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74 posts

Master Geek


# 262168 8-Jan-2020 16:13
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Looking into a brand new Forester/Outback and sounds like a few have purchased brand new Subaru lately - anyone know if there's any movement in these brand new vehicles if I'm paying by cash. 

 

Also if the accessories can be negotiated? i.e. floor mats/boot covers. 

 


I'm looking into either an Outback Premium or Forester Premium with cash, I know that the dealers probably prefer finance as they can probably earn more. 

 

 


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114 posts

Master Geek


  # 2387604 8-Jan-2020 19:46
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Why would they give you a discount for cash? They're probably receiving a rebate on financing applications, so theoretically you should pay more.


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Ultimate Geek

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  # 2387697 8-Jan-2020 23:39
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IMO there is always movement in the RRP (apart from Toyota these days). End of month when the salesperson needs the numbers for their commission cheque is a good time, and end of financial year is even better (if you can hang out another couple of months).

 

If haggling is not your thing, you could get a company such as www.bestcar.co.nz to do the haggling for you - they use their bulk purchasing power to secure generous fleet discounts for individuals and smaller companies. From memory their service is free if it's a personal purchase. I have seen fleet discounts of up to 20% from them so they are worth checking out, and there's no obligation. I have no association with them but have used their services before. I am sure there are other similar companies too.

 

Note that fleet discounts are always off the full RRP. If a specific model is already on sale, then the fleet discount may not appear so generous.


 
 
 
 


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  # 2387746 9-Jan-2020 08:28
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boosacnoodle:

 

Why would they give you a discount for cash? They're probably receiving a rebate on financing applications, so theoretically you should pay more.

 

 

Clearly tongue in cheek. Expect discount for cash.


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  # 2387747 9-Jan-2020 08:29
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Absolutely you should expect discount for cash.

 

If paying cash, always leave purchase until last week of month (as dealers want to maximize current month, and January is likely to have been lean for them following Xmas rush, so good time to buy).

 

Both Outback and Forester models are mid-life, so dealers won't be expecting to maintain a new release premium.

 

As you are paying cash - I assume no trade in - you have luxury of ringing various Subaru dealers in nearby regions and saying you are shopping for best cash deal - let the dealers know you are looking at more than one dealer.

 

Or you could make an offer for cash at particular dealer - eg. I'll pay $x drive away, including on road costs and mats. If dealer says no, be prepared to say "thanks, I'll keep looking at other cash options, here's my number if you can find any movement" - then walk away. If they don't call back in a couple of days.

 

The 3-service plan is priced at $1,000 - so useful to factor into final price if it is included or not. (I've always purchased it).

 

As an aside, I bought the current release Outback Premium about 18 months - it's a great car. We chose Outback over Forester as Outback has more storage and looks sleeker (I don't like the Ski-boot shape of the Forester).


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  # 2387748 9-Jan-2020 08:31
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I have never bought a Subaru but over the last ten years I have bought two Mazdas and a Kia, and have got discounts ranging from $2k to $8k depending on the RRP of the vehicle, its trim level, and how much pressure the dealer is under.


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  # 2387801 9-Jan-2020 08:41
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I know two dealers personally who just laughed at someone offering cash for a discount. They didn't really want cash customers as they made better money from writing up finance deals.

 

Perhaps times have changed plus it may be different between brands.

 

It doesn't hurt to ask though. Shopping around and also making an offer (even better leaving a cheque for that amount on the salespersons desk) that they can decide to follow up on if the change their mind on the initial refusal to accept your offer can work well.





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  # 2387817 9-Jan-2020 09:22
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If they laugh at cash, I imagine them falling of their chair and onto the floor if you left a cheque on their desk :)

 

 


 
 
 
 


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  # 2387825 9-Jan-2020 09:45
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Technofreak:

 

I know two dealers personally who just laughed at someone offering cash for a discount. They didn't really want cash customers as they made better money from writing up finance deals.

 

Perhaps times have changed plus it may be different between brands.

 

It doesn't hurt to ask though. Shopping around and also making an offer (even better leaving a cheque for that amount on the salespersons desk) that they can decide to follow up on if the change their mind on the initial refusal to accept your offer can work well.

 

 

All cars are sold for cash.

 

A car dealer gets that cash either (1) directly from a customer, or (2) from a finance company.

 

A dealer selling a car on finance immediately passes that transaction over to a finance company and, in return, receives an upfront cash payment. And the value of cash the dealer receives is discounted by the amount of interest charged to the dealer by the finance company.

 

As a car dealer is indifferent to who gives them the cash, a cash buyer should be able to negotiate with the value of the discount the dealer would pay if the transaction were to be passed to a finance company.

 

Without knowing the specifics of the two dealers above, one option is that they were simply spinning a line to play the prospective customer for more cash (something they are very good at doing). 


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Ultimate Geek


  # 2388893 9-Jan-2020 11:02
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You can negotiate a lower cash price, get in writing then put that amount on finance. You cannot have two prices for differing payment methods. 


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Ultimate Geek


  # 2388956 9-Jan-2020 11:38
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I have a friend who sells cars. His advice is to take a two-step process:

 

1) negotiate the purchase price including ORC’s and any accessories

 

2) then negotiate cash or finance, not having discussed how you will pay for the car as yet (you’ll need to defer this discussion)

 

Car dealers definitely make more out of finance and can drop the purchase price a bit if they know it’s a finance deal.

 

According the my friend, you pay less overall if you take this two-step approach.

 

FWIW that’s only a sample of 1 car dealer’s negotiation style. All car dealers negotiate better than you do.

 

On another point, I think this month-end/period-end thing is ... no longer a thing, in NZ. Will not influence a professional dealer.





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  # 2388957 9-Jan-2020 11:43
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BlinkyBill:

 

On another point, I think this month-end/period-end thing is ... no longer a thing, in NZ. Will not influence a professional dealer.

 

 

I'd be inclined to disagree based on relatively recent experiences, where the dealer principle from a number of places I'd have contact with, discussing what could be done to close the deal before the "end of the month".

 

Maybe some dealers no longer require this, but at least a few BMW/Audi and Mercedes dealers do. I guess it would depend if they are on commision and how often that's calculated.

 

I know for example one Merc dealership I dealt with, risked losing "production slots" if they couldn't make sales targets. Given how few there are in NZ in general, it's something they fight quite hard to keep.

 

 


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Ultimate Geek


  # 2388962 9-Jan-2020 11:53
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networkn:

 

BlinkyBill:

 

On another point, I think this month-end/period-end thing is ... no longer a thing, in NZ. Will not influence a professional dealer.

 

 

I'd be inclined to disagree based on relatively recent experiences, where the dealer principle from a number of places I'd have contact with, discussing what could be done to close the deal before the "end of the month".

 

Maybe some dealers no longer require this, but at least a few BMW/Audi and Mercedes dealers do. I guess it would depend if they are on commision and how often that's calculated.

 

I know for example one Merc dealership I dealt with, risked losing "production slots" if they couldn't make sales targets. Given how few there are in NZ in general, it's something they fight quite hard to keep.

 

 

 

 

If you believe that, that’s great. But the reality is this stuff is a close tactic, that’s all. Production slots are set months and months ahead, and relate to a dealership’s overall sales performance over years.

 

The days of “ABC” (Glengarry Glen Ross) are over, especially at the high end. Great movie, BTW.

 

To save you looking it up, ABC = Always Be Closing. 





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Master Geek


  # 2388973 9-Jan-2020 12:22
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mudguard:

 

You can negotiate a lower cash price, get in writing then put that amount on finance. You cannot have two prices for differing payment methods. 

 

 

A lot of companies who have credit card surcharges would disagree with you, no?


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Ultimate Geek


  # 2388991 9-Jan-2020 12:41
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backfiah:

 

mudguard:

 

You can negotiate a lower cash price, get in writing then put that amount on finance. You cannot have two prices for differing payment methods. 

 

 

A lot of companies who have credit card surcharges would disagree with you, no?

 

 

 

 

And that's fine. You're paying a service fee to the credit card company. I wouldn't think many cars are bought with a credit card, you never know but I wouldn't (if my limit was that high!).

 

Say Harvey Norman offer a TV for $5000 and 36 months interest free, if you say I have $4500 cash and they agree to that price, you can then finance that amount. They cannot increase the price of the goods depending how you pay for it.

 

The change to the credit card payment disclosure was either a good or bad thing depending how you look at it. Once it was absorbed by a retailer, so all prices may have been higher because of it. However by charging in addition to the purchase the price may appear more transparent for customers but I suspect in reality prices didn't change with it.

 

 

 

I loathe the credit card fee and will try avoid it all costs for bigger purchases. 


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  # 2388995 9-Jan-2020 12:43
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BlinkyBill:

 

I have a friend who sells cars. His advice is to take a two-step process:

 

1) negotiate the purchase price including ORC’s and any accessories

 

2) then negotiate cash or finance, not having discussed how you will pay for the car as yet (you’ll need to defer this discussion)

 

Car dealers definitely make more out of finance and can drop the purchase price a bit if they know it’s a finance deal.

 

According the my friend, you pay less overall if you take this two-step approach.

 

FWIW that’s only a sample of 1 car dealer’s negotiation style. All car dealers negotiate better than you do.

 

On another point, I think this month-end/period-end thing is ... no longer a thing, in NZ. Will not influence a professional dealer.

 

 

Your friend sells cars, so may have a vested interest when it comes to advice.


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