Discount or No Discount

[Jamo]

In the current climate will one have to accept that a dealer will only offer RRP on a new car, where said new car is being optioned and will need to be ordered (as opposed to buying one off the showroom floor)?

Or would it be reasonable to expect some negotiation and discount on the pricing?

I'm not talking about a small amount of optioning either.

[Slunnie]

Nobody pays RRP on a car, but the discounting comes via the trade in rather than the price on the new car.

[Jamo]

Ahh, no trade in = no discount then.

I'll try anyway.

[CraigE]

It all depends.
Many dealers depending on stock levels, type of trade in, current turnover will often prefer to deal without a trade in and you can get substantial discounts as they are not having to move your trade in. We bought our last car this way and got a good price.
Often trading in you actually get ripped.

[Jamo]

Thanks Craig.

I decided not to trade as I was definitely getting ripped when given a trade-in offer recently (well I thought so anyway)

[isuzurover]

Thanks Craig.

I decided not to trade as I was definitely getting ripped when given a trade-in offer recently (well I thought so anyway)

I personally would never pay RRP on a car. Remember there are dealers all over Australia. An uncle of mine bought a car from a dealer 1400km away when the local dealer wouldn't come down in price.

The car was delivered to his door for ~$3000 less than the local dealer's best price.

[Bigbjorn]

I personally would never pay RRP on a car. Remember there are dealers all over Australia. An uncle of mine bought a car from a dealer 1400km away when the local dealer wouldn't come down in price.

The car was delivered to his door for ~$3000 less than the local dealer's best price.

I hope he is going to take it to the selling dealer for service and warranty work. The selling dealer is the one who has retained the fat built into the price to cover losses made doing warranty work at the manufacturer's laid down and low rates.

[strangy]

You will get a better deal with no trade. Always.

The dealer has to either wholesale your trade car immediately or put it on their used car lot. They must make money and have to allow for someone to haggle on your old car too, plus allow that it may sit on the yard for a little longer than desired, which is ultimately going to cost them money.

The result is with no trade you will get a better deal. If the dealer cant do it go somewhwere else.

Tough times dont make any vehicle RRP. Unless you are buying a vehicle which is not in country and via special order only.(talking exotic here)

Dealers work either by numbers or by margin depending on the franchise. A deal is always available, but remember you are the one who gets the deal, the salesman wont give it to you if you dont work for it.
Tough times mean fewer sales and smaller profits for dealers, the deal you can get will largely depend on the sales numbers of the dealer and vehicles in stock. A dealer does not want to carry excessive stock in tough times. They are the ones who have to move the vehicles at end of year with old plate cars.

Do your research, but as a rough guide take off 10% RRP(new vehicles) and you are close to the $. Ask what others you know have paid for the same vehicle. Try and buy something that is in stock rather than a special order
i.e you want Dark Mettalic blue or white. The blue has to be ordered and the white is in stock. You will not get as good a price on the blue because it has to ordered and the dealers stock levels dont change (its the build date on the stock that causes the headache for the dealer) If you want what the dealer has to move rather than what the dealer doesnt have to move you will do better.

[weeds]

I personally would never pay RRP on a car. Remember there are dealers all over Australia. An uncle of mine bought a car from a dealer 1400km away when the local dealer wouldn't come down in price.

The car was delivered to his door for ~$3000 less than the local dealer's best price.


I hope he is going to take it to the selling dealer for service and warranty work. The selling dealer is the one who has retained the fat built into the price to cover losses made doing warranty work at the manufacturer's laid down and low rates.

soooo your saying if i brought a car in brisbane today for the best price in the country then move to sydney next week there would be an expectation to have warranty work done in brisbane:angel: or have i misread the thread

[Jamo]

I hope he is going to take it to the selling dealer for service and warranty work. The selling dealer is the one who has retained the fat built into the price to cover losses made doing warranty work at the manufacturer's laid down and low rates.

Well, I'm actually hoping to buy a car that doesn't need warranty work!!

[isuzurover]

I hope he is going to take it to the selling dealer for service and warranty work. The selling dealer is the one who has retained the fat built into the price to cover losses made doing warranty work at the manufacturer's laid down and low rates.

:rolleyes:

I think it is more the other way around... The dealer who sold the car will miss out on all the scheduled servicing...

Anyway - he bought a toyota - it didn't need warranty work :p



Likewise my sister bought a car from a Brisbane dealer, yet she works on the gold coast. The dealer doesn't do servicing on weekends - their loss...

[3toes]

Unless you have a really crap car to trade in the dealer will be interested in taking it off your hands. This is part of their standard business model whic h is built on

New sales
They do this to provide work for the aftersales departments which is where the profit lies. There is no profit for the dealer in selling new cars as this is controlled by the manufacturer. You have to be in it to understand how screwed up the new sales process is. The more control the manufacturer attempts to put in place the worse it gets.

Used cars
This area also generally breaks even which is better than the loss new car sales generally makes. Another method of getting you into the aftersales departments.

Aftersales
Still profitable however prices are higher than might otherwise be necessary if they did not have to carry the losses made in new and used sales. Manufacturers have spotted that this part of the business is still profitable and are now focusing on controlling it also so probably not for much longer.

Control of new sales was achieved through taking the margin off the vehicle and making it dependent on a volume targets and service standards which they make up and alter as they go along. Similar tactics are now appearing in aftersales.

Purchase price of the used car is determined by the used car sales department. They will know if it is a retailer for them or to sell it on. They have the contacts and will know what it is worth in very quick time. Anything above thier price is from the new car department profit.

Always shop the change over price as this what you are paying from you pocket. Too many people fall for the low new car price or high trade in price.

[Jamo]

My personal experience is in contradiction with your first statement. A dealer I went to almost told me direct he wasn't interested and then offerred some $20,000 below current dealer asking prices on the same car with the same miles. IMHO mine is in better condition than many of the second hand ones on offer that I looked at in determining my private sale price. (If that's breaking even, I'd like to break even a bit more myself).

I understand what your saying with the rest of it though, and that dealers have limited profit margins on new cars. But their margin on options appears to be quite high. For instance, when I went to buy my D3 I asked for the LR winch kit - $6,500:eek: was price. I said No. Went to ARB got a bar $1600 and the same winch for $2200. ARB still made a profit!

It is my estimation that my car did not 'fit' the mix of vehicles they wanted in their yard so offered a low price so they could wholesale it off faster.

But thank you for your input. I just wanted to know if it was reasonable to expect a discount with no trade.

[HSVRangie]

one never pays full $$.

always bargain for what you want.

get prices from other areas.

Michael.

[300+]

It will depend on stock levels of your chosen steed. Supplu and demand and all that.

I bought my STi when they were brand new and in short supply. The discount was not impressive.

I bought my V8 D3 when people seemed worried about fuel prices. >25% off.

Both with no trade in.

Cheers, Steve

[Bigbjorn]

soooo your saying if i brought a car in brisbane today for the best price in the country then move to sydney next week there would be an expectation to have warranty work done in brisbane:angel: or have i misread the thread

You have misunderstood. If you live in say Biloela or Emerald, buy in Rockhampton because the Rocky dealer is cheaper, but continue to live in Biloela or Emerald, then your local dealer is entitled to be a bit s.o.l. when you take it to him for warranty. Particularly if you have got prices from him and rejected them as being too much. If you buy locally and then move, pretty well any dealer will meet his obligations without hesitation. The Rocky dealer is going to do a better deal because he knows he will never see you again and doesn't have to retain the fat built in to cover underpaid warranty.

[martinozcmax]

I used a car broker for the wife's new car last year and thoroughly recommend them. Never had to meet or talk to the car salesman and got a great deal. Saved $2k+ on a 17.5K car with no hassles and they delivered it with a tank full of petrol. PM me if you want the details of the one I ended up choosing.

Good luck


Marty

[cookiesa]

JAMO you are right in the mix has a ot to do with trade in price, lets face it if you are rading a white commodore sedan, standard don't expect much... you can get them anywhere, tjey are a dime a dozen, likewise soemthing like a rover, some delaers will touch them others are terrified by them and how much they potentially could cost them under warranty, so they call a wholesaler and ask them what they are willing to put (read buy) it for, if dealer doesn't want it they know what the wholesalers are willing to take it for and base the trade on that. All this plays out in the deal you are offerred.

[Benny_IIA]

Well, I'm actually hoping to buy a car that doesn't need warranty work!!


Well I guess your buying a Land Rover then.......:wasntme:


Ben.....

[hoadie72]

New sales
They do this to provide work for the aftersales departments which is where the profit lies. There is no profit for the dealer in selling new cars as this is controlled by the manufacturer. You have to be in it to understand how screwed up the new sales process is. The more control the manufacturer attempts to put in place the worse it gets.


I disagree. I've seen dealer buy prices for Ford, BMW & VW and they definitely make more than a couple of bucks on car sales. Car yards cannot (and do not) rely on aftersales as the only profitable part of the business.