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after the accident it looks like the ins co will be sending a cheque within the next few days. i'm crap at buying cars. what sort of discount on a published price should i be looking for - the obvious answer is as much as poss i know and appreciate that it is a"how long is a piece of string" question. but any advice will be welcomed.
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For a new car? I would check out the car import sites and trade-sales, see what the price is and tell the dealer he needs to match it.
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Graham:
It depends on your choice of car. For example you should expect a HUGE discount off a C5 because Citroen are desparate to sell some, but nothing off a Mini because demand outstrips supply.
I think What Car magazine list a "Target Price" to achieve for all new cars. Might be a useful starting point?
HTH
Andy
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sorry should have mentioned that i want to replace the previous disco, r reg 300tdi, auto. not a "new" one.
can i assume that i can get 5% off the displayed price? would i do that by offering price minus 10% first?
this sounds pathetic i know. but if i can save a grand by embarrasing myself here it will be worth it. besides we're all mates here arn't we!
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Graham,
I bought an expensive second had car recently, and got to know the guy. I asked him about this cash discount stuff. I actually asked him after the sale, so I think he was being fairly up front.
"Do you make more money on a cash deal or a credit deal ?"
"On a credit deal. Firstly, if we sign a credit deal, not only do we get the profit on the car immed. we also receive commission on every payment he makes. We get this commmission for as long as he makes payments. And if he stops making payments, then its the credit company's issue not ours.
Also, people are nervous about asking for credit. So if we get them a credit deal they push the question of a discount on the car much less.
Really, we should charge people more if they want to pay cash, just to maintain our profits".
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mmm that's opposite to what the ins. co. have told me! what a surprise.
see what i mean i'm useless at this 8-)
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Hope you did not accept the first offer the ins.co. made on the valuation of your car!.
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Yeah, you did squeeze them for a bit more?
Still, it can't be as bad as my dad's work colleague who was very surprised when my dad said that you don't have to pay the windscreen price on a new car. Apparently he didn't know you could haggle or ask for extras, he thought it was like the supermarket - "The car costs that much take it or leave it". Dealers must have loved him, imagine a customer that makes NO attempt to haggle or ask for mats and flaps etc! :)
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Graham - dunno what the insurer was thinking of, unless they were trying to keep your settlement down! Cash deals only appeal to the low end. Finance is much more likely to get discounts on the purchase price.
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Would help to know when their 'month-end' is - then you can walk in, when they MAY be desperate to meet their budget, and are prepared to do a deal just to get the business.
In the local 2nd hand game, it is a wise move to walk around with a few grand in your pocket, drop it on the table, and say "15 - cash!".
Amazing how large wads of dough - "in the flesh" - bring out the best in people ...
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However if you pay by credit card, the card company takes about 2.5 per cent for themselves. Therefore paying by cash for a £6K car saves the garage £150. So you can get them to knock a bit off by paying with cash rather than credit card. If they don't play ball, pay by credit card to spite them.
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mmmm thanks for the info. better deals with finance! funny how they didn't say that!
rest assured i didn't take the 1st offer. but the whole affair leaves a bitter taste in the mouth.
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If buying with cash just go to a broker - you'll get a good deal without trawling round dealerships - try Carfile, Drivethedeal, broker4cars, etc. etc.
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A point about paying in cash is that you don't get as much consumer protection as you would with a credit card or a finance deal. In other words if you pay using a credit(not a debit) card or finance, the card or finance house is equally liable with the garage to ensure that the car is fit for its purpose (Consumer Credit act 1974, section 75). In fact this applies to anything you buy on credit costing over £100. Don't bother checking with your card issuer if this is true....they don't like admitting it!
Speak to your local trading standards dudes. The Financial Ombudsman will come down like a ton of bricks on any credit issuer who shirks his statutory obligation.
When your'e buying something as complex as a motor car, it pays to have as many balls in your court as you can muster..just in case. You may have noticed from a previous thread that I bought a new (pre-reg) Citroen Picasso over the weekend, I paid by credit card and was charged a 1% surcharge but got 0.5% cashback so for about £60 I got the power of a big bank on my side to Kick Butt if ever I need it. Something you might want to consider.
Also I was told that even if you only pay your deposit using a credit card or finance as long as it is over the £100, then the issuer is still jointly liable with the supplier for the goods being fit for their purpose.
You pay in cash - you're on your own!
Regards,
Alf
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Oops - thought you were buying a new car! Ignore previous posting....
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Easy credit also keeps prices high in an area where
supply of vehicles clearly exceeds demand.
If credit is readily available there is no real excuse
for lowering prices as the buyer can easily find the money.
This particularly applies to top quality cars made worse
by the fact that it may also be "company" money!
Similarly most credit charges border on daylight robbery
when bank base rates are only 4 per cent.
If you only get 3% from the building society its "cheaper"
to use your own money.
Paying cash with no trade in and getting a decent discount
for Mrs M's new car last month seems that I got it right for once.
Meldrew
(I just do not believe it!)
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There are a few credit card companies who offer 0% for balance transfer and purchases - just seen one for 0% until June 2003. Use the card to buy the car and get the extra protection, pay no interest 'til June 2003 then use your own cash to clear the balance.
Regards
Alf
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