What Are Your Top Tips for Getting The Best Deal When Buying a New Car (*Updates)

andymatter on 25/08/2015 - 14:59
Last edited 07/09/2015 - 16:28

Have some updates (for those following at home) and further questions. Thanks again for previous advice.

I took the Camry for a test drive. It was fine, I wasn't overly excited however (I'm not really a car guy as you can probably tell). The dealer put down a price $28500 with metallic paint and bonnet protector, indicating he could go lower. I wasn't that impressed with the price and told him I would think about it.

He rang back today and I told him I wasn't overly excited by the price. I said I was thinking somewhere around $26000 is what I would be more interested in. He said there wasn't much margin on the new Camry but last years model he could probably go below $26000 with 0% finance. This interests me, unfortunately last year's body is a lot uglier than the new body.

Further questions:
1. 0% Finance - this sounds good, what is the catch??
2. I notice the Holden Malibu is $25990 drive away + 3 yrs free servicing + 5 year warrenty, what are peoples thoughts on that?
3. What sort of trade-in could I expect for my heavily hail damaged 2003 Mazda Premacy?
4. There is a $17,000 2013 2nd hand Atara for sale with low kms but was hail damage repaired. What are the ramifications of buying a repaired hail damaged car?

Cheers!!

Hi all,
It is time to upgrade my 2003, ugly, heavily hail damaged clanker. I don’t need it to be super fast or super fancy so I’ve narrowed it down to the reliable and good value Camry. I’m still undecided between the basic Altise advertised at $29000 or the top of the range Atara SL with leather trim, lots of safety and other gadgets advertised at $39490. I can pay cash, but my wife wants us to get a bank loan because interest rates are so cheap atm.

My main question is, what tips do you have to get the best price/deal?
What extras should I be asking for?
Any other car buying tips (or traps to avoid)?

Thanks in advance!

Automotive

Comments

  • spackbace on 25/08/2015 - 15:37
    +3

    Don't buy a $40k Camry unless you like depreciation. Or just look for 1 that's a year old.

    TBH, $29k for Camry doesn't seem great, it's normally advertised cheaper than that.

    Also, don't be afraid to try out some of the alternative cars in it's class. Well, unless you don't actually like driving. In which case, buy a Camry, it'll get you from A-B.

    • andymatter on 25/08/2015 - 15:54

      $29k is the official advertised price. Can I talk the salesmen down from that? Where have you seen it cheaper?

  • Xyzzy on 25/08/2015 - 15:44
    +2

    Traps to avoid:

    1. Listening to your wife :-)

    I can pay cash, but my wife wants us to get a bank loan because interest rates are so cheap atm.

    What's that about? Unless your cash is earning higher interest than you'll be paying on the loan, after tax.

    • andymatter on 25/08/2015 - 16:23

      Yes I agree. I think she thought it safer having cash in reserve with the current job market, amount of redundancies etc. With a loan, if something goes wrong, its just a little bit to pay every month so manageable.

      • quop on 27/08/2015 - 09:50

        I believe it's generally a bad idea to pay to borrow money for a depreciating asset, unless it's cheaper to borrow as Xyzzy said above. Another possible option to consider, assuming it's available to you, is to do a novated lease through your employer. It has elements of taking out a loan, so you're paying interest and lease fees etc, and you're also paying FBT, but it reduces some of your costs (you don't pay the GST on the car purchase, or on running expenses), and some of your lease payment come off your pre-tax salary so there's savings on your income tax to be had. Meanwhile the money you would've spent if you paid in cash, can be sitting in an offset account and saving you interest on your mortgage, or be put to work elsewhere. Obviously you'd need to crunch the numbers for your specific situation to see if it's all worthwhile.

  • altomic on 25/08/2015 - 16:00
    +4

    get a near new/ second hand car with low low KMs.

    my wife wanted to buy a brand new 0kms car. - she wanted leather seats, diesel, 7 seater mitsubishi outlander

    I pointed out a near new model (6 months old + only 13,000kms) for $14,000 less than what the same current but 0km model would go for.

    14,000 reasons to go for the "as-new" vehicle.

    • andymatter on 25/08/2015 - 16:26

      That is a great saving for such low kms and age. Did you get it from a dealer or private?

      Camry's only seem to knock off a few Ks for near new with similar low kms and age.

      • altomic on 25/08/2015 - 18:16
        +1

        dealer. Toowong mitsubishi (brisbane). mitsubishi have a deal with a charity organisation (I forget which one) where the charity buys the car at cost + stamp duty (or similar low price) and then the dealer buys back the car at 6 month or 15,000kms (which ever is first) for cost price. the charity basically gets a new car for 6 month or 15,000kms (which ever is first) for the cost of the stamp duty (which would be a tax right off). the dealer then sells the basically "new" car for a cost + a profit.

        I still negotiated $2000 off what they were asking - that's paying with cash.

  • oscargamer on 25/08/2015 - 16:10

    where are you?

    then decide exactly the car you want, inc colour etc….

  • oscargamer on 25/08/2015 - 16:17
    +1

    personally I would get this one

    http://www.carsales.com.au/private/details/Toyota-Camry-2014…

    the guy is moving overseas so he is a serious seller - you have cash - you should be able to buy it for $19000 - $10000 saved !!!

    ba do boom

    • andymatter on 25/08/2015 - 16:18

      I'm in North Brisbane unfortunately. Not fussed on colour too much as long as it isn't offensive. If I go new will probably get the Altise, but still not 100%.

      • Banana on 25/08/2015 - 21:07

        If you are considering second hand, get an Aurion. They depreciate by heaps. My family got a 2008 Aurion Presara for under 20K, with low kms.

  • Maki on 25/08/2015 - 16:18
    +2

    Buy the car at month end, when the sales consultants need to boost up their figure for bonuses. You should be able to get the max discount from it.

  • andymatter on 25/08/2015 - 16:21

    What specifically would I be saying to the salesman? What's your best price?

    Or just come in with a price in mind? What is a reasonable amount they are able to knock off?

  • loulou1 on 25/08/2015 - 16:23
    +1

    Are you a member of a union? Sounds like you aren't that experienced at negotiating. If you know exactly what you want and are ready to buy now, you can contact Union shopper and they will get you a deal

    • andymatter on 25/08/2015 - 16:27

      Not in a union unfortunately. Yes, you are correct, not very experienced in negotiating.

      • quop on 27/08/2015 - 09:43

        Unless it's changed, family/friends of members can also use/be referred to the Union Shopper motor market service. At least that was what I was told the last time I enquired (on behalf of a friend) a few years ago. Friend didn't actually go through with it so can't say for sure. PM me if you'd like me to enquire again - from memory I think you just needed to quote the name of the union member.

  • yogihogi on 25/08/2015 - 16:25
    +2

    Check carsales.com.au I did a quick search for Camry altise 2014/15 less then 10k, they are advertised from 21000 driveaway. The ones with around 3500km at around 22.5 2015 seem the best value. Make them an offer you are happy with and don't be afraid to walk away. I bought a 2014 Audi s1 with every option but the sunroof for 44k ( saving over 20k) because I was willing to shop around and wasn't in a hurry to buy. Good luck and remember you don't owe them anything!

    • andymatter on 25/08/2015 - 16:28

      Thankyou, good advice.

  • oscargamer on 25/08/2015 - 16:31
    +1

    ok this one

    http://www.carsales.com.au/dealer/details/Toyota-Camry-2014/…

    walk in with $20k in pocket and they will play games, but 99% chance you'll get it for that money

  • cypher67 on 25/08/2015 - 16:43
    +3

    Best tip is know how much you want to pay (provided its in the realms of reasonable) and be willing to walk away. Cars are a dime a dozen, keep enquiring to you find that person just desperate enough.

    • andymatter on 25/08/2015 - 17:06

      Thanks, what is in the realms of reasonable for new cars? Can dealers reduce by 5%, 10%? A couple of grand?

      • cypher67 on 25/08/2015 - 18:22
        +2

        Go in on the last weekend of the month because its their last chance to meet their sales quota, bank on them not having met it yet. The likelihood of taking a slice right off the top of the sale prices is going to be minimal. If you want a bunch of extra which is where they make most of their profit than you have more wiggle room. Buy demo or last years models is another easy method. Someone below said 25% off, yeah highly unlikely that will happen, id start at 20% max and just watch their facial expressions. If they piss themselves laughing you probably went too far, if they smile and agree you didn't do enough. Make sure they are as equally invested in the purchase as you before you talk money. Waste a good hour talking about the car and make them feel like if they dont close they have epicly wasted their time. Walk in and say I want 20% off, they will laugh and walk away because you havent cost them anything. Hope some of this helps

        • Charity on 26/08/2015 - 21:38

          Good advice.

          I've pissed a lot of dealers off with this strategy. lol So many times, i think my percentage is 70% fail / 30% success. But those 30% success's are insane… some friends get angry that they think I am making the price up it is so cheap. lol

        • spackbace on 28/08/2015 - 10:35
          +1

          Actually a larger discount will be given if you can drive the car out by the end of the month. So if you buy in the last week, and buy something in stock, greater chance of discount.

          Also (and I know you didn't say this) but these days saying 'I'm paying cash' is actually detrimental. Some dealers wont do a deal that is at cost, if you're paying cash because they cant make up the profit out of the finance. So the old technique of 'Whats your best price for cash?' will probably result in a higher price ;)

          And don't chase a best price when it looks/sounds like you still have other cars to look at. Be prepared to shake hands on a price, otherwise it's pointless and no one will actually give you a proper price. If you want commitment, show commitment.

  • yogihogi on 25/08/2015 - 17:48
    +1

    If your set on the Toyota you will only get around 5% on a new car (not a demo), they have very tight margins on new cars. If I were you I would look at the new ford mondeo base model they can be had for around 30k driveaway, if you want to spend 40k the Subaru Liberty 3.6 is great value and a excellent drive

  • 2jzzzz on 25/08/2015 - 17:50
    +1

    As above, come up with a number you feel comfortable paying and ring dealers. I just knocked off 25% of RRP of a New Mitsubishi Triton with the extras I need.

    I started with carsales to get a feeling, found a forum where people listed what they had paid for what car and options, then was up front to dealers as I talked to each one. Basically said, I want this car for this amount. If they said can't do, I hung up and moved on. Wrote it all down to see where dealers were with price.

    Found a dealer 50 minutes away from me that seems like they have a few of the models and wanted to move them.

    Saying all of this, I only went new because the same car that was 6 years old and had over 100,000 were on carsales for $3k less than what I got mine for.

    • spackbace on 28/08/2015 - 10:39
      +1

      Please, please don't just call and try to haggle over the phone. You'll have much greater success if you're dealing in person. If you call up dealer A, and say "Hi, I've had a quote of $X, can you match/beat it?", all you'll get is an invite to come down to try to do the deal. You'll waste countless calls and stress likely getting the same response.

      As I said earlier, if you want the dealer to show commitment, you need to be prepared to do so as well. Having a conversation over the phone, shows no commitment to that dealer and for all they know you're just going to call another dealer with their price, and dutch auction it. Before you know it, dealer B offers you a "too good to be true" offer just to get you in their door. You go there, waste your time, and probably end up buying the car for what dealer A was offering all along, because you're tired of the whole experience.

      • 2jzzzz on 28/08/2015 - 13:08

        Wasn't the case with my deals. Each time I pitted one against another, another $500 came off the price. Spent a day doing it and figured out which dealers really wanted to make a sale. Ended up with a great price which was basically not making them much money, more to move the car and gets end of month figures up.

        I did visit my two closest in person though. 1 to take a 2 hour test drive and make a deal, then another where I popped in.

        • spackbace on 28/08/2015 - 13:13

          I did visit my two closest in person though. 1 to take a 2 hour test drive and make a deal, then another where I popped in.

          I know you shopped the hell out of the price, but thanks for being the guy that bought through the place he test drove :)

  • altomic on 25/08/2015 - 18:26
    +1

    yeah, like others have said.

    (1) know the price you are happy to pay from online research for the best possible price.
    (2) ring dealers and ask if they can beat that price because you have seen that price on X site.
    (3) if they can't then move on.

    here's a Nth Bris (25km radius from Redcliffe) carsales search of camry altise with less than 10,000 (starting from $21,990)

  • kingmw on 25/08/2015 - 18:37
    +1

    This was the way we bought a new car
    1) Email/Submit online enquiries with fleet buyers for the best price for the new car you want (without the extras included) and trade in for your car
    2) Use the lowest price you obtain as your max limit including all the extras you want (i.e. extras should be free) and go to your local dealer to negotiate (for easier servicing etcetera)

    We ended up with a 2015 Jazz VTi-S for 21400 from 23900.

    Should aim to get 10% off the brand new cars and don't budge. Good luck

    • kingmw on 25/08/2015 - 18:40
      +1

      Cash versus loan redraw/offset - At the moment the interest rates for financing are quite low (we were offered 4.95% for 4 years) but there are administrative fees and also a finder's bonus (~$500) for the dealership which is why we ended up paying cash.

      Cash or finance should not altered the negotiated price

  • affable on 26/08/2015 - 07:31
    +2

    My biggest tip if you need to buy a brand new car (1-2 yrs old are usually much better value) is to add accessories only once you've negotiated a great price. Mats, towbars etc cost the dealership half what they charge you, so it doesn't cost them much to add them to the deal at the last minute. You say something like "yeah $20k is my limit" and they try "$22k is a steal on this car". You walk away as they won't agree to $20k straight away. They ring you up later that day and say, yeah we've worked out how we can do it for $20k. You say, "great, only I've realised I need a towbar and roofbars, if you can throw them in I'll give you a deposit over the phone". You've Just got $1500 in accessories for nothing (assuming you need them, lol). And it only cost the dealer about $800 to add them in.
    Don't then get sucked in with paint/body/blah blah protection, extended warranties etc as you'll give all your savings back to the "Ming mole", "Wynns wench", lol.

    • ThirdRonnie on 26/08/2015 - 09:48

      That would be the "Ming Moll" - not "mole"

  • Eca1 on 26/08/2015 - 10:36
    +1

    My last two cars have been demos. I have saved HEAPS and got a new car warranty. I bought last years compliance plate to save even more.ni have been extremely happy with the extreme savings you can make. For high forties you can be looking at a Mercedes A or Bclass demo.
    Make sure it is a demo, not an ex courtesy car driven as a loan car by someone different every day.
    Most dealers will still have 2014 low km demos they are trying to get rid of.

  • andymatter on 26/08/2015 - 16:50

    Thanks to all for your tips, will come in handy. If you have more, please post. Cheers.

  • Eca1 on 28/08/2015 - 08:47

    Near the end of the month suggestion is also a really good one. As well as huge demo savings, I got even better deal because it was near the end of the month.

  • JimB on 28/08/2015 - 10:58

    I'd rather cut my own penis off than buy a new Toyota with the exception of the 86, however the Aurion at $31,000 drive away is a much more compelling value.

    Compare the two here- http://www.toyota.com.au/compare-models/specifications?vehic…

    The Camry doesn't have Traction Control, Climate control, Electric drivers seat and most importantly a V6 engine.

    • spackbace on 28/08/2015 - 11:12

      I think that's a glitch in the Matrix. All 5 star safety cars need to have traction control and ESC. See here

      Though no cruise control for the Altise apparently :/ (According to that list, but here it says it does)

      I think they need to fix their site lol

      • spackbace on 28/08/2015 - 11:15

        Oh, and V6 isn't important, especially in FWD. If it was so important, Aurion would sell by the bucketload… (it doesn't, btw)

        Both cars will suffer bad depreciation. Camry because it's standard base model, that lease companies and rental companies purchase. Aurion because it's an Aurion and no one is buying them!

        • JimB on 28/08/2015 - 11:36

          It doesn't sell because the drivers don't really want a V6, however I would rather drive a V6 than a non-turbocharged 4cyl in a large car.

          If it was what people want, then the Corolla would be more suitable. However since the OP was looking for a Camry, there's no doubt that the Aurion is much better value.

    • Scorpiogirl on 28/08/2015 - 16:09

      Ouch! Tmi right here lol but whilst not a fan of Toyotas at all, i want to keep my body parts.

      • JimB on 28/08/2015 - 19:51
        +1

        In case there's any confusion, I'm very fond of my body parts!

    • spackbace on 28/08/2015 - 17:07

      Tip 10: There’s plenty of profit in the deal

      I think this guide was written in 1985.

  • altomic on 28/08/2015 - 22:59
    +1

    my salary sacrifice crowd (Remserv) have a service for obtaining prices for cars. Apparently you contact them and say you want X car with Y options and they attempt to source it for you through bulk buying (or something like that).
    do you or your wife salary sacrifice?

    extra's - what!!. buy and install your own stereo if you want the lastest. mats - just buy elcheapo mats from super cheap auto. that way you can turf them every 3 years when they look slightly crappy.

    if you have the cash to pay for the car then pay cash. cash.

    • spackbace on 29/08/2015 - 00:50

      I actually like factory mats for a lot of cars. Having had the cheapo ones in my first cars, and they don't stay put and end up under the pedals. A lot of modern cars have the 'tabs' (for lack of a better word) for the mats to just click straight in, without making holes in the carpet. So much better having factory mats in these.

      As a salesman I'll usually just include them. I don't have to, believe me, but hey if you're nice I'll chuck them in :)

  • andymatter on 07/09/2015 - 15:42

    Updates in OP!

    • 7hours 44min ago on 08/09/2015 - 07:36
      +1

      1. Usually 0% finance means a higher ticket price. You can prove this by asking another dealer who has a 0% offer going on what the price is for using your own finance company. There will usually be a "manager's special" that works out to be cheaper thus making the 0% option the same cost as a 10% loan option over 5 years.

      2. I like Holdens but the Toyota probably holds its value more. It should come down to your personal choice if you are going to be sitting in this car everyday for years. What would make you happier?

      3. '03 with hail damage? Half of whatever the dealer price in the Red Book is.

      4. It's well known that "a car is never the same after an accident" however hail damage shouldn't really affect anything except how it looks. You shouldn't have probs with insurance as you can say you didn't know about the damage as you purchased it in good condition.

      Like others have said, you cop a huge loss buying brand new but if you don't know much about cars, the security of a warranty and dealer support might be useful. Just don't get any extras like paint protection. Read all the requirements on what you need to do to keep it in warranty as there are usually ridiculous steps you need to follow that end up costing a bit. Accept that you're going to lose money on this, it's just about minimising how much and trying to get your satisfaction high enough that it's worth it!

    • spackbace on 08/09/2015 - 10:31
      +1
      1. 0% Finance - this sounds good, what is the catch??

      As cymon said above, he could do better if you were paying cash. Also a couple of grand for an outdated shape isn't a great deal.

      1. I notice the Holden Malibu is $25990 drive away + 3 yrs free servicing + 5 year warrenty, what are peoples thoughts on that?

      (Holden salesman here) Nice cars, well featured, good size (same length as a Commodore!) Badly advertised so never hit the mark against Camry unfortunately. Take them both for a drive on the same day and directly compare that way.

      1. What sort of trade-in could I expect for my heavily hail damaged 2003 Mazda Premacy?

      2/5ths of … all. They won't want it, expect an offer to be just for scrap metal.

      1. There is a $17,000 2013 2nd hand Atara for sale with low kms but was hail damage repaired. What are the ramifications of buying a repaired hail damaged car?

      No insurance -> No car finance. You'll need an unsecured personal loan to finance it.

      • andymatter on 08/09/2015 - 11:25

        Thanks guys.

        I had a look at the Malibu and was quite impressed, lots of features as Spack said. Unfortunately there wasn't a petrol available for a test (diesel is $5k more).

        There was also a factory bonus further reduction in price, along with the extra warrenty and free servicing it is looking very attractive.

        Spackbace, if I like the test drive and go down this path, is it appropriate that they chuck in paint and mats for free? (and maybe even the cool pedals?)

        • spackbace on 08/09/2015 - 11:27
          +1

          Give it a shot, you're not asking for much. If it's a car that's in stock, go for it :)

        • andymatter on 08/09/2015 - 11:37

          @Spackbace: Cheers

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