Buying a New/Demo Car through Union Shopper Motor Market?

So i am looking to buy a new car (likely a demo). I have selected the model, test driven it and know this is the vehicle I want. How do I now get the best price?

I have searched all of the dealers websites and found a few differences in price and have put the hard word on dealers including the desired acccessories. I have had a couple of prices come back at me which seems fairly good.

I am now considering whether it is worth giving the service Union Shopper Motor Market the final chance to drive the price down lower. Basically how they explained it works is you give all of your requirements. Ie, model, colour, max km's as a demo, accessories and any other requirements as well as your already best obtained price. They will put it out to all of the dealerships who then get 24 hours to respond with their best price (like a reverse bidding system).

The reason it apparently works and Union Shopper Motor Market can usually beat your already best price is because you are committing to the purchase once you put your request in as when you put in the request you provide your credit card details as the deposit. Because the dealerships know all enquiries from Union Shopper Motor Market are a definite thing, they put their best price forward to try and win the bid. Finally as part of the winning bid, the dealer is required to have the car delivered to the Union Shopper headquarters, so for the buyer it doesn't really matter the location of the winning bid.

Do you see any downsides to putting my car purchase through this? Am I likely to pick up the lemon or somehow get a raw deal through this process? Appreciate everyone's insights and any other tips they have in driving car prices down.

Comments

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    Do you see any downsides to putting my car purchase through this?

    • Pre-inspections?
    • Contractual obligations whereas a car dealership you can decide if you want or not
    • Who is the dealer?
    • Warranty obligations
    • Location of vehicle may cause difficulty if having to return for warranty

    What commission do Union Shoppers Motor get? Does it work in their interest to sell you a certain car from a specific dealer that hands them a bigger commission, but dodgier car? same point touched on by a Whirlpool user

    Reputation:
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    Google - 4 Reviews, 1 certainly looks face (avatar of a car looks to be made in MS Paint)

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    Pre-inspections:
    Given that it is a new or near new (as in less than 2000kms drjven which is what I'm looking at) does not having a pre-inspection matter? Many people buy a new car sight unseen when they order one off the assembly line. You could argue their is no pre-inspection on these vehicles.

    Contractual Obligations:
    At some point I need to enter into a contract to buy the car. If I set the terms and parameters of exactly what I want, what do I have to lose?

    Who is the dealer?:
    It is a major brand, so which particular dealer in the network I buy it from doesn't really matter does it?

    Warranty Obligations:
    Vehicle comes with a standard manufacturers 5 year warranty that can be utilised at any of the dealers, so don't see this as an issue.

    Location:
    Any issues had with the vehicle would be covered under the manufacturers warranty, allowing it to be repaired at any of that brands dealers.

    Commission:
    I imagine they do take a cut from the lowest price, but if it's lower than what I could get, does that matter? I'm still benefiting.

    Specific Dealer/Bigger Commission/Dodgy car:
    Possibly they might have arrangements with suppliers due to commission, but again if I get it for a cheaper price than I otherwise would have, does this matter? How are you likely to get a 'dodgy' demo vehicle from a major car brand. Anything actually wrong with the vehicle would be covered under manufacturers warranty.

    I think all of your points are very valid in situations where it is an older car, but do they apply to a new car?
    Appreciate your input.

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    What happens if the car being repaired from things like accidental damage, hail, being a previous unwanted warranty repair (replaced car, or a 2nd), etc?

    If buying a new car, most important thing is that it is not abused, not a lemon, paint and mechanicals are all factory.

  • +3 votes

    I'm sure this comes with bias, but this is from a new car salesperson pov:

    1) they will take a commission from the deal, which results in you not getting the best possible price
    2) no general advice - models are constantly changing with what's referred to as "Tech changes", or similar. Now you might say "I want a new/demo Hilux SR5", for example. These just went through a change, which a middle man won't alert you to but a dealer/salesperson will. Likely result is you get sold the old model without being informed.
    3) after sales support - a dealer, particularly your local will look after you a hellova lot more after the fact if they did the deal, rather than doing it through that mob (who's quote request would go through fleet, who just don't care)

    Now you might say you just want the cheapest price, but me as a buyer I also want good service. If I don't get it, I walk out of a store.

    If you have any questions about your car after the sale, they won't get answered. After all, a salesperson would rather talk to a buyer than waste their time with you.

    Many cars have different features which can be easily explained, but are hidden in the novel that is a modern car handbook. There's a reason we allow 30-60 minutes for a delivery, to run through the car with you.

    TL:DR - learn to negotiate then buy from the local dealer.

    Oh and at least 90% of the time a new car can be bought for the same price as a demo. Don't be fooled.

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    Hi Spackbace,

    Thanks for your insight. Very interesting perspective. Is that 90% of the time thing really genuine? Tips on how to negotiate…

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      It all depends, but demo bonuses aren't great. They'll only be highly discounted if it's the old shape or old model.

      As to how to negotiate, know exactly what you want and be prepared to buy at a price. Offer it to the local dealer. They'll counter-offer. If they let you walk, then your price wasn't achievable, they won't let a genuine buyer leave.

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    So is a 5k difference on a 50k car (comparing demo to new) considered a decent discount or is it worth saying you're a buyer on a new car for the same price range as the demo?

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      Too many variables. As I said I don't know if the demo is identical to a new one. Not to mention we're getting very close to 2019 so you'd hope for a clearance on the 18s in December

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    I've used union shopper for buying whitegoods and bigger electronic items a number of times. In the past I've gotten my best price from a retailer or online then told the union shopper it was a little bit less than my best price or said it includes an extended warranty. Most times they've beaten that price by quite a bit. They're basically just a broker.

    The motor market department will be just the same as any other car broker. For the couple of times I've tried them, I haven't found them to come back with any great prices but it's always worth a go. Provided it's new or a demo, I wouldn't see there being anymore of a problem than buying it down the road.

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