Negotiating price on 2nd hand car at car yard

I've had company cars for virtually my whole career, but am about to make a move and I will no longer have one, so I have to buy a car!

I want a used car, and I am leaning towards buying from a 'big name' dealer (statutory warranty, etc). What are the best methods to negotiate the prices here? eg, Are cash offers well received? Or should I look to finance it, and then pay it out real quick?

I'm looking to get a 5-10yo hatch, and have a budget of <$10k. I've seen a car online for about $9,890 or something. What sort of margin is likely to be in this, and what sort of 'best price' should I be looking at?

I don't move jobs until early next month, so am I better waiting until late in the month?
 
If you're willing to get a smaller hatch, like a Hyundai Getz, you can get one that is only a year or two old, with less than 50,000km on the clock and 3 or 4 years of factory warranty remaining.

If you want a larger model (e.g. corolla) you'll be getting something older.

Personally I'd be more inclined to go smaller and newer (unless you really need the space). I bought the wife a Holden Barina Spark last year and it is small but very versatile, drives well, and is very cheap to run and maintain.

EDIT: You should buy privately. Also, the warranties offered by car yards are nowhere near as good or comprehensive as factory warranties.
 
Buy privately or from a smaller dealer at that price point. The range from new car dealers in that market tends to be much smaller in my experience.

A stat warranty will be available from a smaller dealer, and will cover the same thing (e.g. nothing).

I'd go private, get it inspected by an independent party (e.g. RACV) and then haggle for cash. People change their tune when 8k in bills is plonked in front of them.
 
A stat warranty will be available from a smaller dealer, and will cover the same thing (e.g. nothing).
QUOTE]

I think you'll find the 3 month/5,000 statutory warranty will cover most, if not all of your issues if they arise during the time and km period. I know it does in S.A
 
A stat warranty will be available from a smaller dealer, and will cover the same thing (e.g. nothing).
QUOTE]

I think you'll find the 3 month/5,000 statutory warranty will cover most, if not all of your issues if they arise during the time and km period. I know it does in S.A

Well...

That's debatable. Wear and tear items won't be covered. For a secondhand car most warranty items will be termed wear and tear.

If you headgasket goes you will be covered. But that's about it.
 
This is just my personal preferences, but could be worth considering. I don't buy from car dealers, as they are full of tricks that I don't like. I prefer to buy privately. It's usually cheaper.

If happy with the car, I then ask a vehicle check company (like the NRMA is NSW) to check the vehicle. They produce a comprehensive report that gives a good idea of the mechanical state of the car.
 
Yea take a wad of cash with you and slap 5g on the table for an 8k asking price. Probably work with a young and dumb type...or is that unethical?
 
why buy a 5-10yr old hatch for $10k+stamp duty when you can buy a brand new one for $16k drive away... 12 months rego, tyres so new you can smell them, warranty, colour of your choice. I don't get the obsession in this country with old cars. still I shouldn't complain, it maintains residuals for the clangers.
 
I've had company cars for virtually my whole career, but am about to make a move and I will no longer have one, so I have to buy a car!

I want a used car, and I am leaning towards buying from a 'big name' dealer (statutory warranty, etc). What are the best methods to negotiate the prices here? eg, Are cash offers well received? Or should I look to finance it, and then pay it out real quick?

I'm looking to get a 5-10yo hatch, and have a budget of <$10k. I've seen a car online for about $9,890 or something. What sort of margin is likely to be in this, and what sort of 'best price' should I be looking at?

I don't move jobs until early next month, so am I better waiting until late in the month?

Wobbly,
I worked at a car dealer for a few years (flame suit one) and happy to share my experience.

There are several different types of warranty here in VIC
1. Statutory warranty. This has to be legally offered by any car dealer selling a vehicle:
A licensed motor car trader must provide a statutory warranty if the car is less than 10 years old and has travelled less than 160,000 kilometres. Its age is determined by the build date stamped on its build plate. Usually, this is found on the firewall between the engine and passenger compartments.
A statutory warranty lasts for three months or 5000 kilometres, whichever occurs first.
The trader must repair any faults covered during the warranty period in order to ensure the car is in a reasonable condition for its age.

2. Factory Warranty (the best): This comes with every new car and varies between each manufacturer. Remember though that just because Mitsubishi state a 10 year warranty doesn’t mean that everything is covered so read the fine print.

3. Extended warranty: These also come in two different flavours
A: Extended warranty: Something the dealer has purchased for a couple of hundred bucks from an underwriter such as Lloyds of London. These are the most common warranties offered by second hard dealers and are not worth the paper they are written on. Read the fine print and you’ll see things like labour not being covered, engine heads being covered but the head gasket is not blah blah blah.
B: Extended factor warranty that is usually an exact replica of the new car warranty. These are normally offered on “select” cars usually less than 5 years old.

If you are set on purchasing from a dealer, just remind yourself that the only thing extra you are getting is that 3 month warranty which when you consider how long you’ll own the car for is a very high cost to pay. Expect to pay approx. 20- 30% above private sale prices
Whilst not all dealers are shonks, they are very good at tarting up vehicles for sale and polishing a turd so to speak so don’t hooked into the nice shiny tyres and gleaming bumper bar.

The best advice I can give you is to look for the best car within your price range (Private will offer better value) and once you decide on a price, state to the owner that your offer is subject to a final vehicle inspection. If they do not agree, walk (no run) away.

RACV are pretty limited now with their inspection and you now have to take the car to them which for most sellers is a right royal PITA (and can be a little unreasonable). The better service is a place called http://www.stateroads.com.au/ who do onsite inspections so are much more convenient for all parties. It will be the best $300 you ever spend and will give you infinitely more peace of mind that the piece of toilet paper the car dealer will give.

I seem to be the friend everyone calls when they go car hunting as I spent too much of my youth under the hood of a car but even I will still always pay for a vehicle inspection as no matter how educated you are, a vehicle purchase involves emotion that can sometimes cloud your judgment.
If you get the impression I’m trying to steer you away from paying to much from a dealer, you’re right. I don’t see the value in them but that’s just my personal preference.
If you absolutely have took buy from a dealer (as sometime you can still get a bargain), never go and sit down in their office as you’ll then be subjected to the merry go round that is “good cop, bad cop” where the salesman will keep going back into the sales managers office trying to get you the best deal when all they are doing is trying to crunch you for more money.
By remaining out in the yard, you’re out of the lions den and can walk away much more easily and this unnerves the salesman. If they think they’ve got you in their office, they’ll try every trick on the book the squeeze every last drop form you.
Most dealers work on monthly quota’s so you may get a better deal at the end of the month however it will depend more on how long the stock has been sitting in the yard. If it’s older (which is not necessarily a bad thing) they will be keener to move it and hence have more room to wriggle.
Good luck
B.D
 
Yea take a wad of cash with you and slap 5g on the table for an 8k asking price.
Might get you a slap in the head too.

If it was your car, would you take the $5K?

Thought not.


Back to the OP; make sure you don't ever get one of those extended warranty policies; not worth a pie.

Final thought on buying privately; you are often buying what people want to be rid of.....
 
We even have used car sales people on Somersoft :D

http://somersoft.com/forums/showthread.php?t=81673

The Y-man

LOL - I've already been in touch with Mick. He has a 2012 Spark with <7,000k on it for <$12k. No doubt this will have the balance of the new car warranty still on it. That seems a REALLY good deal compared to this local one.

"2006 HOLDEN BARINA TK MERCURY SILVER 5dr Hatchback Automatic 4cyl 1.6L 39594 KM $12,990*"

If you're willing to get a smaller hatch, like a Hyundai Getz, you can get one that is only a year or two old, with less than 50,000km on the clock and 3 or 4 years of factory warranty remaining.

If you want a larger model (e.g. corolla) you'll be getting something older.

Personally I'd be more inclined to go smaller and newer (unless you really need the space). I bought the wife a Holden Barina Spark last year and it is small but very versatile, drives well, and is very cheap to run and maintain.

EDIT: You should buy privately. Also, the warranties offered by car yards are nowhere near as good or comprehensive as factory warranties.

I thought I'd want something bigger. Like this one.

It's "easier" going to a dealer, too. :eek: Although I'm sure Vicroads will make sure I have the right paperwork!

Just looked the Stateroads website (thanks, Bird Dog), and it appears they only do Melb Metro. Does being an RACV member make any difference to the inspections they can do?

Right-o, off to have a look at private sales on carsales.com...
 
I don't get the obsession in this country with old cars. still I shouldn't complain, it maintains residuals for the clangers.
Don't start me! (too late :D)

Our demographic around here is the Commodore, Camry, Corolla and Falcon end of society - and older bomb versions by the truckload.

It simply amazes me just how many 300,000km plus shoit-boxes are limping around that these folk still try to keep on the road...or how many wander in with their new purchase of the 200,000km plus asking for a roadworthy.

(I would never touch anything with more than 150,000km's on it.)

And, of course; they want it fixed for next to nothing, but it needs more attention than the thing is worth, and then they grizzle when they find out their repairs are more than they were expecting, because the bomb is a......well; bomb.

Hellooo.

We have a rule here in the workshop - if it's built before 1993, it's "below the yellow line" ans is almost guaranteed to be stuffed.

But, based on recent patterns of gross mis-treatment of vehicles we have observed, I am lifting the "yellow line" to the year 2000.

So many people totally neglect perfectly alright cars of this vintage, and they are stuffed when we see them.
 
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Right-o, off to have a look at private sales on carsales.com...
Be VERY careful.

Take particular note of upcoming service requirements such as timing belts.

Even Beemers, Audis, Mercs etc can be totally neglected by car-ignorant owners.
 
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OK, so I'm ready to get absolutely pummelled, but does anyone want to provide comments on these?

They are all priced higher than the redbook suggested range, and I don't want to hear about Ford vs Holden vs European vs Japanese, etc! :rolleyes:

2003 Golf

2004 Golf

2006 Focus

This is why I hate buying used cars (and I can't justify new). There's year, color, kms, rego, engine size, make, model - too many variables and they all have varying objective values! :mad:

Mick's near-new Spark is looking good!

This is the range. I have stuck within 10km of Geelong, which will cover the broader area.

My preference is also for a manual.
 
OK, so I'm ready to get absolutely pummelled, but does anyone want to provide comments on these?

They are all priced higher than the redbook suggested range, and I don't want to hear about Ford vs Holden vs European vs Japanese, etc! :rolleyes:

2003 Golf

2004 Golf

2006 Focus

This is why I hate buying used cars (and I can't justify new). There's year, color, kms, rego, engine size, make, model - too many variables and they all have varying objective values! :mad:

Mick's near-new Spark is looking good!

This is the range. I have stuck within 10km of Geelong, which will cover the broader area.

My preference is also for a manual.

First, we have a spark and it is great. It is definitely smaller than a corolla though.

Second, I would always suggest buying Japanese or Korean over European (ie the Golf of Focus, or Holden Astra for that matter), for the simple reason that Japanese or Korean cars are usually cheaper to maintain, and when parts need replacing the parts are cheaper too.
 
First, we have a spark and it is great. It is definitely smaller than a corolla though.

Second, I would always suggest buying Japanese or Korean over European (ie the Golf of Focus, or Holden Astra for that matter), for the simple reason that Japanese or Korean cars are usually cheaper to maintain, and when parts need replacing the parts are cheaper too.

I'd echo that.

I'm a huge euro car fan. But, and it's a big but, if you want a cheap, reliable second hand runabout I would look elsewhere.

Suzuki Swifts hold there value well for a good reason. Corollas are tedium on wheels but are good and reliable. Subaru Imprezas are sold and reliable, but will cost slightly more to service than a Toyota.
 
Just looked the Stateroads website (thanks, Bird Dog), and it appears they only do Melb Metro. Does being an RACV member make any difference to the inspections they can do?

Wobbly, the main issue with RACV (as I found out recently) is there wasn't enough money in vehicle inspections anymore and so they closed down most of their inspection centres. I think they only have two now (North Melb and I can't recall the other).
If you've got a sec, just call state roads and ask them if they do Geelong as you might be surprised.

As others have mentioned, timing/cam belts at 100,000 k's are required in most vehicles however I've seen this as low as 60,000 K's in some Holden’s (second gen Astra). On average, expect little change from $1,000 for a major service as above.
As also mentioned by VY, Euro cars tend to have hard compound brake pads and soft rotors (disks) which do away with simply replacing the pads so you're looking at replacing everything at each brake service (about $500 for Golf).

If you’ve got your heart set on a Golf, at least make sure your service history is up to date and whilst you’re at it, if it’s done more than 100,000 klm’s, check that the major service has been done as some owners sell their cars as soon as they hear how much this service is going to cost. Missing this service can have catastrophic consequences on the engine so double check it’s been done.

Oh, and don't use redbook as a hard and fast guide to values as you'll very rarely find that they align (99% of the time the advertised price is higher). It's more of a very rough guide.

cheers
B.D
 
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