Hi there
I am going to buy a new car 2020 Mazda CX-5 Maxx Sport FWD Petrol Automatic from a dealership and want some suggestions on negotiation. RRP is $38240 drive away.
How much I should try to negotiate down the price? Any suggestions? Any real examples please?
Cheers.
Negotiation on New Car Buying
Ljasonhear2020 on 30/12/2020 - 12:28
Comments
ozbargain special 20%:)
from RRP or driveaway deals?pretty sure theres about a 0% chance of that CX-5 going for $30.5k if you're assuming 20%
Currently, covid wise, on a general run of the mill popular SUV i doubt you would get anything even close to that (even pre covid no chance you're getting 20% off a driveaway price on mazda)
Thanks. How much negotiation can be done according to you?
If you live in a major city just start off with 20% if you get laughed out the door, then next dealer at 15% and so on. Think 5% - 10% is reasonable off the all in price (inc government taxes, charges, delivery fee)
20% off a new car LOL
Oh please, aim on 30% to start with
He did say minimum 20%, so you'd start off with a way higher discount.
You probably couldn't pick a worse time to purchase a new car. If you aren't in a hurry wait for a while.
Due to Covid imports have dropped to minimal numbers and the price of many new cars has risen 10% and more due to shortages.
In the 'good old days' 10% off was obtainable, maybe 20% for a demo with big Km on the clock, however car salespeople are well aware of the current market shortcomings and you'll be lucky to get 'free' mats and a full tank of petrol thrown in.
So what is the benefit of waiting?
And how long is ‘a while’?
Even second hand cars are going for a premium now for the same reason!
https://www.carsales.com.au/cars/new/mazda/cx-5/maxx-sport-b…
Sort by state.
Ring with your credit card handy. Ask if this vehicle has been in a crash or had other significant damage. If no, give them your personal details and buy over the phone.
Ask about any crashes or major damage to the person who rings you back to offer finance. They can loose their licence for lying.
Check the contract after you have paid your deposit to make sure you are buying what you ordered.
Consider a low km demo if you can't find the colour you like for the price you want
Warranty starts from when you purchase the car, not when the dealer registers it. It's not unusual for high turn over yards to test drive non demo's and sell undriven demo's. Often, the only difference is the demo has been registered.
Warranty starts from when you purchase the car, not when the dealer registers it.
Warranty starts when it goes into the customer's name, you should know that. That's not going to be when you sign the contract (ie purchase the car)
And while we're on the topic, demo vehicles get full new car warranty from the moment it goes into the new owner's name
I understand the downvotes as sales people are taught to congratulate a client on the purchase after an order is placed to solidify in the client's mind that they are purchasing a vehicle and don't flake on payment.
But…
A client places an order for a car when they pay their deposit and purchases the car with the finalisation of the contract of sale on the day of delivery. The only time I have seen finalisation of the contract of sale and delivery occur on different days is when the car is being shipped to the client. Thais practise complies with what your link states (client is entitled to full warranty period).
If you do things different spackbace I am happy to fly over with a $5k deposit to 'purchase' a Land Cruiser.
Warranty starts when it goes into the customer's name
That's more ambiguous than what I wrote.
Car goes into the customer's name with the manufacturer usually the day of or the day after the initial deposit if in stock, or while in transit if ordered in. This date is regularly two to three weeks before delivery. It might be different with Toyota/WA.
Car goes into the customers name with the government before delivery. It's usually day of delivery to a few days before, but it's not unusual for a customer to delay delivery of an already transferred car. It might be different with WA.
Finance often starts after delivery (dependent on lender).
Cars can be transferred from floor plan (dealership finance of unsold cars) anytime after payment as permitted by that state's law.
Finalising a contract is nit-picking, plus by the point of signing the final zero balance, the car has already been licensed and is ready to go, which likely happened the day before. Unless you license the car within minutes of the customer gets there? That would be an interesting day…
No, a 'purchase' would be defined as when initial contract is agreed upon. You buy anything, you'd consider it to be the moment you signed or made payment. You 'buy' blinds for your house, do you consider them 'bought' at the time of sign-up or at install?
I am happy to fly over with a $5k deposit to 'purchase' a Land Cruiser.
Please do. But we're sold out of VX and Sahara, just FYI
or while in transit if ordered in.
Sigh cosi vs RDR, really?
Car goes into the customers name with the government before delivery. It's usually day of delivery to a few days before, but it's not unusual for a customer to delay delivery of an already transferred car. It might be different with WA.
Yup, but warranty starts with Toyota at point of registration/transfer (RDR and licensing are done at the same time). Owner's details in the book reflect this, and is as per the ACCC link I already posted. If they delay delivery, they're costing themselves lost registration and warranty, but isn't uncommon.
Here is how you negotiate the best price at your chosen car dealership:
- When you get to the dealership, take a bit of pre-workout, take your shirt off, do about 20 pushups, give out a primal scream, then head for the entry doors.
- Push both doors open with all your might, once inside, one more primal scream to ensure everyone knows you are there for a bargain.
- Walk up to the tallest/biggest salesman in the dealership and knock his lights out, let them know you are the boss here, and no one is going to offer you "free car mats" or "cheaper on our in-house finance" type of deals.
- Find the fattest salesman in the building, he'll most likely be the manager of the place. Once he is found, scream in his face that you demand that he give you the car for free. This is your starting point for negotiation. If he disagrees, demand to speak to his boss or his bosses boss. Bemoan that no one in this place can do a deal without being weak and checking with their boss. Tell them to go home and put their big boy pants on and come back when a free car can be given to you.
- By now you have your free car, but if not, toss the nearest table. Then tell everyone you are willing to pay 50% of the employee price for the car you want. When they explain that this is below their cost price, tell them that this can't be possible given these cars are made by "foreigners" and fall apart in the slightest breeze, kick the drivers side window in and stomp off the bumper bars to prove your point.
- By now the dealership understands that you drive a hard bargain and are loving you for your determination. Tell them you'll meet them in the middle, and except the standard OZB 20% discount. Give the closest salesman a "big boy" shoulder hug and tussle his/her hair.
- You'll will be 99.9% be driving out with your discounted car by now, but if for some reason you aren't, scream at the top of your lungs that this place is a fraud, they say they do deals and sales and yet they can't seem to do any real discounts. Make sure you weave in some sort of COVID/5G/Vaccination/Liberals conspiracy into your monologue, you'll want them to understand that you are a smart person and have the inside knowledge on everything and know that they just don't like you because you are male/white/right leaning/know the truth/QAnon/Pizzagate/Whatever. Urinate on the floor and the most expensive car on the lot. Then leave.
- Repeat steps 1 to 7 at the next car yard next door. You'll get the deal you want eventually. Go get them you Alpha!
I imagine you were going through your steps (the screams) just to type your comment! 😆
I agree with serpserpserp, but do some pre-work first. Watch the Seinfeld episode "The Dealership" and take George's advice:
"You never tell 'em you like the car. (Advising) You're not sure what you want. You don't even know why you're here." and
"The only thing these guys fear is the walk-out. No matter what they say, you say, "I’ll walk out of here right now!"
You forgot the obligatory "Well, I guess you don't want me to leave a positive review for you on *insert social media site of choice*"
Welcome back :)
Be a good boy now.
Summary: behave like a Karen
How can you forgot the bit about pissing on the saleman? That's the true sign of domination!
Maybe you should look in to getting a broker to do the work for you? Given it was a long time before covid but we saved a packet buying our last new car this way. Purchased interstate, trucked to our door with 14kms on the clock. Much cheaper than anything we could find locally and easier than haggling with interstate dealers then organising and paying for freight.
Who was that through?
It would be really useful if you could share the car model & year, the approximate purchase date & final delivered price……and the broker's name?
I think we ending up going thru National (it was over 5 years ago now). Car was in NSW, delivered to Vic.
2014 CX9 Luxury, paid a touch over 50k delivered. Think they were about 60k DA back then…from memory the best we could get locally was about 5k more than we paid.Just contact a few brokers and see who comes back with the best deal. No different to using a broker to find your home loan really.
Interstate, sight-unseen car buying… ah yes, how to get fked over in one easy step
Fair point but we're talking brand new here. If the car isn't in the same condition as you'd expect to pick one up from a local dealer, don't accept it. Put it in writing if you have to.
Even if it’s in writing it’s a pain in the proverbial if it’s not up to scratch (or has one). Sure, you can just not accept the vehicle, but where does that put you? Vehicle-less while you sort it out? Trying to find a new deal?
@Euphemistic: No different to picking the car up at the local dealer. If it's scratched and you don't accept it, you don't have a car…exactly the same position.
@whitelie: Except that at a local dealer you drag the salesman out and agree to a solution on the spot. Wth a remote delivery you need to resort to photos, phone calls and emails while the truck driver argues with you that the vehicle is only shipped one way and he can’t take it back so you need to organise somewhere to park it for later pickup.
The commission that the broker gets paid has to come out of someone's pocket and it surely ain't the dealer's. So whatever "cheap" price they got, you probably could've get cheaper.
National charge $187 for vehicles under $30k and $242 for vehicles over $30k. It's all visible on their website and I'd say other brokers are similar. That outweighed the $5+k difference in pricing that we were seeing in our situation. They're essentially buying cars at fleet pricing due to the volume they buy so can easily get a better deal than Joe Public walking in off the street.
They charge dealers a fee as well, be it $500 or a %. This comes off your bottom line negotiating
Can pretty much always get cost price, someone will be desperate for a sale to get their commission
Or will they. If demand is high and stock is low like now that isn’t going to happen.
except selling at cost price = $0 commission
Nah, previously as a salesman we had to make 'X' sales per month to collect commission so occasionally had to flip a car or 2 at cost price to get commission on the rest of the ones that had good profit margins
When I worked at Toyota a few years back. It was based on % of profit over holdback.
Cost would be 0%Also comms these days are based on more than sales. It’s based on NPS and add ons as well.
Harder to make targets more than ever
That’s why I rolled my eyes at 20% discount comments. I never truly realised how little profit was in new cars until I worked in the industry.
@jimbobaus: I worked for somewhere which was pool of gross, but did need to hit thresholds to get larger amounts.
It sucked, because if you took 3 weeks holiday and came back and delivered 3 cars in the rest of the month, you saw no commissions for those deals
Except the Manager is the one to sign off at the end of the day. They care about numbers yes, but also their average and total gross profit.
Why sell a car at cost, when in today's market there's 3 people wanting it at RRP?
Supply and demand…
How many times does this need to be asked? Answer is always the same. ‘It depends’
Just writing a few lines to help as I bought a new Mazda (not CX-5 but Mazda 3) about 6 months ago. Not sure about the right price you should pay as I bought a different car but found Whirlpool forum really helpful on the price expectation and things you should be considering. From quick googling, I think it might be this might be it for CX-5 - https://forums.whirlpool.net.au/archive/327jmw59-5.
Read the comments from last ~1 year old or so and you should be fine. Also there is an excel link at the top of the forum which is like a database of actual sales price people bought.
But I do have to say, I do agree with Hithere's comment above as this was something I observed even at June. In the end, while I got a decent price, I had to wait for mine bit over 2 months which is another thing you might need to factor in (apparently I have heard April and May this year was the best time to buy new cars in terms of price, due to COVID). It is not impossible to get a good deal but you might have to put a bit more effort if you want one.
Anyhow, good luck with your purchase and hope it goes well :)contact john cadogan and his site to see i they can get a deal for you. he battles for the consumer.
Use a car buying service. It's free and you will get the best possible price
Well, you actually pay for the service in the process of buying the car and you also may not get the ‘best’ price. You’ll only get the lowest price the broker can be bothered bartering for. You also don’t know what kickbacks there may be between dealer and broker affecting the final price.
A broker isn’t going to ring every dealer in the country and actually pick the best price, they are going to contact their network and pick a reasonable price from those options.
The fee is minimal in the scheme of things and their buying power generally sees a more competitive price off the bat.
Sure there may be that one dealer that needs to move a certain car at a certain time but it's like the stars aligning. A bit like purchasing ex-demo or used, you get limited with what choices you can make on trim level, colour, options, etc. If you don't want to compromise on things like that then their fleet buying power gives them an advantage for sure.This is true - but buying through a broker may not get you the best price. It certainly reduces the work you do though, and for some people less headaches is worth paying the going rate and not spending hours saving those extra $.
How much I should try to negotiate down the price? Any suggestions?
Offer them $0 and go from there.
I just bought a new car. Went to interstate dealers & used their car pricing with all my requested optional extras. Ended up still going local & used my quotes against local & they even bettered my interstate quotes. Do some research first, car transport quotes, buy without Govt tax , cost of roadworthy , I saved min 6K
During the last Melbourne lock down, my brother-in-law got a new Skoda wagon.
My b-i-l played it a little cool (he was looking for a particular model and was calling all around),
but this dealer was so desperate to make a sale – any sale – that he was the one negotiating down.In the end, he got the car much cheaper than Sydney, and the dealer shipped up here for free !
There are numerous Utube vids assisting you in the purchasing phase.
The Dealer does not make much money on the car it self… their profit lay in FINANCE, SERVICING, and of course, any EXTRAS they can suck you in on.Do not say you are buying TODAY.
Always have a HANDBRAKE .. "Oh I have to discuss with my wife" this is your back-up plan.
Do not use THEIR FINANCE options.
Do not get sucked into any EXTRAS such as mud flaps, sun protection, engine insurance, bla bla bla.If you need the money… organise from BANK.
Do not say you are buying TODAY.
Always have a HANDBRAKE .. "Oh I have to discuss with my wife" this is your back-up plan.Holy shit that's the worst possible advice. That will get you no where and shows you're not a serious buyer, which puts you in a worse position.
If you're not prepared to buy today, you won't get the best deal.
^^^^ He speaks from experience…
Guess he got sucked into using THEIR FINANCE and buying all the EXTRAS because they have no HANDBRAKE.
The car wouldn't be roadworthy without a HANDBRAKE.
i was looking for a ute, contacted at least 15 dealerships but because there were only 1 or 2 remaining in stock, they wouldnt entertain 3-5 percent discount.
Or just buy a Tesla - the price is the price - there is no negotiation.
Honda is switching to this, as is Mercedes I believe
See if you can find some forums with previous buyers discussing price. It will give you an idea of what you can realistically offer with a chance of being successful.
I bought 5 new cars, including 1 last year and one in the last 3 months. Different brands, always managed 8-12% off the driveaway price without trying too hard.
Muzeeb on 30/12/2020 - 12:38 Comment score below threshold.