Need help in negotiating best price for a new car that I want to buy Greetings to everyone.
I need help from fellow T-BHPians on arriving at the best price for my new car purchase.
I’m planning to purchase a new car shortly. I’ve to decide between the Chevrolet Aveo U-VA & the Hyundai Getz 1.1 or 1.3.
Since it is March end, both dealers are offering some discounts. Step 1 – Bargaining on the on-road price of the vehicle 1)Chevrolet Aveo U-VA 1.2 LS (2007 model – dealer says month of manufacture is Dec 2007)
The On-road price quoted by dealer is Rs. 4,81,250/- (Rs. 4,34,359 + Rs. 16,301 insurance + Rs. 30,562 registration & life tax). The dealer initially offered free insurance + free music system with 2 speakers. I asked the dealer to settle for Rs. 4.50 lakhs on road but he says the best he can do is offer Rs. 20,000/- cash discount, making it Rs. 4.61 lakhs on-road. Is this a good price (approx 4.2% discount)?. But for this price, he’s not giving me the free music system. Should I haggle for it? 2)Chevrolet Aveo U-VA 1.2 LT (2007 model – dealer says month of manufacture is Dec 2007)
The On-road price quoted by dealer is Rs. 5,34,798/- (Rs. 4,73,600 + Rs. 17,774 insurance + Rs. 32,916 registration & life tax). The dealer initially offered free insurance + free music system with 2 speakers. I asked the dealer to settle for Rs. 4.90 lakhs on road but he says the best he can do is offer Rs. 20,000/- cash discount, making it Rs. 5.15 lakhs on-road. The music system is included in this price. Is this a good price (approx 3.7% discount)? Step – 2 – Bargaining on the finance scheme
The DSA has quoted me the following figures: 1.2 LS
Loan amount = Rs. 3,30,000/-
Loan tenure = 5 years
Interest quoted = 11.75%
Margin money = Rs. 1,51,250/-
1 advance EMI = Rs. 7,323/-
Processing Fee = Rs. 2,450/-
Less discount = Rs. 20,000/-
Actual down payment = Rs. 1,41,023/- 1.2 LT
Loan amount = Rs. 4,00,000/-
Loan tenure = 5 years
Interest quoted = 11.75%
Margin money = Rs. 1,34,798/-
1 advance EMI = Rs. 8,876/-
Processing Fee = Rs. 2,450/-
Less discount = Rs. 20,000/-
Actual down payment = Rs. 1,26,124/-
I’m yet to get quotes from other DSAs/ banks. But after going through several posts on this forum, I have come to understand that I can negotiate on the EMI by at least 5% - say is the figure quoted is Rs. 2,200/- per lakh per month for a 5 year loan, I can expect to bring it down to about Rs. 2,100/- per lakh per month. I hope I have understood correctly. Pls correct me if I’m wrong. Step – 3 – Asking for a finance payout
I have read on this forum that about 4.5% of the loan amount can be obtained as a finance payout. This works out to Rs. 15,000/- for the 1.2 LS & Rs. 18,000/- for the 1.2 LT. Can I go ahead & start negotiating with the DSA? Step – 4 – Asking The DSA to pass on a part of his dealer’s commission to me as a discount
I read in the forum that all DSA’s give commissions to the dealers for having them as their preferred agents and that we can ask them to pass on a portion of that as our discount. Can I go ahead with it & start bargaining with the DSA? What figure can i expect for these car prices?
Are there any more discounts or freebies that I can get? Pls advise.
After getting all these discounts, do I reduce them in the down payment or the loan amount? I presume deducting it from the loan amount will be better as we will save interest. Pls advise.
Will be visiting Hyundai dealer tomorrow & will post the figures from there when I have them.
Looking forward eagerly to your valuable responses.
Krishnan |