What Are The Considerations for Buying a Dealer New Car with Hail Damage?

LHarvs15 on 16/04/2018 - 11:19
Last edited 16/04/2018 - 11:32 by 1 other user

Hello Ozbargainers,

Firstly I’m a long time lurker on the site and have gained many a bargain thanks to you guys!

I have found a car through a local dealer that is being sold at a discount for being hail damaged, I have inspected the car and can’t see a mark on it. Am I being a bit green and not seeing the catch here?
The dealer has informed me that there is no paint warranty, but all other warranties stay intact. The car is a 2018 Hyundai i30 SR listed at $24950.

Any advise from you guys would be appreciated. Thanks

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  dsp26 on 18/04/2018 - 08:16

  Most, if not all lot cars that are hail damage repaired are done so via PDR (Paintless Dent Repair) and can't really be detected because the method is that good ( I have 2 mates from Germany who do this and travel the world chasing hail storms, setup temporary shop for insurance and earn more than $10k a week per person doing so).

  The reason for the lower value is because hail damage is marked as "repairable write-off" or hail damaged in REVS/PPSR. It's purely the fact it says it that it is automatically worth less and also affects yoyr resale value. Its the same with motorbikes that are marked as repairable write-offs… Basically worth a poofteenth of what it should be

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  websterp on 18/04/2018 - 12:14

  Here is a much cheaper fix…
  You can cover the hail damage with Bullet hole stickers. Tells a lot about the person driving the car though!

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  KangaBanga on 18/04/2018 - 14:46

  +1

  You can always get at least 5% to 8% off RRP price from dealers with high volume sales, especially a common model like Hyundai i30.
  Demos with <500kms should be at least 15% discounted.

  Repaired hail damaged or any sort of repaired new car should at least be at least half price if fixed well and will be a pain to resell.

  Most dealer warranties are useless as well, will be PITA if you ever need to do a claim.

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  enigma48 on 18/04/2018 - 18:14

  +1

  I've been in the market for a new car and had this talk with a few dealers, both used and new. In a nutshell: previously-hail damaged cars are a pain to insure, a bigger pain to finance, and a pain to sell. There were a few good bargains on a few used car lots but I decided to avoid them.

  FYI I know someone who bought their i30 a few years ago and got a 8% discount - she basically made two different companies chase her ("I'll go home and think about it") and by the end of the month they offered her 8% off list. I was lucky recently and got a Mazda 3 for 9% off list.

  If you're not confident negotiating (I wasn't) or not getting anywhere then start by emailing a few Novated Lease companies (NLC, Enlist, Leaseplan) for a quote (they get fleet discounts). Now go to a dealership: I can get 6% off from XYZ (show quote) and I know they get 2% commission: give me 8% off and I'll buy today, otherwise I go home and think about it.

  Do this at the end of the month/quarter/year if you can, and go to your local dealer: they have bonuses for selling to local customers.

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    Harvs15 on 18/04/2018 - 20:08

    Thanks for the advice, I’m not confident at all negotiating with dealers. It’s good to know how much to expect to get off, as for now I’m just going about blind!

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      enigma48 on 18/04/2018 - 20:20

      +1

      It’s hard - no one teaches this in school!

      Get some practice: go into a dealership (not your local) and if you’re sure you know what you want, tell them you’re serious and plan to settle this week. Go in with your finance choice sorted and the model you’re after.

      They know the longer you stay, the more likely you are to buy. Do another test drive if you like. But at the end, give them an offer they will likely refuse - like 12% off. Maybe your friend got 10% off last year and you want to beat him. Try to settle on 10% and if you don’t get it, walk out and say “it’s close but I’ll have to think about it”.

      Take that offer, go to your local, and tell them you’re keen but you need 10% off RRP. You may not get the full 10% but close to that is as good as I’ve ever heard of (for a 20k-ish popular car).

      Good luck!

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        enigma48 on 18/04/2018 - 20:21

        +1

        Also: I’m not claiming I’m any good at this but I’ve taken advice from a few people and it worked for me.

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        yeahnah-nahyeah on 18/04/2018 - 23:40

        @enigma48:
        can i ask what the rationale behind going to a dealership that isnt local first?

        Is it because, as you mentioned earlier, that local ones have bonuses? (i.e. whatever a non-local dealer can do, a local one can?)

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        enigma48 on 20/04/2018 - 07:25

        @spo22a: Nothing to lose. If they don’t give you a better price, you’ve lost nothing. If they do, you can pressure your local a bit more. Other dealerships might be closer to one of their other bonuses, sales person having a good day, etc - shop around basically but save your best bet (your local) for last and have them beat your best deal.

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  [Deactivated] on 18/04/2018 - 21:01

  Run Forest run.

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  TimSubaru on 29/10/2021 - 17:58

  Been in Car Biz 30 years ———Simple —do not buy Hail damaged car!!! I refused to sell them customers …

  100 reason why not too
  1:No more manufactured warranty for paint or Body.
  2:Most will be listed on Insurance as dealer will get claim back get $5000 and give you extra $2000 discount as example. More money made to dealer on Hail Da,Cars.
  3:maybe listed on PPSR
  4:-100: adds up to Do not buy

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    spackbace on 29/10/2021 - 20:16

    Dude… post is 3.5yo

    Wtf did you search to find it?

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      TimSubaru on 03/11/2021 - 08:00

      No, it was in a forum did not notice the date ahhahah. Old Car salesmanism ahhahaha

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