Fleet News

Dealer hacks prices in bid to beat imports

WAR on cut-price European vehicle imports has been declared by a Volvo franchised dealer which has slashed on-the-road prices by up to £3,800 in a move which could cost the company hundreds of thousands of pounds. The dealer-subsidised cars are available to fleets, but companies will not obtain any further discounts on the cars - which are from across the Volvo range.

Alan Pulham, director of the Retail Motor Industry Federation, described the initiative by M5 corridor-based Johnsons Volvo as 'an extreme example of a trend' where dealers were having to go to extraordinary lengths to drum up trade. The biggest cut is available on a S80 2.4S (140bhp) auto saloon, for which the recommended list price is £25,880. Johnsons' price is £3,885 lower at £21,995 - a 15% discount.

As the dealer margin is likely to be a maximum of 10%, Johnsons could be subsidising its new Volvo-sourced S80 by at least £1,297. A Volvo Car UK spokesman told Fleet NewsNet: 'Our dealers are free agents. They are independent, have their own trading money and it is up to them how they use it.'

Leave a comment for your chance to win £20 of John Lewis vouchers.

Every issue of Fleet News the editor picks his favourite comment from the past two weeks – get involved for your chance to appear in print and win!

Login to comment

Comments

No comments have been made yet.

Compare costs of your company cars

Looking to acquire new vehicles? Check how much they'll cost to run with our Car Running Cost calculator.

What is your BIK car tax liability?

The Fleet News car tax calculator lets you work out tax costs for both employer and employee