Negotiating new car price

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acsonline

179 posts

Master Geek

#114510 22-Feb-2013 08:35

Hi,

Need some advice here. My old car has lived it's life and I'm looking for a new car (not second hand, as I intend to keep it for the long term).

Now I have looked around and am terrible at negotiation. At the moment I just do not know how much a dealership will be willing to negotiate - and hence how much to budget. Honda is easy - they just have a set price and that's it.

Using the civic as a benchmark ($39k for the high end model).. If anyone here has bought a hyundai i30 or vw golf - should I expect these to be at their RRP or can they be brought down.

Thanks!

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3751 posts

Uber Geek

Trusted

#767405 22-Feb-2013 08:43

Well, I believe i am a fairly good negotiator from recent experience buying a new Honda.

I think it's about showing interest and letting it drag out for as long as possible. Have a figure in mind, and don't let them know until after a couple of weeks. Continue to "hmmm... ahhhh..." to them.

Then after a month or so, tell them your position hasn't changed and that if they can offer you x, y and z, then you will go in and get the deal done.

Honda never gives a discount, not even car mats. I managed to get these free:
- car matts
- front and rear reverse sensors
- tinting
And, $4000 more on my trade-in, above market value.

heavenlywild

3751 posts

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#767406 22-Feb-2013 08:47

And don't get all flustered hearing all the sales speak around, "Oh, there's very limited stock... it's selling really fast." Or, "If you don't buy now, you may have to wait 5 months for the next shipment".

BuzzLightyear

286 posts

Ultimate Geek

#767408 22-Feb-2013 08:52

I've bought a number of new cars over the years. The other poster and you are right Honda don't discount any more.

Have bought new Subaru's and they do discount but not much. At a push you can get 5 - 10%. Often the problem with the likes of Subarus is that they are popular models and the good ones in good colours are reasonably easy to sell.

Falcon and Commodore are a different beast however. I have seen discounts around 20% for the fleet variants of these and they also frequently do run out models which are fully spec'd at a lower price. Also, good popular models in the right spec can be hard to find so these don't normally have the same level of discount.

So I think the level of discount does really depend on the brand and no doubt dealer margins as well as your timing in the model life cycle. A useful thing to do is have a quick check on a 1 year old resale value on trade me. This will give you an idea of how much they depreciate and can help you push for a larger discount on models that depreciate a lot.

Good luck.

old3eyes

8387 posts

Uber Geek

Subscriber

#767410 22-Feb-2013 08:55

By the new Toyota Corolla and you could haggle the price down to about $30K with 5 year warranty. We just bought one after having Mazdas for the past 15 years.. . If your planing on keeping the car to 6 ~ 10 years don't buy a European car and check out The Dog and lemon Guide.

Regards,

Old3eyes

sleemanj

1338 posts

Uber Geek

#767419 22-Feb-2013 09:08

"not second hand, as I intend to keep it for the long term"

Que? There's nothing wrong with buying a good used vehicle and keeping it till the end of your days. Just seems an odd thing to think to me.

---
James Sleeman
I sell lots of stuff for electronic enthusiasts...

heavenlywild

3751 posts

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#767421 22-Feb-2013 09:10

Don't talk about how much discount you want. eg. I want 10% off, or $3000 off. Talk about your max budget.

Most times, dealerships will want to sell you the car to get their numbers up than not - if you are willing to be patient.

With the end of the financial year coming up, it's a good time to buy as well!

NonprayingMantis

6434 posts

Uber Geek

#767430 22-Feb-2013 09:32

heavenlywild: Don't talk about how much discount you want. eg. I want 10% off, or $3000 off. Talk about your max budget.

Most times, dealerships will want to sell you the car to get their numbers up than not - if you are willing to be patient.

With the end of the financial year coming up, it's a good time to buy as well!

If you talk about your maximum budget, they will just find a cheaper model they can sell you without any discount. that's why it's one of the first questions they will ask.

Yogi02

203 posts

Master Geek

#767452 22-Feb-2013 10:11

Do your research on various specs within the model you want.
Look at all the online brochures, make up your mind on what extras are available and if you would be interested, eg tinting/mats/towbar etc.
This way you are able to stay focused on the end goal without getting distracted by the sales person.

Always work toward the end of the month when the sales people start worrying about hitting monthly targets.

As for buying new, honestly I would never look at it. I am a fan of buying a proven top of the line model that is 2-3 years old - fully serviced in the 40-60km range. Usually 55-65% of the new price. Just because it is new it does not mean your are not going to have issues - Holden and Ford are notorious for visits back to dealerships, sadly Toyota is not too far behind with recent models (2007 - 2011)

acsonline

179 posts

Master Geek

#767463 22-Feb-2013 10:23

Thanks for all the good advice! I suppose that's part of the "fun" of this experience. Time for some research.

Cambo

103 posts

Master Geek

#767502 22-Feb-2013 11:13

I believe new Honda vehicles are sold by 'Honda NZ' dealerships, not by agents/franchises, and I suspect that is why there is little or no wiggle room on their prices.

I do know for certain that used Subaru Outbacks and Foresters sell very quickly (around one week turnaround on the sales lot), so it's not always salesmen talking bullsh...

If you talk to the salesman as if you are keen to get the car, but float the idea of sharpening the price, they will usually haggle with you. They can ascertain whether or not you are just a tyre-kicker, and can gauge whether or not they should spend their time and energy negotiating with you.

heavenlywild

3751 posts

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#767524 22-Feb-2013 11:25

Cambo: I believe new Honda vehicles are sold by 'Honda NZ' dealerships, not by agents/franchises, and I suspect that is why there is little or no wiggle room on their prices.

That's what they tell you, but each branch still has their own KPIs. If you read my posts above you will find that there are dealerships willing to get your sale in the form of deals over another branch.

heavenlywild

3751 posts

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#767525 22-Feb-2013 11:26

NonprayingMantis:
heavenlywild: Don't talk about how much discount you want. eg. I want 10% off, or $3000 off. Talk about your max budget.

Most times, dealerships will want to sell you the car to get their numbers up than not - if you are willing to be patient.

With the end of the financial year coming up, it's a good time to buy as well!

If you talk about your maximum budget, they will just find a cheaper model they can sell you without any discount. that's why it's one of the first questions they will ask.

If you make it clear that car model A is what you are after, and your budget isn't way off the RRP, then it shouldn't be a problem.

So you don't go in asking for a Honda Accord for $30k, when the RRP is $50k.

BuzzLightyear

286 posts

Ultimate Geek

#767541 22-Feb-2013 11:49

As for buying new, honestly I would never look at it. I am a fan of buying a proven top of the line model that is 2-3 years old - fully serviced in the 40-60km range. Usually 55-65% of the new price. Just because it is new it does not mean your are not going to have issues - Holden and Ford are notorious for visits back to dealerships, sadly Toyota is not too far behind with recent models (2007 - 2011)

Honestly, nothing beats the feeling of driving a brand new car off the show room floor. If you can afford to take the depreciation hit and like me keep the car for 10 years or so - why not. Nothing wrong with a late model used car either but its not the same.

clevedon

1051 posts

Uber Geek

#767557 22-Feb-2013 12:21

Decide what you want to buy, then ring as many dealers around the country as you can telling them you don't care where you get the best deal from as you are prepared to travel - flights are cheap or you can cash in some air points etc.

Done that three times with new Commodores now and have never had to leave Auckland to pick them up.

ObidiahSlope

255 posts

Ultimate Geek

#767616 22-Feb-2013 13:16

Work out what type of car you want and the features you want. Then give this to a salesperson as your spec. It telgraphs to him him(or her) that you are a $ for features buyer and would just as easily buy fron the dealer down the road.

Ask for two prices a staight sale and a change price. Sometimes the dealer will overpay for your trade to get the sale if they are not allowed to discount the new price. In other instances they may not want your trade and give you a low price.

Obsequious hypocrite

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