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Discounts for MG Rover dealers

27 May 2005

Stockpiles of MG Rovers could soon be on their way to showrooms at knockdown prices.

CityRover

Stockpiles of MG Rovers could soon be on their way to showrooms at knockdown prices.

Capital Bank Motor (CBM), part of the Bank of Scotland, owns 15,000 new MG Rovers and is believed to be offering them to dealers at a discount of 15%, complete with a two-year warranty.

These discounts are 5% to 7% less than dealers had before MG Rover went into administration, but will still allow them to offer tempting savings to buyers.

Richard Cort, chairman of the MG Rover dealers association, would not confirm the size of the discount, but strongly suggested showrooms should accept the offer that is being sent to them today.

While Cort described stories of discounts between 35% and 40% as ridiculous, he said buyers should be able to get excellent deals thanks to the CBM offer. He also described the two-year warranty as comprehensive.

Findings by What Car? Target Price mystery shoppers suggest buyers should start their haggling at 15% less than asking price on any model in the range. Larger dealers may have bought stock in with bigger discounts, before and after MG Rover went into administration, and could offer buyers bigger savings.

  • Administrators PriceWaterhouseCoopers has completed its audit of MG Rover and, according to the Financial Times newspaper, has calculated liabilities of £1.4 billion. Creditors making claims on the company for cash, including BMW, dealers and parts suppliers, are likely to get just 5p for every £1 they are owed.

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