Blog: Dave LeggettDiscounts

Dave Leggett | 23 March 2007

Interesting observations below on the fleet discounts available on the Peugeot 407 Coupe, which I guess helps to explain how that particular car finds a place in the market. More generally though, isn't discounting in the car business a black art? Just how firm is the list price? What is the dealer margin? Are we near the end month/quarter sales targets? Will the dealer be begging us to take it off his hands? Can I get it specced up? How much is this trade-in really worth? If I take some finance, how much is that worth to the salesman?

I know buying a car is not like buying a tin of beans. It's a complex and far from homogenous product. There are lots of elements in the transaction and it's not a commodity purchase. There seems, though, something not quite right about having a list price that (almost) everyone knows is 'soft'. Except for the little old lady who innocently wanders in to the showroom and believes that the sticker price on the car is what you have to actually pay and falls for all the tricks.


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