What price do you want to pay?

What Price do you want to pay? 

The majority of us want the best value in any purchase we make. We all want as much as we can for our money but some are more frivolous than others. Where do you fit along the scale?

To generalise, there are three types of Motor retailer

                                    The Franchise of the Brand/Manufacturer

                                    The Car Supermarket

                                    The Independent

                                    The  ‘ Fred in the shed ‘

The Franchise

This will be probably the most likely place to buy a new car or maybe the only place locally, however if you are hoping to buy a used car in Northern Ireland, you will pay top dollar here.

Having worked in a franchise environment and being in the franchise environment for over 10 years through my father’s experience, I believe I have a fair understanding of how they work and the costs associated with both running a dealership and the margin in new/used vehicles.

Franchises have massive overheads and you just need to visit one of the new showrooms which resemble state of the art hotels to see where some of your money goes. Greeted by an immaculately presented host and shown to another colleague like a product being passed down the production line of employees, I often wonder how many people are necessary to speak to before finally getting to the right person. An overload of employees added to the phrase ‘more chiefs than indians’

The guidelines to be followed in terms of showroom, workshop, colour themes and decorations all have an effect on the cost of the product to you.

The Car Supermarkets

Volume based business with fixed price strategy. These businesses strive on selling lots of vehicles with little sales staff. There is definitely value for money here but perhaps attention to detail and customer experience is basic. I’m unsure how their aftersales treatment is because I’m yet to experience it but `I would imagine, by the time there’s an issue, the emphasis is already on this month’s targets and sales and you’re old news? Forgive me, if I’m wrong, but buying a used car in Northern Ireland, we often come across this as its definitely cheaper at a used car supermarket on the mainland (however there are pitfalls). The average cost to get a vehicle home of circa £500 plus admin fees typically £200 and add into the mix, the idea of having to get the vehicle back to the supplying dealer in the event of a warranty/after sales issue. The dealer is within his right to have the vehicle returned to him with a chance to remedy the issue in accordance with Consumer rights Act. After all, it was your choice to travel for the vehicle and if it was feasible for you to travel to purchase the car, then it’s expected to be reasonable for you to return the vehicle at your cost for a repair.

The Independent

Independent dealers have stock ranging from 10-200 cars. Most of these guys have worked in a franchise at some stage and decided to go-it alone or set up their own company. They try to replicate the processes and standards of the franchises without the overheads. They aim to provide all the same services of a main dealer but at a fraction of the price.

Fred in the Shed

The guy who sells them from the side of the house either as his sole income or those who do it for pocket money. Low overheads, small selection but cheap. Some act as private sellers to avoid their responsibilities as a legitimate trader. Most do not provide finance, GAP insurance or third-party warranties due to lack of licences and strict regulations which are either not met or not prepared to be paid for.  These guys tend to be after the quick buck and lack the facilities nor the desire to help out in the event of a warranty issue or major failure.

I’m not saying there’s a right or wrong way to do it hence the existence of the different types. We like to think we provide a similar or more personal service than the franchise dealership but with better value. We wouldnt be as cheap as the fred in the shed or car supermarkets but we are better equipped and easier to deal with regarding any after sales issues. We always say we cannot guarantee a car will not let you down but we can guarantee we will always look after you over and above our legal duty.