I'm currently going through the bargaining process on a Velocity Red SP23 manual hatch. Just thought I'd share various things I'm learning, or have been advised to do (I sit adjacent to the state sales team at work).
Firstly, if you're trading your old car as part of the deal, don't tell them this from the outset. Tell them your friend/brother is buying it off you. If a dealer knows you're trading he'll offer to discount the new car when really he's just presenting a lower offer on your old car to make up the difference. So now you're in a position to get the true figure on the Madza3.
Now, never EVER disclose your current best offer on the new car, who you've spoken to, whatever. They ask this early on in the piece because its valuable information to them. It's not rude to withold this, just smile and say something like, "I'm here to talk to YOU about YOUR price". If you're finding it hard to handle the pressure - and they WILL be persistent - tell them: "Look mate, I dont like where this is going. I came
in here to see whether you wanted to sell me a car. Let's talk about your offer."
Now, for cars over $20,000, don't even think about talking RRP. Ask them the RRP (even if you know it), pause thoughtfully, and say you'd like to start talking at (RRP - $1000). Are they still interested?
Now the salesman knows he's dealing with a shark (a pirhana at least). So he'll be listening very carefully to your words and watching your body language to see how hard you really are. Maybe you're an ex-car
salesman, maybe you're just arrogant. The main thing is, remember to be yourself. I bargained with one guy for an hour and its really draining. These guys do it for a living, they'll break you first, so do what comes
naturally.
If he uses words like "Help us out here, we really want to get you into this car", or "You're dead for a long time," or worse still, "Come on, its only money" you're dealing with a seasoned negotiator. I've had all of these lines used on me in the first 5 minutes, later found out he was the dealer principle at this branch for 18 years. So this guy will know every trick in the book and most likely walk away from the deal before you
do. Remember, its all about finding the absolute best deal you can get without things going sour. Be polite, thank them for any favours (such as coffee, brochures, a test drive) but don't give too gushy or they'll think you're easy. Be polite, respectful.
Most dealers told me that the car is in high demand, they can't get enough, they don't need to discount, blah blah. Look them in the eye and say "No worries. I'm prepared to wait until the hype has died down." Shrug and see what they say. You've just called their bluff. If they don't budge, leave them your number and ask them to call you if they change their mind, and walk out. Don't worry, they'll either stop you there or call you the very next day. The RRP always factors in SOME kind of discount. Hence the nice round numbers. Remember, on this $30k car you can get at least a grand off. If you're earning six figures you probably don't care... so turn off your PC right now and go for a drive down the beach!
Now... you know you've reached rock bottom when they stop smiling. Get your thousand-ish off, and (provided it's all true) say this: "Okay Mr X. You say that's the best you can do. I've got financed approved, insurance quotes, I've got a $500 deposit in my back pocket, I'm ready to do a deal RIGHT NOW. Give me your best figure and show me where to sign. I need to see a little bit more on that price."
That, my friends, is your last attempt to bring him down. If he says no, tell him you already have that offer. Where? Politely remind him that you're ready to sign at a better price, TODAY. I wouldn't push any
more after this. You'll seem ungrateful and you won't get any extras.
Extras...when you have the dollar figure, smile and say, "If that includes floor mats and a full tank of fuel I'm ready to sign". He'll nearly always oblige, grudgingly. Or he may start swearing and spitting. The point is, you've just added another $150 value to the deal!
If you want a sunroof, leather, whatever, now you have to add to that base value. You've worked him to the bone so I wouldn't push too much. Personally I'd leave these accessories until the FREE the 1000km service. That way you won't pay stamp duty on them as part of the new car purchase, and they'll probably do a better deal since you've become a loyal customer.
Now with the trade-in, this is very foggy ground. Firstly, you have to walk away for a few hours "to think about it", go back later and say that your friend/brother couldn't get finance...you'd like to consider the trade-in. Depending on the demand for your old car, mileage and relative condition, they'll probably offer you something in the trade-in range from redbook.com.au (sorry to the non-Oz readers). Remember that dealers have to detail your old car, provide a warranty and RWC. Plus it occupies floor/yard space which they pay rental on. You can't expect a street price on a trade-in.
Its very hard to gauge the upper limit on this, however a few things to remember are: don't get your car detailed (save the money for a Mazda3 turbo conversion) - they can see past the road dust and will appreciate the value anyway; if its a reasonable offer and you don't owe anything on the car, cut your losses and just go enjoy the FABULOUS deal on your new wheels; otherwise I would take the "minimum changeover cost" angle, arguing that you haven't *quite* got that much cash to pay the difference - can they help you out? That's about it. The used car market in Australia has been hammered by all these cars at $19,990... combined with easy/cheap finance options everyone is buying new cars. Thats my theory anyway!
Thats it - sorry for the long post! I hope somebody benefits from my experiences - be sure to let me know if you do.
Firstly, if you're trading your old car as part of the deal, don't tell them this from the outset. Tell them your friend/brother is buying it off you. If a dealer knows you're trading he'll offer to discount the new car when really he's just presenting a lower offer on your old car to make up the difference. So now you're in a position to get the true figure on the Madza3.
Now, never EVER disclose your current best offer on the new car, who you've spoken to, whatever. They ask this early on in the piece because its valuable information to them. It's not rude to withold this, just smile and say something like, "I'm here to talk to YOU about YOUR price". If you're finding it hard to handle the pressure - and they WILL be persistent - tell them: "Look mate, I dont like where this is going. I came
in here to see whether you wanted to sell me a car. Let's talk about your offer."
Now, for cars over $20,000, don't even think about talking RRP. Ask them the RRP (even if you know it), pause thoughtfully, and say you'd like to start talking at (RRP - $1000). Are they still interested?
Now the salesman knows he's dealing with a shark (a pirhana at least). So he'll be listening very carefully to your words and watching your body language to see how hard you really are. Maybe you're an ex-car
salesman, maybe you're just arrogant. The main thing is, remember to be yourself. I bargained with one guy for an hour and its really draining. These guys do it for a living, they'll break you first, so do what comes
naturally.
If he uses words like "Help us out here, we really want to get you into this car", or "You're dead for a long time," or worse still, "Come on, its only money" you're dealing with a seasoned negotiator. I've had all of these lines used on me in the first 5 minutes, later found out he was the dealer principle at this branch for 18 years. So this guy will know every trick in the book and most likely walk away from the deal before you
do. Remember, its all about finding the absolute best deal you can get without things going sour. Be polite, thank them for any favours (such as coffee, brochures, a test drive) but don't give too gushy or they'll think you're easy. Be polite, respectful.
Most dealers told me that the car is in high demand, they can't get enough, they don't need to discount, blah blah. Look them in the eye and say "No worries. I'm prepared to wait until the hype has died down." Shrug and see what they say. You've just called their bluff. If they don't budge, leave them your number and ask them to call you if they change their mind, and walk out. Don't worry, they'll either stop you there or call you the very next day. The RRP always factors in SOME kind of discount. Hence the nice round numbers. Remember, on this $30k car you can get at least a grand off. If you're earning six figures you probably don't care... so turn off your PC right now and go for a drive down the beach!
Now... you know you've reached rock bottom when they stop smiling. Get your thousand-ish off, and (provided it's all true) say this: "Okay Mr X. You say that's the best you can do. I've got financed approved, insurance quotes, I've got a $500 deposit in my back pocket, I'm ready to do a deal RIGHT NOW. Give me your best figure and show me where to sign. I need to see a little bit more on that price."
That, my friends, is your last attempt to bring him down. If he says no, tell him you already have that offer. Where? Politely remind him that you're ready to sign at a better price, TODAY. I wouldn't push any
more after this. You'll seem ungrateful and you won't get any extras.
Extras...when you have the dollar figure, smile and say, "If that includes floor mats and a full tank of fuel I'm ready to sign". He'll nearly always oblige, grudgingly. Or he may start swearing and spitting. The point is, you've just added another $150 value to the deal!
If you want a sunroof, leather, whatever, now you have to add to that base value. You've worked him to the bone so I wouldn't push too much. Personally I'd leave these accessories until the FREE the 1000km service. That way you won't pay stamp duty on them as part of the new car purchase, and they'll probably do a better deal since you've become a loyal customer.
Now with the trade-in, this is very foggy ground. Firstly, you have to walk away for a few hours "to think about it", go back later and say that your friend/brother couldn't get finance...you'd like to consider the trade-in. Depending on the demand for your old car, mileage and relative condition, they'll probably offer you something in the trade-in range from redbook.com.au (sorry to the non-Oz readers). Remember that dealers have to detail your old car, provide a warranty and RWC. Plus it occupies floor/yard space which they pay rental on. You can't expect a street price on a trade-in.
Its very hard to gauge the upper limit on this, however a few things to remember are: don't get your car detailed (save the money for a Mazda3 turbo conversion) - they can see past the road dust and will appreciate the value anyway; if its a reasonable offer and you don't owe anything on the car, cut your losses and just go enjoy the FABULOUS deal on your new wheels; otherwise I would take the "minimum changeover cost" angle, arguing that you haven't *quite* got that much cash to pay the difference - can they help you out? That's about it. The used car market in Australia has been hammered by all these cars at $19,990... combined with easy/cheap finance options everyone is buying new cars. Thats my theory anyway!
Thats it - sorry for the long post! I hope somebody benefits from my experiences - be sure to let me know if you do.
