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This thread is about: Dealer problems, it's in Buying, Dealers and Servicing at the Honda Civic forum Civinfo; Originally Posted by simon1 National Insurance I presume that is a percentage tax on top of the salary that the employer has to pay the ...

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Old 16th March 2008, 17:03   #21 (permalink)
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Originally Posted by simon1 View Post
National Insurance
I presume that is a percentage tax on top of the salary that the employer has to pay the government?
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Old 16th March 2008, 17:26   #22 (permalink)
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Sorry, just realised where you are writing from. Yes, it is a national contribution that all employers must pay that goes towards an employee's pension, health care, etc. It's based on a percentage of the employee's wage.
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Old 16th March 2008, 17:29   #23 (permalink)
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Sorry, just realised where you are writing from. Yes, it is a national contribution that all employers must pay that goes towards an employee's pension, health care, etc. It's based on a percentage of the employee's wage.
No problem.
We have that too, just have a different name for it.
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Old 16th March 2008, 17:36   #24 (permalink)
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Do you know how much it costs a business to send a technicial on a training course these days?? Thought not.

Again, whilst it is a lot of money, I can assure you that for a London dealership £100 per hour inc vat is not a high rate.
No I obviously don't know as I am not in the business of selling cars. I assume it is a fair whack though. However in your sums you ignored the other avenues of profit I mentioned earlier. I doubt whether they would have the same markup that the labour charges offer, but they all still contribute to the profit of a dealership.

Plus, owners of new vehicles are told that unless they service their cars with authorised dealers, they may void their warranty. Now, if I remember correctly, has that now been changed due to legislation? But I'll bet that almost all owners still feel tied to their mainline dealers at their higher charges to protect their warranty instead of being able to use a fully competent local mechanic who charges £60/hr for the same job. After all it would be easy for Honda or any other car maker to refuse a warranty claim because a previous job was not carried out by one of their mechanics.
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Old 16th March 2008, 18:09   #25 (permalink)
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Originally Posted by simon1 View Post
No I obviously don't know as I am not in the business of selling cars. I assume it is a fair whack though. However in your sums you ignored the other avenues of profit I mentioned earlier. I doubt whether they would have the same markup that the labour charges offer, but they all still contribute to the profit of a dealership.

Plus, owners of new vehicles are told that unless they service their cars with authorised dealers, they may void their warranty. Now, if I remember correctly, has that now been changed due to legislation? But I'll bet that almost all owners still feel tied to their mainline dealers at their higher charges to protect their warranty instead of being able to use a fully competent local mechanic who charges £60/hr for the same job. After all it would be easy for Honda or any other car maker to refuse a warranty claim because a previous job was not carried out by one of their mechanics.
Manufacturers/Dealers are not allowed to refuse warranty work if the car has been serviced by non Honda/Dealer mechanics as long as the correct parts have been used.
Bottom line is..Get an independent garage to service it..MUCH CHEAPER!!
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Old 16th March 2008, 19:36   #26 (permalink)
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Yes, I believe that being tied to main dealerships for servicing, was given the elbow -
2 or 3 years ago, here in the UK.
My daughter takes her Freelander to a Landrover Specialist, who really know the cars inside out, but when something goes wrong which is covered under warranty, its the main dealer she takes it back to.
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Old 17th March 2008, 10:58   #27 (permalink)
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one other minor cost to cost into the mix - stocking costs...

Popped into my local Honda dlr on the weeked.

Inside, he has:
2 Civic Type S
FRV
2 CRVs

Outside, he has:
S2000
Civ Type R
Accord

He also has about 10 of our Civics for sale second hand - I didn't even begin to count the number of s/hand other models.

So purely in brand new cars, he has about £150,000 worth of stock
And probably about twice that in used
so say £500,000 in total

Someone, somewhere had to pay for them - and unless said someone had half a million pounds burning a hole in their pocket, then someone must have borrowed it from someone else.
And you can bet it wasn't on 0% APR...
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