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1266 posts

Uber Geek

  # 2389008 9-Jan-2020 12:52
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to the OP


sales are soft at the moment and not likely to improve in 2020 so go hard at the dealer stealer.


do your homework on the car you want.


have a reasonable offer in mind and go to your local stealer, tell him how much you will pay.


if he doesn't bite, wave bye bye and move onto the next dealer.





3014 posts

Uber Geek


  # 2389018 9-Jan-2020 13:18
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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. 



That only relates to "interest-free" (or 0%) finance offers. And for items with smaller value than a vehicle (eg. TV, washing machine), the interest is effectively 're-labeled' as an upfront admin fee.


The law, however, is at odds with, and cannot restate, financial fundamentals: A car company offering interest-free finance is simply discounting their sales proceeds for the period of the interest-free promotion. ie. You buy for sticker price of $50k on interest free-finance, the manufacturer passes the contract to a finance company and receives something less than $50k upfront in return.


And, as their profession is selling, car dealers are acutely aware of the risk that, during interest-free offers, buyers may pretend to be cash buyers then demand to finance a lower purchase price on interest-free. For that reason, it is typically more difficult for a buyer to negotiate good cash deals during interest-free offer periods. Sellers know the law, and tend to rely on the interest-free offer to bring in customers over the period.


However, dealers also have a pretty good radar of who is genuine and who might try to stick them during interest-free so a good cash deal may still be possible (maybe with included extras, not price) but, generally, it is best to negotiate cash discounts for cars outside of interest-free offer periods. 




3672 posts

Uber Geek

  # 2389058 9-Jan-2020 14:04
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The whole 'cash price' but then put it on finance hardly works anymore...


While dealers may be stealers (ilovemusic), buyers are liars.


So sales people know that customers won't put all the information on the table up-front, so they will keep 'something in reserve'.




I've bought two cars for work over the last few years... the only things that seem to worry them is when they see you going yard to yard.


Dealers within the same network don't seem to be able / willing to undercut their colleagues. But I did find a Kia bloke who'd gone a little rogue.


In the end, went with another brand and based on our works history it was 8% off on a brand new release.


If you're unknown to the dealership and are looking for a brand new model, I wouldn't expect much more off than this.


BUT - EOM, end of financial year AND in the school holidays have seen the most success in our workplace.

Mad Scientist
21329 posts

Uber Geek

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  # 2389072 9-Jan-2020 14:39
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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.



sounds like business must be too hot to laugh at a customer. i would walk out the door and bring my cash elsewhere. 

Involuntary autocorrect in operation on mobile device. Apologies in advance.

616 posts

Ultimate Geek

  # 2389126 9-Jan-2020 16:20
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Your friend sells cars, so may have a vested interest when it comes to advice.



Obviously. But the logic of not putting all your cards on the table up front makes sense to me.


Over to you to do it this way or not.


13 posts


  # 2389140 9-Jan-2020 16:53
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I had work colleague buy BRZ from Subaru few years back (4-5 years). It was all done deal until he realised that car mats / luggage mats were extra $$$. In the demo vehicle it was all there so he assumed it would be same on brand new purchase.


The salesperson would not budge so he complained to head office & got front, rear & cargo mats thrown in for free. Not sure if this was only applicable to BRZ or other models too.


Dont forget to negotiate 3 years servicing or free wof etc if they are not moving on price.



163 posts

Master Geek

  # 2391461 14-Jan-2020 08:49
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There are numerous factors that will dictate the level of flexibility/discount a dealer will be willing to provide on a given vehicle. Some of these have been touched on in this thread, and some have not. One of these is whether you're buying a vehicle the dealer has in stock; if yes, they will be more likely to negotiate (downward) as they "own" that unit - and if you take it away, that frees them up to get something else in that can generate sales/cashflow, and that's the crux of their business (like most others).


An other factor is your tactical approach. If I was you, I'd go and test drive some alternative options - two or three is ideal, and, when you get to the discussion around what you need/want - make sure the dealer/salesgimp knows that you're considering alternatives, and make sure you know where these are priced in relation to the car/spec you want... and this includes any special offers that might be about. Having a few red herrings is a helpful distraction for you (and goodness knows they'll be throwing around their share).


My final piece of advice (before writing War and Peace) is not to get too focused on the deal or especially, the discount. What I mean by that is do your won research, assess your own wants and needs - then assess the market and the options you have within it within your budget (including demo/used). This will give you a clear idea as to what the Subaru is worth to YOU, at the time you're ready to purchase... you're making a big (for most of us) purchase of something that you'll likely have for several years - don't buy something just because of YouTube reviews, or what others say - absolutely take that stuff under advisement, but it's your money, your vehicle, and your life; so buy that car that you want (and remember that in 1/3/5/10 years time a 2.5% discount or some car mats won't have a huge impact over the life of your vehicle).


Sometimes the dealer has no need to "discount" but if you've done your research - and that's the vehicle you want, it represents good value to you, and it's within your budget, just buy it... and that doesn't mean don't give it a good crack.




Enjoy your new car.


70 posts

Master Geek

  # 2400961 17-Jan-2020 20:37
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Subaru dealer actually told me there's more flexibility in a cash sale rather than a sale with a loan since they make more money with a cash sale. 


Sales with a loan means it'll cost them more and incur costs to the loan company. 



112 posts

Master Geek

  # 2400976 17-Jan-2020 21:36
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I actually had the same experience recently, so must recant my original reply. At 3.95% finance it is costing the dealer around $2k to subsidise this rate. Indicates to me that you could negotiate a $2k discount or so if using your own finance or cash.

304 posts

Ultimate Geek

  # 2400985 17-Jan-2020 22:04
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Ask for some free servicing, wof, tow bar look at the list below you can often get many for free or heavily reduced.


Cash just means they know you can but without hassle.



13735 posts

Uber Geek

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  # 2400995 17-Jan-2020 22:33
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Alternatively, wait until they offer another 0% finance deal and earn money on your money...assuming the price is attractive.

3014 posts

Uber Geek


  # 2401145 18-Jan-2020 10:14
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Alternatively, wait until they offer another 0% finance deal and earn money on your money...assuming the price is attractive.



For 0%, the price will be RRP and they won't budge. The money you earn on your money could well be less than the value of a discount for cash outside of 0% offers.


Cash is king when it comes to any large purchase.


With Subaru - I see they have recently lifted RRP by $1,500 across the Outback range, after holding price unchanged for some years. And, given the current Outback model is midlife - the new model has already been released in North America - you would think there should be reasonable scope for a cash discount at the moment.

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