Used Car Negotiations during Covid

popcornready on 02/05/2020 - 08:46
Last edited 02/05/2020 - 09:51

Looking to buy a 2-4 year old BMW (yes, not ozbargainers car of choice)

In this climate, how far do you think they would be willing to drop the price to get a used car out the door and off the books?

I.e are they in “survival mode” by which they want to reduce costs (car sitting there costs them holding fees ), and have cash flow coming in during this period just to stay afloat?

Or will they hold firm and won’t sell much lower than pre-Covid

Without giving too much away. Car is listed at $45k. I am curious if I could push them to $39k

Edit: not asking for how much can I buy this car. I am just seeing what first hand experiences people have had recently in negotiations and the dealers appetite to let go of a car at lower margins

Automotive

Comments

  • John Kimble on 02/05/2020 - 09:06
    +23

    WTF how can anyone know the answer to this? 🤦‍♂️

    • brendanm on 02/05/2020 - 09:09
      +11

      Magic 8 ball says "ask again later".

    • bobbified on 02/05/2020 - 09:17
      +1

      ^ this is the correct answer! 😂

    • popcornready on 02/05/2020 - 09:50
      +63

      I guess I shouldn’t expect much feedback from a bloke who asks how long a toilet seat lasts on ozbargain

      • John Kimble on 02/05/2020 - 10:39
        +3

        😂

      • saintpotter on 02/05/2020 - 11:45
        +2

        Username checks out

      • orly on 02/05/2020 - 12:23
        +4

        Severely undervoted comment, that is some epic burn right there. Have an upvote from me

        • popcornready on 02/05/2020 - 12:37
          +6

          Not only did ‘John Kimble’ create a post about ‘how long a toilet seat lasts’ , but he also mentioned he contacted the ACCC about it.

          You can’t make this stuff up.

          Yet I get. “WTF” from him. Hahaha

          • brendanm on 02/05/2020 - 12:40
            +3

            @popcornready: To be fair, it was in relation to the soft close mechanism, not the actual seat. "Never let the truth get in the way of a good story".

            • popcornready on 02/05/2020 - 12:56
              +8

              @brendanm: Ahhhh the soft close mechanism on the toilet seat, I’m surprised you took it to the ACCC and not the high court

              • brendanm on 02/05/2020 - 13:05

                @popcornready: I didn't take it anywhere, and have an old fashioned toilet seat, that I'm happy to report is in great condition so far. Will keep you updated if anything changes with it though.

              • John Kimble on 02/05/2020 - 14:44
                +4

                @popcornready: I will take it to the high court

                “It’s the constitution. It’s Mabo. It’s justice. It’s law. It’s the vibe."

              • RevolverUpstairs on 04/05/2020 - 09:18
                +1

                @popcornready: Have my upvotes, you made me laugh this monday morning

      • ProlapsedHeinous on 04/05/2020 - 06:12
        +1

        Careful, he's a cop you idiot.

        • popcornready on 04/05/2020 - 23:35
          +1

          Thanks for all the upvotes

          I hope the burn made everyone’s day

  • Hithere on 02/05/2020 - 09:11
    +1

    Yes/No.

    Pick one.

  • theHMASfriendship on 02/05/2020 - 09:12
    +10

    What did the dealer say when you pushed them to $39k?

  • JIMB0 on 02/05/2020 - 09:25
    +6

    The magic number you're looking for is $39888

  • pegaxs on 02/05/2020 - 09:37
    +4

    What did the dealer say when you asked them?

    Go in, say you’ll buy today at $39k. They say yes, win! They say no, thank them for their time, tell them they have your details and if anything changes, give you a call.

    • websterp on 02/05/2020 - 13:07
      +2

      ^This
      Why wouldn't you do this and you will save a lot of time for yourself and all the contributors to this post. Yes I get it, you want to know the experience of others who have recently purchased a car but unless there is someone who has gone to the exact dealership inquired about the same car and offered $39K no one here would be able to tell you how to proceed. Therefore I'm not exactly sure what you expect from this thread unless you are planning to tell the seller that some stranger on OZbargain told you the car could have been had for 39K and they are wrong to reject your offer. Yeah that will definitely work.

      It is not that hard to find out the answer to your own question yourself.

      • Hangryuman on 04/05/2020 - 09:04

        methinks it's not a genuine question - rather seeking to provoke idle discussion - popcornready?

        a la - how long is a piece of string - discuss …

  • popcornready on 02/05/2020 - 09:48
    +4

    I was merely gauging if people have seen dealers be very flexible on price due to Covid just to “seal the deal”.

  • popcornready on 02/05/2020 - 09:49
    +3

    I was not asking someone to tell me that I can get a $45k car for $39k, particularly as I gave no details on the car.

    I was asking how flexible they may be, particularly during Covid. First hand experience would have been great.

    • oscargamer on 02/05/2020 - 10:12
      +4

      "I was not asking someone to tell me that I can get a $45k car for $39k"

      eerrmmmm - that's exactly what you were asking.

      I quote you "Car is listed at $45k. I am curious if I could push them to $39k"

      • popcornready on 02/05/2020 - 10:46
        -6

        Sure. But if you don’t pick and choose a quote, you can see that the question was broader.

        I also edited my post before you made your post.

        But that’s ok. I guess with iso you don’t have anything better to do than nitpick

    • funnysht on 04/05/2020 - 09:51

      Yeah i'd say you can get it in the range from $45k all the way down to $0 depending on how flexible their window lock is.

    • Whisper Quiet on 04/05/2020 - 14:41

      Couple of my best friends are car dealers. Probably the same as usual, if not less chance to make it cheaper as they are struggling and can't afford to take such a big hit. Production has slowed too so could not have next year's models ready in time. Chance there'll only be this year's for a longer time. Means less need to move stock at desperate prices

  • Euphemistic on 02/05/2020 - 09:54
    +2

    It all depends. How desperate is the dealer? How long has the vehicle been sitting on the books? Did they trade it very cheap and have upped the price to make you think you are getting a massive discount? Does it have some nightly issue they’ve hidden and want to get rid of it quickly? Is it one of the same and vehicles and they are wanting max price or they’ll keep it? Have they received some govt bailouts and are ‘parking’ the business?

    Your question might be more relevant for a new or demo car, but used cars have too many variables.

    • popcornready on 02/05/2020 - 09:57
      +1

      Thanks mate. All very good points, and all factors that can’t be easily determined.

      I guess I’ll just throw a genuine offer and see the feedback

        • brendanm on 02/05/2020 - 10:06
          +8

          Most likely because your summary of "make an offer and see what they say", is basic common sense and what most people would do.

          • popcornready on 02/05/2020 - 10:49
            -7

            @brendanm: Thanks for your many contributions Brendanm.

            I’ll give all your posts a +1

  • wittyusername on 02/05/2020 - 10:14
    +4

    I have a 2010 Nissan Micra for sale if the BMW falls through.

    • holdenmg on 02/05/2020 - 10:35
      -1

      Used Nissan Leaf needs new battery, lol

      • smpantsonfire on 04/05/2020 - 09:48
        +1

        How many AAs are we talking here? I think I may have enough eneloops.

  • Melb69 on 02/05/2020 - 10:51
    +2

    The best thing you can do is ask. Start low and then if not accepted or countered leave. Say you are interested in the car. If you want to sell it let me know, Leave. Move onto your next dealership. That is the same whether Covid or not. The whole car sales is down, so there should be reasonable deals depending on the model. Good luck.

    • popcornready on 02/05/2020 - 10:53
      +1

      Thank you :)

    • oscargamer on 02/05/2020 - 11:16
      -1

      Can't move on to next stealership, because OP is looking at one car that is in one stealership at one price……

      • Melb69 on 02/05/2020 - 11:29
        +3

        Then start negotiations or leave. No obligations. Personally you will always find another if this one goes nowhere, it might just take longer to find. Options open up if not after a particular spec or colour. The more flexible you are the better. Also don't fall for the bait and switch. Stick to your guns. Would you be OK with $40 or 41k if that gets you the car you want. These are the things you need you have in mind before going in. Take emotion out of it. Your buying a car. It's a depreciating asset. The sooner we all realise it's just another consumerble the better.

  • spackbace on 02/05/2020 - 11:46
    +7

    popcornready

    Still waiting for my popcorn

  • Seraphin7 on 02/05/2020 - 11:48

    FMD. Just go in there, do all the usual checks you would do, tell them you'll take it if they're prepared to let it go for $39k.

    You'll get an answer to your question far more quickly (and accurately) than you'll ever get here.

  • saintpotter on 02/05/2020 - 11:52
    +3

    I haven't been looking for cars, but in whitegoods (including televisions, fridges - even bikes!), retailers are not budging on price! They are standing firm - so are many other retailers.

    Go back to basics - forget about trying to get a great price due to COVID-19 and go back to the fundamentals when buying a used car. Do your research, see what similar cars have gone for, target end of month (end of days even!) and put a reasonable offer forward.

    I've purchased cars and obtained a good price (in my mind) by spending a lot of time with the dealer (hours even on a Saturday) and just before closing, make a take it or leave it offer.

    However, I've also got a good price on a new car by calling a dealership - saying this is what I want and this is my budget (I offerred lower than other dealers were willing to accept) - and it worked.

    See what works, but main tip is don't focus on COVID-19, focus on the fundamentals when buying a car. Check out Youtube as well - some great videos on the best methods in securing the best price.

  • newak on 02/05/2020 - 12:04

    Show them you are interested in the car and therefore a serious buyer but let them know you can only pay so much. If they can't take it then leave it, continue your search for the next available car. Also be reasonable what else is available on the market and at what price.

  • northern nsw on 02/05/2020 - 13:01

    Why would any business sell something at a lower price JUST because of the COVID-19 pandemic? Did you ask the dealer principal would he/she be willing to drop the price to get the vehilce sold, and did you also ask he/she if they in survival mode, and want to have cash flow coming in?

    Most posters have suggested to make your best offer and see what happens, sage advice IMHO.

    • popcornready on 02/05/2020 - 13:51

      Why would any business sell something at a lower price because of Covid?

      Because there is a significant economic contraction and people are not buying cars. Most businesses are in survival mode. They try and cut as many expenses as possible and survive on minimal income to ensure survival till the economy bounces back.

      Did you ask the dealer?

      I doubt I would get an honest answer.

  • vinni9284 on 02/05/2020 - 13:30

    You never know.

    Just give them an offer. But they will try to reel you in for a sale so they can get you. So expect that.
    I have been looking for a car during this period and realised that the Covid19 effect has not been greatly effective hence the prices have been stable.

    I would wait another month and see if prices plunge which I think it will.

    Even if they are a dealer, do your own compressive PPSR check (regardless if they have one), external mechanical inspection and don't get sucked in by their bullsh#t external 5 year warranty plan that pays jack.

  • singingwolf on 03/05/2020 - 08:27

    15% less. If not walk

    • popcornready on 11/05/2020 - 16:23

      https://www.pre-owned.mercedes-benz.com.au/details/2016-merc…

      First proper offer of $45,000 (after viewing and with deposit ready to go) on this one (which was listed at $49,000) was essentially laughed at, see update lower in the thread

      • singingwolf on 11/05/2020 - 18:14
        -1

        Walk away. New cars and used cars are in the doldrums. Give them your number and say when you are ready to deal give me a call, then leave.

        • popcornready on 11/05/2020 - 18:58

          Ohh I’ve walked away.

  • Waltervp on 03/05/2020 - 08:39

    So it looks like no-one has bought a second hand car for an unusually well bargained price over this period. I was hoping some of you would say 'yes I've heard someone, or yes I have bought a car last week and got or did not get a special deal' ….
    Tom me this indicates people aren't really buying cars and you'd have a good chance of getting a better deal now than in normal times. Go for it!

    • Whisper Quiet on 12/05/2020 - 11:31

      Used cars they can afford to drop slightly, so depending on the difference you can get it close to wholesale price if the store is really struggling for sales. Problem is dealers are getting no business, so have already dropped prices which means people have less room to bargain with then they think. Not sure how much customers think they put the price up by but it gets less and less as more people sell private these days and they need to compete.

  • HeWhoKnows on 03/05/2020 - 08:59
    +1

    Suggest OP gets himself out the door and goes shopping
    Nobody here knows the answer
    Every used car dealership is different
    Every car is different.
    If they are very negotiable on a used car its because they are desperate to sell it!
    You need to figure out WHY

  • footyfrank on 03/05/2020 - 09:39

    I just bought a car in similar price range and got 11% off advertised price. My opinion is I did better because of slow sales during covid but in reality it will still come down to your negotiating skills.

    Common wisdom is if you can get 10% off advertised price you are doing well, 15% off you are doing exceptionally well - covid or no covid. This gives ~$38-41K for the car you are looking at.

    So if you want the car and can get $41K or less take it. If you offer $39K you will pay more than $39K - start no higher than $36K, state directly that Covid must be affecting sales but you are happy to do your bit to get things moving and see if they come down. If not - as others have said you need to be firm and walk away.

    Good luck!

  • Mark1159 on 03/05/2020 - 09:55
    +2

    Dealers reporting to Car Advice column that market is stabilising and everyone already factored in Covid.
    Although sales and enquiry well down, few “green shoots” starting to appear.

    OP: don’t ask - you TELL THE DEALER the deal you are going to do

  • MontyMacaw on 03/05/2020 - 10:49

    I once walked into a car yard and thumped 25% of what I was willing to pay down on the counter in cash and got my price within 23 hours. Put your money where you’re mouth is! The car was $30 grand asking $35k

  • LFO on 03/05/2020 - 18:41

    $10,000 seems to be the "secret" amount used_car_salespeople have.
    That is their leverage for high value vehicles.

    Ask for $80k to go as low as $70, if needed.
    Most buyers will fall for $75 and think they got a bargain.

    The big issue is that, as when argue with an idiot (they beat you with more experience), they have all the skills and experience in the universe to "read" your interest and stop far far before that $10k limit.

    OP: car is listed at $45k. How much is the real value, other places, other times, other colours?
    If a lot less than $45k, don't be timid, don't waste time, offer $35k and walk away with or without your BMW.

    • spackbace on 03/05/2020 - 22:26
      +1

      So I can get a $10,000 car for free?!

      Sweet!

      • MontyMacaw on 04/05/2020 - 08:49
        +1

        Only if you think a $10,000 car is a high value one!

    • ShipShapeRC on 04/05/2020 - 06:32

      Oh dear, a car sales person is taught to read buying signals! Next thing you will tell me Doctors are taught to read disease signals, builders are trained to look at a building and read signals about potential problems and IT people are trained to ask if you if have tried turning it off and on!

      • MontyMacaw on 04/05/2020 - 08:50
        +1

        TheITCrowd #hilarious

      • LFO on 04/05/2020 - 18:08

        Oh dear,

        Well … either you are a car sales person and want to hide "the powers" or you have never dealt with them and experience their abilities and skills … skills and abiliites to sell you a car you shouldn't buy.

        Think: why does the blond bimbo offers paint protection, tinting, fabric, warranty, etc etc etc at an extra AFTER a price has been agreed upon?
        Answer: because the buyer is relaxed and vulnerable AFTER the big exhausting negotiation.

        By the way, BIG exhausting negotiation for the buyer, just one more of the many on that day for the car sales person.

        • ShipShapeRC on 05/05/2020 - 18:13

          Not a car dealer. BUT taught in sales, and construction, and IT. I had a car dealer ask me once "How much do you want to spend". I said $10,000. He showed me a car with a $20,000 sticker on it. I said "I'll take it!". He excitedly took me into the office to write it up, but when he wrote $20,000 I said "Oh no, you asked what I wanted to spend, I told you my price, you showed me a car to suit and I accepted your offer. Write it up for $10,000 or you are in breach of our verbal agreement." You have to play the buggers at their own game.

          If you get suckered by a blonde after price negotiation, you are not relaxed, you are a male thinking with his smaller brain (don't worry that's happened to me too from time to time). Don't play a game you are not skilled at and then complain. If I went to a casino and got beat by a professional, people would have little pity, I suck at cards.

          If it is such a BIG exhaustion, then get a friend who has better skills to negotiate on your behalf. I have a mate who is a brilliant mechanic. I get him to help me all the time with our family cars as he has skills I know I lack. If I'm buying a car, I take him so he can see what I can't. Then I negotiate because that does not faze me and I'm good at it. Work to your strengths, and get help with the rest.

          • LFO on 05/05/2020 - 22:12

            @ShipShapeRC: Something got lost in the translation.

            I am not buying a car. I was addressing the OP concerns using colorful, exaggerated, words and expressions.
            So, are you selling a car now?

            • ShipShapeRC on 06/05/2020 - 09:49

              @LFO: Something is getting lost, no I do not have a car for sale, no I have never been a car sales person. Im just responding to your comments on sales people reading your interest and using their magical Vulcan mind melding powers to make you agree to things in a stressful way. I see the games they are playing. Just as my mate once figured out in a minute and half why my car would not run, after it had been at the mechanics for 2 months without them being able to get the engine running. The 'mechanics' had swapped all sorts of bits to no avail. My mate got it running by cleaning a bit using his fingers and half a cup of petrol. My mate can "see" what the car is doing, he is like a Borg, just as I can see what the sales people are doing. Mechanical stuff stresses me, negotiations do not. I'm just suggesting to you and anyone who is reading (including OP) to play to their strengths and get assistance with what they are not naturally good at. It sounds like common sense but I am amazed as to how often people try to be a jack of all trades (and I'm very guilty of this too).

              • LFO on 07/05/2020 - 19:19
                -1

                @ShipShapeRC: Still a comms breakdown…

                I am not seeking yours or anyone's advice.
                I express my opinion for the OP.
                Full stop.

                Please focus and comment for the OP not for me, not for Bob's dog nor the Prime Minister children.
                Just for the OP. Thank you

  • mini2 on 03/05/2020 - 21:30

    Probably more for @Spackbace but does a car sitting on the lot approaching or beyond the mythical 90 days mark do funny things to floor plan repayment/calculation thus motivates a dealer to move it on without too big of a haircut?

    • spackbace on 03/05/2020 - 22:27

      Absolutely

      Most used car dealers work to 60/90 day stock age because of costs. The exception being private yards who own their stock, they're not under finance.

      • mini2 on 04/05/2020 - 14:01

        Does the holding costs go up significantly past this point and/or just the accumulation of holding costs encourage them to get rid of it?

        Given the size of AP Eagers/AHG and the likes, are they self funded so don't care if it goes past this 60/90 days mark?

        • spackbace on 04/05/2020 - 14:18

          Does the holding costs go up significantly past this point and/or just the accumulation of holding costs encourage them to get rid of it?

          From what I've heard, yes

          are they self funded so don't care if it goes past this 60/90 days mark?

          Nope, bigger yards finance the used cars

        • Euphemistic on 04/05/2020 - 15:23

          Given the size of AP Eagers/AHG and the likes, are they self funded so don't care if it goes past this 60/90 days mark?

          The business is all about turning over cars. Of course some would be held for longer, but they would typically want them off the lot to reap the income. If a car isn’t selling, it is priced too high, plain and simple. Even the ugliest least popular car will sell for the right price, the key for the dealer is to buy it for less than they sell it for, but there is no use hanging out for a price above your purchase cost that you are never going to get.

  • tinyorca on 04/05/2020 - 01:12
    +1

    No
    I tried buying a 2nd hand car from a dealer recently and they weren't interested in any deals. If you can buy a car, others can too.
    I ended up going private as sellers are more flexible.

  • swilso on 04/05/2020 - 06:10
    +1

    Be a real OzBargainer and don’t buy a BMW.

    • MontyMacaw on 04/05/2020 - 08:51

      THIS!!!!

    • TEER3X on 04/05/2020 - 08:55

      What if it's a really good deal?

      • MontyMacaw on 04/05/2020 - 19:05

        It’s still a beemer….

  • TEER3X on 04/05/2020 - 08:56

    I would assume cars aren't really moving now and you should be able to get a greater discount. Would be interesting to see what's going on in the market even the private used car market.

    I'm interested myself because we may sell one of our cars that we bought in January of this year, hoping not to take too much of a loss.

    • LFO on 04/05/2020 - 17:58

      Cheap second hand cars are not rushed into selling by the owners as the market is restricted due to COVID-19 (distancing and traveling). Hence less cheap second hand cars are sold!

      High value cars, those with a "real" unquestionable value not an opportunity one, will always sell.
      If yours if one of them, then stick to your expectations and wait for a buyer.
      If it is a cheap one then hold on a bit until the panic, or at least travel restrictions, cease.

      Once again, Real Estate for "value properties" is doing very well.

      Impulse buying is only applicable to low price cars.

      • MontyMacaw on 04/05/2020 - 19:12

        The real effects of the coming recession haven’t even scratched the surface yet. There will be bargains aplenty in everything in the not too distant future. People hunkering down at home don’t spend nearly as much as they usually would. Distressed owners of cars or property will be probably less than usual for awhile because finance companies and banks will be accommodating. This won’t last once the different stages of lockdown are removed. THEN you can go fishing. If you were thinking of selling your car for a good price you won’t get a better time than now imho. Plus people will be expecting a bargain so they may already be looking.

  • Mark1159 on 04/05/2020 - 09:08
    +1

    Send in “kick mule”
    Sometimes in buying houses, cars, negotiations etc I send in a “kick mule”.

    This person lowballs - feeds back results/outcomes.
    Knowledge is power.

  • mousie on 04/05/2020 - 09:19

    Are you ready to go with your own finance or is that yet to be sorted.

    Is there a comparable vehicle at a different dealer? Any extras that you are looking to source ex dealer? Being clear that you like the car and your budget is 39k. Good luck

  • ozricoy on 04/05/2020 - 10:14

    Just closed a deal of a 2019 Mazda CX9 Azami LE AWD last Friday for $58000 with bunch of accessories. Again, it really depends if they have the car for a while and need to get rid of it as new stocks are coming. FLoor space is more valuable than the car in some dealerships. This pandemic has made it more competitive for businesses and wants to earn your business. Therefore, take time, BE FIRM and give the dealership your 'Final' price and if they said yes then good and if not just walk away and don't waste your time.

  • BestofOZB on 04/05/2020 - 11:56
    -1

    I think offering 39k on a 45k BMW is totally reasonable, they probably bought it for 30k anyways.

  • popcornready on 05/05/2020 - 23:02

    So originally I was asking for general feedback on how things have been selling.

    Now I’d love to know peoples thoughts on this car and achievable prices:

    https://www.pre-owned.mercedes-benz.com.au/details/2016-merc…

    It does come with a 2yr factory warranty

    • mini2 on 06/05/2020 - 10:33

      Seems a little high. It's Nov 2016 manufactured, could be Jan 2017 complied and priced it as such.

      Things don't usually start playing up till they're about 6 years old onwards based on my own experience so the warranty is much of a muchness at this point.

    • spackbace on 06/05/2020 - 11:47

      Look at these prices and you tell us what it's worth

      Why you'd look at a $50k car, when cars of the same year/model/kms can be had for low-40s is beyond me.

      Same car, same state, lower kms is $5k less

      • popcornready on 06/05/2020 - 11:56

        Thanks spackbace.

        The main reason I looked at the merc approved vehicle is because of the 2yr factory warranty,

        Yes it’s not completely factory warranty, but it’s pretty close, and better than any dealer warranty out there. So a premium is to be expected.

        The question is how far down can I push merc on their price

        • spackbace on 06/05/2020 - 12:24

          How long is a piece of string? But you're still starting $5k more than the competition, and for a car with a few more kms (I don't know if the included options differ, I'd suggest you compare them).

        • Euphemistic on 08/05/2020 - 05:34

          You need to think of any extended warranty as an insurance policy. Ie it will cost you to get the coverage. How much is it worth to you? That will determine the price you are willing to pay. How much the dealer is willing to budge is a complete unknown.

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