How not to overpay when buying a new car: the secrets of official dealers
Buying a new car is a whole adventure: selection and search, bidding, travel from dealer to dealer, payment. At each stage, it’s easy to let your guard down and agree to unfavorable terms. We tell you what you need to be prepared for when buying a new car.
Who bought a new car, knows: the official dealer does not have strict prices. The cost depends on the time of year, the model and the demand for the car. Dealers play on this: offer gifts with the purchase and give discounts. It can seem to the buyer that he bargained and bought the car cheaper, when in fact he overpaid. It’s important to understand the intricacies of buying a new car and not let yourself be fooled. Here is what you need to do.
Understand how much the car should cost and haggle
New cars have recommended retail prices, as well as “endorsements” – discounts on some models that change once a month or a quarter. Because of this, it is not clear what the final price is and what the discount may be. And the price can be very different from what the manufacturer recommends. You have to go, haggle and ask. The result depends on the size of the city.
Regional centers . Dealers are few, buyers have no choice. Here you can not get great discounts, no gifts. You need a car – buy one. Cities with a million inhabitants. A little more free – you can knock down the price. Here the dealers are “friendly” – agree with each other on the minimum price. Moscow and St. Petersburg. A lot of dealers, a lot of competition, it makes sense to fight for the client. You can get a good discount or gifts. True, not on the basic models.
In Moscow, it will take you several days to go round all the showrooms, but you can also find a good offer – it makes sense to come to the big city for the sake of it. Approximate scheme: ask about the car in one showroom, and then with this proposal go to another. Show it to salespeople and ask if they will offer more favourable conditions. Then go to the next one, and so on, until you find a good deal.
CEBEP-SPB tells an entire detective story about choosing and buying a BMW 3 Series. He asked his comrades from the BMW club in the capital to drive around different dealerships and ask for prices. As a result he came for the car from St. Petersburg and bought the car with a 900K profit.
In “Borishoff” the price of the car with extras and a trip abroad – 1 775 000 rubles, although the offer on the site – 2 370 000 rubles
Some Drive users advise to lie a little when bargaining: they offer the car for 900,000 rubles, and you say you are buying it for 870,000. This way only seems to work. The sellers know how much the car should cost and the maximum amount of the discount – they will quickly uncover the deception.
Everything written above does not work for cars with basic configuration. In order to meet the plan and get a bonus, the manager must sell as much additional equipment and services as possible:
– Extra set of original castings with rubber. – Nets, cup holders and branded mat in the trunk. – Tinting according to GOST. – MTPL, hull insurance and other insurance products. – Grid to protect the radiator with removal and installation of bumpers. – Armor optics and bumpers film and much more.
It is even great if the customer will give the old car in a trade-in, and the new car will be taken on credit. Each of these items is a negotiable subject. If the dealer does not provide a discount, it makes sense to negotiate a gift in the form of equipment or services.
Buy only from authorized dealers and look at the size of the discount
If you choose a new car – go to an official dealer. Unofficial ones often create problems, falsify contracts and cheat. There are many such companies in large cities, and they are sometimes confused with official representatives. As a rule, such car dealers sell different cars: next to the Focus there will be a Solaris, and behind them a Logan.
There are hundreds of stories in blogs on DRIVE2 about people who came to a car showroom in search of an interesting offer and almost lost their money. A typical scenario: a person finds a cheap new car on the Internet, the manager confirms the price and even offers to pay for the ticket, if it’s a long trip. Why not go for a car that is 40% cheaper? The dealership will find a way to make money off such a customer.
The AvtoREVIZORRO’s driver tells how it happens: the buyer, who is sure he has outsmarted everybody, goes to the cash register and pays 420 thousand rubles for a new Solaris, which costs 700 thousand rubles at the official website. He goes back to his car and doesn’t understand why it is locked and no one even thinks about giving him the keys. The manager explains: “Solaris doesn’t belong to you and have you read the contract?” and assures that if you pay the same amount of money again, the car can be taken for sure. Not enough? The car dealership will be happy to give you a loan at 240% per annum.
– Did you get acquainted with the contract? – We asked the driver immediately after signing it. – Well, yes, everything is clear. – What is clear? – The manager interrupts. – It is clear, the cost of the car is 335 thousand and we are buying it from you. – Do you understand the clause 1.3 of the contract saying that the customer needs to pay the surcharge at a rate of 21% of the value of the car? – The manager smiles and points to the contract.
It is important to check if the dealership is an official dealer before you visit it. If the information about the salon is not on the official website of the automaker, you should not buy a car there. – How adequate is the price. The company posts price information on its website. The price, which is much lower than the recommended – a reason to think.
Not only scammers can play with prices. “The main thing is for the client to come, and then somehow we’ll figure it out,” think the heads of some dealerships. On the site of such a seller may be published a campaign for the purchase of a car – a discount of up to 100 thousand rubles. They confirm this over the phone: you can get a discount on a basic model car. But when the buyer comes to the salon it turns out that the offer is not valid any more or all the cars are sold out. There are other options – noticeably more expensive.
It is important to pay attention to the asterisks, small print. Immediately after it becomes clear that the offer is invalid, stop any conversation with the managers and go to the exit.
Do not order, choose from what is available
Cars at the dealership are constantly on the move. Ordered at the factory – brought to the warehouse – sold to the customer – ordered new ones. In such a scheme, they don’t stagnate in the warehouse. It happens that the customer configures the car through the configurator: he chooses a medium package, asks for a certain color, LED lights, black headliner and company castings with a special design. For the dealer it’s an individual order – the manager is sure by default that the car will be sold to this particular customer. He is not ready to do a discount, and even the cabin mats will be sold for a full price. You can only count on a discount from the trade-in program and the credit.
If the configuration is not popular, the car can be delayed. The longer it is in the salon, the more it loses in value. Managers can get special bonuses for selling such cars.
In order to maintain a constant turnover of cars, they need to be sold quickly. It is more profitable for the dealership to sell a car from the warehouse at the first visit of the client, than to order it from the factory. It takes from two to six months to wait for the car to be delivered. It considerably slows down the whole cycle of cars movement in the dealership and the client may change his/her mind. Therefore, managers often persuade to buy the car out of what is already available. The readiness to buy a car right now can be used as an additional argument for price reduction.
This principle does not always work. If the new cars are well received without advertising and gifts, it will not be possible to negotiate a discount. They can even overprice, threaten with a long waiting period and insist on buying a car with excessive and not always necessary additional equipment. For example, remember 2013 and the appearance on the market of the first restyled Renault Duster. Back then, buyers were offered to take the most complete package for 800 thousand rubles within a week, or wait two or three months – and many chose the first option. All this at a price of 600 thousand rubles for a four-wheel drive version with air conditioning and music. In a situation like this it makes sense to wait or look at cars of other models.
Relax and smile
No matter how tough and exhausting the race for a good offer is, it is worth remembering about negotiations and personal communication. It won’t take anything but goodwill, calmness and politeness.
The final benefits depend on the manager with whom you communicated – whether he liked you, what kind of mood he was in, and other little things. So it is important to communicate simply and in a friendly manner, do not push and do not demand anything. Buying a car is a pleasant purchase, not a tough negotiation.
How not to overpay. Conclusions
– Find out the approximate prices of the desired package. – Visit several car dealerships. If the city is small, try to get out to a million-strong city. – Do not look for unrealistically favorable conditions. – Choose a car only from an official dealer. – Do not order a car for yourself, choose from what is available. – Smile, be polite and do not be rude.
How to bargain with the official dealer
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It is still believed that buying from dealers is more reliable, albeit with an overpayment. Alas, it is not so. The official representative of the make will put up for sale “a pig in a poke” without any remorse. And in any case will try to cash in on the buyer. Therefore, it is possible and even necessary to bargain. Let us understand in order.
Reasons to bargain
Don’t pass up an opportunity to get a discount if:
- The car is much more expensive than the market average for the same model;
- The price of the car is lower than the market average;
- There are obvious discrepancies between the real information about the car and what the dealer or manager claims.
The car dealer will most likely sell the car more expensive than it is really worth. Because the amount a manager voiced includes his percentage of the sale, as well as costs for maintenance or repair of parts, which all used cars for sale undergo.
Amount of discount
The concept of “margin” in the case of used cars also works: car dealers often purchase used cars through trade-in, and therefore 10-15% cheaper. The difference is retained by the salon. This is the amount of the discount that you need to get from the dealer.
The dealer also earns money on CASCO policies, additional equipment and credit agreements “on the spot. Insurance as well as a loan from a partner bank brings the dealer an income of up to 20% of the price. For example, if you get a hull insurance for 100 thousand rubles the dealer will receive 10-20 thousand rubles from this transaction. If you take the car for 0.5-1 million rubles, feel free to ask for a discount of 10-20 thousand rubles.
In order to get the maximum discount, you need to meet a number of conditions.
Conditions for a successful bargain
To get a discount, come to the dealer on Saturday or Sunday for half an hour or an hour before closing time: the manager will not have time to “process” you for such a short period of time.
Go to choose a used car at the dealer in bad weather or as soon as the sky clears a little. Heavy rain, wind, puddles or even hail do not inspire people to shop – most prefer to stay home. You may show up at the dealership and see that there are no other buyers but you – ask for a discount!
Visit the dealer on the last day of the month. Most car dealerships have a used car sales plan, and if an elite amount is not enough, the manager will be willing to do anything. If you come on the 25th (many get an advance payment on this day), a discount is unlikely to work out.
Talk to the same manager and spend his time as much as necessary for a reasonable purchase. But do not go overboard. The more energy and nerves the seller puts into you, the harder it will be for him to “let you go” and the more willing he will be to make concessions. But you do not have to be hopeless: if there is no interest in the car, do not waste your time and the manager.
Bargain privately with the manager. The seller will not make concessions if he understands that someone else may ask for a discount. Communicate as a buyer and a seller, without an unnecessary audience.
Use “real money.” If you shake a stack of money in front of the manager, even if a little less in equivalent value than the car is worth, he will not refuse a discount.
Do not limit yourself to one dealership and one day. Be patient, visit 3-5 centers. Take printouts with prices, compare them. First, one of them may actually have a lower price than the others. Secondly, it is possible to play on it competently. How, we’ll tell you a little later.
A couple of trumps up your sleeve
It is also useful to check the model you are interested in with the “Autocode” mobile app. The service will “run” the car through more than 16 databases, including the State Traffic Safety Inspectorate, RSA, tax and customs services, banks, courts and other sources. To start the check, enter the vehicle’s license plate number in a special field and wait 2 minutes for the result. The report will show
- Year of manufacture
- Number of owners
- PTC details
- Traffic Police Restrictions
- Cab service
- Encumbrances, etc.
The cost of one inspection is 399 rubles.
If you see that the model of interest costs the same at private dealers and dealers, be sure: the car in the showroom either has a problem with the history/documents, or the technical condition leaves much to be desired.
Actions of a buyer
All conditions are fulfilled, X hour has come: you are standing opposite a manager of dealer’s showroom and are going to bargain. It is important to understand: a) how to behave and b) what to say.
How to speak.
Remember: no aggression. Even if you are tired and want to go home or in a hurry. The dealership employs the same people who earn their bread by selling cars and services. Be polite with the manager, make a reasoned bargain, not just ask for a discount. Being rude will easily lead to hours of reviewing your terms. And the salesperson will be quietly dealing with other, more tactful buyers in the meantime.
Dealership managers are rewarded for positive customer feedback. If you treat the seller with loyalty, he will be ready to offer you bonuses, favorable terms or tell you about the car that you didn’t know about.
Speak clearly, clearly, do not babble. Speaking not the whole truth, do not show excitement. If you do not know how to lie, and you want a discount – only hope for conditions for a bargain. Ask a friend to help you too, but it is not always effective. The manager will make concessions, if he understands that the opinion of another person is very important to you.
Some car owners advise not to walk around the car dealership with a shining face on the day of purchase – there is an opportunity to get bonuses, gifts. Especially if by the time of purchase it turns out that the car needs a long and expensive repair, credit conditions have changed, etc. Negative emotions can still be shown, but not aggression.
What to say
9 out of 10 used cars have disadvantages. Suspension problems, cigarette burns on the interior, 10 owners, a mortgage, etc. Unobtrusively point out the problems and tell them how much you are willing to pay. This way you show the salesman that you want to buy the car, but a number of flaws make you hesitant. Together with the arguments the manager is willing to get a discount, but don’t lay out all the trump cards at once.
The amount you are offering for the car must be lower than the price you are actually ready to pay. So if the car costs 500,000 rubles, offer 450-460,000 for it. Even if you are ready to pay 480. If the seller offers a compromise – 470 thousand, ask for a few minutes for reflection and look through the options for bonuses: maintenance, additional equipment, accessories. Offer the seller along with his price to arrange a bonus, or just wait for a reaction: often managers are willing to do a discount on the price and even make a gift not to lose a client. This is especially true for used cars priced over 1 million rubles.
Tell the salesperson that you have seen the model you are interested in from competitors for 15 to 20 thousand rubles cheaper. To make it convincing, show a printout with a crossed out price. Or explain yourself that you will not go to other salons this way. Under such conditions car dealers willingly reduce the price.
The rule of three “NOTs”.
To buy a used car from a dealer on favorable terms, remember the 3 rules:
Do NOT show the seller that you want to buy a car. Then he will not offer you a discount, and he himself will not agree to it. You are just interested in the vehicle, no “dream cars”!
DO NOT tell the manager how much money you really have. Sound out the amount somewhat less or don’t talk about money at all. For example, if you want to buy a car for 400,000, say you only have 360. The seller will be forced to discount it. Especially if it is a “non-market” model.
Do NOT tell the dealer how much time you spent searching for the model. There are cars that are really hard to find, but under no circumstances should you point this out! Otherwise do not count on a discount.
What do you think is the most important thing in the bargain? Leave your comments at the bottom of the article.