5 tips for getting a better deal on your next new car
5 tips for getting a better deal on your next new
car
Having recently purchased a new car, it was interesting to
confirm the results of the Scotwork method on a transaction we're
all familiar with. For those who like to kick tyres, we've put
together five tips for getting a better deal on your next new
car.
The Scotwork team are negotiating practitioners, not just
trainers. Having recently purchased a new car, it was interesting
to confirm the results of the Scotwork method on a transaction
we're all familiar with. For those who like to kick tyres, we've
put together five tips for getting a better deal on your next new
car.
1. Do your homework
Do you know what a good price in the current market right now
is? The % discount off the list price you can get from a common
Australian model will typically be significantly better than that
available on, say, a Mini Cooper which they can't build fast enough
to meet the demand.
Research the year-end issues - a car with a build date of last
year will be worth much less for resale in three years than one
built this year. List prices are available publicly from most
manufacturer websites and motoring magazines such as the Open
Road.
2. Know what you want
Value your time and the other party's - test drive and kick
tyres as much as you like, but don't engage in a formal negotiation
with a dealer until you know what you want - down to colour and
accessories.
Be clear on your priorities - is price more important than
colour, is colour more important than delivery date? Where are you
flexible, and how important is that likely to be to the other side?
For example, would you be prepared to put down a higher than usual
deposit?
Remember that, as a negotiator - time spent in reconaissance is
rarely wasted. Pull out your Scotwork leather organiser and spend
some time developing an optimistic but realistic outcome, limit
positions, wish lists and all the other things we suggest should be
on your preparation agenda.
Remember it is not just about price - what else makes up a good
deal for you? Early delivery? Warranties? A "loaner" car while your
car gets delivered?
3. Be courageous and take the front foot!
When you meet the dealer, don't ask for a proposal - make one,
and be specific! Be prepared to explain how you arrived at the
numbers. Look them in the eye and seek a response.
4. Repackage if needed
Don't be afraid of "NO". Now's the time to dig out your
pre-prepared wish list. Use the negotiation to explore more
creative currencies. If you want the iPod adapter, mag wheels,
mudflaps and window tinting, consider keeping a couple of them up
your sleeve for the package step. Think about what they cost the
dealer, and what they are worth to you. Identify those items which
have a large difference in retail and wholesale, and trade on value
as well as cost.
5. Trade opinions.
Look for opportunities to trade their opinion back to them. My
dealer was very confident that the delivery could be made within 6
weeks. ("How confident?" I asked. "Very confident" was the
response). I wasn't so sure, but delivery was important to me -
rather than argue about my opinion, I simply proposed that they
would provide a free hire car if the car went beyond the promised
delivery date. Having expressed a firm opinion, they then had to
back it!
Remember, you don't have to agree on opinions to negotiate a
good deal.
Does it work?
Scotwork has been training, coaching and practicing these
techniques for over thirty years - of course it works, not only for
large commercial deals but in your private life as well. I got a
great deal, the dealer was comfortable with an efficient and fair
sale, and they even want to attend the Scotwork program! Win Win
Win...
Good luck, happy hunting and if you have any interesting success
stories from your tyre-kicking activities we'd love to hear them
!
By Simon Letchford