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Why do delivery charges vary so much?

Hi,

I am interested in buying a new Ford Fiesta; the model I am interested in is priced online at €20,150. One dealer in the Cork area quoted me €22,000 for the exact same thing, another quoted €21,395, making delivery charges €1,850 and €1,245 respectively. Audi quotes €650 delivery for the A1. Would you ask Ford Ireland for a comment and if it intends to do anything about it?

Thanks

Pat

Pat Mc Sweeney

Jun 2018 Filed under: miscellaneous

Expert answer

Hi Pat,

The problem is that Ford Ireland, legally, cannot impose delivery charges on its dealers. It can suggest recommended delivery charges, but according to Irish law (and companies have, in the past, had their offices raided for this sort of thing), dealers are allowed to charge what they want for delivery and related. A spokesperson for the Competition and Consumer Protection Commission told us that: "Consumer law requires traders to provide the total cost, including extras, of a product to a consumer before they buy. In the specific instance of when a manufacturer is advertising a car for sale, the manufacturer can only advertise the recommended retail price and state that delivery and related charges will be extra. If a consumer then decides to buy that car, they should be provided with the total price by the dealer before they buy. Auxiliary costs such as motor insurance, tax etc. are not dealt with specifically under consumer protection law. However, through our information campaigns, we would encourage consumers to do their homework about such costs before making a purchase."

We did contact Ford about the issue too, and it said: "It is an anomaly of the Irish market that has come down to us from our forebears. It is just the way the market is set up and all brands operate the system. Pretty much since the first Model Ts were hitting dealerships across the country, car brands always quoted an 'ex-works price' [in other words, the price of the car as it leaves the factory gates, not when it rolls off the dealer forecourt] for a car on top of which an extra charge was added. What is covered by that cost will vary from dealer to dealer, but for all of them, it covers the cost of delivery of the vehicle to their dealership. Many dealers will also include such items as the cost of the pre-delivery inspection (PDI), new plates for the car, perhaps a full tank of fuel. Each dealer will have their own range of items that are covered. So, ‘headquarters’ does not get involved in the setting of that cost or what is covered, it is all at the discretion of the dealer. In today's very competitive new car market, everything is up for negotiation and I am sure that many customers push the dealer on all aspects of the 'deal' including the delivery and related costs. Customers are savvy enough to do their homework, shop around and compare what is on offer across dealerships and indeed, across brands. More than ever, real value is what will win out in the marketplace.”

Neil Briscoe - Complete Car Advisor
@neilmbriscoe


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