I am butying a new car

[jo90]

I am butying a new car and am rather naive about car dealer behaviour. What do you think I can reasonably expect to get off the price of a new �15,000 car? My offer from a distributor has only given me a reasonable (less than a grand) price fpr my oldiish estate. Does it stop there or can I expect a hefty discount as well?

[robocoD]

95% of car dealer will only drop a grand and most of the time thats only if ur part exchanging, all car dealers are shifty no matter how up front they seem, but its still a grand saved if u can pull it off

[tali122]

go towards the end of the month when they will be more eager to meet their sales target and be more competitive , and also on a rainy day when custom will be less due to poor weather , also ask for some 0% finance my brother did and stood his ground and they agreed

[Loosehead]

go to the BCA auction, with 15K you'll get something amazing. That's where dealers get there stock.

If you mean a brand new car then you will get something pretty sh1t for 15k.

[Ward-Minter]

A 15K car. How exactly would you feel knowing the soon as you drive it off of the forecourt it will be worth about 12K. Buy good secondhand anyday. The warranties are nowadays the same and all the niggles have been ironed out by 5000 miles.

[Frankieola]

I'm in the trade and some of the answers you've had posted would make me laugh if it wasnt so tragic! -

Firstly, If your car is only worth for example �500 TRADE value (The money the dealer expects to get for it at auction) and they give you �1000, That is effectively a �500 discount, As they've given you �500 more than your car is worth.

Tali122, The old thing about going at the end of the month is a myth! Registrations are the name of the game and if you pitch up at the end of the month to buy a car, How is a dealer suppose to order it to your spec, get it delivered, prepare it, clean it, get your insurance and finance sorted and register it?! It wont happen and Im sick of people coming to see me on the 29th of the month wanting a fantastic deal when I'm already struggling to get the cars I've got sorted! The rain things also a myth, I've been in the trade 9yrs now and the quietest time is when its sunny!

0% finance costs the dealer money to do and can negate a discount unless the manufacturer subsidises it and you'll know if they are offering it because they'll be shouting it from the rooftops!

loosehead, How can you tell anyone who is naive about car dealer behavior to go to an auction?! people who go to auctions expecting a cheap car usually get one, or 2 if they've been badly repaired! Yes, dealers sell them on at a profit but they do inspect them and make sure thery are proper.

Jo90,Let me know what car is it you are buying? what about a car that has been pre registered, Where you would be the 2nd owner but take the car with delivery mileage? that could save you a bit, But not all manufacturers do that. Come back with more details and I will save you money!

[Gef]

Thanks Frankie for confirming what I thought. Buying a car in this country is a rip-off. Dealers make huge amounts of profit and the customer is their last thought.

[jake-the-peg]

If you're thinking about a new car you might consider importing from abroad.

Because of the difference in the way taxation works in different EU countries you can save a lot of money. It does depend on the car you're after but you should look at the option.

There are a lot of companies about who make it very easy for you, cars are right hand drive, UK specification full warranty.

have a look here:

http://www.alliancecarimports.co.uk/index.asp?Page=index

For an example

[flip-flop]

Have to agree with WM - I have only ever bought one new car which depreciated like a bomb: NEVER EVER AGAIN. Buy second hand where somebody has already been hit with the depreciation.

Also, consider a car supermarket - they are significantly more competitive than a dealership: its the pile em high sell em cheap philosophy. Dealers pour scorn on them, but I've bought cars from them and the service has been as good as, if not better, than the main dealers I've dealt with in the past. And have never had a problem with the quality of the cars!

[Loosehead]

well Frankie all good points, I wasn't suggesting going to the auction blindfold, like anything do a bit of research first. With 15k you will be buying out of hall A I wasn't talkning about going to Arthur Daley auctions round the corner!

[Jay70]

Basically go to a few dealers and trade them off against one another. Put yourself in control of the situation be pushy and persistant. It may be against your normal instinct but it's normally the only thing dealers understand. Also be patient. They do the old 'I'll have to speak to my manager routine' where reductions are concerned (which means they go off and have a cup of tea) to try and make you get fed up with trying to get a reduction. Push for extras like matts and flaps. Free fist service etc. If you dont ask you really don't get.

[buildersmate]

Having read the above, I offer my own tips. In November last year I bought a UK-spec and sourced VW Golf from a UK main dealer (VW on the road price of �16360) for �14787, a reduction of 9.6% off list. Firstly no Trade-In; that's essential to get the best deal. I investigated the 'grey market' (cars imported from abroad) but discovered I could get a similar deal from UK main dealers. I also investigated 'Reverse Auction' sites. AutoeBid is one such site and you can see it here - there are others. http://www.ebuild.co.uk/forums/messages/3413/6135.html?1130689914 This works by guaranteeing the maximum price you will pay for your car, and claims it might save you more. It costs to register your request (�250 I think) and it then posts your requested spec to a number of dealers with a time limit to respond with their lowest price. I am fairly sure (but can't prove it) that some of the �250 you pay goes to the winning dealer - effectively a subsidy, so I therefore took the maximum price on a reverse auction site plus the cost of registering as my max 'benchmark' price. Then I started negotiating. I found about 10 main dealers off the VW site and phoned them, told them what I wanted, gave them a date (5 days hence) when I would make my decision. The general response was 'what price are you expecting'. I told them less than �15000. Some immediately told me they couldn't meet that - five came back with prices below �15000. In short I conducted my own reverse auction. Salesmen are used to operating in this direct manner - be direct and decisive, don't mess Dealersd about and make it clear you what thewir best price and you won't be trading one off against another. It a tough world out there with customers like me.

[buildersmate]

Ignore the link above for Autoebid - its the wrong thing. Right site is here http://www.autoebid.com

[Frankieola]

Here I am again to put you all straight about the motor trade!

Gef, I dont know where you got the idea that dealers make vadt profits, I've been in the trade for ages and can prove that DFS make more profit on selling a 3 piece suite than a dealer makes selling an average sized car. The avarage margin in a car these days is between 6 and 8 per cent, and thats without the VAT. Out of this "profit", dealer has to pay for preparation, valeting, any things he has "thrown in" and take the discount out of it!! If you dont believe me, give me your e-mail address and I'll send you my sales reports!

You might want to try an import, but I think that time has passed now, The UK is one of the most competitive places to source a car now and you'll have problems with selling an import later on - If its cheaper than a UK car when it was new, Why would anyone pay the same price as a UK car for it when its 3ys old?!

Car supermarkets are not the bargain paradises they used to be, There is one near me and I've noticed its no way as cheap as it used to be, They also have "admin charges" for filling in the order form and "preparation charges" for valeting. On top of this they dont prepare the cars at all and give crap warranties as standard so its like buying it privately and unfair to compare it to a dealer. Also, another example, is the bloke who sells you a convertable at a supermarket really going to know how to put the roof down properly? they dont!!

Like I said Jo, send me more details and I'll save you money!

[buildersmate]

Agree with you on the grey imports, Franki. Also agree with you that the margins are slim - as I said above some dealers wouldn't play on my terms and claimed they couldn't buy the car for the price I wanted. At the price I got the dealer was making less than 1% margin as a handling charge and it keeps his volumes up, which entitles him to bigger discounts. I note that you didn't comment on the technique of running reverse auctions.

[jo90]

Thank you one and all for your answers - didn't realize I'd opened up such a can of worms!
Frankieola - the car in question is a Skoda (don't laugh) Octavia Ambiente. Basic spec. but with sunroof.
Please - no Skoda jokes!

[timbeau]

Well done JO90 - that was a conversation stopper!