Advice for What Is a Good Deal When There Is a Fixed Driveaway Price - Jaecoo J5 EV

Jaecoo are running a promotion for their EV J5 across Australia, $36,990 driveaway for the 1st 2000 sold.

It was 1000, but they extended it. I have no idea how to know what is both a reasonable ask of the dealer and a good deal for the buyer of a new car, especially when it has a fixed driveaway price. I want to be reasonably confident I got a good deal (for a new car).

My local dealers are pretty uninterested, and it appears I don't have much wiggle room, but I am wanting more experienced advice. Is it a good deal if I pay this price and just get floor mats and tint thrown in? There are a number of accessories you can buy like a subwoofer, I don’t know how far to push or what would make me a “sucker”. Should you expect them to move on price at this price?

Given this brand of Omoda is being positioned and sold separately from Chery, I only have three dealerships with Jaecoo selling rights in my city and they don’t appear to hungry for sales from my initial questions. I called an interstate one and they said they would include car mats and tint so I guess that is my starting benchmark.

I really hate car salesmen, and I need to bite the bullet and get it done.

Comments

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  • +5

    You usually can’t beat a fixed driveaway price, so focus on negotiating valuable extras instead.

    • thank you. I needed to know that, I don’t want to walk away “ripped off” which of course is subjective.

      • -3

        peronsally i wouldnt buy a chinese SUV anyway

        • Are they that bad ❓

            • +5

              @Wiadro: Also known as the peepee compensator 3000.

              • -4

                @brifog: Share what you drive so we can compare…?

    • Is that similar to what happened with tesla dealers ( brand new)?

      Also whats ur opinion on used tesla?

  • +3

    Don't buy a J5. It's extremely low quality and clearly shows it's been built to a budget. The drive is floaty even for normal EVs and the whine will drive you nuts. The steering is really disconnected from the road it's uncanny. Yes it looks relatively good, like a Range Rover knock-off from far, but look at the closer details and you'll realise it's not worth the cheap price they're asking. The silicone seats have yet to be tested properly for comfort and durability. As below, the Geely EX5 is miles better for a little more.

    • +2

      Drove one the other day & didnt think the steering was that bad; regen on anything other than low was very jerky.

      The ex5 does look nicer but to get near the same spec it's a lot more, unless people are getting really good discounts on the price?

    • will check it out

      • Also check Atto2.

    • What are your thoughts on h7 shs?

      • I don't have any views. We've switched to fully electric for all cars so wasn't on the list to look at.

  • +2

    Surely one would take into account resale value of a vehicle prior to purchase? Would it not make more sense to spend a bit more for something you can easily sell then to buy something cheap which you effectively give to away to the metal scrap yard for $50?

    • +1

      You would think so but not the case for many buyers.

      China is dumping these cars here and as the cost of a new car declines so they can sell the volumes they have, the resale value of existing cars gets obliterated

      There will be more value in stripping the cars and selling the parts as the Chinese car brands are only focussed on selling cars and not aftermarket service

    • +1

      it would make sense if I started out in the budget for the J5 EV, but my budget started out cheaper in the hybrid market, I was going to go for the Chery Tiggo 4 hybrid. I learned that Jaecoo was going to be releasing in the first half of this year a hybrid version of the J5 EV (they launched EV first) so I went to test drive it, and after doing a bit of research started to seriously consider the cost leap to the EV. It doesn’t sound like much of a leap but adding in things like the at home charging at around 2K and buying type2 to type 2 cables, and vehicle to load cables, and the leap is to another price bracket entirely, so then I would be getting very far from my original budget. Resale wise I would be hoping to not sell it for a good while. 8 year warranty, 8 year fixed price servicing which is very cheap on the EV, 8 years road side assistance if you service with Jaecoo each year, and 8 year battery warranty.

    • -1

      is resale value even a factor for EVs? nobody is going to want to touch these things as they approach the 7 year mark

      • +2

        I'd definitely buy a 2nd handed Model 3/Model Y at the 7 year mark…. but only for the right price though.

        Older Model 3s are going for ~20-22K now. If it's between a older Hybrid Corrolla VS the Tesla… I know which one I'd be going for.

      • It really depends on the mechanical reliability and how well the body holds up, as well as the level of manufacturer support.
        For instance, I'd trust a Tesla at 7 years. But for some of these smaller brands you just don't know.

  • +1

    They extended offer meaning there aren't many takers. Try geely ex5, pretty good value for money

  • +1

    Hard to say if the deal is good or not. If you buy now and a better deal comes out later, you'll then feel robbed. If a worse deal comes or none at all, you'll feel ahead.

    As with any purchase, there is inherent risk of price fluctuation one way or the other, and for me, i just weigh up what's available to me at the time.

    The price of the car will likely change based on sales, stock levels, branding etc

    Eg. BYD didnt budge much for me, but Geely did but I suspect only because they knew they were matching an upcoming promo.

  • +1

    Check out this thread

    OzBargain

    • thank you!!

  • +1

    Hey there, if this helps at all in Sydney, I've managed to get the J5 with premium paint and black interior (my preference despite the current deal) down to $35,990 with floor mats, cargo liner, subwoofer, tints, premium plates and 1 microphone. This is also with business registration

    I had to shop around all the dealers here; some are uninterested but 3 out of 4 dealers came down on price at least $1000

    • +1

      May I ask which area the dealer was?

    • I think East coast dealers are way more generous, at least in this case. I spoke to one east coast J5 dealer out of curiosity and he was quick to give inclusions straight away. . The lack of competition in the west, and they are really not motivated to sell. I struggled even to get called back! Glad you got a good deal. I think it is a nice car with a lot of inclusions. Enjoy!

    • nice, which dealer?

  • subwoofa

    The new bonut?

    • Flames to go ⁉️

  • that is not the oddest official one. Others include a cat scratcher, cat carrier, dog bowls, leashes, trunk pet barrier, pet collar and wait for it, my fave, two karaoke microphones as they have karaoke built in :)

    • What?

      • they are marketing it as the first “pet safe” apholstery.

  • when there is a fixed driveaway price

    How big is your driveway?

    • +1

      I have a single car enclosed garage so not large hence why I wouldn't go any larger than this. It’s also not the easiest to get in and out of. I liked the J7 summit but too big.

      • +1

        Sounds like you don’t really need a SUV
        TRY A HONDA JAZZ OR MAZDA 2 instead

  • Look nobody really knows. This is a new brand and thus a huge unknown.

    Superficially speaking, $37k driveaway for a brand new electric SUV with 58kWh battery seems like incredible value. That's almost half the price of a Tesla MY.

    However car manufacturers don't operate to sell cars at a loss so you gotta ask yourself… where have the savings been made? Have they cut corners through cheaper materials (thinner metal, less paint etc), fewer systems, less engineering? We don't know, but whatever they have done will become apparent in a few years time.

    • +1

      The only thing that I have heard, someone correct me if I'm wrong…. is that the only reason why these cars able to be sold at that price is the result of a government's financial assistance in the seek for global market dominance?

      If the Jaecoo company were by themselves, they'd be selling at a big loss.

      • Are you referring to the allegations that the Australian government gives ev manufacturers something like $12k for each car sold as part of an environmental scheme which is indirectly helping Chinese manufacturers take over or the other allegation of the Chinese government giving their companies money to put pressure on other manufacturers?

      • Basically along the lines of this… There is huge government incentives in China to churn out new EV's. The problem is, that they then just go into massive lots in China to either rot away or to be sold once the "registration incentives" also run out.

        They have found a better way to get rid of these models, instead of selling them to themselves and claiming the incentives and then having to take up massive amounts of land in China to store all of them, they are being dumped in countries like Australia and throughout Asia and Europe. This is why we now have MASSIVE car dumping grounds in Australia like what we saw at that Jambaroo Action water park recently with BYD dumping massive amounts of their stock out there, because they cant sell them at the rate the Chinese are dumping them here. Why store them in China when you can dump them in another country.

        This is both a good and a bad thing for Australia. The good part is we get A LOT of choice when it comes to EV's and these "cheap" EV's have put a lot of downward pressure on ALL car prices. The other good thing is that it has driven EV uptake considerably. Some buyers who were thinking of a new Corolla Hybrid at $35k+ are now not buying them and instead getting a similar sized full EV for $34k or less.

        The bad part is the potential environmental impact of all these dumped EV's just sitting there, not being sold. Thousands of them just gathering dust… They will get to a certain point where they will just be inventory written off and either auctioned or just robbed for parts and/or dismantled and wrecked out. The other part is that they could just be imported out here for double dipping. Claiming Chinese government incentives and then importing them to Australia and doing the same out here and claiming incentives for importing clean emissions vehicles. They could also be doing it as a form of "emissions trading" where they import a shit load of vehicles that are zero emissions and then sell those clean credits to dirty car makes that dont have any or very little in the way of EV's.

        • +1

          I was on a school excursion to Jambaroo and the scene of all the BYDs were absolutely unreal. It was like that scene from the I Robot movie. The kids have never seen anything like that in their life before.

          • @Bignudge: You will find similar scenes at every major port in Australia - rows of identical cars lined up in holding yards, where they were parked after being taken off the ship and waiting to be transported to dealers and owners.

            The only unusual part is that these were in a relatively public place where more people saw them. And even then, it would have merely been an interesting blip if it wasn't for the objections from the local authority, the subsequent media attention, and the spawning of wild speculation like the post seen above.

        • They have found a better way to get rid of these models, instead of selling them to themselves and claiming the incentives and then having to take up massive amounts of land in China to store all of them, they are being dumped in countries like Australia and throughout Asia and Europe.

          Sorry, but this is extremely inaccurate.

          Vehicles sold for the Chinese domestic markets (CDM) aren't compliant with Australian Design Rules and cannot be legally sold in Australia. The models sold into Australia and New Zealand are specially manufactured for those markets, not CDM models. For example, BYD do limited runs of manufacturing once every few weeks to produce the AU/NZ specification before switching back to CDM spec.

          This is also true of many other nations - CDM cars are not compliant and cannot be registered in western Europe. They require specific models for those markets as well. Your "dumping" theory simply doesn't work in reality.

          However, I believe some CDM vehicles do get sold into various developing nations where vehicle compliance rules are much less strict. But these are very low volume markets, and likely wouldn't move the needle much.

          As with most myths - there are foundations of truth in what you've said.

          It's true that the Chinese government has provided significant incentives for native car manufacturers to scale up and produce large numbers of vehicles for the domestic market, with an emphasis on low- and zero-emissions vehicles. These incentives are generous enough to cause some weird market behavior as the various companies compete for a larger share of the market, including building and dumping cars to claim credits.

          It's also true that many Chinese car companies have massive factories with spare manufacturing capacity, since they've quite deliberately built to meet some future demand rather than what the current market requires. Selling cars into export markets is a great way to keep their assembly lines and supply chains running; especially since exported cars can be sold at a much higher profit margin than the over-supplied domestic market, where fierce price competition means there's very little profit available.

          This is why we now have MASSIVE car dumping grounds in Australia like what we saw at that Jambaroo Action water park recently with BYD dumping massive amounts of their stock out there, because they cant sell them at the rate the Chinese are dumping them here.

          Again, this is entirely incorrect.

          The cars stored at Jambaroo were Australian spec cars, not dumped CDM models. Many of those cars were pre-sold vehicles which hadn't yet been handed over to their Australian buyers. The remainder were for dealer inventory - more on that later.

          BYD have scaled up very rapidly in Australia, and they now deliver cars a whole ship-load at a time. However, they don't yet have sufficient capacity in their holding yards to store all the cars that arrive at once, so they paid Jambaroo to use their carpark for a few months during their off-season. The only real controversy in that whole saga was simply that Jambaroo don't have council zoning approval to lease their property in that fashion, and BYD had to find an alternative holding yard.

          They could also be doing it as a form of "emissions trading" where they import a shit load of vehicles that are zero emissions and then sell those clean credits to dirty car makes that don't have any or very little in the way of EV's.

          Importing CDM vehicles to Australia doesn't make financial sense unless the cars cost less than $8k each to manufacture, transport from China and put somewhere in long term storage in Australia. If it costs any more than that, they're making a loss on every single car they import. So unsurprisingly, this is also a myth.

          The truth is far less interesting. Since BYD can only deliver a shipload of cars every month or two, they import not only the cars that customers have ordered, but also another month or so of supply of vehicles in popular trim levels and colours - these vehicles are kept available as dealer inventory. They can sell these to people who prioritize speed of delivery over choosing the paint and interior colours - a practice that most car dealers in Australia have been using for decades.

        • -1

          This was exactly what I was talking about but didn't really understand down to the core of. There must be an incentive for these companies to be selling their cars at this price here in Australia.

          It's abit like my newly installed Voltx solar battery. There would be no way in the world the company would survive if it weren't for the government incentives. They have even advertised $4K paid per installation for electricians willing to team up with them as it's currently a race against time before the incentives reduce.

  • I was able to get a deal at $35.2k driveaway with mats, tint and premium plate.

    I feel there might still be room to negotiate further.

    • Please share which state and dealership. Was it through novated lease?
      The best I have got is $35k

      • $35k is better than $35.2k no?

        With 1 year NL I was able to get it down to $33.4k @8.68% comparison rate.

        • I read your comment as $32.5k
          How did you get to $33.4k? Is that the purchase price on the contract including gst and drive away?

          • @343: With NL, you can go even lower, but make sure you compare the interest rates as the discount might be added back through NL charges.
            $35.2k was retail da price.

    • wow you negotiated well. I can’t even get close!

  • Update, I didn’t negotiate great, the best I could do was $35742 driveaway no inclusions not even floor mats. They claimed to agree to the price being fixed and my terms which was to have 2026 compliance plates, trim colour etc and they would have to order it in and when it came down to it they misrepresented the contract and included terms that would give them the right to increase the price (so no fixed price) didn’t include the compliance plate date etc but presented it as though it did include what we agreed so when I called them on it and asked them to fix the contract they took away the offer and refused to fix the contract to reflect what we agreed to, so the car buying experience was just as bad as I thought it would be. Bring on Manufacturer direct to public sales and death to car salesmen. As there are only 3 dealerships in my city and this business have two of them I have decided against the Jaecoo. If I can’t get service prior to the sale I surely can’t get it after.

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