Advice on a Negotiating a New Car around $20k

LKelvin0911 on 24/04/2017 - 19:59
Last edited 24/04/2017 - 20:54

Hi everyone, I am looking to buy the new Kia Cerato Sport RRP $23,000. I haven't had much experience in negotiating a new car before so anyone has some advice or a margin of discount that I should negotiate with the salesperson?

I already went to 2 Kia Dealership in Cheltenham & Dandenong but they didn't give me much discount (~ $500). I did try to use some of the strategies like "standing up and ready to leave, saying that I can buy it today, say that I got offered $21,000 at X Kia dealership" but they seem like not-ready to negotiate anymore & ready to let me leave.

I am aiming for something close to $20k but am I over expecting that they will drop the price to that low? Has anyone recently bought the Kia Cerato and what did you pay for the car?

Thanks in advance.

Edit: Also I am open minded for other Makes, the new generation Hyundai I30 looks quite decent. They're asking for $24,990 for the base model which I don't think I can get much discount since it's just released.

Automotive

Comments

  • o53djz7qTPY4der on 24/04/2017 - 20:24
    +1

    Just tell them that is how much you have to spend.

    However, normally, it depends on stock and timing. If it has been a slow month and they have one in the warehouse (presuming you are not fussy about colour) you would be in a good position to negotiate. If you can hold out it might be worth trying just before EOFY.

    • Kelvin0911 on 24/04/2017 - 20:35

      Hi, thanks for replying. Yes I also told them that I want the price close to $20k but then they were just trying to sell me the base model Cerato S + AV (RRP 20,499). I sort of need the car ASAP so not sure if I can wait until EOFY. Thanks

  • Peter Enis on 24/04/2017 - 20:40
    +2

    Ring around all the Melbourne dealers, ask them what they have in stock, if what they have suits you tell them you are happy to put down a deposit over the phone, if the price is right. Name your price. If all dealers reject your offer, then you are clearly offering below their current price point. After a few calls you should be able to work out the current lowest price for whatever you are after.
    Be prepared for the little "dance" of a few calls back and forth, that's normal. But make it very clear that you are wanting to move very quickly. Try not to waste their time, and they shouldn't waste yours.
    Good luck.

    • Kelvin0911 on 24/04/2017 - 20:47

      That's very good advice. Not sure if they're willing to negotiate the price over the phone but will try it out. Thanks

    • dylanando on 24/04/2017 - 21:41
      +2

      Get a disposable phone and a new sim while you're at it, Those bastards never stop calling you.
      I bought a new car 2 years ago and ive still got people ringing me. VW seem very persistent.

  • Lexus101 on 24/04/2017 - 20:54
    +6

    Bought a few cars in my lifetime. There is very little margin in small cars, the usual discounts these days run along $500-$1000 off. Expect to get free car mats (which dealers will point out is not free and probably true).

    The market in small cars is very competitive and every brand have dropped prices to compete.

    Higher end and luxury cars are different ball game, where $3,000-$10,000 are discounted because margins are healthier.

    Hope that helps you.

    • Kelvin0911 on 24/04/2017 - 20:57

      Thanks, I will keep that in mind when negotiating.

    • spackbace on 24/04/2017 - 21:20
      +2

      This man doth speaketh the truth

  • dasher86 on 24/04/2017 - 21:49
    +1

    Check out the cheapest on car sales and generally that is close to the best you will get.

  • [Deactivated] on 24/04/2017 - 23:17

    How to beat the dealer: https://www.youtube.com/watch?v=v8VYNFzmJIQ

    • [Deactivated] on 24/04/2017 - 23:19

      I personally used this method and played the dealers against each other, and they knew about it.

      I got my car down from 61K RRP down to 52K

      • El Grande on 24/04/2017 - 23:40

        Was it an Audi/Lexus? 10K off an A4 is average. Mercedes Benz on the other hand are tight a$$holes.

        • [Deactivated] on 25/04/2017 - 07:35

          Kia Sorento Platinum

  • theHMASfriendship on 24/04/2017 - 23:33

    Not much margin at the low end of the market. Look for demos.

  • dutchcakes on 25/04/2017 - 00:42

    Yeh I've been told many places don't have much of a margin on new cars. Try getting more extras included?

    But best advice I received when negotiating was to leave the yard. Their main tactic is to keep you there and scare you into thinking it's the best deal and nothing else is out there etc. Leave and shop around. I got a call an hour later, then again a day later, we negotiated 3 times over the phone before I got the price I wanted.

    • spackbace on 25/04/2017 - 01:05

      Nowadays if a dealer let's you walk out, it's not likely they can do better. We'd rather grab you there and then than let you walk.

      Nothing funnier than the shock on someone's face when you tell them "I won't call you later, this is it, you call me if your budget changes". Purely because the internet is a step behind and still tells you to walk out.

  • spackbace on 25/04/2017 - 01:08
    +4

    Edit: Also I am open minded for other Makes, the new generation Hyundai I30 looks quite decent. They're asking for $24,990 for the base model which I don't think I can get much discount since it's just released.

    Sorry, but wtf are you doing negotiating now?!

    This comment is gonna get negs but frankly I don't care. Don't enter into negotiations until you're prepared to buy! How many times do I need to say that on here?!

    No wonder no one has taken your offers seriously when you're not finalised on 1 specific model!

    Work out what you want to purchase, then haggle.

    Don't be flaky, be firm!

    Argh

  • HeWhoKnows on 25/04/2017 - 08:02

    Dealers of the same brand will give similar discounts. Depends what the factory is offering them to move the cars. If they are popular or in short supply dont expect much discount. Maybe for a demonstrator you will get the discount you require or Try a different brand/model.

  • pjcook on 25/04/2017 - 08:12
    +1

    Look on car sales and buy a late model 2nd hand car, you will save thousands, get what you want (except maybe for colour) and still have new car warranty). My last purchase was a 3 month old Calais sportswagon with 5 k on the clock, I got it for 16 k below new price.

    • papachris on 26/04/2017 - 04:49

      Be careful with this however. It is easy to look for dealer demos or ex- manufacturer executive cars that are < 10K old, but they are often not discounted as much as you might think. The current new offer can and has often undercut dealer demos, etc. Well, that is at the low end of the market - I don't know the mid to upper end at all unfortunately…

  • bion83 on 25/04/2017 - 10:05

    Wait until the end of financial year I got $10k off when I was buying my car. It's all about timing.

    • raymond y on 25/04/2017 - 10:36
      +5

      But you didn't get $10k off a $20k car did you? It's all about perspective and this comment doesn't help the OP

      • bion83 on 25/04/2017 - 12:16

        ok put this this way I got ~13% off which is roughly what he is trying to achieve, as I said its all about timing…

  • michaeltee on 25/04/2017 - 10:21
    +1

    Write to autoexpert.com.au. They will negotiate on your behalf

    • annestewart on 25/04/2017 - 11:11

      Totally agree, they are the experts and you will definately save money.

    • Big Dog on 25/04/2017 - 11:45

      Yep. I agree.

      OP should check out his John Cadogan's (AutoExpertTV) youtube channel. Here are some videos that might help.

      Buying at the end of the month for the best deal:
      https://youtu.be/yT9u8ETYP6s

      Buying the right car in 2017:
      https://youtu.be/Xgp8H_MOJXE

      • spackbace on 25/04/2017 - 12:34
        +1

        Buying the right car in 2017:

        Don't bother about someone else's opinion, don't let it affect your buying decision. We all have things we like, things we don't. We all have bias no matter how unbiased someone will profess to be.

        Car buying is individual. Whatever gets car of the year (by whichever publication you read) might not suit you - you might not like the seats, the gearbox, legroom etc etc.

        Buy a car because you like it, not because someone else does.

      • dasher86 on 25/04/2017 - 13:13
        +1

        I managed to negotiate a better deal on my car than that mob.
        For a car with small margins you can probably do better yourself as you don't need to pay their cut.

  • Ebisu on 25/04/2017 - 15:26
    +3

    http://imgur.com/a/Lydnj

    cerato s AV. purchased on 2nd week of April.

    i'm sure you can get @20K with accessories.

    i Contacted auto expert first. waited 3 weeks no result. got a call didn't received any offer from dealers.

    they gave me alternative of Mitsubishi mirage. after that i stopped taking calls from them and started calling few dealers and made visit to one dealer did test drive. and out without negotiating. they called me saying sub 19K, i threw counteroffer of $18.5K. that's it. got my car in a week. discount of $3k.

    • pencilman on 21/05/2017 - 10:26

      You did very very well !!! Congrats and enjoy your car. A true Ozb classic.
      Now if only I can do as well as you (I'm in Vic) ……

  • tranter on 25/04/2017 - 16:09

    People always recommend Auto Expert, I don't get it I could do much better on my last purchase by myself. Their offers came no where close.

    Don't worry what others say, even after lengthy negotiations and you're not 100% happy with the deal, walk out. Most of the time they will call you back. That's when you are in control and increase your chances of getting the deal you want. The last car I bought was 1 year ago, and 2 of 3 dealers called me back.

  • papachris on 26/04/2017 - 05:05

    As another small bargaining tool, if you don't need 17" alloys, try for the Cerato S Premium. According to my fairly detailed spreadsheet, the only difference is 16" alloys instead, and no spoiler on the sedan - current month new is listed at $22,526 ($500 less). You also get more colour choices - 8 instead of 4…

  • callum99 on 22/05/2017 - 17:23

    My mate paid 21.490 for a kia cerato sport auto with metallic paint.Also noticed on carsales there is one advertised for 19.990 driveaway.

    • Kelvin0911 on 22/05/2017 - 22:40

      Do you still have a link to that ad for 19.990? I couldn't find it.
      Will try to go tomorrow to see if they will agree for 21k. Thanks for the reply

  • avocado on 23/05/2017 - 21:53
    +1

    Disclaimer - I work as a finance and car broker.

    Seriously, save yourself the angst and start using a car broker. Like anything, there are good ones and bad ones, but a good one has access to fleet pricing and will save you lots of time and get you the best discount available. What I am saying is a broker knows where to get the closest price to cost without all the fussing about. You may even avoid having to step foot into a dealer.

    It's really simple in cars when it comes to the price.

    Let's take a Hyundai i30
    Manufacturer makes car for $15,000.
    Manufacturer sells to Hyundai dealer for $19,900.
    Hyundai dealer sells to public for $21,900 + On roads.
    Potentially only $2,000 in it for the dealer which always gets squeezed down to near cost while the manufacturers margin is always protected.

    Some things to note:

    1. There is always a "floor" price
    2. All dealers buy from the manufacturer for the same price
    3. Price disparity between same brand dealers is because of dealership costs, staff costs, whether a manufacturers bonus is running etc.
    4. Manufacturers sometimes pay a monthly bonus to the dealer based on units sold.
    5. Some dealers prefer to sell the cars at just above cost in order to achieve this bonus.
    6. Most dealers are selling for near cost price, however the retail section of dealerships is where most get ripped off.
    7. You cannot compare pricing for the vehicle in say January to pricing in August for example. There are variables that affect price each month

    My advice for people searching for a new car is to do the following:

    1. Go and find 3-4 dealers and negotiate the best price you can until you are satisfied you cannot go any lower
    2. Ring ONE car broker and be totally honest with them - tell them you are at final stages and you have $X price - best to be able to back it up with a written quote of some description - the broker is on YOUR side.
    3. If the broker finds a dealer willing to beat the price, reward the broker by buying the car through them

    Hope this helps

    • Kelvin0911 on 23/05/2017 - 23:44

      I haven't used a broker service before so that's good to know. So what is the cost that I will pay for the broker if I am buying a 20k car? Also do you have any recommendation for a good car broker?

      • avocado on 24/05/2017 - 00:31

        It's a good service and can cast the net very wide, i.e. engage dealers from Central Coast, Newcastle etc. which can help with availability and pricing.

        COST:
        The cost to you should be nothing. Some brokers do pressure you to put down a deposit before any car is found and it's a way to lock you in, but I personally don't operate that way as I feel the price I get for the buyer will be competitive and 90% of the time cheaper than what the customer can find on their own, so my service stands on it's own two feet. Even if a customer does happen across a better price, they normally just call me and I'll do the legwork and find a dealer to beat that again…you just need to work with your broker and you'll have a great experience.

        HOW DO BROKERS GET PAID:
        The dealer always has margin in the car to pay staff commissions, say $100-$150. In this case, that money would just go to the broker instead of the salesperson (usually the broker gets less than the salesperson because they can exclude the extra costs of the employee like super, work cover, holidays, sick leave etc.). It's actually cheaper for the dealer to use the broker.

        RECOMMENDATIONS:
        I'm not sure of the rules on OzBargain, but I don't think I can promote mine or any other business here. I'm happy to give you a hand if you want to PM me.

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