Update: Thank you to everyone that has responded to this post so far!
After leaving the dealership, I had a brief "what have i done!" moment as its my first time buying a new car. It started with reviewing all my research again.. then lead to this question!
The responses I've received have been so incredibly helpful, especially those who have shared their first hand experiences with everyone.
Overall I've learned that this is a good enough price and everyone may have a different opinion. It might not be the cheapest deal out there - but it was a great deal that I could afford and at the end of the day I can only be fortunate.
To maybe help others, I'll try to outline the steps I went through
- Use Carsales to compare used, ex demo and new car prices.
- Compare price of last years model to current and ask the car dealer for an estimate of next model prices.
- Check the market value of the car.
- Read this whirlpool thread from a car salesman (http://forums.whirlpool.net.au/archive/2255054)
- Call all the dealers in your state to establish the lowest price.
- Ignore the advertised price and promotions, there could always be a better deal if you ask.
- Write a "wishlist" of extra inclusions you would like, then throw in 2 more for added leeway. This way when you negotiate, you can offer to get rid of the unessential extras.
- Ask lots and lots and lots of questions. Find a car salesman you feel comfortable with.
- Each dealer can offer slightly different finance deals
10.Test drive the car (i suppose this is a given!) - Search through the ozbargain automotive forums as there is a tonne of information here. Type in keywords such as "new car", "brand of car", "how much?" etc. Same search applies for google, whirlpool etc.
- Call various companies such as Private fleet and they can help you with alternative prices to bring to the dealer. If you do decide to take on their prices, then they do charge a finders fee.
So my experience of the above:
1. Carsales had ex-demo Honda civics listed around $22,990 - $23,000. Compare this with the new car price and consider the added extras, warranty, roadside, low km.
2. Last years 2016 model (used) sat around $19,000 and new 2018 would most likely be advertised similar to current 2017 prices ($24,000)
3. Current market value for the Honda Civic 2017 hatch was $22,390
4. The whirlpool forum provided a lot of insight, such as to be upfront with the car salesman in what you want and thats what I did. I went to the dealership and asked for $22,000 + extras and negotiated the price I got today.
5. Before heading into the dealer, I called all Honda dealers around and established that $20,000 was a laughable price whilst $22,000 + extras was more acceptable.
6. At the time, Honda was offering a bonus $500 worth of accessories, 7 years warranty and roadside assistance at the drive away price of $24,500+ for the standard VTI
7. I asked for floor mats, tank of fuel, boot tray and tinting. I accepted tinting out of the deal.
8. If I could go back in time, I would have asked more questions. I also went to 2 dealerships when I felt ready to buy. I had a horrible experience at the first dealership from both the car salesman, manager and financer. Even though they accepted a lower offer than the one I paid, I discovered that they lied about a few things to get the sale, so I walked out. The second car salesman was much more friendly, patiently answered all my questions and found to be honest and upfront - so i gave him the sale.
9. Something I found out after accepting the offer. Honda's own finance is through Macquarie leasing and offer finance from Bank of Melbourne. The dealership that I went to could only offer Bank of Melbourne finance but was able to beat the current promotional interest rate of around 4.48% - which means I will pay less than the estimated cost per week.
10. I was lucky enough to drive this car as a Budget rental and liked it instantly! It was a 20+ hour "test drive" from Melbourne to Sydney and back that gave me plenty of time to like this car and its features.
11. I spent hours reading through the forums and searched for things like "honda civic 2017 VTI prices" and "how to buy a new car", "what to ask when buying a new car", which was relevant for my situation.
12. I called private fleet but didn't use their services and they actually didnt get back to me with prices. But in saying this, its in theory a good resource.
Anyway this is all i can think of at the moment, I'll add to it if i think of anything. I hope this proves useful to someone.
Happy New Year Ozbargainers, may the year bring you more discounts to come :)
Original post:
Today I purchased a 2017 Honda Civic VTI (hatch) during Honda's promotional 4 day sale for around $22,500 which was negotiated from their drive away price of around $24,500.
The price included standard rego, CTP, tank of fuel along with the promotional 7 year warranty and roadside. Extras I asked for were a boot tray, mats and a honda umbrella thrown in last minute (a little win).
My initial offer was $22,000 including the extras mentioned plus tinting but it was negotiated out - so I may have slight 'buyers remorse' as now I'm kicking myself I didnt try harder for it haha.
Anyway from a bargainers point of view do you think this was a good deal?
I think next time if i had to do the whole process again, I'd probably try a little harder in my negotiations and stick to my guns!
I paid the same for my Honda Civic early this year.