Is 5% Discount Achievable on New European Cars?

Looking to purchase an Euro SUV soon (once I sold my old car)

There is 3 on the list:

Renault Koloes Zen (Mid spec) $35990 (only 3 dealers in Perth)

VW Allspace Comfortline 7 Seater $42990

Skoda Karoq $36990 (Only 2 dealers in Perth)

I personally never bought any Euro in my life so I have no idea the discount on them. With the COVID is lingering what’s my negotiation power in the new car at the moment? Is 5% discount achievable on these cars? Say $34k for koloes, $40.5k for VW and $35k for Karoq?

Comments

  • Should easily be able to get more than 5%.

    Cars are commodities, they are the exact same whether you get from one dealership or the other.

    Therefore, ask multiple dealerships what their best offer is on the cars you want including all the specs you're after etc and that you don't want to mess around…whoever gives the best price for the same car gets your business.

    • +4

      Not much supply due to COVID and higher second hand prices so there doesn’t seem much discounting happening, particularly for VW cars.

      • Because VW is made in Europe hence the near 0 discount?

    • +5

      Cars are commodities,

      Copper, pork bellies, wheat, etc, are commodities. Cars are consumer goods.

  • +1

    Pretty much zero discounting in Brisbane on Tiguan Allspace at the moment - lots of demand lack of supply. Not sure about the other two. Same story on whirlpool and VWWatercooled forums for Allspace in other cities.

    • Wow! If no discount at Brisbane than Perth has no chance.

      As we only have a handful of dealers. Looks like VW Allspace is out as I don’t want to spend more than 40k for it.

      Might have to consider the VW Tiguan 5 seater, Koleos or the Karoq instead…….

      • +1

        VW 5 seat is not being imported until new model is out Q2. Have a look on VW website for stock - it’s very limited

  • The Tiguan Allspace is based on the same platform as the 7 seat Kodiaq. The Karoq only seats 5 and is smaller

    • To be honest I wouldn’t mind a 5 seater Tiguan also. It looks nice and big enough of a back boot space.

      • See comment above. Even harder to get than Allspace.

  • Wow, is the lack of new car discounting across the board? I know used car prices are being held relatively high, are the new car prices also high due to high demand as well - including say, Korean and Japanese cars?

    (sorry for the off topic question, OP)

    • Well RAV4 was my first choice. Went to a dealer here in Perth and he pretty much said I can give you a full tank and sign on the dot. The attitude this guy is like I am begging him to take my money.

      Than after that the more I looked at the Euro the more I liked the euro.

      • Have you tried another Toyota dealer in Perth?

        I got a sizeable bit off a hybrid RAV4 today in Brisbane.

        • Wow, that's impressive.
          The Hybrid RAV4's have been well received, and selling well, more demand than supply. Not to mention new car shortages from 2019-2021. To get any discount, especially a sizeable one, means you did a good job.

        • Thats great job. Glad it worked out for you. I have tried 2 dealers in Perth and they are on par when it comes to discounting. Which is nil at the moment.

      • Except you don't want to spend over $40k… This puts you in GX 2.0L territory only

        • Yeah, need to keep a budget of 40k

  • I'm not sure why you're asking about a blanket 5% across 3 rather different cars. Different size, different spec, different prices etc.
    If you're trying to save $2k on a base model Karoq, why would you consider the larger Allspace for potentially 5-7k more?

    Shouldn't you be comparing a T Roc with the Karoq?

    The saving you get will probably depend on what's available at the dealer at the time and if you're willing to take it. I wouldn't say you'll get a blanket 5% off all of those brand new, drive away.

    • T Roc is just way too small I am afraid. My price is 40k max. Hence i be happy to pay $40k for an allspace if someone said ok take it for 40k. But given the impact and some users are saying with the allspace shortage, it appears i be lucky to get even 1k off the all space which will make it 42k with the 1k discount.

      So I am going to move onto the Koleos, Karoq and VW Tiguan 5 seater negotiations instead. Another thing is in Perth, there is no Karoq base model available to look at, and there is no Zen also. I did drive a friends Zen so i know its not a bad ride. March been the earliest but the dealers said they are been sold while been loaded on ot the ship. How much truth to it i dont know hence I was wondering if 5% discount is possible. With the Karoq, I have not yet test driven it but I dont think it will be much different compared to VW.

      • Way too small? It's 6cm shorter and 1cm narrower…..
        Whilst the Karoq is bigger, it's not bigger by a country mile. If the T Roc is "way too small" then you'll likely find the Karoq small too, depending on what you're using it for.

        I don't think you will get your 5% off any of them if you're picking and choosing colours, options etc to be honest unless you stumble across something perfect in a yard that needs to go. Why not look for an ex-demo of a higher spec rather than the base model?

        • Good advice! Shall do

        • Why not look for an ex-demo of a higher spec rather than the base model?

          Even then, discounts won't be drastic. Certainly not enough to get it in OP's budget

      • There’s a single Allspace that is less than $40k on Carsales in Perth but you’d have to pay stamp duty which may push it over 40k

        https://www.carsales.com.au/cars/details/2019-volkswagen-tig…

        • It’s $40900 with stamp duty. For a car with 8000km oblong it in normal situations it should be $5000 cheaper. But the difference is only $2000 between new and seconds.

  • VW is not being easy on discounts, but if you are open to other options you can stil get the usual (10-15%) discount. If you restrict your options, then a discount is more complicated.

    I sold my Tiguan this week and now a dealer will add his 2k over the amount he paid me… (just saw it on the dealer's website with "request price" message)

    • Open options you mean the Tech Pack, Sun roof etc?

      • I think they mean other brands beside VW/Skoda

      • I mean brand/model… I say that because I bought an "European" a couple weeks ago and got a good discount. I visited VW to check a compatible model there and the seller only offered the RRP, and didn't seem open to negotiate. I'd probably be able to get 1% discount, but not more than that (my guess, anyway). The European started 5% off RRP and got much better than that.

        I just sold my 2016 Tiguan this week with only 16,000 km, all services, perfect… Unfortunately, I lost my patience with potential private buyers who don't show up for an organised inspection, or don't reply to messages and phone calls, and sold to a dealer who offered a good price and will probably add 2k and sell to someone else…

        • Glad it worked out ok for you. Is the Tiguan not good enough thats why you are selling or just upgrading?

        • Was it a Renault, Citroen, or Peugeot?

  • -1

    Nope, I heard the dealer said only 4.5% max discount for the rest of the financial year

  • I wouldn’t worry about a 5% discount per se but focus on what you can get for your money. Have a look on Carsales app for near new and demonstrators within your budget.

    • Been looking actually, may set an alert to it now also

  • Got a new A Class a few years back in Sydney got around 11-12% discount - figured the options, asked to drive one - they had a new one in stock BUT they needed to register it for a test drive then I went back 3-4 days later got the same car virtually as a demonstrator.

    • A250 $46k at launch with pre-order. Dont think that sort of "discount" is likely due to covid.

  • +1

    All these butthurts complaining about lack of supply. Look at second hand landcruiser 200- asking for more than new for 2yo and tens of thousands (if not more) km.

    COVID tax is biting hard. Now is not the time to buy a newish car.

  • -1

    They don't make money on the vehicle it self… their money is made in financing, and or servicing.

  • Yes, you should. If your workplace offers Novated Leases, then call the lease company, tell them the car you want and get them to get you a price - the price they get you will often be better than 5% - I managed to beat the price supplied by the Novated Lease company the last time I bought a car.

    Also, the Tiguan Allspace isn't made in the same place as the regular Tiguan, and I've been told by a guy at VW that the regular is a better car. Not sure on what basis you're comparing the Allspace with the Karoq? They are very different sized vehicles - I put our (VW Golf) boot liner in the Karoq and it wasn't that much different - the (regular) Tiguan is a bigger car, Allspace bigger again.

    I know nothing about the Renault.

    If you still like the Karoq, consider the Sportline - better seats, better engine, looks nicer - and same price as what you got quoted for the Allspace.

    Keep in mind, whatever you get told re: discounting on OzB can be entirely dependent on the dealers too - I was looking to buy a bike recently, got a killer price at a dealer (far from me) but the local place I wanted to buy from wouldn't go anywhere near that price - so I had to pay what he was willing to sell it for (even politely walked out and he wasn't trying to stop me).

    • Thanks. I got a golf so I like the VW Allspace, wife liked the Karoq hence considering both.

      Going to look for a 1 year old second hand car or a demo instead now.

  • +1

    *Koleos

    Renault has been discounting their vehicles pretty heavily to get them out the door. Something to note is the MY20 model had a facelift and is available with a 7 year warranty. A 5% discount should be pretty easy to negotiate, and I'm sure demo models are already around $34K.

    Have you considered the Renault Kadjar? The engine is a lot more responsive because it has a 1.3L turbo developed with Mercedes, paired with an EDC instead of a CVT transmission (which can be anemic). It's cheaper, more efficient and hundreds of kilos lighter.

    I've seen a lot of reviewers these days saying Volkswagen vehicles are really bland and not at all worth it. Skoda brings extra bells and whistles but is still a Volkswagen-owned company.

    • Ok good advice. I will checked it out for sure. Didn’t even know it before read your message.

      I might even go with a second hand 1 year old if the price is reasonable.

      • +1

        I'd highly recommend going with a Renault. Just check with the owner of a used car whether it has 5 or 7 years warranty. If you're buying a demo from a dealership, it will be 7 years.

        Renault service costs at the dealerships are quite good with 5 years capped price servicing and very long service intervals (12 months/30,000km). The Kadjar is $399 annually, the Koleos is $429.

        What are you looking for in a car - anything that would make you choose the Koleos over the Kadjar? If you have any more questions, let me know, I'm pretty familiar with both.

        • Quiet like the Koleos with the styling and also the size of the koleos. I know its based on a Nissan xtrail but not quiet an xtrail. Only thing that worries me is the reliability of the Koleos but because it has a 5 or 7 year warranty I would think it should be fine for the next 5 years at least. I drive less than 10k a year so it wont be on the road all the time.

          • @Aerith-Waifu: They are very reliable vehicles just like the X-Trail, should be good for the next 10+ years with annual servicing. Also, the 2021 model will come with LED headlights (with automatic high beam) as standard on the Life and Zen models, if you want to wait.

            An important difference between the Koleos, Tiguan and Karoq, is that the Koleos and Karoq have Automatic Emergency Braking (AEB) for "Vulnerable Road Users" such as pedestrians and cyclists according to ANCAP. Something to consider.

            Here's a good video review on the Koleos.

            • @Techie4066:

              An important difference between the Koleos, Tiguan and Karoq, is that the Koleos and Karoq have Automatic Emergency Braking (AEB) for "Vulnerable Road Users" such as pedestrians and cyclists according to ANCAP. Something to consider.

              So does Tiguan, read "Front Assist with Pedestrian Monitoring" in https://www.volkswagen.com.au/idhub/content/dam/onehub_pkw/i…

              • @modsec802: ANCAP clearly needs to do a better job updating their website considering how important safety is. I could go on about how stupid ANCAP's changing standards are every year - cars tested in 2020 receiving a 5 star rating, cannot be equated to a 5 star rating received in 2015, due to updated safety and technology requirements. Your standard consumer doesn't know that, and how to compare.

                Anyway. With the Tiguan you are paying $7k more. I'd say the Koleos has a lot of inclusions for its price and looks better, subjectively.

                • @Techie4066: Is the Koleos 7-seats? I'm buying an Allspace for the additional 2 occasional seats

                  • @modsec802: No, it's 5 seats only. Renault doesn't sell a 7 seater here. Have you checked out the Peugeot 5008? It has a well thought out dashboard and great infotainment system. Each seat in the middle row is a full-size individual seat, and the third row has seats which can be removed for extra boot space. Boot capacity is 952 litres with third row down vs 700 litres on the Allspace. That suggests there is more room in the third row of the 5008. With all seats down, capacity is 2042 vs 1775 litres, suggesting also more space in the 5008's middle row.

                    Review here. Low km 5008s are on Carsales for less than $45k, and there's a couple on Gumtree in Brisbane.

                    • @Techie4066: thanks, not keen on the styling, nor the engines.

                      • @modsec802: Alright, what about the engines, does that include the diesel? Not keen on the objectively better practicality, despite being 6cm shorter, or the more interesting and ergonomic cabin either?

                      • @modsec802: Can I ask which Allspace badge you are looking at, since there's quite a few specifications and engines.

                        • @Techie4066: I purchased a MY21 162-TSI Highline R-Line with panoramic sunroof and digital cockpit - I can't really see an equivalent in Renault or Peugeot

                          • @modsec802: No, unfortunately there's no French equivalent for a $60K "sportier" SUV although they do have panoramic sunroofs and digital cockpits (which Peugeot is a leader in).

  • How does warranty works with second hand cars if the car is only 1 year old? Say a car has 5 year warranty, after 1 year the original owner sold it, so it should still have 4 year warranty left. Is there a paper of transfer or something the new owner needs to sign in order for the warranty to be validated or something? Or does the warranty automatically gets transferred over to the new owner with the remaining warranty?

    • +2

      Goes with the car. Doesn't matter who the car is owned by/registered to, they'll go by the VIN.

      • Thanks. This applies to all brand regardless of warranty left over? Even with 4 year old car with 5 year warranty?

        • +1

          Yeah, if it's a bit older, just make sure there's some sort of paperwork specifying how long the warranty is as it may have been less than 5 years back then.

          • @whitelie: Thanks for that. Noted

            • @Aerith-Waifu: also make sure log book services are up to date as they could use missed ones/delayed to deny warranty

    • Highly unlikely a 1yo car will be good value for money in the current economic climate

      • I saw one which is $43000 if bought brand new, with 5000kms on it, selling for $38000, if able to drop it down another 1k (if) with added tax and everything it should be around $5000 in savings compared from new.

        • +1

          Stamp duty is $1800, bringing the gap to around $3,000. If you assume the used car can be negotiated, then so can the new one.

          $3,000 or so for a 1yo car with less registration, 1 less capped price service, and the possibility of scratches or marks etc?

          Yeah I'd rather the new one

          • @spackbace: Very good comparison, didnt think of the rest, only was looking at the price. Thanks for the heads up.

            Just out of curiosity, what would be a fair price for an one year old car with 15000km drive away? Say the original price is 43k?

  • FWIW in Oct 20 we paid 62k plus on roads and delivery for a new Kodiaq RS from an interstate dealer vs our local dealer that was selling for 74k DA with hardly any price movement.

    • Amazing deal! RS is a beast of a machine!

      Does does buying from another state works? I see you are from the ACT, so you contacted someone in another state and they shipped it over? How does warranty and registration works in that regards? Also cost of shipping?

      • Yep called Skoda Bayside and Essendon - ended up going with the Bayside offer. With act you pay Stamp duty relative to how "green" the vehicle is so it ended up costing ~800 for us vs 2.5k if we had gone with the Tiguan Allspace.

        Warranty carries over and car came without plates - ended up going to access Canberra to get the car registered and stamp duty paid about 1.8k all up.

  • +1

    Update: I went to VW, Renault, Skoda today, all 3 places has no cars I can even test drive.

    A guy at the Skoda was so happy to pay for full price at the office because the colour he is after is in stock. Watch him shake the hands with the dealer and told me personally to sign the deal if I want a car in a particular colour.

    So lets say forget about 5% in the new car market in turns of discount. 1% maybe at the moment because there is just no cars around till late April to May this year.

    • 1% is generous. Just bought a VW last month, went to 5 different dealers and the most I could get off was $50 (and that was a mistake!). Originally wanted a particular colour they had in stock, umm’d and uhh’d about it for a day. Came back the next day to be told “Sorry, that’s been sold. There’s a wait of around 4-5 months for that colour.”

    • There are 4 Renault Koleos cars that are demos/new in stock at Renault dealers in Perth. The 2020 model listed here has the 7 year warranty promotion, and has the facelift and new wheels (you can see the new bumper design).

      You need to go to the right ones or contact them through Carsales and provide an offer greater than 5%, then negotiate and get accessories added in - 5% is definitely achievable on these in the next months because not enough people know about them, and dealers want to get them out of the door. Try contacting them now and purchasing at the end of the month when the dealer is trying to get their finals sales completed.

      • There are 4 Renault Koleos cars that are demos/new in stock

        Check again… 2 used cars, 1 demo, 1 new car listing. And guess what… all at the exact same dealer

        Supply and demand definitely comes into play

        • Yes, for sure at the moment, however the used cars are almost the same as the demos with low kilometres and the balance of the 5 year warranty. In the next months there won't be. Seems to especially be a shortage in WA, as I said.

          • @Techie4066:

            Seems to especially be a shortage in WA, as I said.

            Which makes this:

            5% is definitely achievable

            Rather stupid advice.

            Supply and demand, and current new car stocks are depleted for many brands, leaving wait times of a few months.

            Trying to hit a 2019/20 vehicle for where it should be right now is pointless. The market is dictating otherwise. Have to either pay the price or wait for new vehicle stock, time-frame unknown

            • @spackbace: 5% is achievable in the timeframe I mentioned, even on new cars. Vast majority of Aussie consumers don't know about Renault, let alone the Koleos. Otherwise there would be more on the road and the resale value would be higher.

              I honestly did not expect so few cars to be available at the start of the year.

              • +1

                @Techie4066: I am doing a test driver this friday, I will let you guys know how I go.

    • Same goes for the Allspace on Carsales albeit significantly more expensive than the Koleos, and the Karoq. I think the pricing and lack of stock comes down to shortages coming out of the factories and being shipped, as well as more people travelling domestically and buying cars. WA looks especially hard hit.

      Won't the dealers still allow the purchase of new cars from the factories, months in advance? That way you could order the vehicle exactly as you want.

  • I had $40,000 knocked off my BMW (which actually equated to about $55,000 after LCT and Stamp Duty as they discounted the RRP not the driveaway)… mind you their list price is a complete joke but YMMV, imo anyone who doesn't haggle on a new car is an idiot in my books.

    • And the actual RRP of the BMW was…? If it's like a $400,000 BMW, your point is kinda moot

      • 122k drive away is what I paid, list was close to 180k

      • https://i.imgur.com/mn0avQf.jpg

        Just incase anyone wants to call bs.

        • Wow over $20k to the tax man

          • @modsec802: Yeah, especially for a deadbeat tax like LCT as well… protecting all those home grown car manufacturers pretty well hey?

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