Demo WRX - Any Bargaining Suggestions?

sim777 on 29/08/2018 - 09:56

Hey Ozb, just wanted to get some info surrounding bargaining suggestions for purchasing a dealer demo car. The car in question is a premium model 2017 subaru WRX. For these dealer demo cars is there any bargaining power if there really aren't any similar/equivocal cars being sold by private sellers for a lesser value? I have heard about going to different dealers but also hear that all subaru dealerships within 40km of CBD are owned by the same company and thus won't have a need to budge on price. Is there a rough % that one could expect to have discounted off a demo car?? (similar to the suggested 10-15% off RRP on new cars).

Also, when dealerships heavily advertise EOFY sales on cars are there legitimate discounts or do they tend to offset the discounts with other methods? ie. increase the interest rate for the customers that will be intending to take out a loan?

Very keen to hear some suggestions! Thanks

Automotive Demo Subaru Wrx

Comments

  • bobbified on 29/08/2018 - 10:30
    +4

    WRXs are known for their tough engines, but I personally wouldn't buy a demo one since I expect them to be thrashed around more than normal during test drives.

    • dogboy on 29/08/2018 - 10:33

      I was thinking the same thing. Best way for them to sell the car is to give it some juice during test drive.

    • sim777 on 29/08/2018 - 10:39

      Any way of a mechanic performing a pre-purchase inspection to specifically detect those kind of things? (ie. staff thrashing the car around)

      • dcep on 29/08/2018 - 10:49

        the only way is to do lab test on engine oil for excessive metal filings

        new car should not be thrashed (redline) in the 1st 1000ks as the engine is still breaking-in

        apart from that, a quick indicator would be the mpg meter (if they haven't reset it)

        • [Deactivated] on 29/08/2018 - 17:06
          +1

          Engines are run-in at the factory before installation, hence the lack in the last 10 years of 1st service (1000/3000km) oil change.

    • Bid Sniper on 29/08/2018 - 10:55

      They come with 5 year warranty. I had my daily WRX for 15 years and trashed the bejesus out of it in that time. Works as well as the day I got it and its highly modified.

      • bobbified on 29/08/2018 - 11:04

        I was thinking of the thrashing during the breakin period. Wouldn't matter so much after that. I thrashed mine around as well, but not during the initial period.

        The warranty is all good, but it'll be quite annoying to have to take a "new" car back and forth for repairs here and there.

        • Bid Sniper on 29/08/2018 - 11:19
          +2

          Can only thrash it so much with the salesperson next to you and on a public road, I tried!

          Honestly I haven't heard of a premature engine failure from this. I know 2006-08 had faulty oil pick up that caused engine failure. Also bad fuel will destroy a engine.

          I would not be concerned, $15K below the RRP depending on the car, its a risk I'm willing to take, more so since with a warranty the dealer will pay if I'm wrong.

        • bobbified on 29/08/2018 - 11:31

          @Bid Sniper:

          $15K below the RRP depending on the car, its a risk I'm willing to take

          That's actually a decent amount if that's the price difference between new and demo! That's about 30% and definitely worth considering.

          I've seen the difference being less than $5K and for that, I think negotiating on a new one would further narrow that margin quite a bit.

        • Bid Sniper on 29/08/2018 - 12:02

          @bobbified:
          Note this ex-demo and last year model. Current model wont get that discount. Dealer want to move last year models others they get hit with year 2 depreciation, hence the big discount.

        • SydStrand on 29/08/2018 - 14:34
          +1

          @Bid Sniper: It's not just test drivers. Cars loaned out to journos and reviewers are still sold as demo, even if they've been on a test track. Just don't be this poor guy

        • spackbace on 29/08/2018 - 14:40

          @Strand0410:

          Not new car demo's though. They ones you're talking about will be in the used car lot.

          You find them at every dealership, 'executive driven demonstrator' or some such, only owned by the manufacturer. Check the service book, they'll be owned by head office, not that dealership.

          Only concern I'd have about a WRX demo is a salesperson/manager driving it on the weekend

        • sim777 on 29/08/2018 - 15:07

          @Spackbace: Would the 5 year warranty be a safeguard against engine thrashing in the first ~ 8000kms that the car has done? Or am i likely to end up with issues later on. Can a pre-purchase mechanic pick up anything that shows the car has been gunned by the employees?

        • spackbace on 29/08/2018 - 15:14
          +1

          @sim777:

          Likely it won't even be an issue.

          Engines are run-in from factory. The stuff people are saying about the first 1,000km is crap, there's only restrictions on towing in the first 1,000km (which some people don't care about anyway).

          Unless they're really giving it shit, bouncing off rev limiter and doing helis, I wouldn't worry.

          You'd be welcome to do an inspection, but the dealer might not appreciate it for a car with less than 3,000kms!

          And at the end of the day, warranty is there to protect you, provided you maintain the servicing

        • sim777 on 29/08/2018 - 15:24

          @Spackbace: thanks, much appreciated!

        • tellhimhesdreaming on 30/08/2018 - 12:13

          @Spackbace:

          Unless they're really giving it shit, bouncing off rev limiter and doing helis, I wouldn't worry.

          So just a mild test drive then?

          "I find you don't really know if it's the car for you until you've done helis both clockwise and anti-clockwise on the ol' stutterbox." — some Gumtree tyre kicker, probably.

        • spackbace on 30/08/2018 - 12:21

          @tellhimhesdreaming:

          Salesperson goes with every customer on demo, especially for cars like these.

          As I said, only concern is the staff member driving it after hours. But again, the chance of them doing something to cause damage is <1%

        • tellhimhesdreaming on 30/08/2018 - 12:23
          +1

          @Spackbace:

          Yeah I do understand, I just like the concept of someone out there doing helis to evaluate a car purchase.

          I wouldn't be fussed at all buying a demo car as long as it had warranty.

  • Bid Sniper on 29/08/2018 - 10:53

    That Rubbish, ring around look at carsales. I was looking for a STI Levorg, dealers want $50K+ I got them down to 44K for a ex demo. Even look interstate, cost $400 to ship a car from Vic to NSW. But can argue this for free because you pay dealer delivery, so its double dipping.

    Mod: Comment edited. Private selling not allowed in comments.

    • spackbace on 29/08/2018 - 11:58

      Levorg isn't a WRX… Levorg have proven to not be very popular, unlike the WRX. More reason for dealers to do what they can to move the Levorg

      And your $50k+ price was for a new car yeah?

      • Bid Sniper on 29/08/2018 - 12:07

        it is a WRX but just not in name. See I thought that because there were not popular you would get big discounts, I was wrong there is demand for these cars just not at the 57K dealer price. more around the 40K mark. Levorg is an awesome car I really wanted one.

        $50K ex demo for the STI variant, these go for high 40s usually.

        I ended up with a WRX STI ex demo because I couldn't find a Levorg STI ex demo for under 40K, been looking for months.

    • sim777 on 29/08/2018 - 12:44

      Yes I have looked at car sales and I didn't find a similar car that I could compare to help me bargain. Also can't really compare other cars such as the levorg during bargaining - they even have the WR blue listed for $3000 higher than the black colour (exactly same model, similar KM, year, build year ect) - they say the blue clears faster so they can pretty much put a higher price on it. Guess it all depends on demand.

      • Bid Sniper on 29/08/2018 - 13:33

        Dealers will say anything to get a higher price.and yeah those you want maybe all sold.

        Key to a bargain with cars is patience. You got money hence you have power. Don't be sucked in. Stick with budget and see what happens. They want to move 17 stock. Also be flexible with what you want. I wanted a white Levorg STI but ended up with a Black STI because that's what came up and i liked it and within my budget.

        • kahn on 29/08/2018 - 18:13

          Good luck keeping the swirl marks off your black Subaru.

        • Bid Sniper on 30/08/2018 - 06:56

          @kahn:
          For $23K discount, no worries

  • TheMindsetTraveller on 29/08/2018 - 12:02

    The best negotiation power you have is to show you are ready and willing to commit to buy;

    Sales people usually 'have an idea' or 'feeling' on how 'ready' you are likely to proceed.

    There is zero point for anyone to negotiate the best price IF you aren't ready to commit.

    I have bought several cars where I have rung up dealers and advised that I want X car with Y features, and if you can give it to me at Z price, I will fax/email you a credit card authorisation to place a deposit. This has worked a treat and where dealers are ready to commit. Some will say I have spoken to my manager but can't do that price - that's cool. Someone eventually bites especially if your Z price is reasonable.

    • sim777 on 08/09/2018 - 20:44

      I went in today and told them for the right price I was ready to buy - in the end they wouldn't budge at all on the price! I also found out that an alarm system (something I thought would be a standard in a 40k car) is a $950 option in ALL subaru cars!

      • TheMindsetTraveller on 10/09/2018 - 16:17

        Was your offer "reasonable"? Did you try any other dealers?

        Sometimes it doesn't work as I mentioned above but showing you are ready, willing and able to enter into a contract works much better than "still shopping around / negotiating" as no dealer wants to reveal "their best hand", where you then run off to the next dealer and say here's what i currently have been offered.

        Personally 10-15% off RRP is a good guide to what price is right to buy (maybe a bit more 10-20% if its european) - unless it is a brand new generation car which usually will find difficulty in any reduction given its 'newness' on the market.

        • sim777 on 10/09/2018 - 17:51

          Yea I told them I was ready to buy if the price was right. They actually called me back today and told me they could offer me the advertised price but with the alarm system included (usually a $950 option). I still thought it was ridiculous Subaru have an alarm system as an 'option' so I told them I didnt think that in itself was enough of a discount so told them no.

          Regards to the 10-15% off RRP - this is definitely what I would have aimed for if I was buying a new car but I've been told by a few that the dealers don't tend to discount any further form the advertised price? Guess I'll have to keep looking

        • spackbace on 12/09/2018 - 13:11

          @sim777:

          No manufacturer that I can think of does a factory alarm these days. Immobiliser obviously, but not alarm.

          So yes, that's still a discount as the car doesn't come standard with it, it's an added cost that someone has to incur.

        • sim777 on 13/09/2018 - 13:28

          @Spackbace: My bad i didn't do my research, I was under the impression that a factory alarm was considered standard in all other car manufacturers. I had another call and they were ready to knock off another $1000. So from the advertised price for the demo - they were going to include the alarm, balance of 5 year warranty (was registered in 2018) and now i guess another 1k off. Still about ~ 2000 more than I would like but not sure if i'm expecting too much… would you consider 10% off the advertised price of a demo ridiculous?

        • spackbace on 13/09/2018 - 13:53

          @sim777:

          It really depends, every car is different in terms of profit margin.

          If you want another $2k off you're best going in there and putting the offer in writing, that's the best way of getting the best offer. By showing that level of commitment, they're more likely to really do the best deal.

          Try for $2k off that offer, in writing with a signature. If they let you leave without bettering the current offer, and after the manager talks to you, then you know it's the best offer on the table.

          A dealer will never let a committed buyer leave without trying everything they can to secure the deal.

        • sim777 on 20/09/2018 - 17:58

          @Spackbace: there are comparable ex demo models (2017 wrx premium) in NSW (i'm in VIC) that are advertised for 39990 drive away so Ive been hoping to get an offer something close to that but they say due to differences in government taxes they can't match it .. For me to purchase interstate and car to be delivered + stamp duty ect would end up being similar to the one in Vic…

          regards to the offer in writing which i've never done - just a statement with my offer and signature should suffice?

        • spackbace on 20/09/2018 - 17:59

          @sim777:

          It's basically a contract, you sign it and it becomes a contract if the manager signs it too.

          I'm surprised you've never done one, it's basically a requirement of buying a car at a dealer.

        • sim777 on 20/09/2018 - 18:39

          @Spackbace: haha yea never have through a proper dealer, I'm still driving my first car which I bought from a private seller for 10k.

  • Mumbles on 29/08/2018 - 12:25
    +1

    I actually bought an ex-demonstrator 2006 WRX sedan during the same August sales as well as Subaru Australia upgrading the 3 years warranty to 5 years for ex-demonstrators plus there was another Subaru Australia promo for +$1000 free Subaru accessories on new cars.

    First tip is to negotiate the used car mats to be included in the price. Most sales people will charge you extra for them.

    Second tip is to treat the sale as you would a brand new car sale. If there are other accessories that you'd like to put on the car the dealership can organise it (eg. window tinting, tyres, wheels, suspension upgrades, etc). For my ex-demonstrator I requested the dealer add window tinting and buy it under a novated lease.

    Third tip is compare ex-demonstrator prices with all the other dealerships in your state and get yours to price match. I had a friend who negotiated an $80K ex-demonstrator BMW that he liked from a dealership 200km away and they delivered it to his driveway.

    As for reliability of an ex-demonstrator I wouldn't worry as it comes with 5 years manufacturer warranty. My unmodified ex-demonstrator originally had 460km on the odometer, is now 130000km, done 2 track days, 12 years old, obeyed all the log book service intervals (12,500km interval). Subaru designed the 2006 WRX so the clutch protect the driveline by slipping if too much torque was put through the AWD.

    • sim777 on 29/08/2018 - 12:40

      I was told that it came with a 3 year warranty? Should it be 5?? He mentioned something about the balance of the warranty being transferred which Im assuming is the remaining warranty period from the date the car was registered?

      • Mumbles on 31/08/2018 - 10:15

        Subaru Australia's warranty is 3 years. Its only during slow years when the manufacturer will run promotions. 2006 was a really slow year and I was just lucky that Subaru had two promotions that overlapped (extra warranty and free accessories).

        There's no point in asking the sales person as they're aware of all manufacturer promotions. They'd probably try to up sell you with useless extended warranty that locks you into that dealership.

        Yes. When you buy an ex-demonstrator the warranty begins when the dealership puts rego on the car. 3 years warranty starts from the rego date. Don't forget the same date is when the free roadside assistance starts.

        • sim777 on 08/09/2018 - 20:41

          Went into try negotiating today - they would not budge at all on price! And the most ridiculous thing i found out today: All subaru vehicles don't come with a built in alarm system! they have it as a $950 option!! I was completely baffled by this.. Unfortunately I walked out as they told me they could not budge at all with the pricing.. Guess I will have to keep an eye out for private car sales for the time being

        • Mumbles on 09/09/2018 - 12:31

          @sim777: Yeah I know how you feel about the rip off prices for Subaru accessories. I went through it all when I was making use of a $1000 free accessories promotion. I took home the price list for the accessories and was blown away. Part without fitting has a huge markup. If you want the accessories be under the car warranty then it needs to be fitted /install by the dealer which is a second markup for their labour.

          As part of my $1000 free accessories I think my Impreza car cover cost well over $200.

          My advice is if you want the best price then start by doing as much research before talking to a sales person. Know the vehicle price (RRP/competitor/private), be exact with the accessories you want, sort your own financing, have alternate plans (eg. walk away or keep looking for 6 weeks). They are a business and have trained their staff to exploit any avenue for additional revenue (upselling accessories, dealer delivery charges, finance, dealership warranty, etc).

          Walking away is always an option for a buyer. Take this previous experience as a learning lesson and use it to improve for your next negotiations.

          For your reference I was super lucky on my first car buying experience where I didn't even know the driveaway price. I just got a fantastically generous salesman who gave great customer service. Educated me on everything about the car and when he asked if I'd like to make an offer, I asked for $4000 less and his manager accepted my 1st offer.

  • Kapinny on 13/09/2018 - 00:59

    Bought my MY17 base in WR Blue in April 17' for 41k out the door
    mats and a tank of fuel
    dont regret it at all
    boost life is awesome

    • sim777 on 13/09/2018 - 13:30

      There's a demo MY17 base (about 9000km) for 39990 but I've been looking at the demo premiums.. What was the RRP of a MY17 base if you dont mind me asking?

      • Kapinny on 13/09/2018 - 18:24

        I think they were around 435xx ish iirc

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