Haggling with a Dealer

Elessar

Would love some advice here!

I'm considering buying a second hand BMW in the next while, from a main dealer in Dublin. I'm upgrading from a 2001 BMW 320ci. What kind of room for haggling would I have?

I saw a nice 2007 reg 318i m-sport for €20k. A bit expensive considering it's a 2L petrol on the old tax system. I would be paying cash so I should expect a cash discount yes? How much? Say, conservatively €1k off the price?

So that leaves €19K. I will be trading in the 320 but considering its age and the fact it's a 2.2L 6-cylinder I don't expect much for it. I'm guessing €2k at most. So the car now costs €17k - is that a believable figure or would I be way off?

Would there be more room to haggle, or am I asking too much?

I won't be buying this particular car as it'll be a few months before I can get a loan but I would like an idea of how much of a discount I could get.

You should get €2600 at least privately for the 2001 320ci, and a 2nd hand yoke with screen price of €20,000 should have €1000 to €2000 room to knock off for straight sale so you'd do a lot better selling your own privately. They'll take your 320 though as it's well sellable.

Vicxas

maybe push for 1.5k cash, all he can say is no, so 1k would seem reasonable

DoubleBogey

Interesting. You can expect a discount for paying cash? What other way of paying is there? I always thought a cash deal meant you were not trading your old car?

DoubleBogey

DoubleBogey wrote: »

Interesting. You can expect a discount for paying cash? What other way of paying is there? I always thought a cash deal meant you were not trading your old car?

Dealer finance

-Chris-

If you want a discount on the price (cash price), you'll get a worse value for your trade in. They use the discount to inflate the trade in value.

How is the car you want priced against other similar cars? If it's the cheapest in the country you'll probably get very little discount, whereas if it's overpriced you need to be looking for a fair chunk off.

There's always room to haggle, but you need to focus on cost-to-change rather than discount amounts etc.

-Chris-

RoverJames wrote: »

Dealer finance

Which will probably get you a better discount, rather than worse.

jhegarty

RoverJames wrote: »

Dealer finance

Doesn't the dealer get a cut on that ?

I always took cash to mean 'no trade in'. Not a big bag of bank notes.

-Chris-

Dealer gets commission for finance deals they arrange.

Elessar

I'd rather not go the route of dealer finance as it's always Hire Purchase, which I want to avoid. I'd rather buy outright with a bank loan so I'll actually own the car when I buy it. I'd also rather trade the car in as the hassle of tyre kickers and joy riders in trying to sell privately isn't worth it.

Are you saying that I won't get a cash discount if I'm trading in also?

-Chris-

If the car is advertised for €20k and they're willing to sell it for €18k, and your car is worth €5k to them, they can either give you €7k for your car and no discount or €5k for your car and €2k discount.
It's just moving money from one pocket to the other, but any discount you get when you're trading in a car is just taken off the value they're giving you for the trade in.

Cyrus

Elessar wrote: »

Are you saying that I won't get a cash discount if I'm trading in also?

exactly cash discount isnt cash discount, tis straight deal discount,

it seems you would be happy with a cost to change of 17k, so if he offers you 3k for yours then its happy daze

dharn

cash,cheque, postal order are all the same if you are buying straight ie without trade in you are in the best position to negotiate on the price if you are trading in the dealer can offer you what you think is a great price on your car but take that off the top price for the car he is selling and so on .... the other answers have said the rest

bazz26

E90 320i is a 2.0 litre 4 cylinder engine, 2.2 litre 6 cylinder engined 320i was last seen in the E46.

Also "cash discount" in motor terms means buying the new car with no part exchange. Nothing to do with the method of payment itself. You will not get a cash discount if you are trading in an old car against the new one. What you can do though is negotiate on the cost to change price with the dealer as most likely they will add a bit extra to that price to allow room for negotiation.

Also advertised prices become less important when you have a trade-in. It is the cost of changing up that is the important figure. For example, here is another 07 320i M Sport with a lower sticker price http://www.driving.ie/usedcars/index.cfm?fuseaction=car&carID=201048200384868. However it may still work out that the cost to change is more expensive than the one that the other dealer has on display at €20k.