buyinga new car - discount

depadz

looking at buying a brand new mpv.

having never bought a new car before, should i expect a discount for a cash deal on a new car?

bazz26

fwedrest wrote:

looking at buying a brand new mpv.

having never bought a new car before, should i expect a discount for a cash deal on a new car?

Really depends on the make/model you choose and how much you plan on spending. On average with a bit of hard haggling you should be able to get a cash discount of between 8% and 10% on a new motor. As always shop around to compare prices, also if possible go into the dealership rather than asking prices on the phone. Dealers get lots of phone calls every day and will probably discard most of them as window shoppers or time wasters so will not give you their bottom price over the phone. Better off haggling face to face when intent on buying.

Henry Ford III

8 - 10% is a little optimistic imho.

It varies a lot on make and model.

WildWater

I would be inclined to agree with Henry. 10% would probably be the dealers entire markup. It a complex area with manufacturer bonuses for units sold and dealer managers under pressure to maintain margins but bear in mind...

If the salesman/woman is on commission then it is most certainly linked the number of cars they shift in a month but also and more importantly to the amount of profit they retain in the deal as well. If you are dealing with someone in this situation then what you want is to do a deal close to the end of the month and hope that they are within a couple of deals of making their commission target. Then they may be more tempted to let the car go with less profit retained.

PauloMN

Henry Ford III wrote:

8 - 10% is a little optimistic imho.

It varies a lot on make and model.

Yeah, I would think most dealerships are now offering around 5% as a cash discount.

The trend seems to be more and more getting away from the haggling approach. In general they'll ask are you trading-in or buying straight - if a straight sale, they'll usually just offer you the discount straight. I was in an Audi dealer who just offered a flat 5% cash discount and no matter how many times I pushed, was told 5% is the standard discount off list.

No harm asking for a bit more off, sometimes you can get something, but not usually much more than they've already given you.

I find it's usually easier to negotiate extras into the deal when you've already got your standard cash discount. Push for extra warranty cover, or discount off an extended warranty, or maybe extra equipment on the car - anything at all like branded accessories etc.. Sometimes they might not bite for freebies, but sometimes you can get attractive discounts of wheel upgrades and the likes if you'd like something like that on your car.

WildWater

PauloMN wrote:

Yeah, I would think most dealerships are now offering around 5% as a cash discount.

The trend seems to be more and more getting away from the haggling approach. In general they'll ask are you trading-in or buying straight - if a straight sale, they'll usually just offer you the discount straight. I was in an Audi dealer who just offered a flat 5% cash discount and no matter how many times I pushed, was told 5% is the standard discount off list.

No harm asking for a bit more off, sometimes you can get something, but not usually much more than they've already given you.

I find it's usually easier to negotiate extras into the deal when you've already got your standard cash discount. Push for extra warranty cover, or discount off an extended warranty, or maybe extra equipment on the car - anything at all like branded accessories etc.. Sometimes they might not bite for freebies, but sometimes you can get attractive discounts of wheel upgrades and the likes if you'd like something like that on your car.

Thats good advice.;) But check the price with three dealers if you can. A work mate of mine bought a new avensis in Jan and was well pleased with how much he saved by shopping around.

EDIT: I just spoke with him and he said they was 1100 in the difference between the best and worst prices. In my book thats a lot of lolly.