't take long to spot that 750 of those cars were fleet sales to two major leasing companies and a major brewer, and we were making only 0.5% gross profit on each of those and that was eaten up by the costs of delivering them all over the country. Obviously they then didn't come back for service either...
With our inner London location we started to focus on local sales, used cars and service (gross profit on Service was 80%!) and had turned the loss into an equivalent profit inside 18 months.
New car prices were always controlled by the manufacturer (dealer margin in my day was 17.5%, and most cars went out the door about 15%), about the only thing we were working for in sales was "Dealer Achievement Bonus" from Volvo.
Well, Volvo should be making plenty of profit if most of its sales move to the subscription model, given the very significant premium charged over outright purchase.
qrt31 wrote: ↑Sat Dec 04, 2021 7:13 am
Yes, CbV is Care by Volvo. It is the only way to order a Volvo fully electric vehicle. CbV does offer a subscription service, and it is now clear that Volvo intends for most of their cars to be 'bought'/leased on subscription. However, I bought my car outright with cash because I thought the subscription terms did not make financial sense, and I just prefer actually owning my car. So, I think part of the problem is that Volvo doesn't actually want you to buy a car, but rather wants people on higher income-generating subscriptions, and so have put zero thought or effort into supporting people who actually buy cars. Indeed, the language that they use with me is subscription, even though I am not subscribing to a car.
Thank you for your answer. Much appreciated and interesting.
I just checked : regarding the XC40 full electric model, the situation in Belgium and France seems to be different. But the new C40 can only be ordered online indeed.
chammer wrote: ↑Sat Dec 04, 2021 8:49 pm
I’ve got a T3 RDesign auto due next Feb from Santander Consumer Finance.
Does anyone know what’s likely to happen to my order? Thanks.
If you have a build date then you will be fine, its those without a build date yet that either will get one or be offered a MY23. I only know because i dragged it out of the dealership, final orders for MY22 was 3rd Dec, then Volvo inform the dealers on the 6th Dec as to who has a slot on MY22 and to contact those without and to change to MY23.
chammer wrote: ↑Sat Dec 04, 2021 8:49 pm
I’ve got a T3 RDesign auto due next Feb from Santander Consumer Finance.
Does anyone know what’s likely to happen to my order? Thanks.
If you have a build date then you will be fine, its those without a build date yet that either will get one or be offered a MY23. I only know because i dragged it out of the dealership, final orders for MY22 was 3rd Dec, then Volvo inform the dealers on the 6th Dec as to who has a slot on MY22 and to contact those without and to change to MY23.
Although, as I found out, build dates can change...
Ordered an xc40 Ultimate single motor - hoping the real world range for MY23 will be more like Polestar 2 long range single motor. Does anyone have any views?
My order is Care by Volvo - "order approved" on the app but no details so expecting September 2022 delivery - any views?
Thanks