Another Negotiation Topic

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MintyFresh

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#281561 25-Feb-2021 14:58

Hi Guys,

Been reading a number of helpful posts on here that address haggling with dealers in price. Wanted to discuss haggling 'sale' prices.

I'm in the market for a ute, the brands have a RRP on their models eg 50k which are usually on their main brand site. The franchisees then have 'sale' prices, say 36k... You never see them selling at their RRP. To me these 'sale' prices aren't actually discounts, every franchisee has the same 'discount'.

My question is, in your experience, are dealers negotiable beyond they're supposed 'sale' prices? Anyone got numbers on how much?

Thanks!

Handsomedan

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#2662670 25-Feb-2021 15:12

Always go to a dealer with three things in mind:

1. "What's your best deal on this?" - hope that they will either offer a better price or throw in some extras like a tub liner

2. "Nah, I'll just leave it - I'm just not prepared to pay that much" - be prepared to walk away...don't get emotionally attached to a brand/model

3. Have a backup plan for a different vehicle. Go somewhere else and look at a similar vehicle that you can try 1 & 2 with...

Toyota have a "no haggling" policy. Their best price is the sticker.

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Dingbatt

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#2662675 25-Feb-2021 15:34

I guess the first “R” of RRP does stand for “Recommended”.

Most dealers purchase the vehicles from the OEM at a wholesale price and will then mark up to the RRP. Therefore anywhere between the wholesale (plus costs) and retail price should be negotiable. On a $50K Ute that difference could be $10K (in my experience). If it is a popular model like a Ranger then you have far less bargaining power because the next customer through the door is probably there for a Ranger as well.

As above, Toyota don’t operate the franchise dealer model anymore for new vehicle sales. You buy directly from Toyota NZ at a fixed price. The dealer processes the order for you, and I assume gets paid a bounty.

“Sale” price might represent a vehicle that they need to move due to end of month/quarter/year targets. They may even accept a small loss on a vehicle or two to achieve an overall target that gets hugely rewarded by the manufacturer.

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MintyFresh

2 posts

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#2662688 25-Feb-2021 15:49

Dingbatt:

I guess the first “R” of RRP does stand for “Recommended”.

Most dealers purchase the vehicles from the OEM at a wholesale price and will then mark up to the RRP. Therefore anywhere between the wholesale (plus costs) and retail price should be negotiable. On a $50K Ute that difference could be $10K (in my experience). If it is a popular model like a Ranger then you have far less bargaining power because the next customer through the door is probably there for a Ranger as well.

As above, Toyota don’t operate the franchise dealer model anymore for new vehicle sales. You buy directly from Toyota NZ at a fixed price. The dealer processes the order for you, and I assume gets paid a bounty.

“Sale” price might represent a vehicle that they need to move due to end of month/quarter/year targets. They may even accept a small loss on a vehicle or two to achieve an overall target that gets hugely rewarded by the manufacturer.

Yeah, what I'm getting at is they are listing them at the RRP, then instantly marking them down 10k.

Take for example a brand new base model Triton on TradeMe, listed at $55,990 (crossed out), asking price is $42,990 so a 'saving' of $13,000. But this is the same for every other Mitsubishi dealer selling the same car, they're all 'discounted' and have been for months. I've never seen one with an asking price not 'discounted'. What I want to figure out is if a dealer is the negotiable beyond this supposed saving of $13,000, or will they simply say that the $42,990 is their rock bottom price?

Handsomedan

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#2662691 25-Feb-2021 15:58

MintyFresh:

What I want to figure out is if a dealer is the negotiable beyond this supposed saving of $13,000, or will they simply say that the $42,990 is their rock bottom price?

You'll probably find that this is a price that the manufacturer has put on the vehicle as the new RRP to move stock and get it up the best seller list...

You may be able to haggle, but shouldn't be afraid to try. At the end of the day, the worst that can happen is they say no to your bargaining and you pay what's on the sticker - which is still less than the original (at launch) RRP.

I still think you are better trying to get extras for free rather than a cash discount. Better wheels, free tank of gas, tub liner, sports bars etc.

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turtleattacks

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#2662697 25-Feb-2021 16:16

We just took delivery of a 2021 Mazda CX-9 with a listed/invoiced price of $72,190 and we got it for $66,000 driveaway - including ORC, mats, tank of fuel etc.

So a discount of $6,190 or 8.58%.

It was almost too easy to get it for the price... kind of feel that could've gone lower.

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BlinkyBill

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#2662722 25-Feb-2021 17:12

MintyFresh:

...

Take for example a brand new base model Triton on TradeMe, listed at $55,990 (crossed out), asking price is $42,990 so a 'saving' of $13,000. But this is the same for every other Mitsubishi dealer selling the same car, they're all 'discounted' and have been for months. I've never seen one with an asking price not 'discounted'. What I want to figure out is if a dealer is the negotiable beyond this supposed saving of $13,000, or will they simply say that the $42,990 is their rock bottom price?

I can’t swear to this, but Tritons share a platform with Ford, do they not? I have a feeling I heard that with the new Ford/VW platform coming in 2022, Mitsubishi is out in the cold and aren’t sharing in that platform. So the Triton is basically end-of-life.

That’s my recollection but I could easily be wrong. That’s why perhaps there are these deals on what is a decent vehicle - end of life of the Triton platform.

Dingbatt

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#2662741 25-Feb-2021 18:14

MintyFresh:

Yeah, what I'm getting at is they are listing them at the RRP, then instantly marking them down 10k.

Take for example a brand new base model Triton on TradeMe, listed at $55,990 (crossed out), asking price is $42,990 so a 'saving' of $13,000. But this is the same for every other Mitsubishi dealer selling the same car, they're all 'discounted' and have been for months. I've never seen one with an asking price not 'discounted'. What I want to figure out is if a dealer is the negotiable beyond this supposed saving of $13,000, or will they simply say that the $42,990 is their rock bottom price?

I would suggest that if all dealers have them for $43K, then that is the upper limit for negotiations. Particularly if you don’t have a trade in you can just go round them all and ask for their best deal below $43K. There’s every chance if the particular model you are looking at is on run out then Mitsubishi may have dropped their wholesale price to dealers. If that is the case, there will still be a margin.

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Handle9

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#2662744 25-Feb-2021 18:36

BlinkyBill:

MintyFresh:

...

Take for example a brand new base model Triton on TradeMe, listed at $55,990 (crossed out), asking price is $42,990 so a 'saving' of $13,000. But this is the same for every other Mitsubishi dealer selling the same car, they're all 'discounted' and have been for months. I've never seen one with an asking price not 'discounted'. What I want to figure out is if a dealer is the negotiable beyond this supposed saving of $13,000, or will they simply say that the $42,990 is their rock bottom price?

I can’t swear to this, but Tritons share a platform with Ford, do they not? I have a feeling I heard that with the new Ford/VW platform coming in 2022, Mitsubishi is out in the cold and aren’t sharing in that platform. So the Triton is basically end-of-life.

That’s my recollection but I could easily be wrong. That’s why perhaps there are these deals on what is a decent vehicle - end of life of the Triton platform.

No, Ranger and Mazda BT-50 are the same platform

Edit: Triton is the Fiat Fullback platform

Fred99

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#2662747 25-Feb-2021 19:01

BlinkyBill:

I can’t swear to this, but Tritons share a platform with Ford, do they not?

I don't think so.

Ford shared a platform with Mazda (BT50/Ranger), but was "mainly" a Ford, I think the 3.2l 5cyl diesel used in them was originally adapted from pre-Ford era Volvo diesels.

Fred99

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#2662750 25-Feb-2021 19:05

Handle9:

Edit: Triton is the Fiat Fullback platform

Probably more accurate to say that the Fiat was a badge-engineered Triton.

There's more Fiat in a Holden Colorado or LDV T60 than *any ute with a Fiat badge.

*Edit - nope - even that's not correct, Fiat make a compact ute - the "Toro" - in Brazil.

Oh goodness:

Fiat Toro is not recommended to be used in adverse terrain even with 4x4. A test drive in the state of Minais Gerais proved that the car was not able to ride through small rivers or streams.