Discount on sticker price with no trade in

Peace

Hi Folks,

I'm thinking of buying a second hand car (maybe an ex demo 07). I would not be trading in my old car as it wouldn't be worth my while.

Lets say the sticker price says 21k. What price would i expect to really pay after negotiation.

Henry Ford III

It depends on the car. Ask the seller how much for cash?

Maybe up to 10%?

seamus

If you're buying from a dealership, you're unlikely to get any kind of significant discount for cash.

It used to be that if you paid in cash, the dealer could skim a certain amount from the top and pocket it without declaring it.

That is, if they bought it for 5k, sold it to you for 6k cash, they could take €3k into their pocket, tell revenue that they sold it for €3k and write off the €2k "loss" against their tax bill. Because of this practice, Revenue brought in rules which prevents a dealership selling a second hand car for less than it was bought.

-Chris-

Let's start off with the question of what would the car sell for new versus how much is it now...

If the car cost €24,000 new and it's advertised for €21,000 ex-demo, you're not going to get much off it. If it was €22,000 new and is advertised €21k, you should have a chunk of cash to fight over.

If it's a proper used car, normally they price them at €xx,950 with the intention of selling them for either €xx,500 or €xx,000. If it's advertised at €21k, go in and offer €19k or €19.5k and see what the reaction is. Go low enough that you can tell if they have leeway, but not so low that they laugh you out of the dealership

MarkN

seamus wrote: »

If you're buying from a dealership, you're unlikely to get any kind of significant discount for cash.

It used to be that if you paid in cash, the dealer could skim a certain amount from the top and pocket it without declaring it.

That is, if they bought it for 5k, sold it to you for 6k cash, they could take €3k into their pocket, tell revenue that they sold it for €3k and write off the €2k "loss" against their tax bill. Because of this practice, Revenue brought in rules which prevents a dealership selling a second hand car for less than it was bought.

The OP means he has no trade in. For cash does not mean he arrives in with a suitcase of money.

It is old terminology and everytime someone uses the phrase on this website, mass confusion ensues.

OP - if the price is 21 then a very rough estimate is you should be able to get 1,500 - 2,000.

I bought a used car for my girlfriend in Frank Keane's at the weekend and got €1000 off on a straight deal.

AudiChris - not sure whether it's a demo or not matters. I bought a demo but still got a further discount but I suppose with the price we are talking here there's not going to be a huge discount on offer.

R.O.R

Also depends if the dealer is swimming in used stock that doesn't seem to be shifting at the moment. It's probably a good time to strike a hard bargain, dealer may be willing to make small profit on the sale just to get something moving.

Peace

MarkN wrote: »

The OP means he has no trade in. For cash does not mean he arrives in with a suitcase of money.

It is old terminology and everytime someone uses the phrase on this website, mass confusion ensues.

OP - if the price is 21 then a very rough estimate is you should be able to get 1,500 - 2,000.

I bought a used car for my girlfriend in Frank Keane's at the weekend and got €1000 off on a straight deal.

AudiChris - not sure whether it's a demo or not matters. I bought a demo but still got a further discount but I suppose with the price we are talking here there's not going to be a huge discount on offer.

Yeah i'd say it would be an ex demo alright. But i think i might have a lot of wiggle room as the car bought brand new after the new vrt rates come in would be 22k and the ex demo's ont he web site are currently at 22k as well!!!

-Chris-

MarkN wrote: »

AudiChris - not sure whether it's a demo or not matters. I bought a demo but still got a further discount.

We operate two pricing structures, used cars and demos.

If it's a used car you price it with a little leeway and let the customer negotiate a discount. The sticker price will be what you negotiate from. You got €1k off the used car's sticker price and I'd say that was a good deal, not much negotation room left there.

If it's a demo, you want to compare the discount to the RRP of the car, rather than their discounted price. If it cost €45,000 new and I know I can sell it for €41,000 I'll put a sticker price of €42,000 on it and negotiate down from there. In terms of advising the OP, I'm trying to make sure they get €4k off the RRP rather than €1k off the sticker price - one price is definite whereas the other is based on what we think we can get for the car.
Also with a demo, we've had our use out of it and want to get rid of it so we can get our new cars in. For example, at the moment, we'd do a massive deal for any of our 07s because we want to get the 08 demo fleet going.

We probably need more information on what car the OP's asking about before we advise further....

-Chris-

Peace wrote: »

Yeah i'd say it would be an ex demo alright. But i think i might have a lot of wiggle room as the car bought brand new after the new vrt rates come in would be 22k and the ex demo's ont he web site are currently at 22k as well!!!

Buy the car at a price you're comfortable with, don't worry about July too much (for ex-demo pricing), that car'll be long gone before July and if it's a car you like, you'll have missed your chance.

In the same breath, you'll also have bought a brand new one in July for today's ex-demo price.

It's a judgement call, when do you want the car?

Peace

AudiChris wrote: »

Buy the car at a price you're comfortable with, don't worry about July too much (for ex-demo pricing), that car'll be long gone before July and if it's a car you like, you'll have missed your chance.

In the same breath, you'll also have bought a brand new one in July for today's ex-demo price.

It's a judgement call, when do you want the car?

I suppose i could keep going in my car for a while yet.

I was looking at skoda dealers for diesel octavias. Price new after July should be 22k give or take 500euro. Price listed on their websites for demo cars is 22k. (i'm assuming they're demo's based on the mileage)

unkel

MarkN wrote: »

The OP means he has no trade in. For cash does not mean he arrives in with a suitcase of money.

It is old terminology and everytime someone uses the phrase on this website, mass confusion ensues.

Indeed!

Peace

I went to 2 skoda dealerships today and discussed buying a new (and an x demo) diesel octavias.

Both dealerships were a little cagey abouyt price reductions saying that it wasn't decided. The second dealership said they might increase the price of the cars as they haven't increased prices in about 5 years. There was also talk about skoda increasing the spec to off set any price drop.

Either way I'm waiting till July 1st. They'll have models on stock just like they do now that can be ready in about a week so they said.

Also i was offered 1500euro off the price of the car seeing as I didn't have a trade in. Also i took prioce lists off both dealerships and their prices differed by about 200euro for a stock car!

DonJose

I just bought a new Ford Galaxy Ghia. The car was priced at €50k and I paid just €45k cash, which is a 10% discount. Offer €19k but don't go above €20k.

MarkN wrote: »

The OP means he has no trade in. For cash does not mean he arrives in with a suitcase of money.

LOL this happens everytime somebody mentions a cash buy.

JHMEG

MarkN wrote: »

I bought a used car for my girlfriend in Frank Keane's at the weekend and got €1000 off on a straight deal.

What did ya buy, Mark? Let me guess... another BMW?!?:D

sk8board

DonJose wrote: »

I just bought a new Ford Galaxy Ghia. The car was priced at €50k and I paid just €45k cash, which is a 10% discount. Offer €19k but don't go above €20k.

I got 10% off a Ford focus last year

mickdw

AudiChris wrote: »

Let's start off with the question of what would the car sell for new versus how much is it now...

If the car cost €24,000 new and it's advertised for €21,000 ex-demo, you're not going to get much off it.

But surely that car being listed at €24000 new could have been bought straight new for say 22500. So I would want it cheaper than 21000 used.

Seth Brundle

MarkN wrote: »

The OP means he has no trade in. For cash does not mean he arrives in with a suitcase of money.

<off topic>In 1988 my folks moved to Clontarf from Sutton. When they were selling their house a blue hiace pulled up outside and the driver knocked on our door. Apparently the guy had the buying price in a plastic bag in the van and was ready to hand it over there and then!

JHMEG

kbannon wrote: »

<off topic>In 1988 my folks moved to Clontarf from Sutton. When they were selling their house a blue hiace pulled up outside and the driver knocked on our door. Apparently the guy had the buying price in a plastic bag in the van and was ready to hand it over there and then!

God be with the days when you could fit the asking price in a plastic bag.

E92

Could have been a MINI JHMEG!

OP look at the link in my sig. It might answer a couple of questions you've been wondering about;)!(don't ignore the 2.0 diesel, only a shade dearer than the 1.9 TDI is now, but is quieter and faster)

JHMEG

E92 wrote: »

Could have been a MINI JHMEG!

Ya, sorry, forgot that Toyota own MINI, and have a large input into it.

Oilrig

With all the money laundering regs out there now, I think you'll find that no main dealer will accept "cash" for a car.

unkel

DonJose wrote: »

I just bought a new Ford Galaxy Ghia. The car was priced at €50k and I paid just €45k cash, which is a 10% discount.

Indeed. And a good discount it was! Most people can get a way better deal than they are getting at the moment if they would be more assertive / better informed. The list price is only a list price. It's not like the price of a two litre of milk in Tesco. There's always room for negotiations. Lots of negotiations

JHMEG

unkel wrote: »

It's not like the price of a two litre of milk in Tesco.

You'd fall off the your chair if I told you what Tesco's markup on milk was.

unkel

JHMEG wrote: »

You'd fall off the your chair if I told you what Tesco's markup on milk was.

How much the markup is, was not my point. My point was that most Irish people pay the "asking price" when it comes to big purchases without ever thinking they could negotiate and save themselves a fortune.

Doing the weekly shopping in Tesco, one doesn't really demand to see the manager and negotiate the price of a chicken down from €5.99 to €5.49...

JHMEG

unkel wrote: »

Doing the weekly shopping in Tesco, one doesn't really demand to see the manager and negotiate the price of a chicken down from €5.99 to €5.49...

My point exactly: one doesn't negotiate because it's Tesco. One is content to be shafted. If one knew by how much one was being shafted, one would take one's money elsewhere.

Sandwich

JHMEG wrote: »

My point exactly: one doesn't negotiate because it's Tesco. One is content to be shafted. If one knew by how much one was being shafted, one would take one's money elsewhere.

To Lidl or Aldi. And get a good estimate of the size of Teso's shaft.

MarkN

JHMEG wrote: »

Ya, sorry, forgot that Toyota own MINI, and have a large input into it.

LOL.

This, JHMEG. A BMW, of sorts.

A '04 mint one owner job, carpets in it are as clean as my own car, I don't think anyone was ever in the back of it.

I'm only sorry I didn't find the 335 I was looking for in Keane's because although sales in Duffy's was good, service is appalling and so far I have been impressed with Keane's.

Peace

E92 wrote: »

Could have been a MINI JHMEG!

OP look at the link in my sig. It might answer a couple of questions you've been wondering about;)!(don't ignore the 2.0 diesel, only a shade dearer than the 1.9 TDI is now, but is quieter and faster)

Ya E92 i went in armed with those figures and the sales girl actually looked like she had nowhere to hide! I'll probably order in May and change the spec which means they will have to order it in which takes 2 months. I'll register it in July and take advantage of the VRT discount.

All in with a discount due to no trade in plus the VRT reduction I should be able to get the 1.9TDi for about 20.5-21k. Total bargin!