Buying a new car

Originally posted by mojohand ↑

Finally made up my mind to buy a new car. Been looking for a few weeks and settled on a white manual Mistubishi ASX. The RRP $24,990 driveaway. It's the base model and meets my needs.

Today I visited two dealers as part of their big end of year sales but neither would sell me one. My offer was $21,000 cash right now, no trade, will sign today. You'd have though I had asked for their first born child. Can't be done they said. No way in the world could we do it that low. This, despite all the 10ft signs screaming SALE! SALE! SALE! plastered out the front of the dealerships. Not only that but there is a current marketing campaign where the Mitsubishi parent company offers a $1000 cash back, not the dealership itself, so essentially (in mojo's eyes anyway) the negotiating start point for the dealership is $23,990. My offer of $21,000 was a 12% discount on the this initial price. Is that too extreme for an EOFY sale on a model of vehicle that's been around for seven years? Are the margins in new cars that slim that all dealerships are in perpetual danger of going under?

All that being said ol' mojo thanked them for their time and left. Although I don't know the margins in the car industry I'm fairly certain that in parting with the vehicle at my asking price they would not have incurred a loss on said vehicle, just a much reduce profit than usually made. If the car was the only one I could understand them wanting to hold onto it for a customer willing to pay more but they can sell as many as they like and for every tough customer that walks in and gets a low price there might be five or six weak negotiators that don't get much of a deal at all so it all evens out really. I don't think dealerships see it like that though.....

There are more dealers in my area so will continue on and there is always Sydney I suppose but unless they are willing to deal on the phone it can be an immense hassle to buy from there. Although I would like a new car now I am a patient man and if required will wait til runout sales begin when 2018 models arrive and drive an even harder bargain. Alternatively, there are car brokers but I'm not sure as to how good or bad they might be.

Still can't believe 12% was too steep a discount for them....

Expand

My wife's theory is that you keep bashing them over the head until they say that they can't go any lower, then say that you want to speak to the manager. Once you've reached his limit, you continue twisting his arm until you've dislocated his shoulder with all the accessories for no extra cost. Make them bring it round to check it will fit in the garage (Patrol). Then you can be fairly sure you've done alright. So we got it for only $6k more than they were selling for at three years old.

You'd never guess just by looking at her how good a negotiator she is!