New Car Buying, Any Tips and Pearls for Negotiating a Great Price?

I dont know if there are similar threads on this, please point me there if so.

Anyway i'm after a new small or compact car, 30-40k budget, currently eying either Peugeot 308 1.6 turbo XSE or Audi A1 or VW 1.4TSI.

I will be visiting dealerships, but I've only purchased one new car in the past - so i'm still noobish at negotiating. I'm after any advice on getting a good price. From what i've already gathered:

  1. be flexible with the purchase, dont let the salesman think you're decided on an exact model
  2. be patient. sit down with the guy, with a cup of water, and talk out the options etc without a hurry
  3. go with another person. provided the other person is not a girl.
  4. test drive, and make the guy work to convince you the car is good
  5. pitch different dealers of the same model against each other
  6. dont necessarily make up your mind on the day of test drive. waiting till they call back may or may not be a good idea

What do you think?

The peugeot is already reduced by 20% due to 2010 model runout - how much do you think i can haggle down further?

How can I get them to add extras without adding cost to the car? compare the car to competing makers?

thanks
kim

Comments

  • +1

    any tips

    haggles like there is no tomorrow :)
    never accept 1st offer
    shop around …. visit 3 dealerships at least if you want a good price!

    • hm. i got an idea, when i've hit the bottom price at the first dealer, i'll say i'm going to see what the other dealers can do and get back to him. then see if he's prepared to make a better offer that same day.

      do you have an idea of the typical % that a small car can get discounted by?

      • +1

        sound like you done a lot of homework :)
        last time i bough a car from 26k -> 21k, i picked at the right time as they need to meet monthly quota so they throw the car cheap to me :) but a lot of hassle when pick up the car (wrong colour, car deliver from 2 week to 2 month)
        from my exp above try to buy the car toward the end of month.
        sorry not sure about %
        if you happy with the final price you willing to pay then ask them to throw in mats, 1st tank petrol, etc…

  • Not sure what the Aldi A1 is like, however Peugeot's generally have poor build quality - I took one as a test drive out of curiosity and I found most cheap japanese cars beat out the Peugeot for driving dynamics. On the plus side, they are negotiable with price as you have found out.

    The VW is the pick of the bunch however they sell very well and would be harder to negotiate on. Also check out the Polo Gti which is a very tidy package.

    As for tips. Make sure you walk out of the dealership the first time after you take a test drive. They will try and keep you in the lot and make a sale as soon as you drive the vehicle. Make them chase you.

    Also, make sure they answer all questions directly. Classic car salesman line:
    Customer: "How negotiable is the vehicle on price?"
    Salesman: "Well that depends, how much do you like the vehicle?"

    Beware of responses like these, if a salesman can't answer questions directly, then he doesn't deserve your business. I always asked the salesmen what was the cheapest price the dealer has ever sold the that model car for. It was from there I was able to negotiate a deal.

    • +7

      I don't know what the Aldi A1 is either but I'm guessing it's a generically packaged version of the Audi A1. At least with the Aldi A1 you will get it for a cheaper price and most importantly, a 60 day no questions asked return policy.

      • wow i didn't know there was a return policy. What do you mean by a cheaper price? it costs 36500-39900 driveaway for the auto (RRP, before options and negotiation)

        • +6

          If those are serious questions then you completely missed the point of my post.

        • -1

          yes i missed the point. please explain, unless its sarcasm directed at the poor value in the a1

          ohh edit Aldi haha ok

        • +1

          ALDI as opposed to AUDI

          EDIT: you just found it ;)

        • LOL

        • yeah i just thought it was unintentional typo at first:

          i actually agree with the joke-point "generically packaged version of the Audi A1"

          the australian model is selling at bare bones features, compared to the european models of similar price. unless they're going to discount heavily on the a1 i wont be buying just yet.

        • +1

          and also this

          a 60 day no questions asked return policy.

    • Lionel, i've looked at the polo GTI. i've even driven it at the dealer.

      WTH why is it so cheap?? its a freaking awesome car for 30k… 12month delivery time makes the decision very hard, so i probably will not put any money on it.

      If it is immediately available, i'd have zero hessitation about picking one up. The thing accelerates like a maniac and handles supremely.

  • +1

    Do yourself a favour and test drive the Ford Fiesta. Looks great, drives great, has a diesel option and is well within your budget. And if you know someone that works at Ford you can get it even cheaper.

    • Gorgeous little car and fabulous to drive. It's in a different class to most of the small cars.

    • I like the car very much, but i'm more interested in a higher class compact, or middle class small car. I will take up your suggestion and have a look when at the dealers. thanks

      • Try the focus. Bigger and far more extras. Closer to the VW class than Toyota/Holden/etc

        • +1

          i'll look at that too. i've driven it before and its a solid, smooth car, but getting a bit old and is about to be replaced.

      • Class with brand names no longer is the realm of european makes. Most are totally floored by asian makes for build quality and engineering.

  • If you are in a union that will allow you to use the services of the Union Shopper. I always buy through them and save thousands each time.

    • i'm not part of a union. what kind of % would you save on a car through them?

      • The deal with the Union Shopper s that you get the best changeover price from a dealer, phone them with the details and either they make a better offer there and then or do some legwork and call back quickly. I bought a new Honda Accord and had a good trade.

        The Union Shopper beat the best deal I was able to negotiate with three dealers by $4300, and threw in a five year Honda warranty.

        • very impressive price… what do i need to do to use union shopper? what unions are there?

        • Check this http://www.unionshopper.com.au/FAQelig.html

          I have bought my last five cars through them and recommend them for price, ease and honest dealing.

          You can also use them to buy household goods, computers, and just about anything.

        • Thanks man, this is all new to me. I've gone to actu now and filled out the join form, i suppose they'll contact me to work out specifics.

  • Checking out some car brokers can be a good idea. Even if you don't purchase from them, you can still find out the price they can get you, then use it as a benchmark.

    • dont they require you to pay the fee before quoting you?

      • When I was looking I spoke to a few and found out the price they could get for me. I didn't pay them anything…and I would be hesitant to hand over any cash before I knew they were getting me a better price than I could get myself.

  • If you are doing it youself this info is always handy.

    http://www.carbroker.com.au/car-dealer-tricks-tactics-scams.…

    • neato!

    • I've sent them a request for Audi A1 quote. It costed $10, will see if their quote is helpful…

  • update on my progress:

    1. private fleet are in touch with me, saying first offers for A1 have been 33000 (3.7k off). i said i'll consider it only if they can get close to 30k. he's looking into it.

    2. i just found the VW Polo GTi to be a real gem of a car, 31500 drive away, sold out for 10months ahead lol… i get 10% discount with my association membership, another reason to get VW. the agent said he is able to place a 2012 model order for me, so the year of waiting will not cause depreciation on the purchased car.

    will try to test drive the polo gti, peugeot 308 and audi a1 this weekend

  • Stay away from Peougot like the plague…no mechanics know how to fix them! They are still using a very old engine system, lazy french bastards!

    • is that an informed opinion? i cant tell. i've sat in a friend's peugeot before, its gorgeous on the inside, and the diesel was very smooth.

      • Agree, cheap luxury car, beautiful. On the downside, terrible resale value cos no one wants them. Mecanics are very confusing and backwards (talk to your local mechanic he will tell you) For example I used to have a 406 years ago, and to change spark plugs required removal of the engine head! WTF?! Very labour intensive, so a service instead of costing $150, would cost $580! Ridulous! You will pay through the roof for mechanical work cos no one wants to work on them, you need 'specialized' mechanics or peugot service $$$$$$ costly costly!

        Yes i speak from experience. They are a lovely car inside, but the mechanics are FOOKED!

  • update:

    1. Peugeot 308 115KW 6speed Auto rear sensors and glass roof for ~30k. will negotiate further to get 5yr manufacturer warranty (ringing around and negotiating at dealers)

    2. Audi A1 base automatic has stagnated at 33k (ringing around)

    3. Polo GTI ~30k, ~1.5k for 6yr manufacturer condition warranty (after some calling and fleets)

    4. Golf GTI ~10% off (43-50k) probably over budget. But what a sweet as car! (After 3hours…)

    5. Mazda 3 Maxx Sport auto 30k including rear sensors, bluetooth (after 20min)

    This should guide anyone else in the market. I'm also interested in anyone's opinions on these prices.

  • the Mazda sounds like a nice deal..

    tips for car buying noobs:( as in has never bought a new car)
    -get a friend or befriend a mechanic and ask for advice..
    -find a car with parts that are easy to replace..

    just to add to what stanas posted..

  • +5

    Success! Thanks for all the help, I got: http://www.peugeot.com.au/discover/308/5-door-hatch/

    308 Sportium April compliance
    115KW turbo petrol 240Nm @1400rpm
    6sp Auto
    Shark Gray
    5yr manufacturer warranty
    17" alloys
    BT handsfree
    Ipod integration
    Parking sensors
    Tinted windows
    Floor matts

    For $31250 drive away ($4850 off special price, $7200 off RRP)

    What helped were:
    1. got a privatefleet.com.au quote to help with negotiations
    2. taking 3 weeks and 3 dealers into the negotiation
    3. researching past adverts, interstate adverts
    4. reading all the advice on here

    If anyone would like advice regarding this topic feel free to ask!

    • sweet deal.. ^_^ congrats on your new purchase…

    • Congrats on the purchase - sounds like a great result!

    • I must concur with the other replies, very nice deal indeed. That's some mighty fine negotiating there kimmik! :)

    • Thanks all, i'm looking forward to the end of the long weekend for once - new car!

      Another big technique i found was to have another person help you negotiate - use the good cop bad cop routine, and/or to visit dealers separately. to explain:

      1. good cop bad cop - one person presses for a ridiculously cheap deal, makes the dealer's life hard. then at the right moments the second person jumps in to moderate the tension, give the dealer an alternative, slightly less cheap option.

      2. two people visit same or different dealers separately, thus able to use the other person's quote as the starting point of the negotiation each time. if the dealer questions you on some specifics of your mentioned deal, you have the option of saying "sorry i'm not sure, dad was the one making the deal. i can check for you later" etc.

  • Also adding to this discussion
    It is known that male buyers are able to negotiate more off a car than female buyers

    • I am a female and I haggle like a fiend. I disagree with you there. I get better deals than any male I know and often am getting good deals for them overseas and in oz.

      • And I am a very sensitive man who loves to cook and bake. I'm also better at ballet than any female I know here or overseas.

        (just messing around haha. if only you could help dealing with these salesmen!)

        • Lol if you are in Melbourne I could probably kick ass for you. Though occasionally I may shock you (my bf finds my negotiating skills a bit mafia like..or so he says)

          Also helps that since I am less involved with items that are for others I can negotiate better for others then myself.

  • go at the end of a month, end of a quarter, end of year
    as the saleman are usually trying to met sales targets etc

    and u might be able to get more discounts

    always talk about base price for the car, dont get side tracked by extras that add to the price (cause they'll confuse ya and that'll drive up the price for things that are cheap)

  • Also, go to a smaller town outside a larger city or even a lower SES suburb! A few folks I know in Newy go to Cessnock to look for new car deals, they tend to be a bit more flexible on price & inclusions! ;)

  • "go at the end of a month, end of a quarter, end of year
    as the saleman are usually trying to met sales targets etc"

    I think this is moot, as the salesman is allllways trying to meet sales "targets". that is euphemism for "we'd rather sell one more than not at all. so lets talk price."

    the end of year is reasonable, as they're ridding themselves of old MY cars in preparation for new MY models.

    "always talk about base price for the car, dont get side tracked by extras that add to the price (cause they'll confuse ya and that'll drive up the price for things that are cheap)"

    mostly agree. definitely dont talk little options like tint and carpet and premium number plate etc till the moment before signing contract. big options will need to be mentioned a bit earlier (not immediately), like extended warranty and better audio etc.

    "Also, go to a smaller town outside a larger city or even a lower SES suburb! A few folks I know in Newy go to Cessnock to look for new car deals, they tend to be a bit more flexible on price & inclusions! ;)"

    totally agree! thats part of how i got the price so low. i took ads from very distant dealers, to the sydney local dealers. made them wince lol.

  • Hmm I'm after a bit more advice again. Maybe someone has been in this situation before:

    The dealer promised "premium numberplate" for the car before contract was signed. today when i asked them to clarify, they said its "the white plate with black numbers, worth $92".

    Checking on myplate.com.au (RTA run), the white plate is called "special plate", where as "premium plate" is a specific type that costs $400 (which was the impression i had before closing the deal).

    Has anyone caught them out on this before? Did you make them provide the real premium plate?

    • The dealer promised "premium numberplate" for the car before contract was signed. today when i asked them to clarify, they said its "the white plate with black numbers, worth $92

      1) Do you have a copy of that document?
      2) Does it clearly say premium numberplates FROM myplate.com.au (because his premium may be different to myplates premium)

      • unfortunately it was only verbal…. dammit

        he said "oh dont worry, we give full tank of petrol and premium plates to everyone. you wont get any surprises"

        so it wasn't written on the contract.

        there was no explanation whatsoever what premium plate meant - u'd assume they use what RTA considers premium? but no he's trying to say his premium is anything other than the fugly yellow one.

        • did you call him out? even if its verbal you might be able to insist on the premium plate..

        • we're seeing them this saturday to sort out registration. i've printed out the rta number plate pamphlet to show them.

          will try to settle for something but i'm sure they're gonna put up a fight.

  • Has anyone paid for a car on credit card?

    The contract does not dictate cash-only, so i assume i can use a CC and earn a frequent flyer point for each dollar spent… hmm.

    • I tried when I bought my new car four years ago but was not able to do it. The dealer would allow me to pay up to $2K deposit on my credit card, but no more. I'd be interested to hear of others having more success because it did occur to me that I'd like a nice cheap holiday using FF points from the purchase too.

      • Perhaps they want to force you into their in-house financing…

        • That's possible, but they knew I was definitely not using their financing. I was loathe to tell them that, to be honest, since I figured they'd give me a lower price on the car if they felt they'd get it back using exorbitant interest rates later. I was paying in full up-front so there was no discount for cash (the dealer insisted on a bank cheque, not cash), and no discount for being a long-term finance-dependent sucker.

    • I once had a customer ( i work part time as a servo chick) he said his new merc went through on his card like a breeze. Though his credit card company called him up to confirm whether the deal was actually him or not.

  • +1

    As expected, they are putting up a serious fight over both issues:

    1. they claim their definition of premium plate is different from RTA. they think any plate other than the yellow one is premium, even though i showed them the website.

    2. they refuse to let me pay by credit (unless i pay the merchant fee as extra), and refuse to acknowledge that the sales contract does not specify cash equivalent payment. after i walked out they called me saying they will reduce the merchant fee surcharge to half. i refused on the basis of contract terms.

    I've called the bank to initiate charge reversal for the deposit of $1k. The paperwork will be sent to me.

    • Yeah, stick to your guns on this one dude! You'll also get another call in a day or two saying they'll waive the merchant fee & you'll get the premium plate!

      Contrary to popular myths, dealers do make a lot of money from each car sale, they won't wanna lose you as a customer; particularly as they'll also be hoping to make ongoing servicing costs from you as well! ;)

      • haha they're good at fighting for the money thats for sure.

        • Yep, they'll try all the tricks, quite often they can bluff the average mug; but as soon as they get someone who will call them, they've got nothing! :)

          You've already trumped them by walking out, there's no more powerful negotiating tactic IMHO! They are now officially your biatches! All you've gotta do is wait & prepare to get what you want as the gracious victor!!! ;)

    • Hi Kimmik

      Great choice on car - I think you will really enjoy it.

      I hope you don't have your heart set on your idea of premium plates being anything other than the White background, black text. thats what they are referring to instead of the standard yellow/black.

      Premium Plates refer to the number format being three letters, two numbers, one letter, introduced in 1991, black on white.

      http://www.rta.nsw.gov.au/newsevents/numberplates_factsheet.…

      though, I can certainly see how anyone researching this for the first time, would first click through to the MyPlates.com.au website, and they do not list the traditional premuim plate (white/Black) at all, instead they have a section on premium plates costing $400 - a completely different set of plates. So I can see where the error in understanding comes from. Easy mistake to make - the dealer might just come to the party if your serious, but the dealer is correct. (that site doesnt list the yellow/black or the white/black at all - its just the customised plates).

      but, as you know, the deal is not done till your all happy. So, be polite, but firm if thats what you really want. At the end of the day, there will be a price where they can sell, and a price they cant. The dealler will look at all sorts of factors when pricing your car - things like sale price, monthly sales quotas that are linked to their dealership right, as well as aftersales service and parts. The problem is that the salesperson is rarely the business owner and doesn't see past his/her commission.

      • Very important advice thank you. I will drop my request for custom premium plates. When i brought the issue up with the dealer he was entirely dismissive rather than explain what you have said. He probably didnt know these distinctions either. It was poor behavior, not even trying to address the issue.

        That just leaves the cc issue.

    • Plus one for showing them who is the man.

  • sorry. my bad, my commenting was a duplicate. forgive.

  • +1

    I'm thinking of buying a ferrari.. :)everyone can contribute for the car and then park it in my garage!

  • quote. quotes and more quotes.. go from one dealer to another. get prices beat. and be picky. they want your money. they can work on your price. thats my advice.. i got 3k off a mazda 2 auto just last month.it is possible..

  • We have the car now! Dont get me started on how awesome it is… I'm super pleased, after taking it out to the royal national park last night (in the torrential rain), and at very unethical speeds.

    How the payment situation resolved:

    We rang the dealer and dropped our request for free CC payment and free custom plates for these reasons:

    1. Another dealership, whom wouldn't go below $32000, never called us back - suggesting they are not interested in the sale at that price.

    2. This dealership undercut that offer by 750 AND gave us free tint, free matts, newer build car.

    3. As baybeans pointed out, I was actually the mistaken one, requesting custom premium plates for free. His other words of advice also spoke to me to influence the decision (in a very positive way).

    Just an anecdote on how much you've all helped with this negotiation:

    A good friend of ours took delivery of a Subaru Forrester today, basic model with a small number of extras - for $35800. About $1500 off a price already inflated by extras like tint and matts. Last week he mentioned his intention to buy, and today informed us that he's already taken delivery! after visiting one dealer and making the deal there and then. I wish i could have helped, but he didn't give me much warning at all!

    • Congratulations on your new car!
      Don't forget to shop around for insurance deals too - there can be a large cost difference and there is generally no penalty to change insurers mid-term.

  • Hi
    I am looking at buying a brand new holden Cruze series 2 SRI-V. The salesman from the dealership has given me a quick quote at $31,500. I want to get the best possible deal available.
    What should I come in at? He has said it is open to negotiations.
    I dont want to get ripped off and i really want to knock off as much as I possibly can!
    Any help would be amazing!!

    • The Cruze isnt being discounted much at the moment I would think - havent they just released the Series2? If thats true, discounts aer hard to get - they are popular. I had that same isse when I was negoiating a deal on the Cruze 2 years ago for family, when the first series was released - being new to the market, they were in demand. I ended up buying through a Holden fleet manager rather than a car yard dealer. I knew what I wanted, and it was just down to settling on a fair price. You need to go for WIN-WIN, else where is the motivation on the otherside, or your side if its Win-Loose.

      At the time, we got a $4500 discount when buying leather, auto, mags option pack.

      Good luck. (if you need the fleet managers contact details, let me know. He is based out of Sydney, but that wont be a problem if your out of area).

    • how is the deal going for you so far?

  • Hey guys.. looking at buying a Hyundai i30 (2010 or 2011 model) hopefully over the weekend! I need some advice on what sort of price i should be able to bargain to. Unless someone can personally come to the dealership and help me bargain? Lol. I have a budget of about $15,000. Any help is much appreciated =)

  • +1

    Having negotiated for all five cars for my family and making my fair share of mistakes, I would like to share my 2 cents.

    1) Never walk into a dealership to buy a car! It's ok to ask questions and test drive, but never physically go in to negotiate a deal, or you're guaranteed a less than optimal price.

    2) Use insurance companies to find out the value of the car. Call AAMI and find out what is the replacement value for the car that you want to purchase. This way you will know the normal price that the dealer is willing to sell for, and any price above that is not worth considering.

    3) Make an unreasonable offer to your local dealer to see how low they're willing to go, then walk out of the dealership. Then take $1000 - $3000 of their lowest offer (depending on what car you're buying) and make that your "target price"

    4) Be willing to make phone calls. In your city somewhere there will be a dealership near it's target for the month and would like to achieve it by selling the last one or two cars at your "target price", The hard part is finding them. Call every dealer you have access to, even if it means a 5 hour drive, it'll be worth the $500 - $2000 dollars that you save.

    5) Once you've found a good price, call your local dealer and tell them that you're about to lay a deposit with another dealership, and say that you're willing to do the deal locally if he includes an extra inclusion (e.g. carpets, sidestep, window tint) for the same price and you would be happy to lay a deposit over the phone right now. If he agrees, you score a freebie, if not, you know that you've got the lowest price possible :)

    Please note that these are based on my personal experience only and is not a bulletproof way to get the best price. As a general idea, the latest car we bought was a Honda CR-V luxury 2009 model. The RRP was $44,990 Drive Away, local dealer offer was $42,888, insurance value was $42,000, and we got the car for $40,000 with free sidesteps.

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