Buying new car, no trade-in, what is the typical discount?

Geuze

I expected there to be a FAQ or a sticky about this question.

If buying a new car in Jan 2015, with no trade-in, what sort of discount off the list price should you haggle for?

Car is a Skoda Octavia Ambiente, 1.6 TD, 90 bhp

List price is 24,195 + 600 delivery charge = 24,795

http://www.skoda.ie/brochures/pricelists

http://www.skoda.ie/brochures/documents/pricelists/new-octavia-price-list-2015.pdf

I don't really know, but I'm guessing 23k would be a good deal?

Do they add on, so as to allow discounts?

finalfurlong

Depends on dealer but usually works out at average of 7.5% off price .If you have the time try a few dealers.Use a price from one to bargain down another.Some makes can be cartel like but others do throw up different prices between dealers.If you find your getting sameish cash discount across all garages ,haggle for extras like fogs,alloys-they are standard on Octavia Elegance but think they mighnt be with the Ambiente.If you could hang on till March or April you would be in stronger position to get discount of decent size as dealers are pre occupied at present and will be hungrier for sale in April when business will be tailing off as people will be looking at getting a 152 Reg.

abff

Is that 7.5% fairly standard across all makes of car or does it vary from manufacturer to manufacturer?

Also, if you are buying a 142 reg car that has been kept in the showroom and has no mileage on it, what sort of discount should you expect versus a brand new car?

finalfurlong

Likes of audi would be bit less with discount as are Bmw but that figure is a fairly accurate average at present.Your second scenario is a better deal for buyer.Due to pre registrations,there are a lot of cars with negligible mileage where being the 2nd owner can knock 4000 off a new price of 23000.These are the deals to look out for.

abff

Thanks for the response. So you figure you might save around €4,000 on a car that would cost €23,000 new. Does that saving include the cash discount, or would it be in addition to the normal discount? And would the saving be higher on a €30,000 car?

finalfurlong

That 4k is due to being 2nd owner and car over 6 mths old.Cash discount should be given on top of that but dealers will try to tell you its being discounted to max already.Probably be able to get 30k 142 reg for between 4500 and 5000 off list price.I have bought cars of 1 year or less last 3 times and would recommend it provided cars haven't been ex rentals,Its a no brainer financially imo.

bazz26

There is no set discount figure or percentage especially across the wide spectrum of makes and models out there. You are more likely to get a bigger discount on a model that is soon up for replacement than on a model that has just been launched.

Same goes with a model that is in high demand and short supply, your less likely to get a good discount off it as the dealer knows that he/she will have no problem selling it.

Then you have to take the timing into account. Trying to get a good discount at this time of the year can be tough as dealers are busy sending new cars out the showroom door. January to March are normally when people buy new cars so dealers order books are usually healthy during this time. However May or June would be quieter on the new car sales front as people wait for the registration change in July.

I'd suggest you visit the various dealers of the same brands and get prices (you will not get their best price over the phone) and let them compete with each other for your business. Also if your financing the car through the dealer then remember that the sales person gets a commission from the bank for introducing new business, so push the dealer for a better price with that in mind.

abff

finalfurlong wrote: »

That 4k is due to being 2nd owner and car over 6 mths old.Cash discount should be given on top of that but dealers will try to tell you its being discounted to max already.Probably be able to get 30k 142 reg for between 4500 and 5000 off list price.I have bought cars of 1 year or less last 3 times and would recommend it provided cars haven't been ex rentals,Its a no brainer financially imo.

I agree that it's a no brainer, but I'm trying to get my head around the figures. If you should save 4k due to being the 2nd owner and the car being over 6 months old, then a total saving of 4500 to 5000 off list price means that you are only getting a discount of 500 to 1000 in addition to the 4k saving.

But if a new car discount might be around 7.5%, this would equal around 2250 on a 30k car. A total discount off list price of 4500 to 5000 therefore represents an additional saving of around 2500 (instead of 4k) compared to buying a new car. Or am I missing something?

finalfurlong

Because the dealer has already taken hit on depreciation on the 6 mth old car-it is a different scenario to buying a brand new car where you are going to bear brunt of depreciation,not withstanding the average 7.5% discount for buying straight.

bazz26

Afaik dealers buy demonstrator models from the distributor/manufacturer at a reduced price which allows them to sell them on after 3 months or so at a reduced price. However you may find that dealers can still ask strong money for ex demo models.

abff

Thanks for the replies. I can understand why the dealer will want to get the best price he can for the car. I'm just trying to understand how much net saving I might expect relative to a brand new car (bearing in mind the resale value will be lower because it will have had two owners and will be considered a year older) and to what extent there might be room for manoeuvre relative to the price being asked by the dealer.

I'm terrible at negotiating and it would be helpful to have some idea of what the dealer's 'real' bottom line is likely to be.

R.O.R

I'd say €23,000 would be achievable on an Octavia 90ps Ambiente without Metallic Paint, in a straight sale.

I also know that there are 2 Red ones in stock, in the country as I passed on them and will wait for the 105's I've ordered.

That price gives the dealer a decent profit, and not too much work to do.

abff

Any thoughts on what would be a fair price for a 142 reg (no mileage) Opel Insignia SC petrol hatchback with metallic paint?

R.O.R

abff wrote: »

Any thoughts on what would be a fair price for a 142 reg (no mileage) Opel Insignia SC petrol hatchback with metallic paint?

Black one in Sandyford? Has the Plus Pack as well, so it's quite a nice looking machine.

I'd be trying to get that for €25,000, and if they turn that down, they'd need to be prepared to stare at it for a long, long time. Must have been desperate for registrations to pre-reg a Petrol Insignia.

Geuze

R.O.R wrote: »

I'd say €23,000 would be achievable on an Octavia 90ps Ambiente without Metallic Paint, in a straight sale.

I also know that there are 2 Red ones in stock, in the country as I passed on them and will wait for the 105's I've ordered.

That price gives the dealer a decent profit, and not too much work to do.

List price of oCTAVIA Ambiente with 1.6 TDi 90bhp is 24195+600 = 24795.

That excludes metallic paint.

Straight prices so far from a few dealers:

Dealer 1: 23,450, then said he will match dealer 2

Dealer 2: 23,100

Dealer 3: 23,600

Now dealer 1 has rang back with 22,750.

That is 8.26% off the list price.

R.O.R

Geuze wrote: »

List price of oCTAVIA Ambiente with 1.6 TDi 90bhp is 24195+600 = 24795.

That excludes metallic paint.

Straight prices so far from a few dealers:

Dealer 1: 23,450, then said he will match dealer 2

Dealer 2: 23,100

Dealer 3: 23,600

Now dealer 1 has rang back with 22,750.

That is 8.26% off the list price.

Someone is willing to run on a pretty low margin - good negotiating

finalfurlong

That is coming in at what I thought ,Geuze.Probably not too much left to come off that-22500 with mats ,flaps and tank of fuel I would say would be acceptable, I think.Remember Octavia is very popular although the unknown with your one is that the 90 bhp engine is new and given that the octavia is a big car,people looking for trade ins down the line might be favouring the 1.6 -although this is a minor issue really as the octavia ticks all the boxes for family transport -and will hold its value for you.Dont be in any hurry to take a price-you are in a strong position but at 22500 Id say most dealers are tight to the boards.

mgbgt1978

Also OP, remember that Dealers are pushed to achieve monthly sales targets set by the distributors.
You will usually get a better discount at the very end of the month as Dealers are keen to reach their sales targets....same thing if you are financing through the dealer, the Finance Companies will reward Dealers who achieve monthly target figures.

finalfurlong

Thats the 105 bhp 1.6 as opposed to the 90 bhp,I was talking about.Regarding best time, agree with above-also every saturday morning in jan and feb to be avoided-a wet monday evening at 5 pm on 31st jan might land you a better deal-youd be surprised how losing commission and bonus can help salesman cut to the chase.

Casati

Can you get the 0% on top of the 22750 price? If so thats a great deal

JoeCole26

Hi,

Just piggybacking on this thread cos my question is fairly similar. I am currently looking at buying a 2nd hand 2013 VW Golf. I will be trading in my own 2006 Golf against it (high mileage on it) so just wondering what kind of discount I could haggle to?

Car I'm looking at is €24,900, would €23k plus trade in be achievable??

Any thoughts appreciated

bazz26

When you have a trade-in you will not get a discount off the asking price of the newer car. Any discount would apply if you were not trading in an old car. The price you need to concentrate on how much money the dealer wants with your old car for the newer one. In order to do this you will need to find a number of similar cars being sold by other dealers and see which one comes in the lowest cost to trade up price.

Casati

JoeCole26 wrote: »

Hi,

Just piggybacking on this thread cos my question is fairly similar. I am currently looking at buying a 2nd hand 2013 VW Golf. I will be trading in my own 2006 Golf against it (high mileage on it) so just wondering what kind of discount I could haggle to?

Car I'm looking at is €24,900, would €23k plus trade in be achievable??

Any thoughts appreciated

To answer this you'd have to work out what the market rate on that Golf is - if its a GTI, then unless it has massive miles you won't get it below the asking price, if its a bog standard 1.6 diesel then you might want 5k off. If I was buying a 2013, Id price the new cash price of a 2015, and then deduct 6k/8k for average depreciation over two years

Tea drinker

Anyone know what the discounts run at this year? Similar car as OP Octavia but this years model 1.6 110

Drummerboy08

Tea drinker wrote: »

Anyone know what the discounts run at this year? Similar car as OP Octavia but this years model 1.6 110

You'll probably get 1250 off a new one.

Margin structure has changed this year on Skoda.

Nonoperational

Got 7% off a golf if that's any help.

Tea drinker

Nonoperational wrote: »

Got 7% off a golf if that's any help.

Thanks for the info. Was that a straight deal, or trade? Was it pre-registered on the forecourt or ordered up for you?

Cheers!

Nonoperational

It was a trade in initially, valued at 4k. That is what they gave me the 7% discount with.

I subsequently sold the trade in myself for 5k so I did pretty ok out of the deal. It was a car ordered in.

AidenL

Anyone know what discount could be had on a new A4 , straight deal?

I assume less than the 7 and 8% figures mentioned here?