Why some AD margins so high?? Sigh, too greedy.

[Voxy28]

I think AD can start car sales without extended warranty.....

 

THis means selling car base on OMV + COE and some mark up. So a car like F10 would probably cost 160k without the 3 yr super expensive warranty. My workshop is 10x better than those SA in PML.... I can live without those clowns and save 60k.

 

Just give me 1yr warranty.... the rest I can take care on my own. This will definitely bring about the change in terms of workshop specialising in these cars. Also under this category, u do not need sales person to attend to you. Save commission on your trade in car and new car as well... Loan I can settle my own...

 

There will be a transfer of jobs from all those sales people to engineering mechanics and small business. I think it has more value add than people opening their big mouth sprouting nonsense and have no idea what they are selling but earn money from buyer from all the commissions. Sometimes they even push your car value lower so when they sell to the highest bidder, they pocket the difference..... many crooks around so I rather depend on myself.

[Kangadrool]

Should take out the COE component also. Let buyers bid themselves.

[Ishiwgao]

My Honda Jazz....calculated....the AD is making a loss!!!

Amazingly....AD does sells current models at a loss!

 

yeah my honda city was also AD making a loss of 4k.

[Ferraricalifornia]

dealers will make a loss for mainstream cars now,

 

especially with high COE's....

 

but their earnings have been covered by selling lots of that models previously....

 

so in actual fact,

 

they still earn profits lah....

[Voxy28]

yeah my honda city was also AD making a loss of 4k.

 

 

AD must be quite kong kum... but I think only short run. THey lose money on one batch.

 

But some AD priorities their warranty also by whether the car sold got lose money a not. Dont believe, u see when your car need big money repair, they will tell u this and that and short change your repair.

[Joseph22]

AD must be quite kong kum... but I think only short run. THey lose money on one batch.

 

But some AD priorities their warranty also by whether the car sold got lose money a not. Dont believe, u see when your car need big money repair, they will tell u this and that and short change your repair.

 

 

some say its their 2008 stock.

[Ferraricalifornia]

don't even need big repairs....

 

periodic servicing, they will push for more expensive parts to be used on your car....

 

then you pay through your nose through the warranty period....

 

that's where they can cover the lower selling price too....

 

all these are business tactics lah....

 

longer warranty period means sticking to them for longer times....

[Jolie888]

The point was that there were 2 contis being launched, with vastly different margins. Also, they are both sort of niche, in the sense that they are not mainstream or japanese cars.

 

I own a conti ride currently (25K AD margin, but didn't do the math when I bought it), and affordability is one thing, but pricing matters. I was hoping that Renault being a smaller outfit with less volume would be more inclined to get some of their cars out there.

 

Especially when its such a highly reviewed car. Or perhaps they are trying to tap into the eager enthusiasts market - the few that will pay more for bragging rights to owning the vehicle first

 

I'll just wait around and see if there is any price reduction in the coming months, thanks for the comments people.

 

Well, just accept it that the Renault AD is not going to sell the car to bargain hunters like you. They prefer to target a niche market for their sports models (only) ... and there is nothing wrong with that.

 

Nothing you tell them about high margins will make them drop their price. They have a business model, mind you.

Move on. Don't even waste your time waiting for prices to fall, cos it won't.

 

Or wait for a few more years and get one second-hand lor!

 

[Ferraricalifornia]

well,

 

it'll be a rather nice feeling to at least have some exclusivity on your car model right???

[Tianmo]

IMHO, buy car, buy house, buy anything...................same............

 

product gum bo? selling price gum bo? if gum buy, bo gum walk away..........................

 

no need to worry what is their cost, how much their margin, all these we got no say one. nobody will change because of us alone, you no buy, others buy......................

 

But if you know their profit, and not happy with it, you can DIY or bring it in yourself ( if you got lobang)...............

 

Not forgetting a business is a business, and businesses have overheads and other expends......................................

 

 

[Tianmo]

Hmm, many people were pretty quick to point out things like AD costs etc... I did hear many good things about Renault aftersales service though.

 

The point was that there were 2 contis being launched, with vastly different margins. Also, they are both sort of niche, in the sense that they are not mainstream or japanese cars.

 

I own a conti ride currently (25K AD margin, but didn't do the math when I bought it), and affordability is one thing, but pricing matters. I was hoping that Renault being a smaller outfit with less volume would be more inclined to get some of their cars out there.

 

Especially when its such a highly reviewed car. Or perhaps they are trying to tap into the eager enthusiasts market - the few that will pay more for bragging rights to owning the vehicle first

 

I'll just wait around and see if there is any price reduction in the coming months, thanks for the comments people.

 

 

yes, than you have to follow closely, if COE drop price drop.....or..........follow closely for the replacement model, when the product coming to the cycle end, yes price will drop by at least 10K-15K, but not much choices by than and it will take some time................

 

best of luck!

 

 

[Ferraricalifornia]

the previous Renault Megane Sport also selling around this price nia....

[Spoony]

the more expenspive the car...the better profit is a must for AD

 

 

 

a buddy of mine just bought a GT3 from PI..comparing for the local AD...he saves 100k for the same specs , same model.

 

it all depends how you wana work out your money of spending and sourcing for the best deals.

[Ferraricalifornia]

of course most will go for the cheapest way out....

 

but there might be some clawbacks....

 

such as poor aftersales???

 

dealer don't bother to host recalls???

 

just some examples....

[Furrynadz]

Don't think this is fair comparison. I'm not surprise that megane RS, being a low production, niche (in our local context), etc., has higher mark up.

 

Feel a better comparision will be between DS3 & entry level mini, since the former is suppose to offer alternative to the mini, but with higher specs & lower price.

 

 

not really

even when the c4 vts was selling with limited units to each country, and only limited to 2 colours for SG, the markup is like 5-10% at most

c&c sells at a lot less markup then renault and peugeot

 

for my 2 citroens at home, totally no profit, i think they sold me at loss even

 

[Chrispie]

interesting read.

 

The adults discussing about the real business where a kid is there making comments no one pays any attention to... so cute.

[MadDog70]

In short, if you want to buy car, dun worry about selling price, right?

[Good-Carbuyer]

I just walked around Leng Kee last week and was looking at (yes, my current fav) the renaultsport Megane. Also saw the brand new citroen DS3.

 

Based on what the sales people told me:

 

DS3 OMV = 22K.

 

Since basic cost = OMV + Custom (OMV X 0.2) + GST of 7% of (OMV+Custom) + ARF (same as OMV) + $140 registration + COE... the math is like this:

 

DS3 22K+4.4K+1.848+22K+140+32K = 82,388 <--- Basic Cost. Pre Launch Pricing was 89,999 So the AD only earns like $7,611???

 

Renault RS250 OMV = 29K

 

29K+5.8K+2,436+29K+140+42,810 = 109,186 <--- Basic Cost. Pre Launch Pricing is 145,888 So the AD earns like $36,702???

 

$7,611 vs $36,702 is ridiculous. Left a bad taste in my mouth... Love the car, but the pricing is really stupid. No wonder Renaults sell so "well" in Singapore. It will depreciate like a gold bar dropping into the ocean. Really a shame.

 

But the weird thing is, their margin is only 11K on the outgoing renault sedan. So that's quite good value.

 

If the renault megane RS were $120K and they earn 11K... I'd have a new car on the driveway before Christmas.

I believe that AD has yet to feel any competition