Negotiating a New Car Price: What's The Biggest Discount You've Gotten?

We've never bought a new car before (can't say we're really considering either) but I have heard of some friends who have managed to get substantial discounts on new/demo vehicles.

Some reckon that they've even been able to get a better price than the market rate for a 1 year old, 2nd hand vehicle of the same model.

I'm interested to hear about your experiences in buying a new car.

What are the best negotiation tactics?

And more importantly, how much ($ and %) were you able to save?

Please list make, model, year if mentioning your discount.

Comments

  • +12

    Find the exact same car on carsales/internet with the best price (research). Approach a dealer and straight out ask if they can beat that price. If they can't then walk away. If they start to negotiate a slightly higher price but throw in "extras" then walk away. You know the best price don't settle for more

    • +6

      Good point but know what that car is too… If it's a demo and you're trying to get a new car for that price then you'll just waste your time going dealer to dealer

      And if you're asking the dealer to match a price, be prepared to buy! Don't be asking best price when you have to think about it, or you're looking at different cars.

      • +2

        Why not?

        • +4

          I made 2 points… Fancy being more specific with your question…?

        • +4

          You're most likely referring to the second point.

          And if you're asking the dealer to match a price, be prepared to buy! Don't be asking best price when you have to think about it, or you're looking at different cars.

          I would say because it's annoying and frustrating for the salesperson. They'd be thinking "why are you asking to match these prices when you're not even serious?" and it would just be a waste of time for everyone. It doesn't apply to only cars but in retail as well. Spaceback is a car salesman; he can clarify better.

        • +8

          @Spackbace: why can't he think about it? It's his money

        • @Stewardo:
          The very best price will always be for a car that is available immediately at the dealership. By the time the inquirer has gone away and had a think/talked to mates/argued with partner, etc.,and eventually decided to buy, that particular car may no longer be available, so the price will have probably lapsed. The dealer can't afford to put a car on hold while a potential buyer decides, meanwhile perhaps missing out on a sale to somebody else who is ready to buy immediately.

        • +9

          @Stewardo:

          In negotiation, you need to be able to make a decision right there and then, otherwise numbers are just being thrown around.

          If you're not prepared to buy, I'm not prepared to give you my best price. Why should I, if you have no backbone?

          It's the age old handshake way of doing business… Just because a car purchase takes a bit longer doesn't make it any different. If you want to be the best negotiator, then have a backbone and have some balls and be prepared to buy.

          And as mentioned before, this is in many facets of life and all sorts of different purchases. You wouldn't offer a price at a market stall, only to then go 'I've gotta check with the Mrs, but would you take…?' No, you wouldn't because you wouldn't be getting the best possible deal, or negotiation wouldn't even begin. It would just stop.

          Happens day in day out… "if I could do that, would you buy the car?" If the answer is I have to think about it, have to check with the Mrs etc then we won't even consider your offer.

        • +34

          @Spackbace: I wouldn't buy a car if I thought the salesperson was using intimidation or humiliation as a tactic to buy at the the price he wanted, the OP asked about the discount she/he could potentially get on a new car. I think your advice comes from great experience but reflects how you feel about the transaction and how you would like people to behave when interacting with you. The OP has never bought a new car before. And was interested in a discount that's why he/she is on ozbargain. I don't think it's about having balls or backbone or handshakes.

        • +5

          @Stewardo:

          The advertised price is the starting price… This is the price you 'think about'. You don't enter into negotiations until you're prepared to buy… Simple?

        • +1

          @Spackbace: that's true, in your experience how much %off that advertised price would you start your negotiations with, in order to gain maximum discount?

        • +1

          @Stewardo:

          Every single cars margins are different, every manufacturer is different.

          At times during sales a car might be advertised (by the manufacturer!) as a genuine loss. We're barely able to throw anything in, so any further discounts are impossible.

          There's no set rule across the board.

        • +1

          @Spackbace: if the customer is not aware of the margins how can they find a starting point to make an offer? Surely the discount obtainable could be 0%-20% off or somewhere in between, much more likely to be closer to 0% off. Obviously every car is different and there are lots of variables. If you weren't working at the car yard and you were interstate looking to buy a Toyota for a relative how would you advise them on finding the starting negotiating discount offer?

        • +2

          @Stewardo:

          Find the exact same car on carsales/internet with the best price (research)

          That's normally my best recommendation, but have to make sure you're comparing apples and apples. So don't try buying a new car for a demo car price (though sometimes it can be done lol).

          Sometimes it's 1 of those things where you just have to believe you've got the best price and not look afterwards. Again, same as buying a new TV etc…

        • @Spackbace:
          @Spackbace - slightly unrelated, but related nonetheless.
          How often would you say that car dealers use someone's character (ie. This customer is a nice guy/not) as a determinant in how negotiable they are?

          I'm guessing there are plenty of salespeople who will just outright refuse to negotiate with tools?

        • +9

          @Catchy:

          We all say it, unfortunately the dicks get the best deal as they're the ones that negotiate ruthlessly while the nice people don't.

          The nice people though will get the best after sales service, while the dicks don't!

          But yes, personalities do clash sometimes and might mean that no one does business.

        • +2

          @Spackbace: Murphy's Law dictates that a better deal will pop up immediately after you purchase. Buyers remorse will always get you like that.

          Avoid OZB if you don't want to cop it so hard haha

        • @Spackbace:

          Would the http://www.redbook.com.au/ be a reliable source of 'real' current prices to negotiate from?

          I've been looking at second hand transit vans on websites and prices seem all over the place. Private sales seem rarely a bargain while dealers almost always seem overpriced.

        • +1

          @JH100:

          Nope, not trustworthy/reliable at all

          Private sales seem rarely a bargain while dealers almost always seem overpriced.

          Ever think that's just where the market is on that car? Can't really say that everyone is selling them overpriced

        • @Spackbace:

          Is there one?

          Re prices; I look around the country and prices vary so much for the same seeming vehicle.

        • +4

          @Stewardo:

          I disagree.

          It is actually a powerful negotiating move to tell the salesperson "Listen SON - I'm here to buy a car TODAY - not piss fart around - so you BETTER give me a good deal - KAPISH?"

          That makes car salesmen horny and disillusioned with emotions - likely to confuse them into taking the car below cost.

        • @Spackbace:

          Well it's not that simple. In some cases, if you can negotiate an amazing deal, you could be looking at a car you thought was not even in your price bracket.

        • @Spackbace:

          If everyone is selling it at the price. Thats the price, one just doesn't like it.

          As for me, I'll just buy a make/model/year that is at a price I like.

        • @Spackbace:

          "Nope, not trustworthy/reliable at all"

          Do you mean Redbook with this comment?

          Because in the past when dealers are trying to negotiate on trade in price, they log on their pc and show me Redbook pricing to price me down.

          But you say we can't point a dealer to Redbook if we're the buyer? And the Redbook price is lower than their advertised price.

        • @ozeebee:

          Some use it as their bible, others are more sensible.

          Realistically it's not rocket science - see what they sell for, take off loads, take off profit, take off what needs to be spent = trade in value.

          Problem is when customers try to quote the most expensive listing for their car to try to justify the ridiculous trade in figure they have in their head. No getting around that if they can't see proof otherwise.
          (I love showing customers examples of their car selling for what they wanna trade for…!)

    • I have asked whats the cheapest the dealer has sold the model previously. I usually get told a number a couple thousand lower than the advertised price. It's usually the first step in bargaining, but because its indirectly asking for a discount. You can then bargain further.

  • +10

    Buy a car that suits your needs. Don't buy a car because it's discounted $x%.

    • +1

      So you'd pay full price for a car that meets your needs?

      • +2

        Wouldn't that be better than buying something with a discount that doesn't suit what you want?
        Eg full price for a Suzuki swift seeing you are single than a great discount with a people mover.

      • +2

        I meant to say if I need a sedan and if it does not have any discount I would still buy the sedan instead of a 4wd with 20% discount.

        • Ah, makes sense

        • What if every other criteria was met except for the car itself.
          Same age, same mileage but the 4wd was way cheaper than a sedan.
          Like what can a sedan do that a 4wd can't other than maybe save fuel and look fancy if you pay enough.
          Surely you'd pick the 4wd if it was way cheaper than the sedan.

          Well what I'm saying is that price is one of the over riding needs for me.

          If I can get a 4wd that is slightly cheaper than the same sedan, yea. I'd go for it even though I really only needed a sedan.

          I usually go for the biggest bang for a budget. Inclusive of all factors.

        • @lolbbq: the sedan vs 4wd was just an example I took to say that I would buy what I need rather that spend more just for getting more value for money.
          Also driving characteristics, seating comfort levels etc of sedan are very different to 4wd. its could be just personnel preference. If you prefer the 4WD would you buy a sedan if its discounted more than 4WD. for example take BMW X5 40d vs 535d. will you buy the 535d because its 20% discounted even thought you needed an x5 and x5 if full priced?

        • @apple2016: I think it might be personal preference here as well. It ends up being the perception of "value for money".

          From your example our budgets are clearly different. You are willing to spend more for what you perceive to be your needs/wants while my needs/wants is to spend less and maximize value for money.

          If I was looking for a 4wd I would be looking at a kuga or a sportage because to me, a bmw doesn't do anything else for me that they can. I'm no real estate agent or westpac banker so yea =)

    • +7

      One of my needs is for it to fit a budget.

    • $100%

    • That's not the Ozbargain way… we all know if Eneloop made cars we'd be buying them by the Eneloop truckload…

    • +1

      Spot on.

      Too many people I know settle on a car they don't like because it was a "great deal".

      1. Set a budget
      2. Test drive all the cars that suit your requirements around that budget
      3. Decide on the car and negotiate with the salesperson who you test drove that car with (if they gave you good service)

      All dealers have the same ability to negotiate. All dealers have access to the same wholesalers for your trade in.

      The only factors that vary from dealer to dealer are:

      1. Does the dealer have a demo vehicle that they want to sell?
      2. How many km's does the demo have?
      3. How many days have the demo sat in stock?
  • +1

    It will definitely help if you know what you are after and finding out what someone else paid for. I did my research and asked around Whirlpool and was able to get an understanding of what the dealer was willing to let a car go for vs. the quoted price. And also make a list of extras (car mats, umbrellas, tinting etc) you want the dealer to throw in before negotiating.

  • +8

    I recently used a service that effectively runs a tender process between car dealers. Got what amounted to about 20% off RRP for a new car delivered. Was happy with that…. ;-)

    • That's awesome! Care to share the name of the service?

      • +4

        Autogenie…. Discount varies between brands and models…. But for us was worth the $50 or so fee. Car was delivered to our home with full tank of petrol as well.

        • Can't find their website, did they go bnkrupt? What's next best you have? Thanks :)

    • Was it Union Shopper?

    • What car? On the weekend i saw a Haval H8 SUV for $40,000 down from $51,000. Would i buy it, heck no! It'd have to be like 25k before you would consider it because of the horrendous depreciation that an unknown car from an unknown brand will face

      • actually it was a H9

      • Kia Carnival SLi, metallic black, factory ordered & delivered (ie not showroom stock/demo/last year model etc). Drive away price for the car is $55k. Got it for $46k - so was more like a 16% discount. Still not too shabby as it's a very popular car which we could sell now and make a profit if we wanted.

        Would note that it can also help if you are eligible to get a fleet discount eg via your work - even if you don't choose to lease or whatever is required to actually get the discount, a dealer may be able to match the price because you could get the discount.

  • +6

    Don't fall for the 1% loans because you'll find it hard to get a decent discount.They need to make up for lost interest somehow.

    If you can get a novated lease, work out the numbers if it works for you. I had 18k knocked off the RRP including accessories. I've heard stories of 30k discount on brand new Bimmers too.

    If you know exactly the car you want, ask forums what others paid for their car.

    Listen to what you want and not the salesperson. Ignore their sob stories. I even had one saying if he gave me further discount, I'd be taking food from his table.

    If you go through with a purchase, ignore the Ming mole. They'll try to sell you expensive car protection products. These things can be done by yourself for a fraction of the price.

    • +1

      Good tips, will be sure to check out novated leasing as an option.

      Also, what's a Ming mole?

      • +2

        There used to be a brand called Ming, they produced car protection products. eg paint, leather protection. Straight after you agree to buy the car, they sent you to another salesperson trying to sell you Ming products. Most people hated this process hence the term Ming mole.

      • +5

        She is the pretty lady that tries to sell you paint protection and window tinting with 500% markup after you close a deal. Just walk away from her.

        • In my last experience they did offer me tinting at market rate, after a very short bargain. (I reflexively turned her down but I went back to check, it was market rate).

  • 15% which is above the avg discount on new car.

    • Nice, decent discount. What vehicle did you purchase and when?

      • +1

        Last year March.. Hyundai Tuscon Highlander 2016 Model.

    • +2

      standard discount for brands like audi and bmw.

      but for models like camry etc you will get much less discount

      • Totally agree. I managed to get around 15% discount for my BMW but I doubt I can get the same for a Camry for example.

        • +3

          Just to add to this, try to approach the dealer at around month/quarter end as they have target to achieve. If you don't require too many options for you car ask for their current stock. Dealers always want to sales these first so you will get decent discount for these rather than ordering from the factory.

          Most importantly, do your research. Make sure you know how much discount you can get out of a car before you go there and stick with your price. Try different dealers as well to make sure you have different offers and don't be afraid to tell the closest dealer that you are looking around. Eventually they will call you and give you the price you want.

        • +2

          @MJ101: End of month thing is only partially true; if they've already hit their targets they won't give a shit any more :D

        • @elyobo: True, but it is worth a try!

  • +3

    10% on their 'best' price is achievable on prestige cars, no matter what the sales guys tell you.

    Timing is also important. I worked on a sales guy for 3 months until he gave me the price I asked for in the first place. He just needed the sale and I had time on my side.

  • For me, I prefer to go for cars of the same/similar model that are used and a year or two old over a new car. You save a lot, but still end up with a reliable car under warranty (depending on the manufacturer of course). With new, you lose a lot of the cars value as soon as you drive it off the lot.

    If you don't want used at all and only after new, as above commenters stated, 10-15% seems to be the range for discounts.

    • -2

      With new, you lose a lot of the cars value as soon as you drive it off the lot.

      Well not necessarily…

      For 1 thing, the price you've paid included stamp duty.

      And if you buy a model where the market is full of ex-rentals… Then you apparently don't care about resale!

      • What I meant was the value of the car itself goes down as soon as you drive off because it is now "used". There are of course exceptions, but i was just speaking in general terms.

    • You do not always loose money in a new car. you might loose only about 10% if you try to resell a new car that's about 1 month old and under 100 kms. But you get to customize the new car as you like, select you preferred color can shop around for deals from multiple dealers etc. You will usually get a better finance option with new cars.

      • Yes but I'd prefer to save 5k or so buying used rather than buying new and losing money (regardless of how much) straight away.

  • +3

    A friend of mine got 20% off RRP on his Audi A4. I also managed to get close to 15% off Mercedes' advertised price on a 1-year used C class.

  • +5

    There are more than 20 factors which will determine how much discount you can negotiate, if any. I wont list them here because it would run to over 10,000 words.

    I strongly suggest you use Google and search for "Car salesman fielding questions" which is on another popular forum. Warning, the thread is huge but if you follow what works and what doesn't, I can assure you that you will get the best deal.

    I bought a Mercedes using the recommended strategy and saved approx 8% with immediate delivery. At the time there was a 5 month wait on the vehicle. I wasn't picky about colour options or anything else. The salesman told me I got an extremely good deal and he could not understand why his boss discounted the car because he thought could have sold it to other buyers at full price, due to the short supply and popularity of the model.

    • +8

      Isn't what the salesman said one of the standard lines about a good deal. I have heard it so many times over the years.

      • Because there is still a cooling off period.

    • Useful that, thanks.

  • Currently in the process of negotiating a new car with a premium German brand.

    One thing I've found is that having a price helps massively - one figure that you will not absolutely exceed. I was upfront with it and helped the sales person find me a few options. If I didn't like the options fit out - I was upfront as to what else they could offer me to settle (packages, rims, paint protection, tints, etc.). I'd venture to say that your finance mechanism (novated lease, consumer loan, etc.) will make a huge difference - I've pushed back on finance packages that the dealers try to sell (aware of the high margins built into those products) and said, I'll source from market. So the only place where they can make some money is giving me actual upgrades to the car

    But agree with the sentiment that you have to be ready to settle - do the test drives, the background research well and see what is available in the market PRIOR to coming into the dealership .

    I've found that dealers interstate have good deals as well - call and negotiate with them directly - they may not be as responsive as metro dealers but money is to be saved through some hard work.

    Also, as bad as it may sound (and I find it morally challenging) - I've selected 2 dealers and been upfront as to what they were offering - both have been good about giving me a deal. Dealer A was giving me a basic technology upgrade and a sunroof - the other dealer said he'd match it and throw in heated seats, paint protection (probably useless but hey - good for future selling), and window tints for the car alongside loaner car whenever its due for a service. So all in all, they have been battling to win my business - not sure if it's to stroke my ego - but they've said that I've been driving a hard bargain.

    Retail Price of car: 76k or more (Brand New with compliance dates in 2017)
    Proposed Price being suggested: 62k
    Package includes: HUD/Virtual Cockpit, Sunroof, Heated seats, Paint protection, Tints, and flappy paddle gearbox with Sport trim, better rims.

    There are more than 1000 factors (as mentioned before) - but I sometimes feel that being honest can yield positive results - but be equipped with information to challenge the costs/pricing proposed.

    • Woww…. thanks for sharing. Almost a 20% discount (without including all the extras) there - nice!

      • +1

        That says a lot of margin built in premium brands.

        • Not surprising - the quotes they generate show what the car is approximately costing them from the 'manufacturer' - am sure that this is probably lower if they are a large enough dealer capable of moving stock. I've seen the figure to be about 45k or so for the car I was looking at.

          Personally speaking, I think the after-sales service is key - the German guys are trying this very one-on-one approach - while the others are fast, efficient, and clear cut (Japanese/Korean). The key indicator is your ego - if you like being pampered, etc - go with premium brands, if utility is your focus other vendors will give you a consistent experience (if your queries are standard) - curve balls are probably going to take a while to manage).

        • From my experience and a couple of friends' I know, Audi tends to give more discount of RRP than Merc or BMW.

        • @rave75: because Audi drink the engine oil as beer as OZ do

        • @maxall: Rather that depreciation is harsher on the Audi's than on BMW/Mercedes

        • @rave75: True - but also feel that since they've changed the shape of their cars about 3 times or so in the last 2 to 3 years - there's a consumer bias of wanting the latest and greatest. It happens with all cars in my opinion - Audi would probably prefer to move stock of old cars that are going to be phased out at some point while the remainder of the new cars are going to be around for a while.

          Plus, Audi seems to finally be playing catch up with BMW (historically felt have had a better look/quality outcome than Mercs & Audi). I'd say that Audi finally figured out the right 'look' of their cars and now plans on maintaining them. The BMW and Mercs had long established looks that were changed in minor ways. Similar to Lexus as well - rather hideous cars before the new styling started coming in and now they do look good (in my opinion).

          Although, I've heard horror stories about brand new Mercs playing up - the new engines in the CLAs were apparently pretty shoddy at first before they got a handle on the issue. The new styling on the C class though is amazing - it looks like a beast of a car. The new E class is also pretty amazing in terms of the looks.

          What I do find interesting is that the tech on my 10 year old BMW is being touted as 'cutting edge' on all the new cars. HUD - had it for a while, mirrors that dip when you reverse to park - had it, traction control - had it, dual climate zones - had it. Sometimes I wonder why I'm looking for a new car - outside of the usual maintenance argument of older cars.

        • @maxall: They really do, eh? Even the B9 A4 drinks oil like crazy.

        • @hsyed26: I was in the market for German sedan and had look into 3, B9 A4 and W205 C. BMW had the edge with the 3 until w205 C class came out. There is a lot of demo/slight used current MY16 Audi A4 on a huge discount. I found a demo MY2016 black A4 2.0L with sunroof, park assist and upgraded audi speakers listed for $46k before any negotiation. RRP is about $70k i think. Meanwhile the only C250 you can find under $50k with at least command and vision package are used 2014 with like 50k km on it.

        • @rave75: Agree. I'm trying to find a newer 2017 make due to the novated lease I'm taking. It's been challenging nonetheless to find it - best prices I'm getting for MY + Compliance Year of 2017 has been 62k - with Techniks, Sunroof, tints, rims, heated seats, paint protection and a full fuel tank.

          Probably going to see how far I can go with the prices or otherwise drop down a year and get a better deal.

          The Mercs that were first listed on their pre-certified website - were much better deals. I saw some reasonable cars - but it seems like they have disappeared completely from the market - some were 2016 models with 30k km and in the 45k to 50k range. I'd would have grabbed them if I had the cash.

        • @hsyed26: DO NOT take dealer paint protection. Its done in an absolutely half assed manner. If you want to spend some money getting it done at a place that will truly respect the car and do their absolute best with it, hit me up with a PM with your city and i'll drop you some details. Most likely cheaper than what the dealer will charge

        • @Matt P: Done mate. I'll see if I can take it off the list. I'll PM you when I actually figure out what I'm going to buy.

        • @hsyed26:
          HUD, you mean like what the 1980s Nissan bluebird had?

        • @Matt P: Agreed. I used opticoat, paid less than a grand at a place in Parramatta. He is awesome by the way.

        • @PVA: Most likely. Haven't seen the car - but it's amazing at the spiel that you get at dealers. I guess I'm expecting things to wow me.

          Use to live in the Middle East and the car variety and pricing was amazing. You could get amazing deals at a fraction of the price. Cheap petrol and massive highways were probably the biggest drivers of car sales there.

      • So just to answer your questions accurately:

        1. Audi A4 2.0L Sedan (Sport) with a MY 2017 (Demo)
        2. 36 km on the meter
        3. Color: Mythos Black
        4. Options: Sunroof, Park/Lane intelligent stuff (Long list of stuff), MMI Touch Integration and the usual stuff.

        Final price (on-roads included): AUD 55k.

        Car is available for immediate delivery.

        Experience: I've been stressed - it's been brutal with the dealer. While he's tried all the tricks (angry yelling, strong arming, etc.) - my leasing guy was a good buffer between the two of us. Props to him in putting the dealer in his place and not letting him try to adjust things in his favor. I sense I got a good deal (unsure - would be good to hear from other Audi owners on this forum). I did reassure this dealer that I was going to buy from him (not to put him out) - I asked him to meet me somewhere in the middle. We worked something out that worked for me.

        Optioned the car was AUD 77k (listed prices, etc.) - so based on that technically a 28% discount on the price of the car.

        I'm still trying to get tints for free - the rest I'm OK with for now. Other than that - I'd say it's exhausting, I've dedicated 2 weeks non-stop to this (after work and before work).

  • +4

    It's been mentioned in so many posts before this one, would suggest looking at that as it helped me with my purchase.

    I got a 2016 Elantra Elite 1,500km demo for 22k (was 28k+) - all about timing, being prepared to walk away and going multiple times with different sales staff can help

    look at the automotive forum for additional answers as this is practically a duplicate question

    • +1

      The demo used to be $28k or a brand new car was $28k

  • I think it is more about getting a feeling about how much they are willing to discount. I spent two days going from dealer to dealer to buy our car. On the first couple of visits, thousands fall off the ticket price, then hundreds. The dealers all knew that I had the money to pay right away, but by the end of the second day, we were haggling over $150 for paint, and the dealer talked with his boss and they literally let me walk out of the shop - knowing that they had lost a $17500 sale. So I got home and rang them and accepted their offer - at that point my time was costing more than any savings. I hope this helps.

    • +3

      This is a good strategy! If they let you walk away you know you've got it down to a good price.

    • Meanwhile on the Car sales forum: "haha - do you remember that one guy we let leave… And he came crawling right back and paid our 'discounted' price!" ;)

      • A somewhat meanly delivered point - but I have to agree it is possible.

  • ive owned a few cars over the years and one advice to think about is maintenance cost.
    eg servicing the car if you are buying from dealer and do they offer cap price servicing higher end models could charge an arm and a leg for major service so be prepared.
    definitely research that particular model online and search for reviews

    • +1

      A lot have capped services, but they are capped high so be careful.

  • +3

    I bought my new Mazda 3 a couple of years back, visited few dealers throughout the day but in the end was managed to get $6000 off the retail price and a few extras ($RRP36800, ~%16 off). My advice will be do some research first on either Carsales or forums for your car and use that as a general guidance. Timing is probably the most important element when it comes to negotiating car prices. I think the best timing will be during EOFY/Christmas sales or buy it on the last day of the month. If the dealers need to meet the sales target for that month/FY then they are tend to be more willing to negotiate. Hopefully this helps!

    • Solid advice. I spent weeks on forums doing monstrous amounts of research on prices etc. It definitely pays off!

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