How to: Negotiate on the Price of your Car at a Dealership
November 14, 2017
With very low-interest rates on new cars in Australia, now is the ideal time to treat yourself to the brand new car that you have always dreamed of owning. The problem is that most of us are not very good at negotiating with car dealers, so here are our top 5 tips that should get you over the line with ease.
Buy from a dealer close to your home
Most dealerships are encouraged to sell to customers in their local area, most probably because they believe that building a positive relationship with a customer will lead to repeat sales. So our tip here is to select at least three dealerships at varying distances from your home.
First, go to the one that is furthest away and then work your way closer to home. After the first two dealerships, you will know exactly what you want and be in good shape to negotiate a great price with a dealership who is highly motivated to sell to local customers.
Buy from a dealer when they are amped to sell
The end of the financial year is a good time to negotiate an awesome deal on a new car as dealerships not only want to clear the decks of old stock, but they also want to make as many sales as possible. EOFY (end of financial year) sales are big in Australia, so it pays to wait until May or June before hitting the dealerships.
However, if you can’t wait until May or June for your new car, then the next best time is about 10 days before the end of each month when dealerships are under the pump to hit their monthly sales targets. They will happily give you the very best discounts, just to reach their monthly targets.
Consider all of the extras
The best strategy is to negotiate a great price on your car and then take a break before talking about all of the extras. If you are lucky, you might be able to include all of the extras in a discount package, but if you don’t need all of them, it might be worthwhile coming back after you have taken a breath and given it some more thought.
After all, a good deal doesn’t mean that you should spend more money than you need and spending big on all of the extras can significantly increase the price of your new car – even with a great deal.
Don’t be fooled by ‘extra’ protection
If a dealer wants you to pay for rust proofing, paint and tyre protection, don’t just jump on-board without giving it some serious thought. These ‘extras’ can add up to a lot of additional cash and all on top of the price of the car. When you really think about it, if a brand new car needs rust protection – how good is it really?
Shouldn’t you be able to drive around town in a new car without rust sprouting all over it? Isn’t the paint job good enough without needing a special protective treatment? Don’t the tyres have their own inherent warranty? Most of these so-called ‘extras’ are not necessary, so take a step back before you dive in and agree.
Walk away if necessary
If a dealer won’t budge on the price of your dream car, then it’s time to walk away. There are plenty of other dealerships that will be more forthcoming with their prices, so don’t feel intimidated, just simply walk away. When you show the dealer that you are willing to find a better deal elsewhere, they will often capitulate and bring their price down or include all of the extras you had your eye on – to sweeten the pot.