Michael McAleeranswers your questions
From Lauren Clabby:
I recently traded in a 2005 BMW 116 for €18,000 and I note the dealer is now seeking €26,000. Is €8,000 not a very large mark-up for a car at the lower end of the scale? Also I was not provided with any SIMI documents.
That seems a very serious mark-up and I can completely understand your frustration.
I contacted BMW Ireland and Michael Nugent, sales and marketing director said that the price was wrongly listed on the dealer's website.
"This BMW 1-Series was advertised on the dealer's web site at €25,950 in error because it was assumed the car was an ES version and not an entry-level model.
"The price advertised should have been, and is now, €23,950."
So that's a 33 per cent markup rather than 44 per cent.
Nugent defended this by saying that a large portion of this mark-up is not simply profits.
"It is a common misconception that the gap between the retail price advertised by the dealer for a used car and the trade-in value given to the customer represents the profit for the dealer.
"This is not the case. All previously-owned BMWs have to undergo checks and refurbishment to more than 120 areas to meet the Approved Used Car programme.
"In addition, a warranty has to be purchased to cover the vehicle for a minimum 12-month period at the date of sale. These costs are considerable, averaging about €2,000, based on our 2006 dealer accounts information," says Nugent. "The dealer also has to allow some room for negotiation with prospective customers of a used car and this eats further into any margin.
"In addition there is the marketing expense involved in promoting the car. Finally we have to bear in mind that the dealer may have to trade-in another car, which will also have to be retailed before the dealer can fully realise the potential of the original trade-in."
It all sounds good, but €2,000 seems excessive charge for a warranty within the same dealership, unless there is a problem with the car, while the cost of storage and promotion are largely accounting charges within the company. It's also hard to see how these could amount to more than a few hundred euros.
It proves the case for fighting for a reduction in the listed price of used cars. Always haggle and never accept the first price given.
From Steve, Waterford:
I hope you might be able to help me with a few queries or point me in the right direction.
I will be going to the UK in the near future to buy a used car. I'm wondering are there any things I should be looking out for, or are there any difficulties that could arise?
Some of the cars I've been looking at are trade sellers that offer warranties.
If I was to buy from a garage would the garage warranty be void, seeing as I'm bringing the car back here to Ireland, or if I were to ask for the car without warranty could I expect a reduction in price?
I also see advertised that you can purchase warranty for used cars in Britain. Would this also be void in Ireland?
Is it recommended to get the RAC or the likes to do a vehicle inspection before purchasing the car, as I have heard these are basic and any person who had a small knowledge of cars would spot the same things as the RAC report, and these reports offer no guarantee of the vehicle.
Trade sellers also advertise that the car is HPi clear, should I take their word for this or should I pay for the check to be done myself?
I hope you might be able to give me some advice to avoid the pitfalls and to find that elusive bargain or some more information on buying in Britain.
Quite a lot of questions to get through, but here goes:
1. A garage warranty will be no good to you over here unless you're prepared to have the car towed to the UK dealer every time it breaks down. You can argue for a price reduction given that the warranty no longer applies, but it's really up to the seller to decide how much - or whether - he's prepared to drop the price because of this.
2. Warranty is on sale but it really depends on the contractor. Simply ask them if their warranty deals apply in Ireland.
3. A vehicle inspection may not be a cast-iron guarantee that there are no problems with the car, but it's far more advanced than some person who "likes to tinker with cars".
These are qualified technicians and they can identify problems just as a mechanic in a garage is expected to do. Doubtless some things may slip through, but it's far better than trusting your own judgement or that of a friend who tinkers around with his car as a hobby.
4. An HPi report - which checks if money is owed on the car, the mileage etc - is a vital document when buying in Britain these days, as "clocking" is commonplace in the used car market over there. Again, for peace of mind you are better getting the HPi done yourself. After all, if the dealer is unscrupulous enough to clock a car, they will have no qualms about forging the HPi report.
Some general points for buying in Britain are:
- check the car out before you travel;
- get an indication from the Revenue Commissioners as to how much VRT will have to be paid on the car (online checks can be done for most cars on revenue.ie);
- get an HPi report and AA/RAC inspection prior to collection;
- bring a friend along to avoid being pressured into a sale;
- be prepared to walk away from a deal. Just because you've travelled doesn't mean you should accept a car you're not happy with.
Best of luck.
From Francis Carmody:
I am a regular reader of your motorbike section in The Irish Times.
I have a BMW C1 (bike with a roof) and I understand that some other manufacturers make motorbikes with roofs but I have been unable to source any on the web.
Would you know of any other manufacturers who make these type of bikes? Any help to an avid reader would be appreciated.
According to John Wheeler:"The idea of a scooter with a fringe on top has been slow to catch on. BMW discontinued the C1 scooter because it never achieved volume sales. Honda has produced a 'concept' Elysium 750 scooter with CVT - an electric roof which could well come into production. There is also the Benelli Advia, of which there are at least two alive and well in Dublin and which were probably self-imported. It is fully enclosed with an electric-powered 'convertible' roof. It is possible to buy a bolt-on roof kit for a Yamaha Majesty made in Japan by Doken.
"There is an EU type-approved scooter from the Ningbo Golden Motor Industry Group Co Ltd in China. We saw another similar Chinese-made scooter with a roof at Intermot last October but it had not got EU type-approval."