New car purchase negotiations - Has anyone manage to haggle a decent chunk off the RRP?

Forums › Transport (cars, bikes and boats) › New car purchase negotiations - Has anyone manage to haggle a decent chunk off the RRP?

turtleattacks

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#281009 25-Jan-2021 11:00

Kia ora,

We are finally upgrading our near-20 year old car and had decided on a Mazda CX9.

The RRP was $71k+ORC and I went in and lowballed at $65k for the latest 2021 model. In my mind, $65k would be a homerun while $66k would be a decent effort. I was set on this price because my mate bought the same car on a run-out (i.e. previous year model two years ago.) for $64k.

In the end, after seeing the manager, and leaving with a firm offer from the manager at $66.5 - I left and drove home saying that it's out of my price range.

I then texted the dealer saying that I can do $66k flat, they called soon afterwards and a deal was made at $66k - so around $5k or 8% of Mazda's RRP on their website.

Just wondering if this is normal Mazda pricing - to have their website prices fairly high leaving room for haggling.

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#2641532 25-Jan-2021 11:23

When we purchased our Tuscon late last year we got just over 13%~ ($6k) off RRP. That said the dealer we went to already had them below the RRP that Hyundai's website listed so we only negotiated an extra 1k off their list price.

General rule of thumb, The more expensive the model is RRP, the more room there is for negotiation.

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lxsw20

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#2641544 25-Jan-2021 11:36

Depends on the brand, Honda and I think now Toyota won't negotiate at all as I understand.

Nikras

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#2641591 25-Jan-2021 11:58

I bought a Tucson 1.6T Elite from Auckland Hyundai back in 2016.

At that time they were doing a 0% interest deal but I told them I was paying cash.

The salesman told me that he could do me a deal because the interest was really baked into the RRP.

Initially he offered me 6k off RRP, then I said make it 7k and he said ok. I was happy with that deal but my dad convinced me to get another 2 grand off by telling them i've found something else and would buy elsewhere if I didn't get another 2k off. The dealer was hesitant but in the end, gave me a total of 9k off RRP. Pretty stoked if you ask me.

I know you can't haggle with Honda / Toyota these days but with Korean cars, i'm sure you can.

I'd keep going until they absolutely give you a firm no. Then that's their best price. No dealer wouldn't want to offload their cars if they could still profit.

alasta

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#2641713 25-Jan-2021 15:38

I bought my CX-5 two years ago. How much discount I got is hard to judge because I asked them to quote a complete package net of trade-in, accessories, on road costs, etc.

The RRP of the vehicle was $47k and I think I probably got about $4k off that price. It's within the realm of possibility that I could have got a bit more if I'd pushed harder, but I'm not great at negotiating.

1024kb

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#2641729 25-Jan-2021 16:08

The last day of the month is a good day for greater than usual flexibility in the car sales industry. Dealerships account monthly, everyone in the decision-making chain is paid a commission that's influenced by unit volume & overall GP.

A sale on 31st will be more money in the GP pot which is past target & paying out higher percentage commissions, plus yet another unit for volume bonuses. Also, it'll be included in their commission payments just 3 weeks later - urgency affects dealership decisions on the last day of the month.

It's a whole different mindset for sales made on the 1st when the GP pot is empty & needs profit to get it to target - the consideration of whether they can sell that vehicle for a better profit in the next few weeks really does affect negotiation. Staff wont see commission on a 1st of month sale for 7 weeks so a cut-rate earn doesn't have the appeal it did just 24 hours previously.

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MikeB4

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#2641820 25-Jan-2021 17:28

I have obtained some good discounts purchasing new. A good example was when we purchased a new Toyota Prado and 15% discount. I have found the best time to purchase is at the end of the month as dealers have targets and get factory bonuses if the achieve or exceed the monthly target. Our most recent purchase was a series 5 Rav 4 Hybrid. We didn't receive much of a discount, about 3% as these were/are selling like hot cakes. We did however we given a free upgrade to Apple Car Play and Android auto and three years free servicing. Again we purchased at the end of the month.

dt

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#2641826 25-Jan-2021 17:46

We have bought 3 brand new cars in our life time, Holden, BMW and VW in that order, we got good discounts using some advice my grandfather gave me.. Buy in the final weeks of December, they want to clear that years stock for the new models. Worked well in our favor at all dealerships with BMW giving the biggest out of them all.. 20% off RRP, 5 years servicing and maintenance and threw bunch of accessories like nicer floor matts and window tints.

Sales rep was sharp, let us take it home for the weekend without any money down and just said "it's ok, ive got your car here.. you have to come back and get it.."

damn he was good.

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mudguard

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#2641835 25-Jan-2021 18:23

Nikras:
I bought a Tucson 1.6T Elite from Auckland Hyundai back in 2016.

At that time they were doing a 0% interest deal but I told them I was paying cash.

The salesman told me that he could do me a deal because the interest was really baked into the RRP.

Initially he offered me 6k off RRP, then I said make it 7k and he said ok. I was happy with that deal but my dad convinced me to get another 2 grand off by telling them i've found something else and would buy elsewhere if I didn't get another 2k off. The dealer was hesitant but in the end, gave me a total of 9k off RRP. Pretty stoked if you ask me.

I know you can't haggle with Honda / Toyota these days but with Korean cars, i'm sure you can.

I'd keep going until they absolutely give you a firm no. Then that's their best price. No dealer wouldn't want to offload their cars if they could still profit.

That's interesting. They can't offer two prices depending on how you pay. You are perfectly entitled to negotiate a low price for cash then turn around and say actually I'll take the interest free deal at that price.

dt

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#2641839 25-Jan-2021 18:30

mudguard:

That's interesting. They can't offer two prices depending on how you pay. You are perfectly entitled to negotiate a low price for cash then turn around and say actually I'll take the interest free deal at that price.

I remember years back a dealership getting in big trouble by the commerce commission for doing just that, advertising an "interest free" price and a cash price on their cars..

Nikras

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#2641842 25-Jan-2021 18:39

dt:

mudguard:

That's interesting. They can't offer two prices depending on how you pay. You are perfectly entitled to negotiate a low price for cash then turn around and say actually I'll take the interest free deal at that price.

I remember years back a dealership getting in big trouble by the commerce commission for doing just that, advertising an "interest free" price and a cash price on their cars..

Yeah, the salesman told me they couldn't do a cheaper price if I took the interest free deal.

That salesman resigned shortly after though, and I didn't know any better back then.. was just happy to get a deal. :)

arcon

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#2642672 26-Jan-2021 21:35

15 yrs ago I bought a used BMW from a dealer for 19K, 23K list. Not a bad deal on a car which ran great for over a decade.

I didn't mention my budget but just acted dumb and utterly disinterested lol, visiting the dealer twice in 2 weeks. I had actually spent 5 months checking out around 20 grade 4.5 imports and his was the best.. but he didn't need to know that.

billgates

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#2642673 26-Jan-2021 21:39

We bought 2020 Kia Seltos EX when it was first launched in NZ for $32800. RRP for this model is $38k

Do whatever you want to do man.

mattwnz

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#2642714 27-Jan-2021 01:17

mudguard:

That's interesting. They can't offer two prices depending on how you pay. You are perfectly entitled to negotiate a low price for cash then turn around and say actually I'll take the interest free deal at that price.

Doesn't that mean that buyers who do pay cash are in a way subsidising those who pay by credit. It is ironic that we are taught at a young age to save, and not buy consumables that we haven't saved up to buy, yet there are often more incentives to borrow.

mudguard

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#2642731 27-Jan-2021 06:13

mattwnz:

mudguard:

That's interesting. They can't offer two prices depending on how you pay. You are perfectly entitled to negotiate a low price for cash then turn around and say actually I'll take the interest free deal at that price.

Doesn't that mean that buyers who do pay cash are in a way subsidising those who pay by credit. It is ironic that we are taught at a young age to save, and not buy consumables that we haven't saved up to buy, yet there are often more incentives to borrow.

Not necessarily. It just means that when a company offers a product on interest free terms then they have to make sure they've priced it with this in mind. Because the finance company will not do the interest free, for free, it's costing the car yard, and ultimately the consumer.

That said, if all the pricing was lower but cash only, they might not sell nearly as many cars. In which case they might have to increase their margin in the first place.

BlinkyBill

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#2642795 27-Jan-2021 08:14

mudguard:
... They can't offer two prices depending on how you pay. You are perfectly entitled to negotiate a low price for cash then turn around and say actually I'll take the interest free deal at that price.

Of course they can. If you are negotiating on the basis of cash, then you aren’t negotiating on the basis of interest-free (a.k.a. 0% interest). You can try and take the cash price on 0% interest you are changing the basis for negotiation. Good luck, it might work or it might not.

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