How to get the best deals and offers on new cars?
Do you think you could have gotten the best deals on your most recent new car? Or are you in the market for a new car and are concerned about being duped by the dealer? Don't worry, our new car discount bargaining advice will help you get the most out of your new car deal.
It may come as a surprise to most of us, but there are at least seven different types of discounts that can be requested or bargained for from a new car dealer! Buying a new car is a lengthy procedure that involves multiple little transactions.
They may appear little at first glance, but when added together, the total reduction amounts to more than 10% of the total price. Of course, all of these discounts are mostly dependent on the cars themselves and their market demand.
Here are certain big discounts you can get from your dealer.
Ask the dealer for an exchange bonus if you're turning in your old vehicle for a new one. Because he obtains a high margin on the old vehicle he buys, the dealer is happy to offer an exchange bonus. The exchange incentive should be between 1 and 5%.
If you are not in a rush, our advice is to ignore the exchange bonus and sell your vehicle yourself. We strongly advise you to sell your car through an online marketplace or to a private individual. You save a lot of money by cutting out the intermediary in the sale, usually 5-10% of the price of your used car.
Manufacturer/ Dealer Discount
The manufacturer or the dealer offers a discount. Manufacturers/dealers give some sort of discount/offer/deal on a new car in most circumstances and at most seasons of the year. If the car has just been released or is in high demand, don't expect a discount (long waiting period).
The vendor will offer you a portion of this discount without asking, but you will need to haggle to get the full amount. Consider a 1-5 percent dealer discount on a new car unless the car is exceptionally popular. In fact, if the car isn't selling at all, the discount can be as high as 10-15%.
To keep their existing consumers, a few manufacturers give loyalty bonuses. You are eligible for a loyalty bonus if you own or have owned a car from the same manufacturer.
The standard loyalty benefit is 1-5 percent (up to 20,000 rupees in most cases). Although not every manufacturer provides this benefit, it is never a bad idea to inquire.
If you work for a government agency, a large corporation, or a well-known corporation, ask the dealership for a corporate discount. Manufacturers give corporate discounts to entice staff from large corporations.
Even if you're not sure if you're eligible for a corporate discount, ask the dealership about it and they'll tell you if you are.
Car manufacturers give their dealers a long list of companies that qualify for the discount. A typical corporate discount is in the 1-5 percent range (usually not more than 25,000) and is separate from the dealer discount. It comes from the pocket of the producer!
Discount on Other Charges
Your new car dealer imposes a number of hidden/apparent charges on you. The charges may appear to be reasonable at times, yet they are frequently excessive. You can ask your dealer for a reduction in registration, handling, and service fees, among other things.
Finance companies pay their dealers/DSAs 0.5-2 percent commission for marketing loans. According to current market trends, even though the dealer passes on the majority of the loan payout to the consumer, he still makes a nice profit on your finance agreement (around 0.5 percent ).
Inquire about the highest possible finance payout. Alternatively, you might request that your dealership provide you with merely a car quote so that you can compare EMIs.
Discount on Insurance
Request a discount on your new car's insurance premium from the dealer. Insurance companies give dealers a 40 percent profit margin. You can get a 30-35 percent discount on your insurance premiums if you ask nicely (excluding third-party liability and service tax).
Whether the dealer refuses to provide you a discount on your auto insurance, ask if you can do it yourself. Please keep in mind that if you do not purchase insurance from the dealer, he has the authority to refuse to sell you a car. Most dealers, on the other hand, will not make a big deal out of it.
When you add up these reductions, you'll see that you've saved a decent amount on your new car. You'll be fine if you can squeeze 3-4 of these in! Be a smart shopper.