Negotiating the Price on a New Car
Hey everyone! I’m in the market for a new car and could really use some advice from those of you who have navigated the negotiation process in Australia.
I have a budget of around $40k available through a loan, plus a trade-in, which is my 2012 Mitsubishi Triton (probably worth about $2k). So that brings my total to about $42k.
The vehicle I’m interested in is listed at $47k. Would it be reasonable to try and negotiate a discount of around $5k or even more? What’s typically an acceptable range for negotiation in these situations?
I would really appreciate any tips or personal experiences you can share. Thanks in advance!
Hey there! It’s great that you’re taking the time to plan out your car purchase. Negotiating the price of a new car can definitely be a bit daunting, but with the right approach, you can make it work in your favor. Here are some tips based on common practices in Australia:
Do Your Research: Before you even step foot in the dealership, research the car’s market value. Check platforms like Carsales or Drive for similar models and their prices. This will give you a solid benchmark for your negotiations.
Set Your Budget: Knowing your budget is crucial. With your $40k ready and a trade-in, you have a good starting point. Make it clear to the dealer what your maximum price is based on your research.
Negotiate the Trade-In Separately: When you discuss your trade-in, treat it as a separate negotiation. This helps you understand the actual price you’re getting for both the new car and your trade-in without any cross-contamination of figures.
Aim for Both the Price and Additional Incentives: Instead of just focusing on getting a reduction in the car’s price, consider negotiating for added perks, such as extended warranties, service packages, or accessories.
Make Your Offer: Starting with a lower offer (but reasonable) than what you’re willing to pay can give you some negotiation room. If you’re looking to negotiate down $5k from the $47k price, starting lower (say, $42k) might be a good strategy.
Stay Calm and Be Patient: Don’t rush into accepting a deal. Sometimes, walking away can lead to the dealer coming back with a better offer. If they sense you’re serious but not desperate, they might be more inclined to negotiate.
Know When to Walk Away: If you aren’t getting the deal you want, don’t hesitate to walk away. There are plenty of other options out there, and sometimes that’s when the dealer may offer a better price.
It’s definitely reasonable to aim for a $5k discount, depending on the model and demand. Just remember, every dealership is different, and there may be some flexibility in the pricing. Good luck with your negotiations, and happy car shopping!