Used Hyundai i20 - Dealer Reduced Price A Lot. Should I Be Worried?

A sudden requirement has come up for a car to take me from home to station and back. I am looking for a small and cheap car as I do not intend to keep it for long or use it for any other purpose. Price range $5k-$6k. But was also thinking if I get a car with Company warranty left, that would give me some piece of mind.

Went to a Hyundai dealer over the weekend. Saw an i2O 2015 model Manual Active (so basic not much features apart from Bluetooth) advertised for $8k.
3 months warranty left on car. Initially the guy said I might reduce it by $200-300. Not much as its already reduced to clear. Spent about 15 mins and I said I might have to come back. He asks me how much are you looking to negotiate. I said around $1000-$1500. He said naahh. Tried to up sell other cars as well, but I didn't agree.

So I said, OK I will be back later after I look at other cars. Not willing to let me go, he checks with his manager and says what do we have to do to sell this car to you? I said I need to think and come back as I need more warranty, so he agrees to include 1 year warranty and price down to $7k. I again said NO and will come back. He checks with his manager again and comes back with a final offer $5k. I was very surprised and slightly shocked at the reduction.

Any thoughts, should I be worried or just buy it?

It seems to be the best offer so far when I look at Carsales.

Thanks.

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Comments

  • +10

    get a mechanics check and go for it.

  • +9

    They need the space for new stock. Take the deal.

    • +5

      Agreed, this seems very likely given its a manual.

      If you are happy with the car, price, and have a green light from a reliable mechanic, by all means go for it.

    • +2

      Arse has fallen out of car sales lately so they're desperate to move it. Small basic car plus manual is not something too many people would be after. How much rego left on it? Could be about to run out also.

      The extra year warranty will be just one of the 3rd party warranties and not really worth the paper it's written on, way too many exclusions and conditions.

      Get an inspection done by a 3rd party and go from there. It's a good price, not a ridiculous one so it'll likely be fine.

      • Only 3 months rego left.. so not much.. Thanks for you inputs

  • Get it inspected and if ok buy it. Mobile mechanic might be the easiest way.

  • -3

    I wouldn’t bother with a mechanic check if it’s from a Hyundai dealer. If it has a service history, looks and drives ok it should be fine.

    • +6

      There's nothing to lose from having a mechanic look at it, and everything to gain.

      • I agree. I'd especially be looking for any signs of poorly repaired accident damage.

  • I would be worried too. The model is discontinued, so they might be trying to get "rid" of it. An year's warranty helps but get a mechanic to have a look at it. Personally, price (of 5K) doesn't seem too bad for a discontinued 2 door manual model with over 100Ks on it.

    • thats what worried, but with the price of 5k seems ok. Plus 3 months warranty left and might get car inspected.

  • It costs a dealer money to have a car on their lot that isn't selling. I.E. costs of the space for it to be parked (opportunity costs), costs of keeping it clean, costs of sales person time to show interested people, costs of advertising it on carsales, etc. All small costs but over time these add up.

    If this particular car has been sitting around for ages, it's likely they just wanna get rid of it. At that price point, the dealer knows even on a good day hes only gonna make a small profit on it. So it very much sounds like the dealer manager has decided to get rid of it for an even smaller profit instead, maybe even just to break even.

    If it passes a mechanical inspection, and a dealer by law has to give you statuary warranty now on used cars. https://www.consumer.vic.gov.au/licensing-and-registration/m... So risk of a complete lemon are reduced (not eliminated). You have rights as a consumer here as the car is only 4 years old. As its a manual, risk of a lemon auto gearbox are also reduced.

    I would seriously consider buying this if you think its a ripping deal. Find out what statuary warranty is provided. Whether you can get an independent mechanical inspection, then you're good to go.

    • Thanks.. buying used car for first time, so will get the mechanic to check the car as suggested bu most of the people here..

      I think the deal is good, considering If i look up on carsales around 5k, i get 8-10year old cars and alot of kms on them

      • +1

        Make sure you check with the dealer what statutory warranty they provide on the used cars. Get it in writing. I'd be surprised if it's not 12 months.

        • thanks will check.. The warranty he mentioned is what I have to purchase 1,2,3 years etc..

  • 1 year warranty

    depends on the terms and conditions of this warranty.. If its from manufacturer, you should not have much issues.

    • its dealer warrant and a friend told me it might have alot of exlcusions.. Manufacturer warranty is finishing in 3 months.
      I guess with a mechanic check i should be ok

      • +2

        dealer warranty may force you to have the regular services with them.

        • ahh ok.. if its fixed price it should still be ok. I intend to sell it within a year so may even not require a service :)

  • Ask if any Warranty you receive/buy is Transferable (if you sell) and Australia Wide.

  • Confirmed: you are the god of haggling. #cardealershatehim

    Well done.

  • +4

    First conversation with manager: let's see how much we can fleece this guy for.

    Second conversation with manager: oh he's serious, let's cut the crap before he walks out the door.

    Manual might be harder to move (especially not on a performance car) which is why they are willing to drop their pants.

  • Careful he didn't use the term "what if I could do it for X". Many people don't notice this phrase and just hear "I can do it for X". Not until you sign the contract and it gets rejected will you know.

    Car could be old stock, department/salesperson could be trying to hit a certain target.

    Grab the vin, do a ppsr. Sign the offer subject to mechanical inspection, so the car is temporarily off the market.

    • ahh thanks mate.. will go back on friday hopefully the car is still there

      • +5

        You are waiting till friday for a deal that most people here say is amazing ? I Would go on tuesday if i was you.

    • Could you clarify what you mean by that?

      Do you mean they give you a false promise in hopes you will just accept a last minute price increase?

  • I’d be worried. I had a similar experience at a Hyundai dealership. Thought I was getting a bargain on a i30. I didn’t get a pre-purchase inspection. Turned out there was a problem with the transmission which I find hard to believe they didn’t know about. A week before the statutory warranty was to expire found out about issue while getting serviced somewhere else. Took it back to dealership and after stuffing me around for almost two months with bodgy fix ups they finally fixed it. I’d definitely recommend getting an inspection

  • Depending on how much you value crash safety, the latest Used Car Safety Ratings has the i20 at 2 stars out of 5.

    At this budget, you may be better off with a 2011-2016 Rio (3 stars), a 2009-2017 Mazda 3 (4 stars for the pre-Skyactiv, 5 stars for the Skyactiv if you can stretch to this), or a 2008-2017 Lancer (4 stars).

    Source: https://roadsafety.transport.nsw.gov.au/downloads/ucsr-2019-...

    • i20 got an ANCAP 4 star rating in 2015.

      Lancer was tested in 2008, 2011 and 2013 and got 5 stars. They adjust the ratings every year so 5 stars in 2013 might not be as good as 4 stars in 2015.

      It's best to rea dthe report and look at the technical report to see where the injuries occur.

      • Check out the bottom left hand corner of this page:
        http://www.howsafeisyourcar.com.au/Rating-Process/Car-Rating...

        "UCSR tend to provide a more realistic representation of how a car will perform in a crash. On howsafeisyourcar.com.au, if a car receives both an ANCAP and a UCSR, the UCSR supersedes the ANCAP result."

        • fair enough.

          • @brad1-8tsi: All good.

            I 100% agree with your method where UCSR is not yet availble for a vehicle of interest. In that case, I would look at the ANCAP scores breakdown and injury numbers etc. for that vehicle vs the alternatives.

  • How many kilometers on the clock

    Inspection a must, but must also take it for a test drive before you fork out any money for an inspection.

    Some reviews which probably read:

    https://www.productreview.com.au/listings/hyundai-i20

    http://australiancar.reviews/reviews.php#!content=recalls&make=Hyundai&model=i20&gen=446

  • Just take the car, if it's still there. They're trying to offload it.

  • You have now just subconsciously upped your price from 5/6k to 8k.

    3 months warranty… they owe you warranty anyway- so don't get sucked in.

    Like you said, only to get you to and from the station - My suggestion is buy private, as cheap as possible, and with as much rego as possible.

    Immediately you have saved 5k or more… if the car breaks down with something major, just toss it like a Bic lighter.

    Get an old bomb

  • ok guys.. thanks for your suggestions..

    I have today bougth another car which seeemed to be a much better option. The above car was 5k.
    I have bought a 2016 Mitsi Mirage Manual, with 47,000 kms and 18months of warranty left for 6k.
    great conditions and drives as well. with just $1000 extra, i guess i am getting peace of mind as its under 5years warranty.

    The Hyundai is still in market so if anyone wants to grab it, i can get you to the agent as i have already negotiated
    Location; hyundai hoppers crossing VIC