Negotiating a New Car Price: What's The Biggest Discount You've Gotten?

pennypincha on 05/03/2017 - 10:37
Last edited 05/03/2017 - 11:33 by 1 other user

We've never bought a new car before (can't say we're really considering either) but I have heard of some friends who have managed to get substantial discounts on new/demo vehicles.

Some reckon that they've even been able to get a better price than the market rate for a 1 year old, 2nd hand vehicle of the same model.

I'm interested to hear about your experiences in buying a new car.

What are the best negotiation tactics?

And more importantly, how much ($ and %) were you able to save?

Please list make, model, year if mentioning your discount.

Automotive

Comments

cala90 on 06/03/2017 - 15:35

+1

We picked up a Mazda 3 in 2015 for $28,500 with mats, tank of fuel (usually thrown in anyway) and a $50 voucher for each capped price service. Plus an extended 2 year dealer warranty if we service with them the whole time (which we planned to anyway). RRP was $33,600 so around 15%. After sales service so far has been incredibly good too.

Same year parents bought a new X-Trail for $34,000 with an RRP of around $40,500. Roughly 16% discount.

Feb 2016 my brother bought a runout Mazda 3 with slimline plates, mats and fuel for $26,200. RRP was $31,500.. Almost 17%. Also gets the $50 service voucher and 2 year extended dealer warranty.

Out of all three I'd say my brothers negotiations were the hardest. Took a lot longer than the other two.
- spackbace on 06/03/2017 - 15:48
  
  +2
  
  Plus an extended 2 year dealer warranty if we service with them the whole time
  
  Given the servicing requirements, if I know that warranty then it's not worth the paper it's written on. Limited claim total $$s, limited number of claims
  - cala90 on 06/03/2017 - 15:56
    
    Yeah, I've read through the whole thing and there's definitely claim totals and a limited number of claims per year. But at the end of the day, the way we see it is the cost of Mazda's servicing isn't too over the top and having a $50 voucher for each service brings it closer down to what my mechanic would charge with the bonus of having software updates and warranty claims all done on the same day (we're about 150km from the dealer).
    
    They also always give us a free loan car (don't even need to fill it up with fuel) if we book our services at least 1.5 weeks in advance.
  - Mikeologos on 07/03/2017 - 18:53
    
    So if we're in the market for a new car, would this not be an option worth getting?
    
    Surely it's worth something to the buyer, but given your words about it would it be worth negotiating something else. Honestly to me, even a limited extended warranty is something worth having, over some cheap plastic protector they would throw in instead?
    - spackbace on 07/03/2017 - 19:24
      
      A quick summary on this form of 'free' warranty:
      
      Must service through that dealership, no where else
      
      Claims are limited to $1,000 each, and a maximum of $3,000 over the course of the warranty
      
      Doesn't cover everything on the car… There are parts that aren't covered (ie not truly bumper to bumper)
      
      If the service department tells you something should be fixed, and you don't, then you won't be able to claim warranty later on
      
      With most new cars coming with 5yrs+ warranty, forget adding anything on top
      
      There's a reason why genuine extended warranties are over $1k.
    - cala90 on 11/03/2017 - 17:11
      
      I will add, the "extended dealer warranty" that we got was NOT part of our negotiations. We didn't find out until after we'd signed the contract that they offered it if we serviced there.
      
      As I said above, with the bonus $50 voucher we get every service we're paying almost the same as we would at our independent mechanic. Our independent mechanic can't update Mazda software though so it's definitely worth genuine servicing IMO.
- cala90 on 06/03/2017 - 19:38
  
  Not sure why I was negged..
  
  "And more importantly, how much ($ and %) were you able to save?
  
  Please list make, model, year if mentioning your discount."
  
  Pretty much what I did..?
  - pennypincha on 06/03/2017 - 23:06
    
    Sorry, I couldn't work out why someone would neg you either…
    
    Had a look, turns out it was me of all people - I must've had fat thumb syndrome…definitely didn't mean to neg - thanks for your contribution!
    - cala90 on 07/03/2017 - 00:02
      
      Haha, all good mate.
poppit88 on 06/03/2017 - 16:46

+3

I recently brought a second hand car. I setup an Excel sheet and went through my local adverts, car-sales, and gumtree. I marked out anything that had been advertised for at least three months. Touch wood I got a great buy for $2500.

I realised that the second hand car market is absolutely awash with cars, so much so that in many cases you can't give them away.

A new car depreciates between $2-4k a year as soon as you drive it out of the car yard. So, as a friend of mine said to me, you can ditch a second hand car a year later with the keys in it by the side of the road and go and get another. That's unlikely to happen unless you get a lemon and are really, really unlucky.

I'm hoping to get 5 years out of this little one, perhaps longer.
- pennypincha on 06/03/2017 - 19:17
  
  So, as a friend of mine said to me, you can ditch a second hand car a year later with the keys in it by the side of the road and go and get another
  
  That's actually a pretty interesting thought….never considered it that way.
- Matt P on 06/03/2017 - 20:08
  
  +2
  
  While true, a $2000 car is unlikely to have the safety features, efficiency and reliability of a newer model. A mate of mine buys older cars as a rule, but every single time they go in for service, he's spending $500-2000 in repairs (especially the first time a new car of his goes in for service). He could buy something for 15k (say 4yo camry with modest kms - as much as i hate them), have something infinitely safer, more reliable, less likely to cost a bomb at service. Even if he sells in 3 years for 8k, he's probably no worse off
  - rekabkram on 06/03/2017 - 22:35
    
    +2
    
    I knew a few guys out of school that have had at least 20 cars by now, they've never owned a completely reliable one.
    Their thoughts 'buy a cheap decent car, flip the old one and make a couple of hundred bucks'
    
    What really happens 'buy $2000 car, pour $1500 in to it, sell the car for $2200 and call it a profit…. rinse and repeat'
    
    If your buying second hand it should still be a reliable car, the winners are little old lady cars that have lived in a garage and done maybe 200km a week/fortnight. Give those a nice home service and a few tanks of good fuel and they'll generally run like new.
    - Matt P on 06/03/2017 - 22:38
      
      Sometimes yes. Rubbers and belts deteriorate though by sitting around not being used.
    - [Deactivated] on 07/03/2017 - 09:21
      
      You just described my case. My budget was low and I spent 4K on the car but had to spend 5-6k to repair it and maintain it over the period of 7 years. I don't have big sum of cash but can afford smaller amounts over a longer period of time.
glutamic on 06/03/2017 - 18:05

15% off a new custom build Mercedes + 4 years complementary service. Went to 3 different dealers and settled after someone gave me a good enough discount.
Splashtash on 06/03/2017 - 18:31

Bought brand new - few years back - Mazda 2 - I called up dealerships outside of my state and kept asking for better rates the closer I got to my area of residence + research online for a rough price guide. At the time I think i got the best rate out there compared to all the research I had found. My feeling is that you can get the same price for a new car as you can for a demo - you just got to work for it. You also have to pick your dealership. Some wont budge for 2 reasons. 1) the 2 dealerships in my area are owned by the same person and can control the selling price. 2) if dealerships havent sold enough cars they can therefore make sales cheaper to get more through the doors.
EmCKay on 06/03/2017 - 18:56

+2

I bought my Kia Cerato in March of last year. I looked at the online ads and found a demo model I was happy with. At the time my Cerato new would have been 19990 drive away (I think it still is). The demo model had 1100kms on it and was priced at 17200. I rang the Kia dealer from the advert and was told that it had just been sold. I then visited the dealer the next day and asked to see the advertised demo. Again I was told that it had been sold. The dealer offered to show me a new one and I agreed. After all that we sat at his desk and he asked me what I thought. I told him that I had really only planned for the 17200. After a minute or two he turned to me and said - 'if I make it (the new one) 17200 would you sign the paperwork today?'. I said 'absolutely' and the deal was done.
- Matt P on 06/03/2017 - 20:11
  
  Sadly they will give them away because depreciation is poor on the model. That said, with 7 years warranty, if its a long term purchase for you, who cares! I reckon keep it till the warranty runs out, even if you only got 4-5k for it so depreciation is less than $2000 a year.
  - EmCKay on 06/03/2017 - 22:26
    
    +1
    
    Yep, I've got two fairly young kids. It will be trashed by them in 7 years!
spokeless on 06/03/2017 - 19:17

+5
Research, decide and write down the exact spec of new vehicle you want including accessories and manufacture year. E.g. If it's a tow bar you want, is it light duty or heavy duty.

Plan in advance at least 4 dealerships to visit in the same day and be ready to buy. Make it clear you are ready. You should have done your test drives another day. You are here to buy.

Stick to your spec. You will be steered to look at vehicles that will muddy the comparison between offers

Shop on the last day of the month. Sales managers have monthly targets and are keen to close a last minute deal.

Ask to speak to the sales manager who has authority to negotiate directly. Check in advance if he/she will be in.

Make it clear you are shopping around but you are ready.

If you get a counter offer don't be afraid to call one dealer from the office of another.

Decide in advance what discount would trigger the purchase but don't buy from the first dealer. You will do better with an offer in hand even if it's verbal.

Don't be afraid to walk out. The offer will be there later in the day despite being told otherwise.

If there is an advertised sale ignore that. You can get a better deal than that.

Enjoy the hunt.

You can expect to get at least 7% off.
- vinni9284 on 06/03/2017 - 21:48
  
  Through the negotiations, ask for all the optional extras of the car, e.g leather seats, sunroof, etc …. then you negotiate the best price.
  Then get rid of the non-essentials and then further negotiate ….perodically breaking down and continue to negotiate.
  
  The salesman will tell you that he has to confirm with a manager…which is a bit of a game to reach a better deal.
  
  Some options below will be my priority.
  
  1 - Mats in the car all round.
  2 - Full tank of petrol. (You assume that a new car will have this right? wrong!! You have to negotiate this as there is enough fuel to get you to a servo lol)
  3 - A non-space saver wheel for the spare and have an original (if applicable for the car & model)
  
  If you become successful with a purchase, they will send you to another consultant (usually to an attractive young lady in an office) and will try to flog you off all the extra crap like paint protection, scotch guard, tinted windows, alarm etc … They will package it up like say around $2K for it but in my view it is not worth it.
  
  Even their 5 year extended warranty is rubbish IMO as they will try to sell it to you for over $1K.
  
  Cheers
lukelegend on 06/03/2017 - 19:42

+1

I usually work on 11-12 % off the price of the car without on roads and dealer delivery, stamp duty etc and get them included with drive away price.
[Deactivated] on 06/03/2017 - 20:01

+3

Toyota camry atara sl with sunroof hybrid, for about $8000 off for top model. Paid 42k for it brand new just released model.

Best tactic? Email all dealer in Australia, any city, asked for their best price on the model u want.

Then email the best three, asked for more discount. Ask for free give away, carpets, tint, etc.

Use that best deal as a guide when haggling Ur preferred dealer.

The best way to win a poker game is when u know their cards.

There is a lot of margin in car business, also car salesmen are worst liars. So don't be ashamed into ripping them off.
zhuntai on 06/03/2017 - 20:18

+2

Buying a car is a messy process. I have a couple of tips which can help if you're not in a rush. The standard goes without saying about shopping around and asking if people can beat each other's quotes. At the end of the day though it really comes down to case by case and YMMV. I was lucky to get more than 20% off a BMW.

1) Get to know the dealer. I know it's been questioned above but I do feel like they will put in more of an effort in making a deal and talking to their manager if you are genuine, likeable, and respect them. As with any negotiation, find out what you can do for them. A lot of the time the price of the sale is not the only factor at play. Get to know how their bonuses/commissions/stock situations are as they'll help with below. I've bought a car after meeting up with the dealer a couple of times over a few months and it has helped.

2) Know what you can be flexible about and what you can't. They'll talk to you about this also but if you don't really care what packages/colour etc then maybe they'll have floor stock that has been sitting around that they can give you a crazy discount on to move the car.

3) Go at the end of the day/quarter. Each dealership has KPIs that they need to make. It seems like a significant part of the profit for the dealerships is not in the sales of the vehicles themselves but in making quotas. They'll have bonuses for selling x amount of vehicles. If you happen to come at the right time, or the salesperson knows the situation and likes you (see point 1) they'll make a deal with you to make the quota for them. Often if they've had a slow sales day or a quarter where they're close to making the bonus threshold they'll sell a couple cars at a loss to make big profits from the manufacturer.

4) Sit with them for a long time. My friend sat and talked to the dealer for an entire afternoon taking up his time and drinking his coffee. They took a thousand off just to get rid of him I think.

5) If you are not in a rush, leave your details and requirements with the dealer. Often this comes at the end when you're a couple of thousand off. If they really can't make it work then, leave it with them and ask them to call you when they can. You may found that next time there's a factory bonus or a promotion they'll call you about it.
- pennypincha on 06/03/2017 - 22:46
  
  +4
  
  Sit with them for a long time.
  They took a thousand off just to get rid of him
  
  Genius tactic, cheers!
- [Deactivated] on 07/03/2017 - 10:02
  
  Point 4 - Spent 4 hours with 2 test drives before settling with the dealer. But was super direct when we were negotiating - openly said - break the other offer and you've got my business.
Matt P on 06/03/2017 - 21:12

+2

There is some good advice here and some poor advice (of course, in my opinion, but i've got 10+ years experience in the new car industry - not a car sales role).

If the discount on a car is huge, there is usually a good reason for it. Usually, it is one or more of the following
- A new model is around the corner
- The model is selling poorly (which will usually lead to the next)
- Depreciation is notoriously poor with this model
- The colour/factory fitted option combination is undesirable and thus has been sitting on the dealers floor plan for more than 90 days (a huge sin in the car sales world)
- The car itself was built a long time ago (forget compliance dates, look at build dates)

Cars that sell well, don't often get discounted hard (basic supply demand). Example - Toyota 86. For the first 3 years of sales of this model, there was a waiting list. As such, dealers rarely discounted much at all beyond a token gesture. Now that supply is greater than demand, the discounts are flowing easier.

The above all said, if the vehicle suits your needs and you're planning on keeping it long enough, its all irrelevant. Case point - myself.

Sept last year i bought my Wife an MY16 (2015 build) Volkswagen Passat 132 Comfortline wagon. RRP at the time was ~$47,000. Now a VW Passat is a car that will never ever sell for RRP due to sales not being as strong as its smaller cousins Golf and Polo. Also dieselgate, DSG gearboxes killing babies etc.. All in all, its one of the worst vehicles to buy in the VW range due to depreciation. Its also a bloody good car too (very efficient, beautiful interior, acres of space, power tailgate, radar cruise and active safety features, apple carplay etc..)

I bought her a demo, black, 900kms on the clock for $32,000 drive away. Thats a 32% discount. Using my rules above, the discount was that lucrative as the car was almost 12 months off the production line when it was first registered and depreciation is notoriously poor with the model. The "MY17" model was also around the corner which added a bunch of extra features for no increase in "RRP" such as memory seats etc..

Depreciation will be a savage whore on it though. It'll be a $20,000 4 year old car though and thats with our limited 10,000km a year usage. If i didn't get the enormous discount, it would be a poor choice of vehicle (instead perhaps a Mazda 6 Wagon would have been better) but having that discount made the numbers stack up. The dealers know this and i was willing to spend ~$3k a year in depreciation to have one of the more comfortable, safe vehicles on the road for my wife to ferry our 2 young kids around in. Heck, i don't want them to die in a car crash!

It also put a luxurious German car in the budget which wouldn't have even bought me a new base model cloth seats etc.. Ford Mondeo/Mazda 6 wagon (had to be a station wagon - Wife HATES SUV's)
- spackbace on 06/03/2017 - 21:24
  
  I bought her a demo, black, 900kms on the clock for $32,000 drive away.
  
  Mates rates though?
  - Matt P on 06/03/2017 - 21:32
    
    +1
    
    Surprisingly, not at all.
    
    It was through a dealer i had literally bought 100s of cars through for my customers, but my contact had left before i got out of Novated and it was a weekend. Advertised for 33500 and i got it down by offering credit card details over the phone in the last few days of the month
rekabkram on 06/03/2017 - 22:20

+1

So many variables it's not funny.

I've recently bought the new Subaru Impreza (2.0i-L) for $26,150 from full price of $28,180.

The discount was small but it is on a brand new model that is sold out everywhere locally with a waiting list.

Things I'm glad I did -
- Heaps of research
- Went in already knowing exactly what I wanted down to colour and accessories.
- Strict max price
- No one impulsive or overly excited with me (I would've loved to have taken my wife but she'd have paid full price and offered more when the dealer said there was a wait)
- Walked away when I wasn't satisfied with the offer and waited for a call back (leave them your number and a 'manager' will call)
- Returned to negotiate on the last day of the month

Things I wish I did -
- Go to another dealer (outside of the previous dealers network) and see what they can offer
- I showed my hand when the dealer asked how far we were apart, rookie mistake

At the end of the day the dealer and the buyer are trying to see who the better negotiator is, if they've been in the job for more than a year then I almost guarantee they're better at it than me/you. Know what you want, have a set price, and don't get attached until it's on your driveway.
- jikijiki on 06/03/2017 - 23:11
  
  When people say they walk away does it mean to literally walk away in the middle of a conversation? Seems like a good way for someone to never do business with you again right?
  
  "- I showed my hand when the dealer asked how far we were apart, rookie mistake" Mind explaining this in a bit more detail??
  - rekabkram on 06/03/2017 - 23:31
    
    +1
    
    Didn't walk away mid conversation, by that I meant that when they tried to say they'd gone as far as they could go we weren't where I wanted to be. So I explained that while I'm happy to negotiate (they'd knocked $800 off) we were too far apart and I walked knowing that I'd already given them my contact details.
    
    2 days later I had a phone call with the sales manager, I told them we were considering our options but gave them nothing else (was the 28th jan)
    
    (31st Jan I returned) When I say I showed my hand, we were $500 out from what I wanted which was at least $2k off the purchase price, the salesman asked how far out we were and I said I need another $500 off….
    When they knew my maximum and that I was serious about it after about 10 mins they agreed, while I could have negotiated a bit more.
    - spackbace on 07/03/2017 - 00:13
      
      +1
      
      while I could have negotiated a bit more.
      
      But you're really just guessing at that. You showing an actual figure at where they'd earn your business showed you were genuine and serious.
      
      They could have gone $200 into the negative for that deal. Just because they agreed on the figure you gave doesn't necessarily mean there was more wiggle room.
      
      If it was end of January and you were buying a 2016 plate that would have had good leverage too.
      
      Just saying :)
    - rekabkram on 07/03/2017 - 06:04
      
      +1
      
      @Spackbace:
      Absolutely speculating, at the end of the day the only people that know how profitable it was were the salespeople and then they don't get given all of the information.
      I was quite strict that it must be a 2017 build, happier to wait.
    - Moral hazard on 09/03/2017 - 21:01
      
      +1
      
      @rekabkram:
      
      I worked at a suby dealership recently, based on what I've seen, you did well.
7up on 06/03/2017 - 23:20

i would consider buying if it is advertised in ozbargain :) …im a truly ozbargain spirit, lol
BestofOZB on 07/03/2017 - 01:15

+1

19% on a Chrysler 300c in 2009.
8% on a Ford fiesta in 2014 (MY13).
11% on a Mecr 2016.

Best tactic for me was to know what you want including all extras. Set a price after you research the market. Call different dealers offering your price and ask for a yes or no answer. With my last purchase, I got a yes from the 5th or 6th dealer.
ddhar on 07/03/2017 - 08:20

I bought a brand new, previous year stock Mazda3 for $5k less than the best price I could find on Carsales. The dealer of course wouldn't lower the price any further but was happy to throw in mats, full tank and reverse sensors to sweeten the deal.
NeoWilson on 07/03/2017 - 10:02

10% off the RRP in Dec 2016 for the 2016 CX-9
woodlake on 07/03/2017 - 11:47

I'll be looking at picking up a used car at the end of the month in the range of 17-20k.
What is the likelyhood I'd be a ble to pay for it with the Amex card to boost the points tally (without fees of course)?
Anyone had any luck?
- Matt P on 07/03/2017 - 18:28
  
  Without fees is unlikely. If you can manage to negotiate without fees, chances are there was more discount on the table.
  
  If you're serious about the AMEX, only introduce it once the dealings on the car are done
  - spackbace on 07/03/2017 - 19:25
    
    If you're serious about the AMEX, only introduce it once the dealings on the car are done
    
    Won't matter, they don't have to accept it as payment.
    
    Expect 2.5%+ as a fee… really not worth it
    - Matt P on 07/03/2017 - 21:10
      
      Of course not, but at least he/she can see the real cost of introducing it as a payment method into the deal and understand the cost/points washup and then make the call
    - woodlake on 08/03/2017 - 15:19
      
      +1
      
      Yeah, thats what I thought. I'll see what they say - cant hurt to try.
      Thanks for the comments guys
      - capslock janitor on 08/03/2019 - 17:17
        
        @woodlake: How did you go with AMEX payment ?
OzzyOzbourne on 07/03/2017 - 12:05

In my experience, most dealers would prefer not to sell the car than give a discount, usually claiming some bs like, I've already dropped the price etc. Only to have it on the forecourt for another 6 months until finally dropping the price significantly to sell the car. They are that arrogant.
anthony1106 on 07/03/2017 - 14:03

+1

Audi Q5 TFSI bought in May 2014 brand new floor stock 6KM was driven when picked
RRP 84k
Metallic paint: Glacia White
Heated front seat
full colour bumper
Technick pack
Tinted
Got it for 70k
Deal was over email only.

Mercedes C200 bought in Nov 2016 brand new floor stock 11KM was driven when picked
PPR 78K
Metallic paint: brilliant blue
NIght edition
AMG alloy
Panoramic roof
Heated front seat
Tinted
Got it for 65k
Sunday Walk-in (end of the month)

Volvo XC90 bought in Jan 2017 brand new, arriving April 2017.
PPR 135K
D5-R Design
Metallic paint: Pearl White
Tech pack
Panoramic roof
Tinted
etc.

Got it for 100k
Walk-in

All of them are purchased in Sydney
- Cwong14u on 07/03/2017 - 15:28
  
  +4
  
  What is your secret to success?
  - anthony1106 on 07/03/2017 - 23:39
    
    +2
    
    Pick the car with most of the option you would like to have
    
    Usually those private owned dealership can offer more discount than those corporate owned
    e.g.
    (Parramatta Audi vs Waterloo Audi)
    (Alexandria Mercedes vs Sutherland Mercedes)
    
    Approach them around the end of month
    
    Start negotiate from at least 25% off RRP, doesn't need to be embarrassing for the price you offerr
    15k-20k discount might sound alot for you in the first time but think about the price other people who walk-in without those discount.
    
    bring your partner/friends/parents with you, let them speak about other cars, make them feel like your partner/friends have more influence.
    Do a good cop bad cop scene. even though u really like it, keep your poker face on.
    
    Leave the tinting/accessories(floor mat/umbrella/cargo tray) at last but make sure they put in down in writing.
    (they will try talk you through and tell u those can't be a deal breaker but again you just have to be determined)
    
    Don't tell them everything about yourself, e.g. your job, do you kids, do u need to finance or not, keep those personal thing as vague as you can.
    
    relate to point 7, reason of doing that is, if u told them u need finance, they will keep telling, the $1000 difference has minimal impact on your weekly repayment and stuff, they can offer you a bigger ballon payment and you can still sell your car in good price in 5 years.
    same thing apply to those finance manager u will meet after the deal has been confirm, talk to your bank before u go ahead with their internal finance, shop around re: finance, don't rush, but please make sure the put down "subject to finance" before signing anything.
    - Cwong14u on 08/03/2017 - 09:16
      
      Thanks for sharing - You make some valid points, so will definitely use your tips when negotiating for a new car later this year.
- d351 on 11/04/2017 - 09:46
  
  Hi mate can you pls pm as I've got some questions in the market for a c200 similar spec, trying to do a deal as night edition no longer avail. I'm in syd. Thanks in advance!
Munki on 07/03/2017 - 15:37

2010 Toyota Aurion Presara RRP: $55,000

1.) Did essentially zero research aside from checking out specs online. Didn't even bother test driving the car.
2.) Asked a few dealers for the best price (best price offered was $48,000).
3.) Got to the last dealer I wanted to try (Western Toyota on Woodville Rd, Guildford) and asked if they would do it for $47,000 then and there.
4.) Done deal for $47,000.
5.) Guy tries to call me a few days later to see if I would pay for "delivery" as they had to source it from Melbourne. Told them not my responsibility where you source it from…

I think I did well with that price given it was brand new and top of the line.

If I were to buy brand new again, I'd definitely do more research and go for at least one test drive. And maybe even push harder for a better bargain…

Forgot to mention: I was absolutely committed to buying that particular model, so I probably seemed more assuring to the salesman than those who were still shopping around.
tinx on 07/03/2017 - 16:05

i use this site for comparison http://haggledb.com when i bought cx-5 2016 maxx sport 2L auto.
DangerNoodle on 07/03/2017 - 17:45

+1

One thing that most people dont realise is that you can also negotiate the interest on the loan if you choose to go on a loan. Check online for comparison loan tools and then challenge the dealer. I challenged a dealer when I was buying a Toyota for my mum and dropped the interest from 7.9% down to 4.6%.

Another thing is give your suppliers at work a call and see if they're partnered with any car companies. Previously i worked in a pharmacy that used Sigma as a supplier and we got corporate discounts on mazdas, toyotas and from jb hifi, although the sale prices are JB are cheaper than the corporate prices.
Djtommyca on 07/03/2017 - 18:12

Few years ago I bought brand new Mazda 3 Parramatta dealer price was $24.000 but I paid in cash for $21.000
Oliver on 07/03/2017 - 19:04

I got a brand new mazda 3 astina 2016 hatch (the top of 7 variants) for 32,900. The RRP was 39,500. It was brand new, made in dec 2016 and came with 14km on it (i.e. from testing/driving off the dock etc).

It was a hard and nasty negotiation and in the end the manager of the dealership renigged his deal and politely told me to go (profanity) myself. So I took his price and went to the next dealership and they did the price for me.
imolared on 07/03/2017 - 20:11

+1

Took delivery of a 2017 Honda Civic VTI-LX last week. Went with Autogenie broker here in NSW for $50, ended up getting the car with over 10% discount. Couldn't be any happier since local salesmen were only offering 1k off the sticker price. Car had 18 km on the clock during delivery, 2017 plated, manufactured Jan 2017.
- capslock janitor on 08/03/2019 - 17:44
  
  Did AutoGenie go out of business? Can't find them, help..
Tech and cars on 07/03/2017 - 20:21

+1

European cars - have about 15% off. I've seen audi give 15% off all their cars often as newspaper deals. If they can advertise that on all their cars, then they can do it at any time of the year.

In general japanese/korean cars are competitively priced and the lowest you find on carsales - is a good guide. You really are getting what you pay for, so any further discount is a bonus. Again, if you get a heavily spec'd up korean car, then it's a different story, you may have more negotiating room.

Options - understand what you want and buy those only. A car can cost $50k with 0 options, and that same car can cost $90k with all the options. Do your research and think hard about the options and then place a reasonable offer after that.

Good luck.
PVA on 08/03/2017 - 11:08

Spacebace must giggle to himself when he reads the expert negotiating tips here.
- spackbace on 08/03/2017 - 12:51
  
  +2
  
  I just thank god we don't get 'blanket emails'. Worst way to do business imo, and many dealers would ignore an email that was (obviously) sent out to every dealer
  
  No one likes a Dutch auction
  - cala90 on 11/03/2017 - 17:26
    
    Really? When we first started looking for a car (specifically told the first salesman we had only just started looking) he actually gave me his email address and said he was more than happy to talk that way. He was extremely helpful and responsive to emails. I suppose it's different if you just get random emails that you know have been sent to another 3 dealers.
    - spackbace on 11/03/2017 - 18:35
      
      +1
      
      Yeah contact by email is fine. Blanket emailing every dealer asking to submit lowest price = not fine!
Jabberwocky on 08/03/2017 - 11:57

New Mercedes in 2015 —> $63,000. Got it for $52,000 —> $11,000 or 17.5% Drop
Will call it 'Price Correction' not necessarily 'Saving' coz Audi-BMW-Merc etc. are already 30-50% percent more expensive.
jerjergege on 08/03/2017 - 12:22

Around $8,000 on a new 2015 Civic in 2015
- itsDANNY on 09/03/2017 - 13:01
  
  Anymore info mate?
  - jerjergege on 10/03/2017 - 08:17
    
    Gun-metal grey Honda civic, last quarter of 2015,they probably want to sell them since the 2016 model was coming out in 4 months. Dad knew the accountant for dealerships in the area, got only a tiny bit more of a discount compared to normal haggling.
    
    Some friends got a $11,000 discount on 2016 Mazda 3's.
    - itsDANNY on 10/03/2017 - 10:52
      
      Thanks sounds like you grabbed a good one!
      
      The Mazda 3's however, was at the same dealer and was recent? That's quite a huge chunk taken off!
    - jerjergege on 14/03/2017 - 19:51
      
      Nah, different dealer, but they bought 2016s, most likely trying to get rid of them since 2017 already rolling out!
raymond y on 08/03/2017 - 22:02

One of the biggest things that is yet to be mentioned is Luxury Car Tax (LCT).
https://www.ato.gov.au/rates/luxury-car-tax-rate-and-thresho…

Essentially 33% over the threshold value is charged by the Australian Tax Office. In Victoria, is is also accompanied by an increased rate of stamp duty. This can misrepresent the possible deal on a vehicle between the $50-60K drive away mark.

This is one of the biggest reasons why there is a larger "margin" in a "luxury vehicle". Essentially each $3,000 vehicle discount is accompanied by a $1,000 discount in payable LCT. Net $4,000 discount on the drive away price.
- spackbace on 08/03/2017 - 22:04
  
  between the $50-60K drive away mark.
  
  $64,132+ ;)
  - raymond y on 08/03/2017 - 22:05
    
    That's vehicle price, depends on what "dealer delivery" is :)
    - spackbace on 08/03/2017 - 22:08
      
      That's RRP, before on roads (afaik)
    - raymond y on 08/03/2017 - 22:18
      
      @Spackbace: Yep so the threshold is vehicle price, options and accessories and other charges that aren't government charges.
luffyex2010 on 08/03/2017 - 23:05

Why this feels like a consumer vs car salesman debate…..
luffyex2010 on 08/03/2017 - 23:10

All i know that pricing here is quite interesting.

Audi q7 120k drive away here and…US audi q7 40+k drive away…..their model must have less bolts and nuts compared to our version besides the car seat sides.

And the audi q7 sales person told me …yeah i know as well because its australia ….its the price you pay.

Audi cars are now made in russia not germany.
gcdollar on 09/03/2017 - 09:50

I got about 13% discount on a mini.
yesiamcheap on 09/03/2017 - 10:54

I managed to get $10k off a 370z. They also threw in b&w plates, 3 years extended warranty and the floor mats. It took some effort. Later they tried to screw me on the finance rates but I brought that down too (got it from 11% to 6% - probably still too high for a new car but I was OK leaving a couple of points of interest on the table by then).
mrgeckoz on 09/03/2017 - 11:38

12% off a brand new golf. (back in 2013)
AngusD on 09/03/2017 - 11:53

I bought a Nissan 370Z new (well, about 50km on the clock from being used as a demo) at the end of 2012 for $61k driveaway, RRP was something like $72-74k driveaway at the time (lower these days).

A few factors at play there - one, the car was in stock, and I'd had my eye on it for a while so I knew it had been in the dealer's yard for a few months, so they'd be pretty keen to move it. Second, I did it about 2 or 3 days from the end of the calendar year - they're always keen to move cars in the last few days of a month / quarter / year to make their numbers look better, plus that 2012 car was about to become "last year's model" in a couple of days, and they wouldn't have wanted that, either. That model of car was also getting a minor cosmetic makeover for the 2013 model, so the old one would look slightly different to the new one - I actually preferred the older look, so this worked well for me.

Initially they were reluctant to come down below about $66k, but I stuck to my guns. I'd been in there and test driven it and spoken to the guy in person, so he knew that I was genuinely interested, but when it came to the haggling I was doing it via email / telephone so that I wasn't under that pressure of sitting right there in the guy's office - on his home ground, so to speak.

Do your homework - check internet forums (if you can find any) for Australian owners of the car you're interested in and see if you can find out what people there paid (also take note of what time of year/month, options, etc). I looked around online and could see similar cars being offered by dealers interstate. I live in Adelaide, and I basically put it to him that instead of paying him $66k for the car, I could buy one from Melbourne that was being advertised for $61k plus maybe $100 for a one way flight to Melbourne, taxi fare to the dealer and 1-2 tanks of petrol to drive it home again. At that point he came down to $62k and I was willing to do that rather than all the hassle of buying from interstate for the sake of saving < $1k.

I was also paying with my own money, not finance, but I'm not sure if that makes any difference in terms of your negotiating power. But on general principle I would not borrow money to buy a car (or anything else) if I didn't have to do so.
- spackbace on 09/03/2017 - 11:58
  
  I was also paying with my own money, not finance, but I'm not sure if that makes any difference in terms of your negotiating power. But on general principle I would not borrow money to buy a car (or anything else) if I didn't have to do so.
  
  Dealers prefer finance customers, for obvious reasons. The old "I'm paying cash" doesn't mean anything any more, and if anything it will mean a deal won't be done
  - Hellfire on 10/03/2017 - 09:14
    
    Can you get the same level of discount with finance? What about those ~1% finance deals that pop up from time to time?
    - spackbace on 10/03/2017 - 10:25
      
      Depends on the brand and how they work it, but there's not such thing as a free lunch! If you don't take up the. 5 or 1% offers you could likely get the car cheaper.
      
      But if you're financing the car, yes of course you could get the same level of discount, more so if you're financing through the dealer
[Deactivated] on 09/03/2017 - 18:33

Purchased a new 2012 jeep Cherokee limited.

Saved about 9k.
shuckeru on 09/03/2017 - 20:48

A top of the range 2016 plate Hyundai Sonata premium with beige interior was offered to me by the dealer in December for $36,500, from a RRP of $42,000 without the interior. margin's probably huge when you start going up trim levels.
Hellfire on 10/03/2017 - 09:13

I'm in the market for a new car so watching this thread with interest.
eruption on 10/03/2017 - 10:48

Is there a database of cars and their Australian Recommended Retail Pricing?
- spackbace on 10/03/2017 - 11:30
  
  RRP means SFA
  
  Though Redbook does list RRP before on-roads
  
  Or any brands site will list their sales prices on any model
ebayer007 on 10/03/2017 - 15:52

Based on all the comments above, how much would you pay for this Mazda CX-5 priced at $28,780?
https://www.carsales.com.au/demo/details/Mazda-CX-5-2016/OAG…
- Hellfire on 10/03/2017 - 16:35
  
  +1
  
  Negotiate hard. There is a new refresh of the CX-5 arriving mid year.
  
  Discount on 2016 model
  
  Discount on demo model
  
  Discount on run out model
- spackbace on 10/03/2017 - 17:11
  
  Steel wheels… Blerg
  
  Though it is the cheapest on Carsales Australia-wide for a 2016 CX-5, so I can't imagine there'd be much more wiggle room left…
  
  Maxx Sport for $29,990 + ORC would be a better buy
Wallace666 on 10/03/2017 - 18:36

I bought a Honda CR-V Vtil in 2015 and got 12.5℅ off plus 5 years warranty, floor mats and cargo tray. Hope that helps.
lollyball on 10/03/2017 - 19:13

Don't buy anything until you've watched this guys vids
https://youtu.be/Xgp8H_MOJXE
Very informing and hilarious
Best advice I can give any 1
- spackbace on 10/03/2017 - 20:05
  
  +2
  
  Eh, guy still has a biased opinion. He has brands he likes and brands he doesn't. Everyone does
JasonElvisGenova on 19/07/2017 - 06:29

Mid-September 2015 purchase - brand new Mazda 3 (auto 2015 sedan maxx), DA $28,650 and it was haggled down to DA$23,850 (16.75% discount) - mats, sat-nav, boot liner, 12-month rego & ctp greenslip, 1 year additional dealer warranty, 3 years Mazda roadside assist
*DA - driveaway price

Negotiating a New Car Price: What's The Biggest Discount You've Gotten?

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