View Full Version : Car prices down 21.2% - Good time for a discount?
Given the current economic climate what are the realistic chances of negotiating big discounts on new/almost new cars? We're looking for a Ford S-Max which has already heavily discounted by some garages e.g. 21k to 18k. What are the chances of negotiating further discounts e.g. 18k to 15k (6k of the original asking price of 21k). We tried negotiating unsuccessfully about 3 months ago to 15k. Are there any techniques to employ? Ours would be a cash sale, but I can't see any other benefit to the garage with this approach except for maintaining their cash flow. As I understand it, margins on cars are low and main dealerships make a lot more on financing and servicing/parts/labour.
sideshowbob
07-10-2008, 05:33
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I'm no expert but I think even under the current market conditions that would be a big ask.
Have you tried dealdrivers.co.uk? I joined the smaxownersclub.co.uk forums recently and they seem to be mentioned frequently when people enquire about the best prices out there on new cars.
Great car by the way!
Cash sales usually earn the dealer less money anyway - no commission on the finance package.
aahbarnes
07-10-2008, 07:45
You'd be lucky to get the price as low as that. You may get the price down to 17, but any more than that and they'll be making a loss I reckon.
Oh yeh - they'll want you to take their finance too, do the sums.
basegreen
07-10-2008, 07:50
I recently got a car at local dealer (toyota) for less than the brokers are asking, on 0%... worth haggling.
There simply is no where near 6k profit in a 21k car, you wouldnt get it that low.
As above, not a chance really. It all depends on the car, you could get a bigger discount in a gas guzzling French car (e.g. big V6 Citroen or similar) I am sure, but a popular Ford that is already discounted I think you will struggle, especially if its a diesel!
And as for cash/finance, its almost always best to pay finance for the dealer as they make comission, just get a low APR (the rates are flexible and they can discount them despite what they may tell you) and then just pay off after a few months so as not to be penalised but get the extra discount. This has worked well for me in the past.
downhillbiker
12-10-2008, 01:23
I got a pretty big discount on my Nissan Qashqai earlier in the year, brought the price of the diesel version I bought to the same as the petrol engine of the same size - speaking to another dealer, I apparently got it for very close to trade, so I guess they were really desperate to get an order at the time! Add in the fact that it was on 3 years 0%, and it was a very decent deal; I got much more car than I could have otherwise afforded.
You won't knock £6k off a car's price though...
goTimmygo
12-10-2008, 17:05
I am trying to flog my 350Z, but not getting much love at the mo. What are the chances of flogging it? I have it at a fair price, its in good nick and will be cheaper than buying from a dealer.....
Wait for a long as you can ... then buy.
The various internet car brokers if monitored closely do give a good indication of supply and demand for the various makes and models.
daveb_dvd
12-10-2008, 21:37
I am trying to flog my 350Z, but not getting much love at the mo. What are the chances of flogging it? I have it at a fair price, its in good nick and will be cheaper than buying from a dealer.....
Auto Express reckon it is one of 'The untouchables' (http://www.autoexpress.co.uk/news/autoexpressnews/228744/the_untouchables.html)!
I've been watching prices tumble on Autotrader for the last few months now too. Reckon you might have a better chance now that petrol prices are starting to come down a bit, but a lot of people will still be put off by the road tax.
Mandrill
12-10-2008, 22:18
A few months ago I was in the market for a BMW 320d se new shape and they were £15k now I have found then going for £11k....which is annoying as I got an Astra with my uncles employee discount.
Auto Express reckon it is one of 'The untouchables' (http://www.autoexpress.co.uk/news/autoexpressnews/228744/the_untouchables.html)!
I've been watching prices tumble on Autotrader for the last few months now too. Reckon you might have a better chance now that petrol prices are starting to come down a bit, but a lot of people will still be put off by the road tax.
Some of that is quite shocking really. I am sure most people are not really running the numbers correctly as its very rare that changing cars saves money.
daveb_dvd
13-10-2008, 11:18
Some of that is quite shocking really. I am sure most people are not really running the numbers correctly as its very rare that changing cars saves money.
If people are selling cars with finance outstanding, then using finance to get their next car, they're probably not going to take that much of a hit in increased monthly payments through a dropping trade-in price.
Also, if they're doing it because they can't afford to run the old car and switching to something much more efficient, they'll see a huge reduction in monthly outgoings for fuel, road tax etc. Lots of people probably ignoring the 'total cost to change' for the 'how much will it save me per month'.
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