A typical new car buyer visits, on average, 1.9 dealers for the brand of car that they’re interested in.
At Car Business, I ‘visit’ on average 8 new car dealers for the new car I’m pricing for my customer.
According to “Deloitte Motor Industry Services eProfitFocus” 2017 report on car industry benchmarks, on average, those dealers make a profit of $2600 for every new vehicle they sell.
Those same new car dealers make a further $2400 to $2600 for every customer who finances the purchase through them and another $180 for every insurance policy they writeSo, on average, if you buy a new car, finance it and insure it through a new car dealer, you’re contributing over $5000 to that new car dealer’s profit.
Here are some recent prices on a new Amarok V6 Diesel Auto Dual Cab that I priced for a customer.
Retail Price including Metallic Paint $62140.49
So the difference between the lowest price and highest offer was over
$4, 250. Why would you do it to yourself? And that could be you paying the full retail price of $62140.49 or even a discounted price of $54303.
I don’t have an internal finance person in my company. I recommend that you talk to your bank about finance, and then speak to me. I’ll refer you to a friendly broker, who will work hard with me to win your business and beat the banks and the dealer
On average, I believe that dealers are averaging about 9.2% for finance they write. Banks? I’m seeing rates anywhere between 9% and 13% depending on your credit score. I also know that if you’re a home owner, with a steady employment history, no defaults and a good credit score that I can achieve an interest rate of around 7-8% for you.
If you’re financing a $30,000 new car, the difference between 7% and 9% is a saving of $1722.60. You can use that to pay for 18 months of fuel, a holiday, pay it off your mortgage – there’s so many possibilities.
I deal with my prospective customers on an obligation free basis. If I can’t put a deal together that saves you money, then you don’t owe me anything.
But I do know that for every 10 enquiries I deal with, 9 of this enquiries translate in to a money saving contract. I reveal my charges up front – nothing hidden, very transparent.
But if you want to know a little more about what I do and how I do it, then click here