Hi all
I'm currently in the market for a used 2015-16 Holden Insignia, of which there are several available in the early $30k's, and am wondering what the average margins dealerships work with on their the used cars? I'm hoping to spend around $26k, but am not sure whether offering $4k less than what's being asked is unrealistic.
Any advice you could offer would be much appreciated.
Cheers
All well and good to ask $27k, doesn't mean they got it ;)
I traded a vehicle for $28k I saw it on their lot the next week for $28,750 - I then thought I must have been severely gouged on the new car I bought….
It depends how it's priced and if it's ex-privately owned or ex-Holden.
If it's the cheapest on Carsales - don't expect there to be a further 10% wiggle.
Privately owned - should have more profit than ex-Holden owned.
Be firm with your offer but let them know you will buy at that price! Put it down in writing if need be, it shows you're serious.
Awesome cars the VXR, and a significant discount off new. Android Auto can be sketchy/non-existent.
Consider an extended warranty. We had brand new ones throwing up random error codes, such is the number of sensors on the car.
At this time of the year you should be able to at least 10% off the listed price. push for ~15% and make it clear that you're ready to sign on the spot.
Many dealers work off Japanese financial years, so June means fk all ;)
And such is the fluid pricing structure of used cars that they'll just advertise the car cheaper if they want it to go asap, but doesn't necessarily mean there's a further 10% to play with.
Put it this way, don't expect 10% margin on the cheapest car on Carsales. Can't list as the cheapest and still expect a huge margin. It's 1 or the other.
City Toyota didn't mind. We got a good deal, great service and the sales rep got a quick sale.
So what car did you buy @ 10% off?
And which one did you go to out of curiosity, Perth or Nedlands?
Just curious that's all, I know someone at Nedlands :)
The other thing to remember when negotiating is if there are any extras you want for the car that they can supply, it could be worth making them the negotiation point as then you are adding the profit margin from them into the equation. Helped a friend buying a Hyundai get rear view reversing camera, tyres, etc installed.
Don't stuff about with your finance. Make sure that when you go into a dealer, they know you are ready to buy and have finance already pre-approved for the right car. And don't ask stupid questions. Before you already go into the dealer for the specific car you are interesting in buying, you ALREADY know the model line up, features (or lack thereof), and most importantly competitor pricing for the same year/model.
Basically, you are trying to demonstrate that you are NOT a tyre kicker. You're serious about buying, and this isn't your first merry-go-round.
That's when you are treated seriously, and that's when a deal is best made.
Half the battle for a used car salesman is knowing when to give a potential buyer your time and energy, and when they are just wasting time and not ready to buy in the first place. Finding a legitimate buyer means the battle is half won. Now its just price.
They'll sit you down at the desk, and then when you offer whatever it is you'd like to offer under asking, they'll walk away and speak to their manager because the price you are offering (whatever it is), is waaaaayyyy lower than they would normally accept. They'll talk about the movie they saw last night, and what they are buying for lunch, and then come back and try and get a little more out of you.
You MUST know your pricing.
And that's why your post is looking at it the wrong way tbh.
There's no blanket rule regarding how low you can offer. It's all about the actual car and the asking price vs what else is out there.
Asking $3k off a $50k car is silly when it's already the cheapest one available in all of Sydney.
Conversely asking $5k off of a $20k is ok when its the most expensive.
Know your market, and be ready to show the dealer why you think there's better elsewhere.
And like has already been said, be prepared to walk.
Don't take offence in negotiation, and don't get personal. It's business. Always take the high road if they start getting rude.
On more than one occasion I've had the salesman catch up to me down the road and call me back.
Keep it cool (without being cocky), and be knowledgeable.
Remember, its not just the actual sale the dealer wants… he wants good word of mouth and potentially repeat business.
Most people who buy a used car once, will do so again. Forming a good relationship with a customer could be beneficial to both over the long run.
"Forming a good relationship with a customer could be beneficial to both over the long run."
This. Both buyers and sellers who try to screw the very last dollar out of each other on a big purchase like a late model car are being silly - both sides have to win from the deal if it's to go ahead. It matters to both buyer and seller (for the buyer, it's about follow up support - eg will they honour the warranty? For the seller, its about word of mouth reputation).
You're not haggling over a trinket in a Delhi bazaar now.
Do you research, offer what you think is a fair price and don't mess people around. And walk away from anyone who tries to mess you around.
Definitely wiggle room on used cars.
A mate works for Toyota and makes most of his commission off of used vehicles.
I traded a vehicle in a few years back for 18k, and it was on their website the next week for 27k.
Jump on carsales and arm yourself with how much the cars are being sold for, and be prepared to walk away. It's always a buyer's market, with used cars.