What Are Your Best Tactics for Negotiating a Good Deal on a New Car?

jeka1103 on 07/11/2016 - 21:45
Last edited 07/11/2016 - 21:50

I'm going to be buying a new car on the weekend and I was hoping I could get some advice from my fellow Ozbarginers on the best ways to get a good deal.

I won't be trading in my current car and I won't be opting for paint protection or tinting from the dealer.

I'm in NSW if that makes any difference.

Tactics I've already thought of:
- Finding a new car offered on Carsales at a cheaper price at another dealer and getting them to beat that price
- Threatening to go to another dealer and buying their car with similar specs that they're selling cheaper (eg. negotiating to buy a Hyundai by threatening to go buy the comparable Holden instead)
- Calling around the dealers this week and try to negotiate a deal before going in on the weekend (eg. calling one dealer and getting a quote and then calling a second dealer and getting them to beat that quote, etc, etc)

What has worked for you in the past? What do you wish you could have done better? What are the best ways to get accessories thrown in (eg. floor mats)? What are the best deals you've got on a new car, how far have you pushed a dealer before?

Automotive

Comments

poboy on 07/11/2016 - 21:58

+2

Know your prices. Then ask - what's the best deal on this one. Keep silent. If he doesn't take the bait, look at him and repeat the price as a question. Keep silent. Then start walking.
garetz on 07/11/2016 - 22:06

+2

Do as much research as you possibly can, know your prices of any car you are interested in inside and out. Go towards the end of the month, the dealers who havent made their quota have more incentive to give you a better deal.
- jeka1103 on 08/11/2016 - 19:34
  
  I've done plenty of research, trust me. I have complied detailed spreadsheets comparing various cars and have been watching the prices of car I've decided on for months. I'm beginning to think that waiting until the end of the month might be a better idea though… Seems to be the most common bit of advice here. Thanks! =)
tomsco on 07/11/2016 - 22:55

What car are you looking at?
- jeka1103 on 08/11/2016 - 19:31
  
  +1
  
  I've deliberately not listed which car I intend to buy as I didn't want this to turn into a discussion of "why are you buying that car? this one is better!". I didn't think it was an important detail to include for general negotiation advice.
  - tomsco on 08/11/2016 - 19:48
    
    Just ignore those. If people know what car, they can suggest what deals they've gotten.
Ughhh on 07/11/2016 - 23:00

+2

WOuldn't you have better luck at the end of the month?
- jeka1103 on 08/11/2016 - 20:16
  
  I am beginning to think that might be the better option…
apple2016 on 07/11/2016 - 23:21

+1

Have a price for the car and the accessories / options included that you are happy to pay.
You will have to do some google/research to get this price.
Usually I look for lowest price on carsales and reduce about 10%. This also depends on the car.
Now tell your sales man that this is the car you need including the list of accessories / option and the price you are ready to pay. This should make the sales guy give you the best price or atleast something close to it.
But you should also be ready to put down a deposit if he agrees to your price.
MrFrugalSpend on 08/11/2016 - 00:10

+1
I would research extensively - search the net and ring around all over the place:

You want to buy a car that they have in stock so find a dealer that has the most in stock, ideally they have over-ordered and are trying to get rid of. If its in short supply - you aren't going to get a good deal.

Agree with comments above about buying at end of month.
(Best deals I know of are combo of above two factors).

Have other options under consideration from your research - Be prepared to walk and tell them so.

Read this:
http://autoexpert.com.au/buying-a-car/top-20-ways-to-beat-a-…

Ignore their Bull - be a sceptic for all of it.
- jeka1103 on 08/11/2016 - 19:40
  
  I've settled on a car I want, but do have two back ups if the one I want is impossible to get. Thanks for the advice about finding a dealer with plenty of stock, I'll do some ringing around. Also thanks for the link, that's a handy guide. I found myself on that website last night but I didn't come across that page strangely!
chinezejew on 08/11/2016 - 00:14

+1

Cash?
- jeka1103 on 08/11/2016 - 20:18
  
  Yep, I will be paying cash.
  - chinezejew on 08/11/2016 - 21:17
    
    +1
    
    As a little tactic; do not mention your intended paying method.
    
    (Maybe talk about options of trade-in; interest rates; to throw them off track)
    
    Get to them down as far as you can; then mention cash payment no finance.
    
    If you dont mind the vehicle on the showroom floor; you prob can get a better deal vs a 'newer' one.
    
    Cash is king… key is to squeeze first. Then mention cash payment; now.
    
    They will most likely find it hard to let go of a cash sale and negotiate further.
    
    [My father got a showroom car with all trims; tint for 2k less when we mentioned cash]
ozeebee on 08/11/2016 - 01:33

+1

Since it's a new car purchase, it won't matter exactly which dealer you buy from. So the most important thing is finding a salesman that can understand you and can get along with you. Use your judge of character to find the right person to deal with, because there is nothing worse than the feeling of being taken for a ride or taken advataged of.

There are sales people out there where even if you are paying a little more than the next dealer, at least you feel good buying from them.
- jeka1103 on 08/11/2016 - 20:12
  
  That's nice advice. There's a particular salesman at one of the dealers I test drove at that gave me a bad vibe, he made me not want to buy from him.
spackbace on 08/11/2016 - 02:02

+6

1) wait till post Xmas for best prices if you can
2) know what you're buying - is it new? Demo <1000kms? Demo <3000kms? 'Demo' (used car) <8000kms?
3) if licensed, when was it licensed? (warranty start period)
4) we actually prefer finance. Don't ever ask about a best cash price. We'll laugh inside.
5) be prepared to buy, right there and then. Don't try to negotiate when we won't earn your business. It's weak, and no we won't offer cheaper prices in that instance. It's like your gf kissing your dick and then stopping. Not cool.
5a) know the car, be happy with it. Be past the point of 'I need to check with the Mrs/my cousin/my dog. Be prepared to buy.
6) don't ask what's your best price. Have a figure in mind, ask if we can do it.
7) after its all done, and you've signed, you will be introduced to Aftercare and Finance. It's our job, it's their job, don't get arrogant about the procedure. Be polite, we're all just doing our jobs. A simple 'thanks but no thanks' is fine when you meet them.
- Euphemistic on 08/11/2016 - 06:34
  
  +1
  
  6) I've bought a couple of cars and offered what I thought was a fair price only to have them say yes really quickly. Seems my offer was too high and possibly could have got some more out of them.
  - spackbace on 08/11/2016 - 09:52
    
    +1
    
    But that depends what figure you get, but you also have to be within a reasonable ballpark. Too low and we'll basically just laugh.
    I had someone recently try to ask for about 20% off. I actually said an offer like that was offensive (this guy wasn't going to put pen to paper at any cost anyway).
    Negotiation should be respectable on both sides, and you should both hopefully walk away with a win
    - jeka1103 on 08/11/2016 - 20:09
      
      Hmm… Someone above suggests 10% off the lowest price on carsales. Would you be offended at this?
    - spackbace on 09/11/2016 - 13:44
      
      @jeka1103:
      
      Depends if it was like-for-like or not. Many manufacturers now can't list new car prices on Carsales, only demos. If you're looking at a new car, and quote a demo price, I will inform you of such.
      
      The person who I said was offensive, offered $15k on a car advertised for $18k. Put that into whatever perspective you want, but such is current profit margins in new cars that it was nowhere near doable. Also, I knew this guy wasn't going to put pen to paper, even if I could do $15k. My reply was a lil tongue-in-cheek, mainly because it's like how offended people get at their trade-in prices.
      
      But yeah, if you quote me a 3000km demo price, when trying to buy a brand new car, I'll have to continually remind you of what you're actually buying. Compare like-for-like, take it seriously.
    - jeka1103 on 11/11/2016 - 21:02
      
      @Spackbace: Good to know, I didn't actually check before to see if the 'new' cars I was looking at on carsales were demos or brand new. The cheapest of the car I'm after are new cars, not demos, thankfully.
      
      The car I'm looking at is listed on the manufactures website as $31,400 driveaway. The cheapest new car on carsales is advertised at $25,485 driveaway. Given that the cheapest car on carsales is $5k off the list price on the website I'm not optimistic I would get it cheaper than that, and to be honest I'm not sure I would feel comfortable with asking for less than that, however for the sake of the discussion, would you think that an offer 10% lower, so in this case lets say $23,000, would even be doable?
    - spackbace on 11/11/2016 - 21:32
      
      @jeka1103:
      
      Doubtful
    - jeka1103 on 11/11/2016 - 22:10
      
      @Spackbace: I suspected you might say that. Thanks for all of your help!
    - eskylidder on 12/11/2016 - 18:21
      
      +1
      
      its doable but so is winning roulette, have a good friend who got 10% off but it took him 3 months to get it.
      
      what car by the way? im looking in a very similar price point
    - jeka1103 on 21/11/2016 - 20:49
      
      @eskylidder: I'm looking at the Hyundai Elantra Elite, how about you?
- jeka1103 on 08/11/2016 - 20:07
  
  Was hoping to buy sooner rather than later, I'm concerned about not getting the colour or badge I'm after if I wait until Christmas. I'm now thinking of waiting another 2 weeks until the end of the month, would you say the deal I could get at the end of November would be comparable to a deal at the end of the end of the year or far worse off?
  
  Yep, know exactly what make, model, badge and colour I want. I want new.
  
  Licensed… Could that be the same as registration for someone from NSW? Or does it mean something else? I want brand new, so the car I buy won't be registered.
  
  Really? I intend to pay cash… I don't want to do finance. I want to buy it and be done with it, not locked into paying it off for the next however many years. I also figured that the interest on the loan would negate any discount I would get anyway.
  
  Yep, I know exactly what I want and am prepared to buy now.
  
  Ok, will do.
  
  Yep, will do. I've worked in retail… I know how unpleasant people can be.
  - spackbace on 09/11/2016 - 13:46
    
    +1
    
    Depends on the car, if there's a new model due out, etc etc
    
    Licensed = registered. Same same. Ok, make sure it is brand new then.
    
    Just don't try to use it as a negotiation tool. While a quick sale/delivery is good, finance pays commissions, so the dealership/salesperson lose out by you paying cash. It doesn't help your case.
    
    Good :)
- chinezejew on 08/11/2016 - 21:21
  
  Why not mention cash?
  Please explain further.
  - tomsco on 09/11/2016 - 13:34
    
    +1
    
    Because they get extra income from finance.
    - spackbace on 09/11/2016 - 13:40
      
      +1
      
      This.
      
      As nice as it is to get a quick sale where cash is involved, finance gives commissions. The old "what would you take for cash" is an old question, which has had no bearing for at least 10 years now.
    - chinezejew on 09/11/2016 - 14:47
      
      +1
      
      @Spackbace:
      
      Hrmmm… thx.
      
      Food for thought.
      
      Doesn't help us from purchase point of view.
      
      Cash should be cheaper than finance.
    - apple2016 on 13/11/2016 - 16:27
      
      @Spackbace:
      
      finance gives commissions
      
      It is all finances / banks or just the finance company you have a link/tie up with?
    - spackbace on 13/11/2016 - 17:46
      
      +1
      
      @apple2016:
      
      As in the 'house' finance company, not outside finance
- UNO on 16/11/2016 - 21:35
  
  When is the best time after Xmas to buy? Before January?
  - spackbace on 16/11/2016 - 21:41
    
    December 27 - December 31
    - UNO on 16/11/2016 - 21:47
      
      Thanks, that's when I'll be buying my next car. I recently missed out on a CX5… The dealer wouldn't go down to what I offered, then I saw the price drop and drop and drop. It actually got to a point that was lower than I offered. Unfortunately I was unable to make the call to put a deposit on it when someone else bought it. Obviously it wasn't meant to be.
spackbace on 08/11/2016 - 02:04

Threatening to go to another dealer and buying their car with similar specs that they're selling cheaper (eg. negotiating to buy a Hyundai by threatening to go buy the comparable Holden instead)

Don't do that, it shows you're still indecisive about the purchase. Certainly not a strong stance for you to take if you want to be taken seriously.
- jeka1103 on 08/11/2016 - 20:13
  
  Fair enough. I guess they don't know that I'm set on the car they're selling not the other one.
chinezejew on 08/11/2016 - 21:24

Take all the advice from one dealer.
Then go to the next dealer…ie spackbace… and ask for the exact same thing for $1000less.
SmiTTy on 09/11/2016 - 05:49

There are sone car brokers* out there who can give a really competitive price. I got a car through them all over phone and email. You tell them what car and spec you want and they give you a quote. If you're satisfied you transfer funds electronically and they deliver the car.

When we got our quote, we used that as a guide to go into a dealership and negotiate a similar price… but noone could come close.

You don't need to buy from the broker but having a good idea of the price can be very helpful. Sometimes there is advantage of paying a little more to buy from an actual dealership (ie physical presence etc) but that all depends on how much more

*broker = i dont actually know if theyre called "broker" but basically they sell u the actual car. Not one of those who find a dealer and negotiate but you actually buy one from them. But you need to know exactly what you want (incl all options / accessories etc)
- SmiTTy on 09/11/2016 - 05:58
  
  One more thing.. there are some sites and forums where people post the deal they got for a particular car they've purchased. That can be an excellent reference too
  
  I know whirlpool has a great mazda forum for that. The other source is "haggledb"
  - jeka1103 on 11/11/2016 - 21:05
    
    Thanks! I didn't consider that websites like that even existed. Sadly, haggledb doesn't have the car I'm after but I'll check out whirlpool and do some googling for others like it!
- jeka1103 on 11/11/2016 - 21:04
  
  Do you remember the name of the broker you used? I'll check them out!
  - SmiTTy on 12/11/2016 - 16:52
    
    PM me and ill shoot you the details
    (Tried to pm you but your not acceping msgs)
    - eskylidder on 12/11/2016 - 18:27
      
      me too please :)
fastnbulbous on 20/11/2016 - 22:26

Some interesting lessons from This American Life Podcast - 129 Cars

We spend a month at a Jeep dealership on Long Island as they try to make their monthly sales goal: 129 cars. If they make it, they'll get a huge bonus from the manufacturer, possibly as high as $85,000 — enough to put them in the black for the month. If they don't make it, it'll be the second month in a row. So they pull out all the stops.
https://www.thisamericanlife.org/radio-archives/episode/513/…

Probably relevant to Australia
- jeka1103 on 21/11/2016 - 20:48
  
  Very interesting! Thanks!
- montemaj on 13/12/2016 - 12:32
  
  I have listened to this podcast. Very interesting. They are selling some cars at a lost because if they reached the quota, they will earn more money from the Bonus than from selling the cars for a profit.

What Are Your Best Tactics for Negotiating a Good Deal on a New Car?

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