Join Australia's most dynamic and respected property investment community

Discount when buying new and used cars

Discussion in 'Living Room' started by Coastal, 16th Jul, 2016.

  1. Coastal

    Coastal Well-Known Member

    Joined:
    22nd Jun, 2015
    Posts:
    153
    Location:
    Brisbane
    How much discount do you get when purschasing a car.

    My last car i got $1000 off plus free mats. I heard dealers try not to discount.
     
  2. drg86

    drg86 Well-Known Member

    Joined:
    25th Jun, 2015
    Posts:
    273
    Location:
    Newcastle
    All depends on the seller (dealer or private) and what the asking price is. So many variables.

    Just keep in mind they factor in some negotiation to make you feel like you are getting a good deal. It's a buyers market with cars, some amazing deals can be had.

    You are best buying from a dealer on the last day of the month in the late afternoon. You will always get a grand or 2 off, but you can do much better...

    The last car we bought I got a 14,000 discount on, yep no typo there, 14 grand!! This was on a 40k car, so 26k drive away because it was a demonstrator with 3,000km. I looked around and couldn't get a used one with 20,000km for under 30k so it was a no brainer.
     
  3. bob shovel

    bob shovel Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    5,371
    Location:
    Somewhere in the land of Oz
    Last purchase i got a stereo, spotties and cb installed for a case of beer
     
  4. alexm

    alexm Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    304
    Location:
    Sydney
    @drg86 , that's a fantastic discount - well done.

    On one of my cars, I got a $12k discount however the car still cost me $113k. Still had to wait five months for it to be built and sent here.

    As previously mentioned, try and buy on the last day of the month in the afternoon. Dealers will be trying to make their monthly quota.
     
  5. drg86

    drg86 Well-Known Member

    Joined:
    25th Jun, 2015
    Posts:
    273
    Location:
    Newcastle
    @alexm , Yeah it was a great deal, I couldn't pass it up. We sold it not long after for a tidy profit as another opportunity presented itself and we needed the funds.

    If a dealer is saying they can't do any better you just have to be persistent and they will start to break down. Once you're in talking with the sales manager you can get down to business. I was offered a job recently when I negotiated a deal on behalf of a family member due to my haggling skills haha...he said I just have to reverse them and I would make a good sales consultant;)
     
    alexm likes this.
  6. Dan Donoghue

    Dan Donoghue Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    628
    Location:
    Sydney, NSW
    My MX5 we got $3K off (impressive for a car that has a 3 month wait), free tints and mats.

    Wifes CX5 we got $5K off, free tints, mats and boot liner.

    I don't necessarily agree with this. The figures are not in the books until you have paid for it. When I bought mine I had to wait 3 months for it to be built and delivered, they were desperate to get it to me before the end of the 3rd month because then I would pay for it and it would go into their figures. When I bought it didn't matter, when I paid for it did.

    The wife's car we bought it (I don't remember the date) but didn't pay for it for 3 more days, it took 1 week to deliver and the only criteria was to get the payment done before the car was ready to deliver.

    The way I got the discounts and inclusions I did was like this:

    1) Called the dealer and told them I wanted to buy a CX5, told them the model, colour, what I wanted included for free, what I had to trade in and what I wanted to pay in cash.

    He made it happen for me because I was very specific with my numbers, it was easy for him to work within my parameters.

    2) Texted the same dealer at 8pm that night and told him I wanted the MX5 too, what I had to trade in, what I wanted included and what I wanted to pay in cash.

    Again, he made it happen minus just 1 of my extra's that I wanted for free which I had to pay 500 bucks for.

    I was chatting to him about it when I picked up the CX5 and he said if you tell them everything up front that you need in order to make the deal viable for you (without being stupid obviously) they will generally do everything they can to make it work, it's when you tell them you want a car, then you tell them the model, then you tell them inclusions, then you say "oh and I have a trade in" they don't like running figures more than once if they don't have to.

    I also find that you can generally get a better discount with a tradein, if you tell them what you want for your trade, and tell them the discount you want, they will play around with the figures, they will list up your trade as less and your discount as more as they can offset a little of the GST this way. People often talk about how you get less on trade than you do private but to be honest, when you include the discount and the lack of hassle, it's not worth it for me to bother with private sale.
     
  7. drg86

    drg86 Well-Known Member

    Joined:
    25th Jun, 2015
    Posts:
    273
    Location:
    Newcastle
    The way I see it is there is 2 books. The sales per month i.e. number, and the accounts books i.e. financials. Sales in the month will matter, hence the last day when they are keen to prop up the month figures as it counts when the deposit is put down and contract for car.

    As for better deal with a trade in, I have never ever ever heard of someone getting a better deal with a car to trade. Why would any dealer in their right mind offer this? There's more transactions, holding costs, wholesaling, transport, risk. Best price you're going to get is if you walk in to the sales manager with the funds to buy outright.
     
  8. Dan Donoghue

    Dan Donoghue Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    628
    Location:
    Sydney, NSW
    Not necessarily, they get some awesome kick backs on finance, if they can talk you into financing a car, they will throw in whatever sweeties they have to. Cash is not king in this industry. (God didn't I learn that with my Corolla, they hit me 11% interest rate and I didn't know these things were negotiable at the time lol)

    In my experience, we got really good trade on our cars and decent inclusions / discounts. Mine (2010 Subaru Liberty GT) I was offered $17K 2 years prior on private sale. I just paid $30K cash on a fully optioned up MX5 GT that books for $48K with the Lib as trade. That's $18K Trade / Discount, whatever they want to write it up as (They listed it as 15 trade and 3 discount).

    My wifes 2011 Fiesta Zetec, we only paid $11K for it 2 years ago (although we did get a massive bargain when we bought it as they were going for $16K at the time). we paid $38K cash on a fully optioned up CX5 GT DTT that books for $51K That's $13K, Trade / Discount, whatever they want to write it up as (Listed as 8 trade and 5 discount).

    They can word it as trade or discount, however they want but the fact is they don't really need to make much money on your trade if it gets you buying a brand new car off them. If they don't give you the trade (including what they call a discount) you are looking for then they are taking the piss. For example they will have a paint guy who will fix up my Lib for a few hundred bucks, they will drop a 20K sign on it and get close to that, the Fiesta will go for $11K That's $31K. In essence they haven't lost a cent by working within the figures I gave them yet we still walked away with a discount we were happy with.
     
  9. Lil Skater

    Lil Skater Well-Known Member Business Member

    Joined:
    18th Jun, 2015
    Posts:
    382
    Location:
    Melbourne
    Last car I got about $3k off (and it was already reduced $5k), plus the dealership traded in my old car for $1k higher than the highest offer I had previously received.

    The car I traded was a Hyundai, but when I went to them to look at the i30 they offered me the lowest trade in value than all of the other dealerships I went to. I found that very odd, but then again I know nothing about cars.
     
  10. TMNT

    TMNT Well-Known Member

    Joined:
    23rd Jul, 2015
    Posts:
    1,383
    Location:
    Melbourne
    I thought the whole bargaining to make quotas was a bit of a myth

    I find they rip you of f on trade ins anyway

    Id sell privately

    What i did was called all the dealers. Got the cheapest price and told the other ones. Beat it and is yours

    Mine wasnt a 3 month wait car though

    I find if you got 5k off the listed price that's a fantastic deal
     
  11. Ed Barton

    Ed Barton Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    1,118
    Location:
    Brisbane
    I don't know about car sales specifically but in sales where quotas per month count it can also work in the reverse...

    If the sales woman knows they're not going to make the quota this month they may be keen to push the sale into the next month boosting their chances of busting their quota next month.
     
  12. Comet gc

    Comet gc New Member

    Joined:
    21st Jun, 2015
    Posts:
    4
    Location:
    Gold Coast
    I purchased a new car earlier this year. Retail around $26k, got for $21.5
    Used a combination of my own research online, leaving my details with car salesperson at test drive and getting a quote from auto genie. Which my local dealership beat once they knew I had an online quote and willing to travel to get the best price.
    Auto genie cost me $50. Only going to work for those who know exactly what they are looking for including extras. Saved me a lot more than what I could haggle them down to and in a shorter space of time. Once the price on vehicle was sorted I then negotiated seperately with their finance team to secure best deal on finance.
     
  13. sandyfeet

    sandyfeet Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    130
    Location:
    South Coast NSW
    we looked at a 2012 kia sorento today valued at approx $29k from a large dealer. before we test drove it we decided we were happy to go upto 27k if we could get roof racks and a 3 year warranty added (warranty value at $1k).

    we started at $24500, they came back and said they would throw in warranty.
    we went to $25500, they said they would throw in warranty and racks.
    we went to $26500, they came back with car, warranty and racks for $28500,
    we sat firm and said we were at our max and perhaps we needed to adjust our expectations (an honest assessment)
    their final offer was $27k for the car only, or $28300 for car, warranty and racks.
    we shook hands and left. the guy we were dealing with goes on holidays tomorrow and we were given the number of the 'manager' if we wanted to call and chat further tomorrow.

    we are not experienced when dealing with cars or negotiations, are our expectations too high? or could this be a fair deal (can post more details if needed). it is one of the cheapest on carsales for its year/model/kms

    **edit - what are peoples thoughts on the 3 year warranty for $1000? I wasnt fussed on it but the wife felt more confident having it. the car has done less than 40,000kms

    thanks,
     
    Last edited: 22nd Jul, 2016
  14. joel

    joel Well-Known Member

    Joined:
    23rd Jun, 2015
    Posts:
    783
    Location:
    Adelaide
    Wow. How can you waste 30k on kias.. hyundais.. just for them to spend the next few years getting repaired under warranty.. get a cheap used private sale car and save yourself the time and hassle. Seriously.. the dealers are screwing you..
     
  15. sandyfeet

    sandyfeet Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    130
    Location:
    South Coast NSW
    yeh probably..

    i wouldnt expect it to need major repairs, hence, not being fussed on warranty,
     
  16. Joynz

    Joynz Well-Known Member

    Joined:
    5th Apr, 2016
    Posts:
    822
    Location:
    Melbourne
    They aren't 'throwing in' the warranty, racks etc - they are charging you for them!
     
    sandyfeet likes this.
  17. craigc

    craigc Active Member

    Joined:
    25th Jun, 2016
    Posts:
    38
    Location:
    Melbourne
    Kia's and Hyundai's massively improved over the last few years. 10 years ago - avoid, now basically equivalent of Japanese standard & quality but a little cheaper. 7 year warranty on Kia with European designer makes hard to beat. A smart buy now. I don't have any affiliation etc
     
    Dan Donoghue, sandyfeet and Touristy like this.
  18. craigc

    craigc Active Member

    Joined:
    25th Jun, 2016
    Posts:
    38
    Location:
    Melbourne
    Also Japanese manufacturers Nissan/Toyota etc can do massive discounts in March for end of Japan financial year as well as June & Dec for Australian financial year & calendar year numbers.
     
  19. Phase2

    Phase2 Well-Known Member

    Joined:
    14th Jul, 2016
    Posts:
    421
    Location:
    Perth
    If you're happy with the car and the price, then buy it. You did the right thing by walking away though, it gives you time to reflect and decide.

    End of month/qtr timing makes no difference for used cars, dealers want to turn them over quickly. I wouldn't expect a bargain unless the car has been sitting on the lot for a while. There are not huge margins in used car trade, despite popular perceptions to the contrary.

    Most extended warranties are rubbish, if you want one read the fine print, carefully. Kia has a 7-yr factory warranty though,so it should cover you until 2019. I say should because it could be a 2012 model, that was built and delivered in 2011. The log/warranty book will tell you.

    Roof racks aren't that expensive and are pretty easy to fit yourself. Rhino rack are about $360rrp. So the dealer is not giving you a "deal" on the racks and ext warranty.
     
    sandyfeet likes this.
  20. Azazel

    Azazel Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    8,113
    Location:
    Brisbane
    Where did you hear that?