Purchasing a new SUV 2022

I am currently trying to purchase a new medium sized SUV for 2022. I was looking a the new Lexus NX that was just announced with deliveries starting in April. I spoke to a dealer over the phone yesterday and was quoted over $95k driveway for one of the top spec models. I have purchased many cars before and always negotiated a discount and I know that luxury brands have a dealer mark up around 30%.

Anyway the dealer said absolutely no discounts atm. I was very disappointed as even with a 10% discount I would've signed a contract and put down a deposit on the spot. Now I'm thinking it might be worth trying another dealer or just buying a different brand that will be more open to negotiating.

What are your thoughts guys. Any feedback on the new car sales situation atm? Any recommendations in negotiating or even buying a different car.

Your advice is much appreciated!

Comments

  • +11

    Repetition of same question…

    cue for same answers.

    @spackbace, @pegaxs

    • +56

      Lol @ 30% markup.

      Disappointed that because of very low supply and very high demand, they can’t get a discount. Gotta be a tiny violin around here somewhere…

      And yeah, try a different dealer. See how that works out. I am sure it’s only that dealer that is having trouble sourcing vehicles.

      You would think that someone who has a job that could afford them the luxury of buying expensive vehicles would be smart enough to grasp the concept of simple economics.

      • +8

        You would think that someone who has a job that could afford them the luxury of buying expensive vehicles would be smart enough to grasp the concept of simple economics.

        atypical the higher up in rank.

        • +2

          It's one banana how much could it cost? $10?

      • Yep. Simple supply and demand.

        When the demand outstrips the supply, prices go up. Cars are no different.

        If the OP isn’t happy with the ticket price, I’m sure they could buy a Hyundai or Kia within their price range.

  • +10

    Anyway the dealer said absolutely no discounts atm. I was very disappointed as even with a 10% discount

    Please post as a deal when you are successful.

    • +1

      There's no way the dealer margin is 30% a car.

  • +20

    Just call all the dealers and tell them you want 10% off or you won't buy. I'm sure that will work out at the moment, where demand is exceeding supply.

    • +4

      Call?? It’s all about the email now. Apparently you just email every dealer in your state and give them the price you want to pay and one of them will send out the contract of sale.

      • +1

        My mistake, the times change so quickly, I can't keep up with all this newfangled stuff.

        • +6

          What you can't do this in Morse code any more? Why are dealerships disengaging with older customers?

        • -2

          Email is hardly 'newfangled' at this point..

      • i like this..!

  • +11

    So… Car is outside your budget then?

    • +28

      nah, I'm entitled to discount… and I know how the system works.

    • +2

      Haha. Cough up and pay the Covid tax mate!

    • Car may not be outside budget but looks like discount is out side budget…..

      • dude didnt evn bother posting the car link or price

  • +18

    Why would they give you a 9k discount if they don't even have enough supply to meet demand?

    • +8

      Shhhhh……. hes raging…

  • +7

    Nice Thursday morning FLEX

    • +15

      I'd walk into a Lambo dealership, ask for a 10% discount knowing they won't give it to me. Then walk out in disgust and post here to flex too!

      • Herbie in Wolfsburg: Nein Nein Nein Nein der Berliner machte uns KAPUTT!

  • Hi.
    When buying luxury cars, check your company benefits, ie Deloitte/KPMG gets supplier pricing at BMW, Telstra gets at Audi with the added benefit of a a 5 year service plan etc.
    where the dealership makes money on the extra packages ie sunroof etc.

    • +2

      Also if one person is rude, move the other dealership that wants your business.

      • Yeah alway move to another dealer if they rude and pushy.

  • +4

    That you used to get a good discount is a sign of how screwed up our car market is/was

    It has changed, but right now when demand is high and supply is low they aren’t going to discount. If you had a 6 people in a queue waiting for your product, you only had 3 items and 2 offered full price, 2 offered 5% off and 2 offered 10% off what do you think would happen?

    • +6

      Don't forget the other people who are willing to pay 5% more

  • +5

    I know that luxury brands have a dealer mark up around 30%.

    I'm curious how you 'know' this?

    Minimal stock, significant wait times, sufficient demand to purchase all stock.
    Pretty much full price or nothing.
    Won't really matter what brand unless it's an unpopular model

  • +2

    the dealer said absolutely no discounts atm.

    They were right.

    Try again in a couple of years, maybe things will have returned to pre-covid by then.

    Factories may return to full production and computer chips and parts may be available for new cars again.

    Or not.

    If you can get free mats and a full tank of fuel with a new car purchase pat yourself on the back.

  • +1

    If you want a discount you have to buy a lower spec or a chinese car.

  • +1

    There are no discounts on any car at the moment. Fyi, I ordered the new 2021 Rav4 back in April 2021, and despite the long wait, they would not budge on the price. My dealer contacted me last week advising me that my car will be built in December 2021 and that I'll receive the 2022 model instead. And guess what! I also have to pay the difference as I am receiving a newer model instead of the one I had ordered. You just have to accept that you have to pay the full price. If you don't, the next person in the line will.

    • +8

      The dealer asked you to pay more because it is the 'newer' MY22 model …. is that common practice now? is that even allowed? If this was me, I would seriously consider walking away if I didn't really need a (new) car.

      • +2

        It would be on the back of the contract of sale, yes they can do it (if it's in the terms and conditions), and no you don't have to accept it. It would be considered a change to the contract and you are able to walk away from it if you don't agree with the price rise. But they wont give a shit, because the next chump on the ladder one rung down from you will happily pay the difference after waiting 6+ months for a car. You either pay up, or go back to square one and get on another 6 month waiting list.

        • +1

          Thanks for that info. Damn.
          Yeah totally get that demand > supply and the next guy would happily take the 'newer' car if I walked away - and dealer/next buyer happy. but yeah, i mean, if it happened to me, and i already waited x months for a car and was making-do with other means, i'd probably walk away.
          but im not in or needing a car buying position anytime soon - so this is all moot for me.

        • I need the new car and despite trying to convince the dealership about them absorbing the price difference (as this was due to no fault on my part), they pointblank said no.

      • +2

        Pegaxs is correct, it's on the contract conditions

        The reason for the price increase is its a model update, and on some variants comes with more features.

        Though it wasn't ideal for updating our guests

        • +1

          I agree. Where Toyota made the decision to "upgrade" some of their customers to the MY22 model (Cruiser in my case), they should have made it complimentary.

          Out of curiosity, would you know if other dealerships also asking people to pay the difference?

          • +4

            @upended: We had to, yes. We can't absorb the price, I doubt any dealer would've. These are such hot property that it does become a case of pay the difference, or your order goes to the next person in line.

            It's not your fault, or the dealer's fault, that Toyota increased the price, but that's why the dealers have it in their terms and conditions

            • @spackbace: Thanks for confirming!

              To be clear, I am not blaming the dealership. If anything, it should have come as a directive from Toyota Motors to dealerships to provide the upgrade for free. That way dealerships also don't bear any loss, but Toyota does. But I am told that my Cruiser will now come with additional features, so it's not that they decided to just increase the prices for nothing. I am getting more (I think) with the increased price.

              • +2

                @upended: Yeah there's definitely a few more nice things on the Cruiser

                Ventilated seats for one

              • +1

                @upended: Couple of things to clarify;

                MY22

                Toyota Motor Corporation Australia(TMCA) DO NOT use MY classification. Toyota always goes by the Build Year (month and year) to prevent confusion and misleading practices. As you all know Toyota kaizen (simply put, continuous improvement) their products, that's why you will see updates happening across all models at different times. Rather than labeling them as an MY22 model, TMCA just announce the updates through its dealer network with the effective date. Any vehicle manufactured after this date will have the updated features.

                Price Change

                Due to the exchange rate fluctuations and some product upgrades, TMCA may change the price of its products from time to time. This is again announced through TMCA's dealer network and as mentioned by others, this is allowed as per the T&C's of your Sales Contract.

          • +3

            @upended: I know 2 people who've had their mitsubishi pajero sports delayed and have been offered next year's upgraded model for the same price with Mitsubishi not charging them the price increase.
            Until I read this thread I thought that would been the case with everyone :s
            Now I'm realising that mitsubishi are doing the right thing and offering their clients good service.

            • +1

              @Traveller107: Good on Mitsubishi on doing the right thing by their customers.

            • @Traveller107: They want to keep their customers - Toyota doesn’t need to worry as much

            • @Traveller107: I bought a brand new Corolla last month but doesn't arrive until March next year. Asked if I will be getting charged more for 2022 plates when it comes and they said Toyota will honor the price regardless of changes in spec/model/plate.

              • @jimjams: If you only purchased it last month, you already paid the new 2022 price. If they have said you'll get it in March 2022 and it gets delayed by another 3-4 months, you'll still receive the 2022 model. So there is no reason you'll be asked to pay more.

              • @jimjams:

                they said Toyota will honor the price regardless of changes in spec/model/plate.

                Well that's bullshit… Did you get it in writing?

                Though there's no changes to the Corolla on our current timeline, so it's unlike to change in that time. Just because it's built in a new year doesn't mean it changes

      • Does anyone really "need" a new car? People can need a car, but don't know if it has to be new. I get the second hand market in some cases is even worse for some models, but if we are talking "need" I can only think of work cars, not e.g a RAV4

        • With prices at the moment, if you can handle the wait times, there's definitely less difference between new and used when you factor in depreciation/wear/rego transfer costs on used vehicles, than there was last decade.

    • There are no discounts on any car at the moment

      Not quite true. Discounts are hard to come by but not impossible.
      Got a 13% discount at the end of November.

      • Vehicle/model/popularity and $ figure are all relavent points wheh determining a discount availability.

        Just saying 'i got 13%' doesn't really tell the poster anything useful or relevant.

        • Was an answer to a blanket statement saying there are NO discounts on ANY car. Details were not required as I only wanted to disprove the statement.

          If @SBOB wants details…
          I got a 13% discount compared to list price on a new 2021 BMW 330i.
          Quoted 94k. Got for 81k.

          Happy?

  • +7

    $95k for a small/mid sized Lexus NX?

    I'd save some money and get a Volvo XC60 or a Hyundai Sante Fe Highlander.

    If you must spend $90k on a Lexus SUV, then wait for the new RX (mid spec), at least that offers some more metal for your $90k.

    I suppose one good thing about the NX is that it's at least better value for money than the UX.

    • +1

      I agree the price is too much, but the NX is a RAV4 underneath, so its solidly mid-sized, not small. The UX series is their small SUV.

  • +7

    I guess its been 12 hours since someone moaned about car prices and no discounts on cars nobody can supply

    • +4

      What's needed is a Megathread where all the people who don't bother to do a forum search or keep in touch with the news in the real world can get together and whine about 'The Good Old Days' when 10 - 15% discounts on new cars, any brand, were available and buyers didn't have to wait 6+ months for delivery

      • aka a link to whingepool

  • +3

    Just get a Rav4 or CXt 2.5l T and save $40k - that's a 40% saving on essentially a similar car without the L badge.

    • +6

      But OP won't get a discount on the RAV4

      Seems more like they want to buy a discount, not a car

    • +2

      Yeah but how many smiles per gallon will he get without the L badge on his new car?

    • +1

      NX is basically an optioned up Rav4

    • +1

      The only NX worth getting is the 450h+, the plug-in hybrid version that isn’t available in the RAV4 range in Australia.

  • +6

    GV70

  • +7

    Troll post for sure.

    Nice try op

  • +2

    Get a XC60 or PHEV 3008

  • +3

    Damn 1st world problems eh.
    I just put a deposit down for a AWD cruiser hybrid. 10month wait (Oct2022), and only got $1k off.
    Sign of the times.
    Very disappointed in myself for not coming on ozbargain and finding the all the time lowest price and trying to get a price match.

    =(

  • And this is why i'll never own a new car (unless i want to light my money on fire).

  • +2

    For some reason I’m getting déjà vu

    • +3

      Hasn't someone said that before?

  • Groundhog day maybe jv.

  • +1

    Car dealers like the GPU retailers have the market by the ⚽.

    Rona has allowed them to inflate prices while selling the FOMO to plebs to eat it up.

    • You seem to be forgetting that ALL businesses are there to charge the maximum possible for their product.

  • +1

    Honestly I suspect demand will outstrip supply of the new Lexus NX for a while - it has some great features and lots of people have COVID lockdown money saved up. There is no reason for a dealer to give you a discount when they can just sell to the next person for RRP. Car buying is a different world at the moment. If you really want a discount then you will need to choose a less popular model, or alternatively try again in a year or so.

  • Lol mate. If you can afford to spend that much on a new car just buy the damn thing and don’t worry.

  • +7

    Now we have OzBargainers buying $95k for car. Time to ******* hand in your OZB membership. You're an embarrassment to the, "we'd buy anything to get the $2 cashback" crowd.

  • +2

    95k you have plenty choice, Audi Q4 ? BMW X3 ? Benz GLS ? but, unless you own Two or More House already and the Car can give you huge TAX benefit, otherwise nothing is acceptable to spend more then 35k for SUV, try HONDA HRV $31k good enough for 5 person family, or $35k Mazda CX5? but, What on earth talk about 40k up Car in Ozbargain, total unnecessary.

  • -2

    I want to buy a Rolls-Royce Wraith but dealer wants to charge $635,000. But i don’t want to pay more than $26,000. Where can i get a discount?

  • +12

    Highly recommend that you use one of the various buyer/broker services that abound these days. Most do not charge you directly (but get a commission from the dealer if you end up buying). Prices are based on fleet pricing.

    I saved all the hassle and $3500 by using Motor Scout for my recent (October 2021) purchase.

    • +3

      The only useful comment in this thread OP - ignore the haters

  • Another self-fulfilling prophecy:

    Cars which were cheap as chips will now become scarce and very expensive.

    Done. Next.

    • Because there’s not many chips around ;)

  • There’s discount with Brighton lexus

    They will drive the car to you

    +61 411 892 019

    The direct number of Brighton Lexus new car sales

    • Surely there's a further discount if they don't drive the car to you

  • Just don’t do it. Save your cash & buy a decent Camry car

  • I would buy 2019 GLC43 AMG for around $90k like below
    https://www.carsales.com.au/cars/details/2019-mercedes-benz-...

    • +1

      My brother in law had the exact same car which bought brand new and absolutely hated it. Got rid of it for a x5 and is very happy.
      There is a know design fault with vehicle. The tyres wear out after on 6 months. Google and you will see what I am talking about.

  • In 2014. Porsche made $23,000 on every car it sells, for a profit margin of 18 percent. That's more than fellow Volkswagen Group properties Audi, Bentley, and Lamborghini, and well above the group's non-luxury brands.

    Try finding the most undesirable brand, with a car thats on the WOVR, in an ugly colour, with a CVT and no warranty. But even then you will pay more then the equivalent car 2 years ago.

    • for a profit margin of 18 percent.

      Of which there is a split between what Porsche the company makes and what the Porsche dealer makes.

      The dealer can only work on the portion they have control/profit over.

    • In 2007 they made so much profit that they had the loan documents on the table to buy Volkswagen. Then the GFC hit and Volkswagen ended up with the sports cars.
      Now the Taycan electric is getting a barrage of lawsuits over fading batteries. Glad the consumer has a choice of what to buy.

      • Its a shame about the Taycan's Recalls and them randomly shutting down while driving. We had a V35 Skyline with crank sensor issues. It shut off a few times while driving. Absolutely terrifying. Not sure how modern cars or electric cars go when it comes to fully shutting down.

        Either way, I love my 987.2 Cayman and Porsche's cars in general. And hope to one day be able to afford a Boxster GTS 4.0L.

        • Agree the Cayman rewards you for your driving skills. Mid engine helps a lot. I made some investment blunders so when I get to Europe I probably have to put up with a clumsy Plaid that has truly inferior brakes given its weight.

  • +3

    I know I'm in the minority, but I'd love for all brands to be set price ala Tesla.

  • +1

    save up for a model Y performance when it comes out

  • I was lucky to pick up a brand new KIA last week instead of a 7+ month wait because the buyer lost his job a few days prior to picking up the keys and paying.

    It's crazy the market right now, there is no way in hell you should expect any discount.

  • For in stock/upcoming car (ie on boat already), I can understand why dealers aren't willing to discount when there are no shortage of RRP buyers lining up. But say if it's custom order, why shouldn't they discount in order to win sales? Unless each dealer set limit of how many cars they can order/delivered to them per manufacturing cycle?

    • +1

      Unless each dealer set limit of how many cars they can order/delivered to them per manufacturing cycle?

      This

      We only get X amount per month, decided by the manufacturer

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