Planning to Buy a Used or Demo Prestige (Audi, BMW, or Mercedes-Benz), How to Negotiate

I am in the market to buy a demo ore certified Merc or BMW SUV or Sedan looking at budget of around 60K for a demo or a few years old car. I suck at negotiation and the idea of dealing with dealers causes anxiety to me :) but anyone experienced if they can help me how to navigate this scenario will be appreciated.
Also I know very less about the cars except fill/service / clean, any other suggestions to look out would be great.

Many thanks.

EDIT: Thanks for all your comments, I some of these results on carsales around the budget, is there something I am missing:

https://www.carsales.com.au/cars/details/2018-audi-a3-s-line…

https://www.carsales.com.au/cars/details/2019-mercedes-benz-…

https://www.carsales.com.au/cars/details/2021-bmw-x1-sdrive1…

ps: someone mentioned that these cars from 2018 come preinstalled with dashcams, is this true?

Comments

    • Where are you based and who do you use for your Porky? Autohaus Hamilton in Syd has been great for me, but finding a timeslot these days is crazy.

  • +2

    Honest question. What is the appeal of the entry level Euro like the X1 or Aclass? The styling is quite plain and even boring to look at, they have piss weak engines and are expensive to service. I gotta admit the interiors are kind of nice but honestly I’d be far happier in a Mazda3/6, up spec camry hybrid or a Sonata. As some one commented, if you want Euro buy something stunning like the pug 508.

    • 100% agree. I have driven an entry level X1 work car a fair bit and I wouldn't even class them as a real BMW. No climate control, seat only has the most basic controls - tilt back/forward and raise base. No lumbar support, seat itself quite hard and flat. Very uncomfortable. Car looks pretty nice inside and out but they are stripped out of most tech and very basic to get costs down. If I was to get one a demo model would be the way to go as they usually put all the added tech/comfort/sport packs in them to make them more appealing and suck people in. This is where you will prob save $ as they added features won't hold as much value as demo/2nd hand purchase (even in this climate).

      We have had mid-spec Mazda's before and would take one of those anyway. A top spec would for similar $ would be far above.

      • Family member bought an X1 late last year, had the comfort/sport pack included I think. It is pretty nice inside, and fast enough. Seems to be a car for people that like dark interior 90s styled euro cars. Not sure I'd put my money into one, but there are worse cars out there.

    • +2

      The appeal is purely in the badges on the bonnet and boot lid. No one is buying an X1 for its performance and handling characteristics, nor for the interior and ride quality.

      • I was surprised by how cramped and tiny the interior is.

      • I suspected that was an element of it but it’s surprising the amount of money people are willing to put into a badge.

    • The only relatively entry level spec euro I'd say has appeal is the GLB, for being able to 'seat' 7, albeit the rear row better be children.

  • I bought a 2 series Gran Coupe under $60k Brand New, have had a few new bimmers and bought one 3yo had a few issues in end DPF, bought 207 Audi and gearbox had issues just out of warranty traded on new BMW got the 5 year basic service thrown in. Car loaded with tech and looks god all mates think I spent over $100k lol even new X1's etc have decent deals getting stock is the issue.. But as a euro car owner over last few decades since 95 with an xr6t in between in 2007 I def recommend Warranty and Service costs can be crazy high so get a plan included

    • I def recommend Warranty and Service costs can be crazy high so get a plan included

      With a plan thrown in you'll save about 10-20% on actual servicing/replacement costs.

      • I gor free servicing for 5 years and paid $46,400 for a demo 218i with comfort and m sport package in Jan 2021
        You can definitely haggle a lot from bmw

  • +2

    I just bought my first new car last year (rav4Hybrid) so not sure if my experience would be assist you, but I think since its a prestige vehicle, your best bet would be to imply that you could afford a train and ask the dealer what advantages the motor vehicle has over that

    If you are looking for a euro car for that price, look at the Vovlo XC40

    • +1

      Pssh he explicitly stated he "could also afford" a train - there was no subtlety about it! Clearly not a true simpsons fan ;)

  • Personally if I had 60k that had to go into a car, i'd be getting a cheap EV or PHEV.

  • +2

    As others have said, I doubt you are going to get many discounts in the current used car market, given the current supply issues, although you might get lucky if you time it right.

    A tactic I've used successfully before is to find a car which is very close in spec and condition to the one I am going to negotiate on, but is cheaper. This can be at another dealer, privately, whatever. The trick is to be genuinely interested in the car you are trying to negotiate on, whilst making it clear that unless they move on price, you will buy the other one. You basically need to make them feel like they are going to miss out on a sale. The rarer the car, the more difficult this can be to achieve.

    A key for this to work is a true understanding of market prices to inform what you will could/should pay, so do plenty of research before you step into the dealership.

    Personally if I was going to spend $60K on a car, I wouldn't bother buying the 3 brands you have listed. If value is important to you (which is presumably why you are trying to negotiate), there are much better "value for money" cars. (And that's from someone who has owned a couple of Audi's over the years).

  • Op: i will definitely stop and stare, maybe even point at you, as you drive down the street in your base model audi or bmw. Their very rare on the roads these days, and definitely should out "rich person vip"

  • Looks like you were on the other side of my crypto trades.

  • +1

    You could get a pretty nice new Mazda in your price range in the current market. It would be an even nicer car than the equivalent German car for the price. You need to spend $100k plus to get a German car that's nicer than a Mazda.

    • Mazda fanboy?

      • Never had one. Would buy one for my wife when her Honda dies though.

    • Completely incorrect. Ive said this before i got my bmw 218i for 3k over mazda 3 astina, and is leaps and bounds more enjoyable and feature filled over the mazda 3

  • Get a $1.50 bucket.
    Watch Cadogans youtube channel.
    Clean out the vomit from the bucket.
    Get a Tesla!

    • +3

      That dude is super bias for Hyundai and Kia. He is an embarrassment for Aussie auto shows.

      • He is a broker. Last 2 brands who deal with him. On the upside he does expose some dirty lobbyists. At least one good thing.

  • +2

    Ignoring the hate and the folks who clearly know more about value than anyone else - I'm going to go straight to the actual question the OP asked…

    Every dealer operates on a margin but there are circumstances where the margin is less important than volume or supply/demand mismatch. For instance, sales volume can impact on the stock and the subsequent cost base that a dealership has access to for future months. I would suggest the OP try a line of questions to work out if the sales person is meeting quota or whether stock is available immediately, that might give some insights to how willing they are to get a sale through.

    Then, there is the margin itself. When buying new something like 20% off the starting drive away price would be a good aim and for demos I would operate with a similar benchmark. If you are sensing that they are keen to make a sale shoot for above 20%. The worst they can say is no.

    Be prepared to make a deal on the spot and be prepared to walk away too. When going for new you will find it easier to walk away as every dealership can get you the build you want (time is the variable) but demo can be harder as the build is likely to be unique. Either way though, if you go in less invested on the specific specs, the negotiating power is all in your court. Good luck OP.

    • +5

      When buying new something like 20% off the starting drive away price would be a good aim and for demos I would operate with a similar benchmark.

      😂😂

      • Seriously, where do they pull this shit from? Maybe 20% on a used vehicle, but a new vehicle? I don’t know of any manufacturer that would have 20% of margin on any of their vehicles.

        These are the same cluckers that come into every thread spruiking that they don’t settle for anything less that a min 20% off, yet have never provided proof of getting anywhere close to this amount. It’s 100% bullshit they tell people so they can justify in their mind what they actually paid, which in likelihood was much much closer to RRP.

        • -3

          Some cluckers do get a good deal and they're happy about it. And why would the same cluckers share proof with condescending keyboard trolls just to make a point?

        • If it's a model that's old in the tooth (think previous XC90) in a horrible colour, 20% is doable from new. Pretty rare circumstances though, probably non existant in the current climate.

        • 20% margin would definitely not be on their entry/mass model cars. You would definitely have a 20% margin on an S class or 7 series…

    • +1

      When buying new something like 20% off the starting drive away price would be a good aim

      Something like 20%, with a +/- 20% margin of error is about right….

      • +/- 20% might be a stretch. I got my SUV March 2019 when the market wasn't sure how to respond to COVID and there was a massive backlog of stock. I got 24% off drive away price for brand new (the one they advertise on the spec sheet in the showroom) and was pretty happy with it. If you can get 40% that would be awesome.

        • And now you're paying 25-30% plus more for used and also new cars. I looked at golf in 2019 as my second zippy city car and it was $35k and now the same bloody car is $45k !!!

        • March 2019

          Well, unless you have a time machine , also at 20%off, the price you got 3 years ago before the current stock shortages, plant shutdowns, chip manufacturing shortages etc…means absolutely nothing.

          • @SBOB: That's exactly my point…you don't get much chance to haggle right now

          • @SBOB: Its also 9 months before COVID started… So I'm not sure the market could react to it.

            • @ATangk: New Car seat were not solid during 2018 and 2019 and it was easy to get a bargain if you buy at the right time. It had nothing to do with covid.

  • I'm waiting for the obligatory "My boss is a multi-millionaire and drives a 20 year old Camry response" I think that annoys me more than this question.

  • Personally the way I've gone about it is mark a lot of cars in your carsales and pick a price. Always be willing to miss out so the key here is find a few you like, not one!
    Think it over then very politely send a price to each seller, feel free to mention you are making offers on a few vehicles.
    Make sure to be serious btw, nobody likes dealing with a tyre kicker. Subject to inspection is fine but if there are not surprises be ready to buy from whoever accepts your terms.
    When I last did this I had to wait a couple of months but eventually the vendor came down to my price when I confirmed it was cash and was a good deal and experience for all.

  • Unfortunately I think if it's between a top spec Japanese car vs a low end merc/audi/BMW, I'd go the top spec japanese car every time.

    Unless it's a true blue AMG/M/RS , but those definitely aren't entry level.

  • They don't really negotiate right now coz lead times are so far out for new cars and any cars in stock sell quickly.

  • Go get a job at Aldi Supermarket, you will receive a corporate discount at BMW which is 13%. They also provide you 5 years servicing part of the corporate program and reduced dealer delivery. There are other companies out there like Telstra that also have this corporate program for employees with BMW.

    The program is only available on ICE vehicles, EV's are not included.

    • A week later…. Sorry boss, checkout operator really isn't for me, luckily they'll take me back at my corporate job.

  • +2

    Right question on wrong website. Only ask for Toyota or cheaper brands on ozbargain

  • +1

    Get a Tesla

  • +3

    You must be new. You will get witch-hunted here if you even utter an interest in european cars.
    Funny how so many idiots get so fired up over other people's choice in how they spend THEIR money.

    To OP, you are not going to get much, if any, discount in the current market. They will simply say if you don't want it, someone else will be willing to pay the listing price.

  • What's the point of asking for a discount on a used BMW, Mercedes, or Audi SUV -
    They are very expensive to own, maintain, fuel and run. Purchase price is just the beginning…
    If you are on OzBargain, and worried about $s, these are NOT the cars for you.

  • +2

    Stay away from diesels if you do short frequent drives without much long distance. Causes more issues than it's worth, unless you're going to religiously drive for 20-30mins each week to clear out the DPF.

  • -1

    Just buy a modern Camry and throw some Merc badges on it. 50% won't notice the difference. The other 50% don't give a shit.

  • Why is that BMW x1 so ugly? Cover the interior badge and you'll get confused with 2001 Hyundai. Actually that's very offensive towards the Hyundai. Forget what i said.

  • -1

    I wouldn’t stress about a pushy salesman. If he is pushy tell him not interested till you can find one you may feel more comfortable talking to.

    For $60k you can have the luxury car badge bt not much of a luxury car you get for that price tag.

    Most manufacturers have 5 year warranties not a bad idea to grab something 1-2 maybe 3 yrs old with the remainder of a manufacturers warranty for peace of mind.

    Just myself a 2021 GR Yaris today. Still got plenty of warranty left/capped price service so I’m happy with the purchase. Good luck finding the right car!!

    • Just myself a 2021 GR Yaris today.

      And how much did you pay for that?

  • ‘Euro trash’!(& yes I have had experience with the the things).Just purchase Japanese & be done with it.

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