Negotiating Price for New Car at Dealership

LKremleen on 23/10/2022 - 06:17
Last edited 23/10/2022 - 12:09 by 1 other user

Hi everyone,

I'm in the market for a small SUV and went into a MG dealership on Saturday morning to check out their ZS Excite range. When I asked the sales guy if there's any room for negotiation regarding numbers, he straight up said no as they only had one more car allocated and were able to order (showed me their inventory page) before the current 2022 model would be replaced with the newer 2023 one. After looking at that, I put down the deposit for the car at the asking driveway price written on MG Australia website with free car mats and a full tank of fuel, which I think is standard. The wait time for the car is about 2 months.

As this is my first time buying a new car, have I made a mistake in agreeing to the manufacturer's asking price? Or you can't negotiate in this current climate?

Would like to hear from you guys who have recently purchased a new car about your experiences.

Automotive MG Excite

Comments

  • 87percent on 23/10/2022 - 06:28
    +13

    Bit late to be asking the question AFTER you’ve paid the deposit

    That being said, the only way you’ll get a discount nowadays on RRP, is if you trade in a car where you might get more than they would normally (eg; instead of $2000 for your 2000 Camry, they’ll give you $4000 to close the deal)

    • Kremleen on 23/10/2022 - 11:09

      The deposit is refundable if I do get buyers remorse but I do intend on trading in so that could help a bit

  • Euphemistic on 23/10/2022 - 06:33
    +1

    As this is my first time buying a new car, have I made a mistake in agreeing to the manufacturer's asking price?

    No. You have two choices when buying a car. Accept the price offered or walk away. You can negotiate for as long as you like but right now demand outstrips supply so discounts are rare.

    We’re you unhappy with the price you paid a deposit for? I’d say not - because you signed up. Don’t get buyers remorse now.

    • Kremleen on 23/10/2022 - 11:11

      Thank you. I'm actually happy to put an order through and was willing to pay the asking price from the get go. It's just when I asked for my coworkers' opinions, they all said the ask for 5k less then start working your way up to the middle point.

      • Euphemistic on 23/10/2022 - 11:19
        +6

        Your coworkers haven’t bought a new car in this market then. Starting that low was a tactic when stock was available and sitting in a yard and there weren’t a lot of customers - pre covid.

      • Muzeeb on 23/10/2022 - 11:19
        +4

        Your coworkers are Muppets and obviously not on ozbargain or purchased a new car in the last 2.5 years.

  • kerfuffle on 23/10/2022 - 06:55
    +2

    I negotiated a grand total of $96 off my car (still waiting for it after six months).

    But I did ask for floor mats, a tank of petrol and also getting a boot liner

    • universe on 23/10/2022 - 07:38
      +2

      pretty much all I managed to negotiate out of Toyota

      • kerfuffle on 23/10/2022 - 07:40
        +2

        Yeah mine is a Toyota too haha; getting a Corolla

      • 87percent on 23/10/2022 - 19:40
        +2

        Ask for one of their giant golf umbrellas. They’re really good quality

        • kerfuffle on 23/10/2022 - 19:41

          Ooh. I do like a good umbrella. Gonna try ask for this as compensation for not meeting my estimated delivery date ahahahaha (it was set for October 30)

    • Kremleen on 23/10/2022 - 11:12

      I didn't even ask for the fuel and floor mats so I think I did pretty well hah

  • Muzeeb on 23/10/2022 - 07:38
    -3

    Troll post for sure. Move on. Nothing to see here.

  • thatonethere on 23/10/2022 - 07:41

    Probably a bit hard as people are waiting 3 6 12 months for receiving their car.

    Might get a deal buying something that isnt popular.

    Some brands like Mercedes and Honda also moving to a fixed priced model (like Miele) so the dealer cant negotiate.

    • Kremleen on 23/10/2022 - 11:14

      That's what I heard too but I wanted to ask anyway in case the supply chain has shifted

  • geekcohen on 23/10/2022 - 07:46
    +1

    My wife and I were able to negotiate $1k off a brand new car but it included:

    • Full Tank of Fuel
    • Set of mats
    • Black & White Number plates (VIC is extra $185)

    Then got another $300 due to being a government worker which the manufacturer offered. Then there was less the trade in which they did $1k more than previous other dealer offers. It was the 2nd time we had bought from this dealer in 2022, so they looked after us.

    But always negotiate.

    • kerfuffle on 23/10/2022 - 07:51

      My dealer also made a very big deal about getting black and white plates but they’re so common nowadays; I just assume every new car gets them (that being said, I did not when I bought a new car a decade ago)

      • mini2 on 23/10/2022 - 10:54

        $48 for the black and gold vs $120 for the slimline black and white.

        Maybe that's why they're making a very big deal about it.

        Or these are the slimlines with the dealer's name on them…

        • kerfuffle on 23/10/2022 - 17:23

          But they're everywhere. Every second car has them

        • geekcohen on 27/10/2022 - 10:59

          the slimlines with the dealer's name on them…

          First thing I remove when I get a new car home. And put on number plate protectors on.

      • geekcohen on 27/10/2022 - 10:58

        My dealer also made a very big deal about getting black and white plates but they’re so common nowadays

        Yeah, they look better for sure. I was happy to pay the extra to get them vs the blue VIC 1AB2CD.

    • Euphemistic on 23/10/2022 - 08:05
      +1

      So you didn’t negotiate $1k off. You negotiated $1k more in trade value.

      There’s the catch. They are highly unlikely to drop their price much from RRP, but you might be able to get a small discount on accessories or a bit more on your trade in value.

      Tank of fuel, floor mats and premium plates are pretty much standard inclusions for a new car sale

      • geekcohen on 27/10/2022 - 11:05

        Negotiated $1k off as well as $1k more in value. So effectively $2k plus all the freebies which are probably about $800 work.

    • Kremleen on 23/10/2022 - 11:15

      Does the custom number plate cost you more in rego fees?

      • Euphemistic on 23/10/2022 - 11:19

        Check your local registry office site. Dealers offer ‘premium’ plates, not custom.

      • Muzeeb on 23/10/2022 - 11:20
        +1

        No. Just the initial purchase. (VIC)

    • Peanut money on 24/10/2022 - 10:48

      What’s car brand offers $300 discount for govt workers ?

      • tharlow on 24/10/2022 - 11:00

        Probably a corrupt one. Compensates them for their perpetual boredom, I guess

      • geekcohen on 27/10/2022 - 11:06

        Hyundai.

        Health Care and Education staff.

  • Overclocked91 on 23/10/2022 - 08:01
    +5

    Definitely nothing wrong with that. We had the same thing with the new Rav we purchased. Gone are the old days when you could bargain 5-10%. It will be years before we return to something like that.

    • Kremleen on 23/10/2022 - 11:16

      Thanks for sharing!

  • wots on 23/10/2022 - 08:40
    +1

    full price for the outgoing 22 model? Sales guy told you the 23 model is coming in soon…. You've been had.

    • FoxJump on 23/10/2022 - 09:07
      +1

      maybe the 23 model is more expensive?

      • Kremleen on 23/10/2022 - 11:18
        +1

        Yes he told me the 23 model will be $1000 more with no difference in built quality and will be a minimum of 4 months wait (Feb 2023 release)

    • Kremleen on 23/10/2022 - 11:19

      We thought about it too but with extra 2 months wait, $1000 more and little info on build differences we decided to go with the 2022 model

  • bbinc on 23/10/2022 - 09:31

    Toyota dealer offered a brand new RAV4 with everything I want, for excellent price, next month. Showroom car they already have that’s being replaced. The catch was I had to have an acceptable trade-in, which I don’t. He said they need more used cars. No trade-in, no sale.

    • Euphemistic on 23/10/2022 - 11:21

      Any friends wanting an upgrade? Or go and buy any second hand car to get the deal.

      • bbinc on 23/10/2022 - 12:01
        +1

        Thought of that, but could be costly if I buy something they don't want, or they value it for peanuts. They didn't want my 11 yr old
        Renault, and I love it still, so I'm gonna keep on truckin'

        • thegourou20 on 27/10/2022 - 09:39

          How much were they offering you the brand new Rav4 for?

          • bbinc on 28/10/2022 - 09:53

            @thegourou20: Sorry, I didn’t keep my notes. From memory it was standard GX price D/A but included full size spare, sat nav option and silver paint.

  • [Deactivated] on 23/10/2022 - 09:34
    +1

    Sounds about right. Especially with the ongoing chip shortages and insane waiting period, it'd be hard to get any sorts of discount. The best things you can ask for are maybe chuck in few simple accessories like mats and bootlip protector etc and maybe just maybe car servicing.

  • AndyC1 on 23/10/2022 - 09:35

    You have zero chance of getting a discount and 100% chance of paying the RRP.

    • Kremleen on 23/10/2022 - 11:20

      The odds are strong with this one

      • AndyC1 on 23/10/2022 - 11:21

        Better odds than winning the next Power Ball jackpot.

        • Kremleen on 23/10/2022 - 11:54

          hey hey, if I can get floor mats for my new car I can win $160m jackpot easily

  • Austaurean on 23/10/2022 - 11:27

    All the accessories have a cost price, to 'chuck' them in is coming out of the dealer margin. Parts dept are not going to give them to new car dept for free.

    And so does getting better price on a trade. Sometimes you get more for a trade as the dealer calls other used car places trying to get more than they will give.

    Other times its the new car manager using margin to bolster up the trade price. i.e its artificial..

    There is dealer margin, a portion of dealer delivery and a thing called 'holdback'. Holdback is not margin, but it is still a tyoe of profit to the dealer and can be factored into a deal. But the deal to the dealer would be calculated as a loss..

    Once upon a time in my car days..
    A zero deal was giving up dealer margin and selling with 495 delivery instead of the 1,495. That was usually charged. A loss/negative deal was as soon as we went into any of the remaining dealer delivery.

  • toniyellow on 23/10/2022 - 11:30
    +2

    You can get discounts using a car broker.

    I got a good price on a Toyota using Motorscout, friend recently got a good deal with OnlineAuto

    • Muzeeb on 23/10/2022 - 11:42

      What % off RRP are we talking here?

      Good is subjective.

      • toniyellow on 23/10/2022 - 12:13
        +1

        5% and 7%. Being flexible on colour seemed to result in more quotes and a better price.

        First saw the suggestion about brokers on Ozbargain when I was first looking into a new car, there are a few posts with people's experiences.

        • Muzeeb on 23/10/2022 - 12:43

          Nice!

          • tonyjzx on 23/10/2022 - 16:00
            -1

            @Muzeeb: it'll cost you a throwaway email but it cant hurt

            i would question the efficiacy on a $20k base car like this though…

  • Tee Rex Arms on 23/10/2022 - 13:51
    -1

    MG? Yuck

    • tonyjzx on 23/10/2022 - 15:57
      +1

      i get this

      but people can only afford what they can afford

      so i'm not about to shame people for their purchases but hey… this is the ozbb way

      cant afford a toyota? then sucks for you i guess

      • Euphemistic on 23/10/2022 - 20:27

        I get this too.

        Coworker just replaced her 10yo Kia with a new MG, partly to match her partners MG. She’s stoked with the new car.

        Would I buy one? No. Would I recommend one? Probably not. Would I tell you you’ve bought a pile of garbage? No, it’s your decision and doesn’t affect me.

    • bobbified on 23/10/2022 - 17:07
      +1

      MG = Men's Gallery

  • RetroGameNerd on 23/10/2022 - 21:27
    +3

    Currently work in a dealership so I think I can offer some info here.
    Like what others say, the only way you'll lower your changeover is in negotiating a higher price for your trade, or you may be able to get floor mats, tint etc included.
    The manufacturer I work for expects that all cars arriving into Australia are arriving sold, though we do get late fallovers for people who can't get finance approval or have a change in circumstances etc.
    Prior to Covid manufacturers could have hundreds of a certain model sat waiting to be purchased, and they would incentivise dealers by way of what they called "product support" (being payments from the manufacturer to the dealer to sell the car). That is why dealers had a lot more room to negotiate.
    Unfortunately for the customer, if you don't buy the vehicle at full retail price, someone else will.
    Edit: My advice if your sole focus is the lowest price, wait until the busier months (March and June), or the last Saturday of any given month. Dealers and salespeople have monthly targets and they will always push harder for a deal to hit those targets.

    • Kremleen on 24/10/2022 - 14:31

      Thank you very much for the insight. I don't want to wait until next March so I'll try calling the dealer up at the end of the month

      • Euphemistic on 24/10/2022 - 15:51

        You might be lucky, but depending on the vehicle you are after there will be plenty of salespeople that have already made quota. keep in mind that when you’ve got a min waiting list, the quota might be reduced because they can’t supply anyway. No incentive to keep adding orders to an already full book.

        • Kremleen on 24/10/2022 - 16:48

          Understood! Do you have any script you'd recommend when calling?

          • Euphemistic on 24/10/2022 - 21:24
            +2

            @Kremleen: You: can I buy a car please?
            Dealer: sure, it’ll be $35k
            You: that’s a bit more than I wanted to spend. Would you take $34999?
            Dealer: I’ll have to check with my manager. Do you realise I’ve already included premium plates and floor mats.

    • mandelbrot on 29/10/2022 - 10:52

      For the cars that fall over at a late stage, do they get sold to whoever walks in the door that day, or do they go down the existing list of orders?

  • Leanne59 on 29/10/2022 - 11:05

    By the time you get the 2022 model it is going to be last years model which has already depreciated. Waiting for the 2023 model a couple of months longer and $1000 difference is seems to be the smarter choice.

    • Euphemistic on 30/10/2022 - 15:33

      If you are keeping the car for more than 3 years it’ll make very little difference. With the exception that the 23 model has a significant feature the 22 doesn’t have.

  • WesthamAreMassive on 29/10/2022 - 23:59

    It's crazy how everyone thinks there is no discount to be had because cars have a long wait time.

    The dealer is just a middle man and they have margin to play with. They don't have cars sitting in the back and sell to the highest bidder. They order cars in as people buy them.

    I ordered my Prado VX for $76k in WA down from the RRP of about $85k via my company fleet discount.

    After a week I found out my friend had ordered the same car from another dealer for $84k and was convinced by the dealer he was served by that no discount can be had as cars are in sort supply. What a lie he was told as I managed to then get him a discount of $5k from my dealer and he managed to get his deposit back. Could not get the same discount as me as I got my company discount which he could not have.

    They are sales people and fooling everyone at the moment big time.

    My advice would be contact an agent motor scout for the best price. No dealer will give you the discount these guy will manage to negotiate for you. I've purchased via them 2 years ago and was amazed by the discount compared to what dealer was willing to give.

    • Euphemistic on 30/10/2022 - 15:37
      +1

      Hang on, you purchased 2 years ago? And you used a company fleet discount? That’s hardly the same playing field as someone walking into a dealer for a private sale today.

      • WesthamAreMassive on 30/10/2022 - 20:28

        Order Pajero Sport 2 years ago. Ordered my self a Prado and Corolla in April 2022 so very same thing.

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