First Time Purchasing a Car from a Dealer: Tips?

Ltichet18 on 18/04/2020 - 12:57

We've been looking at getting a Subaru Forester 2018+ model for a while now, as it fits our use case. We've been looking at the used market with under 35,000kms. Dealerships seem to be the most competitive, however this is our first time so keen to ask the brainstrust.

Any tips you've found helpful?

My questions so far:
- How much can I negotiate off the price? E.g. one car we're looking at is about $29k, base model Forester, with 18000kms. How much could we reasonably expect to negotiate it off?
- Is this a good time to crack into the used car market? Or is it better to wait?

Thanks in advance.

Automotive

Comments

    • afah0447 on 20/04/2020 - 10:28
      -4

      Never buy a car from a dealership. The rules for buying a car:

      • Never use finance/loans to a buy car. If you can't pay cash for it, you can't afford. Cars are depreciating assets, why on earth pay interest on something going down in value.

      • Buy a car with low k's that is at least five years old. It would be fully depreciated by then.

      • Never buy from a car yard, ever. They have too many overheads they need to work into the car price.

      • Get it inspected by a mechanic or friend who is handy on the spanners.

      • Make an ambit claim on the price of at least a 45 per cent reduction on asking price.

      • Point out every flaw, scratch, noise and imperfection you can.

      These should hold you in good stead.

      • randomusername2017 on 20/04/2020 - 10:59
        +2

        Fixed

        Never buy a car from a dealership. Gumtree Tyre Kickers Bible:

      • pegaxs on 20/04/2020 - 21:10

        Never buy from a private seller (the alternative view);

        • Private sellers are on drugs. They typically want MORE for their car than what I can get it for at a dealer.
        • There is absolutely no statutory warranty at all on a private sale and no governing body to complain to if it all goes pear shaped (ie: fair trading/consumer affairs/automotive chamber of commerce, etc).
        • Private sellers don't have to prep cars or make them roadworthy for sale. It's an "As is. Where is" type of sale.
        • Private sellers are typically offloading the cars that dealers don't want. Unserviced/no history, high KM, missing/broken parts, poor resale vehicles.
        • Private sellers are usually looking to off load a hand grenade/time bomb.
        • If you have an issue, dealerships will (usually) try and help. Private sellers will block you.
        • Private sellers are bigger liars than used car salesmen. "Never been offroad" (covered in mud), "never been in an accident" (covered in overspray), "only driven by my mum" (covered in stereotypical P plate stickers), "Yeah, 245,000km IS low for this model." or "Nah, it has 592,000km on the body, the engine was changed at 180,000km…"

        I usually only buy my own cars from dealers. The main reason is because I know that they will be there tomorrow and most often, want to help out if you have a problem. Almost all of the time, I can find a car at a better price at a dealer, because of all the drug (fropanity) idiots on fleaBay/Scumtree/Fartbook want more and are offering less. Sometimes, the biggest tyre kicking, time wasting (fropanity) in private sales are the sellers themselves.

        If you are buying privately, it better be at least a 25% on what a dealer is selling the vehicle for. Private sellers don't have to offer any warranty and do not pay any taxes on sales. (GST is 10% on its own). Most private sales exist because they don't like the wholesale value of their vehicle and think they deserve full retail price on their non-taxed, unserviced, missing keys/books/history, on the edge of exploding shit box hand grenade…

    • Mark1159 on 20/04/2020 - 10:29
      +1

      Go to web
      Get email address of every dealer in your state
      Email every dealer, put NEW CAR SALES MANAGER - BUY TODAY in Subject Line, in your state for drive away price today of EXACT CAR/YEAR/Make/Model/colour you have specified - no other options
      Do not give your phone number - yet
      Inform them you are prepared to leave credit card deposit today

      Half the dealers will delete your email
      Half the remaining will quote RRP
      25% will quote a deal price

      Use the lowest of these figures to start dealing

      Kick em in the guts. Hard. Real hard

      • Mark1159 on 20/04/2020 - 11:16

        Wrong
        Drive to other side of city
        Car yards guarantee title

        • spackbace on 20/04/2020 - 11:52
          +5

          Wrong

          Umm, you just replied to yourself and told yourself you're wrong…?!

          • funnysht on 20/04/2020 - 17:52
            +1

            @spackbace: also

            Half the dealers will delete your email
            Half the remaining will quote RRP
            25% will quote a deal price

            That doesnt add up.

            • spackbace on 20/04/2020 - 17:52
              +2

              @funnysht: Methmatics

            • Mark1159 on 20/04/2020 - 18:20
              +2

              @funnysht: 50 per cent will delete your email
              50 percent of those remaining (25%) will quote RRP
              25% will quote a deal price

              Pretty sure 50 + 25 + 25 = 100 RockStar

      • MrBear on 21/04/2020 - 22:10

        edit: some one beat me to the punch line

  • JimB on 20/04/2020 - 11:17

    Make sure you get the MY2019 update released in 2018. Quite an upgrade from the MY2018 model.

    I purchased (on behalf of my in laws) a new MY19 model Forester last year for $35k brand new.

    If a secondhand one is $29k, consider a new one for a few K more. I'm sure you could get a new one for less than what I paid during Covid 19.

  • payless69 on 20/04/2020 - 11:34

    Subaru's are great cars, I had a few. Still keep an open mind and who ever drives most must be most comfortable in its driving position.
    With turbulent times ahead there is no need to rush. Holden has to dump every car by mid year and it will make downward waves in the industry. Keep the word out on all friends and relatives. Sometimes a chance comes up for a good car from a person you know not having abused the vehicle. Many car yards do not own the cars and sell them in consignment. Beware: too many dealers are now owned by very few large firms. They are not charities, rather step over dead bodies for extra profits. Finance? Get the contract 24h before and talk to an expert.

    • funnysht on 20/04/2020 - 17:55

      NEVER buy from auction at e.g. Manheims…there's a reason why they're being sold at auction so no one can test drive them. Expect a major fault. (Unless if it's the buy it now section)

    • Zachary on 22/04/2020 - 21:15

      Holden has to dump every car by mid year and it will make downward waves in the industry.

      y?

  • THL on 20/04/2020 - 11:38
    +1

    This is from my personal experience and the stories I've heard from my friends who bought cars:

    1. Do your research on how much is the RRP for the exact model, specs and/or extras in your state & area (since RRP could differ between states)
    2. Go to forums like Whirlpool and see how much others are paying for the same car that you are after. Get an estimated price range i.e. $25k-$28k?
    3. Set a realistic target price somewhere within that price range.
    4. Pick the last business day of the month/financial year to go into the dealers. Don't just go to one. Find 3+ local dealerships in your area.
    5. Go in and let the dealers know you are here to talk price. They'll be more willing to negotiate and cut to the chase. Like many others have said, be professional and don't be scared to walk away if they aren't interested in giving you any discounts.

    I was able to get around 17% off RRP for my new Mazda 3 by following the above steps. I think it's a reasonable discount :)

    Just my two cents worth. Good luck!

    • pegaxs on 20/04/2020 - 21:19
      +1

      And to add to this, you will get a better deal if you take on of their cars they have in stock. Stock cars are burning money every day they sit there. They will be keen to move one of those. You might not get the Titallium Solar Sparkle Sliver Silver you really really wanted, but you may just get more off the price buying an in stock white or blue than if they have to order in a car for you.

      So, always check out what they have in hand and on stock. They will be far more inclined to move those then to order in…

  • Jaystea on 20/04/2020 - 11:51

    My mate works for Subaru, apparently you can’t get much off their advertised prices. Not compared to your euro cars anyway, I think 10% is generally where they will ever cut it off at. Hope that helps.

    • Buckshot on 20/04/2020 - 16:27
      +1

      That depends. My Dad bought a car with a sticker price of 49k for 41k d/a.
      I also know another guy who works for Subaru. He said they don't get much commission now. It all comes in the form of dealer bonuses from the manufacturer.

    • sim777 on 20/04/2020 - 16:48
      +1

      Not sure if things have changed more recently but i got a 2018 wrx rrp 50k for 41k

      • nephilim on 20/04/2020 - 21:01

        Even the base Subaru Impreza auto was 21k drive away just before xmas, want 26.5k at the moment

  • wiipantz on 20/04/2020 - 12:10
    +1

    Don't

  • Caped Baldy on 20/04/2020 - 12:15

    Does the 2018 model have the eyesight feature? If it doesn't might be worth paying a bit more.

    I've got the Forester with eyesight and I find it a bit thirsty (the power is nice though) and a little bit top heavy (noticeable when going around corners quickly). I somewhat regret not getting the Levorg so this model would be a nice alternative.

  • This Guy on 20/04/2020 - 14:14

    Search carsales for the same trim before you enter the dealership. The lowest price advertised for a second hand or demo is usually close ($100's off at most) to the best price you could expect to pick one up for.

    A cunning salesperson will show you carsales, but will compare the top trim level or the new MY update so carsales will show the a higher price.

    A stupid salesperson will congratulate you on your find and tell you to buy it where you found it.

    A rubbish salesperson (your best friend) will let you open carsales on their computer to show their boss. These guys are generally push overs and you can often get what you want from them.

  • funnysht on 20/04/2020 - 17:00

    Worthwhile to buy a car with factory warrantry, even if it's a few months..because usually there are no major problems (otherwise they would have sent it to the factory to fix), also you can do a thorough check

  • conza on 20/04/2020 - 17:23

    Yeah 20% off is usually a go to starting point, so justaperson seems to be on the money, very good assessment, I concur, go attempting to get 30% off and settle for 20-25% off.

    Always have a backup plan, make sure they know you have that, walk away at the drop of a hat, no emotion. Get free extras, service, whatever get them chuck stuff in, their time is worth less than a dollar figure at the front, they'll find the time later so don't forget that.

  • DoUKnowTheMuffinMan on 20/04/2020 - 20:13
    +2

    recently bought two cars from two seperate dealerships

    Asking price 16.5k, Paid 10.5k
    Asking price 8.9k, Paid 5k

  • tichet18 on 21/04/2020 - 12:04

    Hi all, thanks once again for these tips. In my state, the demo model of the 2019/20 Forester is 34,990 drive away. In other states its 33,888 drive away.

    Is it reasonable to ask for 29k drive away with a range to go to $30k if need be?

    • spackbace on 21/04/2020 - 12:12

      WA pays higher stamp duty than any other state

      • tichet18 on 21/04/2020 - 12:17

        So this explains the markup? Is that what you're saying Spack?

        • spackbace on 21/04/2020 - 12:17

          Yup! It certainly contributes to the problem

          • tichet18 on 21/04/2020 - 12:20

            @spackbace: Do you reckon it's still reasonable to ask for $29k if that's the case?

            • spackbace on 21/04/2020 - 12:49
              +2

              @tichet18: I don't know their pricing structure or margins to know.

              No harm in trying at the end of the day

            • hasher22 on 22/04/2020 - 23:30
              +2

              @tichet18: 35k down to 29k is a 17% discount but it's not unreasonable to offer that first then if the sales rep doesn't give you a counter offer or approach their manager to approve then you may went a bit too low.

              If they say nothing, but you really want that model, you step in and say something like: "what price would you go down to if I put a deposit now?"

              If they say something like: "32k is my lowest and final price", that's 8.5% off.

              From what I've seen from forums and online research, dealers have different % margins off demo, used and new cars. A merc dealer said to me that their new car bracket is 10% - 15% off EASY but a demo/used car has a lower bracket.

              Conclusion: start with 29k then just read the sales rep face or body language and see if they actually want your money.

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