I am thinking about buying a Kia Rio Reborn Auto S and they have quoted me $18990. I am not good at price negotiation by any means so just hoping someone can tell me what might be a reasonable offer or is there not much room to move on new cars? They said once I have decided they will 'look after me' - sure! Not confident about that
Negotiating New Car Price
alwaysis on 14/10/2012 - 08:40
Comments
My clients have been knocking heaps off cars in general but I can't speak for Kia specifically. Sheepys comments are good and also try and arrange your finance (if applicable) before going to the dealer. Dealers often load in 4% brokerage which makes their finance more profitable for them than the actual car in some cases.
This is what my friend did.
Do towards the end of the month, and go near closing time.
they load in more than 4%
Not sure if you can hold out for long but I think towards Christmas, they'll be rushing to meet their yearly sales targets so they might be more prone to either bringing the price down or throwing extras in.
One thing to keep in mind is, if they ever say "this offer/price is only valid now", that should ring alarm bells. It means they don't want you to walk away and do your research and realise their "offer" actually isn't all that generous or good value.
The best deal I can find is $16,990 driveaway for an Auto, hatch 2012 KIA Reborn RIO UB MY12 S. Your dealer should match that. Are you paying by cash or finance? If by cash, meaning bank cheque etc then you should pay no more than that.
Agree with sheepy. Also tell them you are also looking at other brand, eg Mazda 2 or a Suzuki…. or even a used car.
Thanks everyone… @Logical - whereabouts did you see the $16990 driveaway? I will be paying cash
I meant to add that this one is 5 door
The $16,990 was for a 3 door. The best I can find for a 5 door is $17,990 driveaway model: 2012 KIA RIO UB MY12 S - 4 speed auto, hatch.
Thanks - whereabouts did you see that?
Logical - you joined OzB to post this comment. What's your agenda? Are you a Kia dealer yourself? In the motor trade?
Sorry, not a car dealer.. I am in Construction. I have been using OzB benefits for a long time now, so I thought that I can help others out.. seeing that I made huge savings with many deals I got from here. Cheers!
OK cool.
Damn… Gotta know how you are able to get these prices?
Reveal your secrets!!! (and welcome to the community)
don't forget to say "you're breaking my balls" when negotiating
There's currently a Myer gift card included with the Kia's so you should be able to negotiate $500 off the price if they keep the gift card.
If you want a cheaper model, you can probably get the MY12 version, but if they said $18990, that would be current MY13 stock.
Cheaper alternatives would be showroom demos. The good thing is that they may have added extras already; bad thing is they may have been test driven.
Examples…
$17880 - 8 klms so probably used for test drives; has metallic paint
http://www.carsales.com.au/bncis/details/kia-rio-2012-13326111?base=&vertical=Car&cr=6&eapi=2&__N=1246+1216&num=15&silo=Stock&items=[Make:KIA,Model:RIO,Series:UB%20MY13]&sort=~Price$17890 - showroom demo (no klms)
http://www.carsales.com.au/bncis/details/kia-rio-2012-13362155?base=&vertical=Car&cr=9&eapi=2&__N=1246+1216&num=15&silo=Stock&items=[Make:KIA,Model:RIO,Series:UB%20MY13]&sort=~PriceMy tips would be:-
- list any extras you want up front. If not, they will try to pin these on you later and by then you'll need to pay full price for them if you want them. Also get them to throw in some Kia floor mats!
- shop around first; get the best price from dealers that are furthest to you that you can still get to, then come back to your local dealer and ask them to beat it. Why? Because the servicing will usually be done at that dealership's workshop.
- when asking to beat the price, don't give an exact figure. eg Tell the salesperson you have found MY13 Rio Reborn Auto 5Dr S with metallic paint, tinted windows and floor mats for "just under $18000" as an internet special and bonus parking sensors if they couldn't beat the price. What's the best price they can do.
- mention the Myer gift card promo…tell them you don't shop there anyway, so maybe they can knock $500 off
If they ask, are you ready to buy, reply with "the only thing I'm waiting on is a dealer who can offer me the best price, what can you do?" or "would I be here if I wasn't ready to buy? Can you please work out or ask your manager for the BEST price they can do?"
When they come back with a price… frown, then ask for a couple of minutes to discuss with someone (make fake phone call if you need to away from the salesperson). Make sure you delay for a minute or two. Then say "look, I really would like to buy this today. From you. Can you please go back once more to your manager and give me the best price you can and I would be happy to sign on the dotted line."
Hopefully they do and come back with something you can't refuse.
Good luck with it all.
Never thought of waiting till the end of month. Great Tip
avoid buying extras up front, i.e window tint, mats etc as this is added onto the Stamp duty, best buy the car, and get this stuff a week later, (i believe with modern paint, the paint protection is a waste of money) i would play two dealers against each other, negotiate a best price with the first one, and then walk into a second one and ask if they can beat it, if they can all well and good, if they cant you know the first dealer has given you a good price.
keep in mind for $19k,(drive away price)you can get a Corolla as the new model is coming out soon. (just look at the Value of a 5 yr old kia and a 5 yr old Toyota to see why, never mind reliability, build quality, serviceing costs etc etc)Hey steviee,
I don't think you're comparing apples with apples. The OP wants an automatic. The price for a manual Toyota Corolla is $19.9k. An automatic would be an extra 2k on top of that.
There's been some great suggestions made up top, my own tips include many of those above
- go near end of month, end of year (calendar or financial)
- fake a phone call (from another dealer) when things are getting close to the sign on the dotted line portion
- mention prices (below what they tell you) for the nearest competitive cars to the one you are looking at (dealers will have some idea about cost if you're only shopping around amongst same brand/model, but if you come up with low $ on a competitors car they will be less sure of themselves, e.g. if you want kia, mention Mazda or Suzuki, or whomever is the most logical competitor!
- mention you can pay cash & are ready to buy today (once you're happy with price)
- include as many extras that you want upfront in the price ( I managed to negotiate lifetime free carwashes from one dealer- get it in writing!)
- find the cheapest competitive prices online for the same car & make sure that's your starting point
hope it helps (I've used these a few times, and am pretty happy with results!)
This is what I did I saved about 2k doing this..
Goto http://www.discountnewcars.com.au/ and enter the spec and brand of car that you want to buy.. This will send a notification to all the eligible dealers in your city. They will start contacting you for a test drive etc, this will give you a very easy list of dealers that stock your car and brand. Get the prices off them and just say this dealer gave it to me at this price can you better it. i.e play one against the other. Put in a sweetner that you will get your car serviced at that particular dealer etc.. You will find the dealers that have a higher volume turnover are more flexible in their prices. Good luck and enjoy !!
Can I add two genuine insights I have picked up:
When the dealer dissappears for few minutes to ask his manager about your offer he is actually ringing the manufacturer. The dealer has a fixed commission on a sale so they dont care if its given to you for half price so long as the manufacturer agrees. The manufacturer, on the phone, aims to gauge how genuine you are and asks the dealer, amongst other things, if we agree to $16.5 will we get the sale etc etc Ultimately the price you pay is up to a manufacturer, with advice given by the dealer.
crzychemists suggestions above is the best advice. Go to the site he mentions or find a car broker. With this I believe you will match the best offer you have received or better with the opening offer from the dealer.
I went to three dealers for my Subaru some years ago and when I went to a broker, his opening quote via email beat the best dealer price I had received by $1200 - That was with NO negotiation.
Good luck
There's some good advice here. Make sure you visit multiple dealers. Start with the ones furthest away from you and move closer. Generally your local dealer has a bigger incentive to give you a better discount and you won't have to travel as far to pick up your new car.
When you're negotiating, don't fall for their sales tactics. For example, sometimes a salesperson will go out back and talk to their manager, and one or both will come back saying they can't go any lower. This gives you the impression that you're getting a really good deal even though you might not be.
After you secure a deal, they'll try to sell you things such as tinting or paint protection at extortionate prices. It's much cheaper to get stuff like this aftermarket if you're interested in them. The dealer I went to tried to convince me that paint protection was a silver bullet for scratches against your car.
I think mods should check for sockpuppeting…
Buying new car rules.
- Never buy on your first visit
- Research online beforehand what approx. price you should be paying
Your only 3 responses to the salesperson should be
"Is that the best you can do?"
and
"You'll have to do better than that"
and
"I'm wanting to buy today"Keep repeating those 3 things over and over and over and when they won't budge anymore, LEAVE and come back a couple of hours later and say those 3 things over and over again until you're happy. Still not happy? Leave and never come back, go to a different dealer.
If you can't get 21% off rrp, you still pay too much!
This base on 21% discount given for family discount for Toyota.
Say you want to buy honda, tell them that the similar toyota car will give you 21% discount but you love Honda more.Good Luck!
Works for my Accord (comparing to Camry)
Call Insurance and get a quote and dont tell them the price for the same model and tell them what they will pay if the car gets written off in very first month . thats the trade price and confirm that does not include the excess
Also what i did is told them a very low price that some one is selling and see what is their lowest level.
some good suggestion in WP. And dont fall into that you have to buy it today( as they say if you buy today this is the best price we can ever do. , shop aroundCheck the carsales for demo car for same model and take it as guidline and should pay less than that prize if you are a true ozbargainer :P
can we sticky this somewhere? good read!
Shop around.
Tell them straight what they can offer u to buy from them instead of another dealership.
Ask them to add extras for free or disc price.
Never pay for floor mats :P
Try no negotiate on metallic or pearl colour at no extra cost.
Also i would suggest u have a look at the corolla instead… Close to same price u will get a better car as well as a better investment :DWhirlpool forum has a lot of advice on this.
http://forums.whirlpool.net.au/archive/1909091
http://forums.whirlpool.net.au/archive/1879523
http://forums.whirlpool.net.au/archive/1978227
The car is advertised (MY13) for $17,500 (cheapest price).
"http://www.carpoint.com.au/all-cars/results.aspx?Ntt=UB&keywords=&Ns=pCar_PriceSort_Decimal%7c0%7c%7cpCar_RankSort_Int32%7c1%7c%7cpCar_Make_String%7c0%7c%7cpCar_Model_String%7c0&D=UB&Nne=15&sid=139E3AB67075&SearchAction=N&Ntx=mode+matchallpartial&Dx=mode+matchany&Qpb=1&Ntk=CarAll&N=834 1216 1246 4294964894 4294964895 1621 4294739837 56 4294656010"
So, I guess $16,500 - $17,000 is a good price. When negotiating, tell the dealership that the car is advertised at this price on carpoint and the seller is happy to freight the car to you free of charge.
Good Discussion.. should bookmark this thread…..
In my thoughts….. call up different card yards and work from further away and eventually closer to home. I called up about 7 different car yards b4 i bought my new mazda 2 :) I even got them to bring it interstate and do all the paper work for me :)
My car cost me $16,200 with added features like reverse sensors , mats, tint. My local dealer wanted to charge me $18,000 + for it at the time.
Say the car is priced at $17,000 u should be able to knock off about $1,500 or convert some of the price into extras ~ if they are not willing to knock at least $500 off + give u extras tell them i got better deals else where.
Also if u want some skills u can watch "Thank you for smoking" on youtube. Silence always wins battles when negotiating. Humans feel awkward when no one speaks and usually leads the person with less confidence to speak again after the silence. Have a goal on howmuch u want to pay for it and dont talk to much when dealing…leave big silences and say fewer words :)
Did you buy the car from a interstate dealership?
If so, how did they register the car under your name in your home state?
If you negotiate over the phone, you can try doing this, which I did. First you have to get to know the dealership, so a previous test drive or a visit is necessary.
Offer a price that you are happy (the lowest realistic price you found) and say you are happy to pay a Credit Card deposit and place an order if they can give you a better price.
Because you are already known to the dealership and they know that you are a serious buyer, they will offer a competing price and ask for your CC details. At this point, say that you cannot give out the card details without seeing a written offer (since the seller can later say "No, that is not what I offered to you over the phone.") and ask them to email/fax you the quote with terms and conditions so that you can read it and agree to it.
Some will send you a quote with the price on it, some will send the paperwork without the price.
In any case, now you have a firm price that you can mention to another dealership and try to get a better deal. Don't let the 2nd dealership know that you are playing dealerships against each other. Give them the impression that you are not happy with the price offered from the 1st dealership.
The car sales persons will not hesitate to lie to you, so you have to do tricks like this to get a fair price.
When you first walk into a car dealership from the street they will always start with the maximum RRP. The price you have been quoted, compared to others mentioned here, is obviously too much.
There's a lot of good advice here and I'd like to add a few points from my own experiences.Firstly I would say don't leave a deposit anywhere. I did that once and when I changed my mind about the purchase I had a really hard time getting it back. When you are ready to buy, then buy.
Secondly, the car price ALWAYS includes a mark-up to boost your trade-in valuation. If you have no trade-in, then that money should be in your pocket, not the dealers. In the past I have found about $2K difference in price, depending on whether you say you have a trade-in or not. The cheaper the car though, the smaller the difference.
If you are given a price that sounds cheaper than all the others, it may be just to get you into the office. Once there, you might find that for some reason they can't honour that price. Again, that happened to me once with a significant discount at stake. But I held my ground and got that price eventually after threatening to walk out several times during "negotiations".
Don't be afraid to walk out and "go elsewhere". If they have your phone number, they will call you back with a better offer.In addition, I would say NO to any extras as I believe the dealer makes a significant mark up on these. If you really want them then get them after the sale, but modern finishes shouldn't need the extra "protection".
Don't forget, you are doing the dealer a favour, not the reverse!
Thanks everyone… much appreciated. I really dislike price negotiations!
Pay for the service you get…if you have a good experience are treated with respect, use the dealers vehicles to test drive do the right thing and give them your bussiness
And pay extra???? I think not.
Once you found a good price, it is worth giving a ring to PrivateFleet.
They are car brokers. Tell them the price you have and ask them whether they can find a better price. According to their advertisements, they buy a lot of cars for their clients, so they get fleet discounts from sellers due to their buying power. I haven't used them personally
I agree - I used them for my car. I saw something in the rac newsletter saying they would waive the cost or something like that too.
Want another tip?
Go to carsales and check out what the other dealers are doing interstate - they can arrange delivery to other states for under $1,000
eg Range Rover Evoque at Trivett NSW quoted price of $76,500 - will not discount because "we are so much in demand we do not need to discount to anyone" (actual quote)
But in VIC, four new cars from dealer ranging from $57,000 - $67,000 fully specced. Same warranty
Hi AlwaySis,
Look after you….well that remains to be seen, What I do, and It always works, find the car you want, then (The wonders of the Internet), get a list of all dealers who sell the car, and there email addresses, then do a Blind email out, best to do at or near the end of the Month/Year, or Financial year, as they need to move stock fast, once you get the right price, insist on a full tank of petrol, and try squeeze car Mats out of them, if you sign on the day…..you should be able to knock a Min 10% off…with some extra's…and Don't get sucked into buying extra's life car polish, protection, tinted windows, these are always cheaper through legitimate 3rd party professionals…and be sure to summarise other tips in this Blog…..who really looks after new cars….its the Vendor, i.e. Hyundai in this case, the dealer is just the middle man trying to make money out of you, the service is by Law, a must for all new cars, so you can have it services at any Hyundai dealership….Good LUCK :-), hope this helps…….and one more thing…I suggest Not to Give your Mobile number out, as they will try to suck you in to go down to their Showroom , and use your excitement against you to sign on the line, I mean really…..why can't they give you the hot price over the phone…..oh and last but not least…when you get that "right" price…..send another email (BCC) to the same group, thanking them for getting back to you, and that you have found a brand new car at $XXXX value, Why do this,….well see what happens :-), Bye for nowBlatantly ripped off from David Sklansky, owner/moderator/author/gambler/etc at twoplustwo.com (poker forum) as it seems right up Ozbargain's alley:
"I got the best price on a new car many years ago by shuttling back and forth between two Buick dealers in Vegas who had different owners and were selling the same model with virtually identical options. The trick is to start with an insanely low offer, gradually raise it each time you visit or revisit the dealership and to divulge your strategy to both of them. Unless they are colluding, this technique cannot fail to land an offer that is right at the lowest number they will take. Because they know that if they let you walk away without accepting a profitable offer, the other dealer will certainly accept the slightly higher one you offer him.
The beauty of this technique is that you need not know anything about the invoice price, dealer kickbacks, general demand for the car or whatever. The only downside is that it takes a few hours. Plus you need to be in a town big enough to have two dealers for the same car with two different owners."
Hi everyone I went to another dealer today and didn't get anywhere - he told me that there is only $200 margin on new cars! Left there and spoke to the other one on the phone - tried hard to get her down on price but its difficult. The best she could offer is $18,000 with metallic paint and mats which is I guess $1,500 off RRP. Not sure if I should go for it or not. She was very pushy saying she needed a deposit today.
Buy the demo. People dont flog them because the dealer is sitting with them, and any niggles will have been repaired already. Whats 200-1000km? (on average) from a demo? 'Testing' for you, is what that is.
You're almost at the end of the year. Time the model rollover. You'll save thousands on identical last year models just for a manufacturing date.
Play hard. If they say say they set you a bottom dollar, be ready to walk away (and come back if it doesnt work, they'll still WANT the sale). My favorite is the line:
"If only it was $xxxxxx, I'd have the cash in your hand right now" or similar.
eg.
"We can do that for $16,990"
"Its an OK price, Its was between this and the (make something up) Toyota Echo, its a hard decision"
"insert sales guy sales pitch here, about how much better this car is"
"If only it was $16,500, I'd say sold right now, but the cheaper Toyota might be all I need."
"expect sales pitch for how much $500 doesnt matter in the end"
"Can you get to $16,500? Its sold if you can"If he says no, leave your card\number and walk out.
If he doesnt call you back in 24 hours with a 'deal' just go in and accept HIS 'best offer'.
Selling…. its a mind game.
Its sold now, but I did the above on an ex demo i30 diesel in 2009. Was a long term demo, about 10,000km. Got it for $17000 drive away. Started at $21k, not drive away. I'm a royal Pr!ck to sell to. lol.
You may well be a royal Pr!ck to sell to, I consider myself to be one as well; but at the end of the day the vendor is making money as well. The trick is not to let him have too large a slice of the pie.
Thanks for the info and links, i30 shopping now.
G
when buying a new car should I tell them whether I am paying cash or finance?
they always seem to ask that first
If you get a finance deal they often have to subsidize that with a higher selling price. Cash is better.
Get the cash price, then get a quote from their finance department on their finance price. Then compare the two - normally for most people the cash price with finance external to the dealer seems to work best but your mileage may vary. Best way to compare car loans is on the repayments. Make sure you have the same terms (eg length of loan, same residual, including all fees etc) and just look at the monthly repayments between lending options - the interest rate is too easy to manipulate in the car finance world.
http://www.carbroker.com.au/car-dealer-tricks-tactics-scams.…
Great list of Tricks, Tips and Strategies here
Has any of your family members or friends purchased from a Kia dealership before? You could try buying the car from the person who sold them - build up a rep through them.
Perhaps the best way would be to research through Carsales and other dealerships and find out a ballpark figure of how much the car would cost inclusive of any options that you want. Once you find out the average price, you'll be able to get quotes from different dealers and try and pitch them against each other.
I recently purchased a Fiesta ST from a Ford dealership - I found out the average cost of through Carsales and spoke to most of the dealerships within Melbourne. The most they could knock off was $1000 with another dealer telling me bluntly "we can't drop the price any lower than this - perhaps this might not be the car for you".
The dealer I ended up buying the car from gave us a total of nearly $3,700 off the RRP. I felt this was a good deal because most dealers both online and in person weren't able to match the discount due to low stock numbers.Have a second and third option in mind when you are at the dealer.
If a Kia salesman thinks you will also go to a Toyota dealer to look at a Yaris he will be less keen than if he think you ONLY want a Rio.
Also remember the golden rule; he is the one who wants to be mates. Don't treat him like one; all he really wants from you is money.
I never bought a new car but what I heard in general is:
The reason for 1 is when a dealership is close to get their target, they will be more willing to offer a deal to get the sales.
As for 2, you wouldn't know which dealership have not met the target so better to shop around - the effort will pay!