Tuesday, August 11, 2009
Wednesday, May 20, 2009
Do you feel that you could have got a better deal on your last new car purchase? Or are you buying a new car and are afraid of being taken for a ride by the dealer? Worry not - CarWale’s new car discount negotiation guide helps you make maximum out of your new car deal. It may be surprising for most of us but the reality is that there are at least seven types of discounts one can ask or bargain for from a new car dealer! New car buying is a process in itself and consists of several individual small deals. They might look insignificant at first glance but when you add them up, the entire amount of the discount is more than 10% of the overall price.Let’s take a look on various major discounts that you can ask for from your dealership:
1. Dealer/OEM Discount: This is the discount provided by manufacturer as well as dealer. In most cases and most times of the year, manufacturers/dealers offer some discount/offer/deal on a new car. This discount is not provided in very few cases e.g. a car that is just launched; a car that is in great demand and has waiting period on it etc. Dealer will give you a part of this discount without asking but you will have to bargain on it in order to maximise it. Unless the car is extremely popular, consider a Rs 10,000-50,000 dealer discount on a new car.
2. Corporate Discount: If you are working with a PSU company, a big MNC or highly reputed corporate firm, ask the dealership for a corporate discount. Corporate discounts are offered by manufacturers to attract employees from big companies. Even if you are not sure about the eligibility of corporate discount, ask the dealership about it and confirm whether you are eligible or not. Car manufacturers provide their dealers with a vast list of corporates for whom the discount is applicable. Since dealers get a share of this discount, they do not hide it. A typical corporate discount is in the Rs 10,000-25,000 range and is independent of the dealer discount.
3. Loyalty Bonus: If you already own or have owned a car of the same manufacturer, you are eligible for a loyalty bonus. Manufacturers offer loyalty bonuses to bring customers back to their showrooms. The typical loyalty bonus amount is 5,000-20,000 rupees.
4. Exchange Bonus: If you are trading-in your used car for the new car at the dealership, ask the dealer for an exchange bonus. Dealer happily offers exchange bonus because he gets a good margin on your used car that he buys. The exchange bonus should be in the 5,000-25,000 rupees range.However, if you are not in a hurry, CarWale’s suggestion is not to get misguided by the exchange bonus and sell your car yourself. We highly encourage you to sell your car through an internet portal like CarWale.com or sell it to an individual directly. By cutting out the middleman in the sale, you save a lot of money, typically 5-10% of your used car’s price. Selling your used car yourself is the best way of making the most out of your used car sale.
5. Discount on Finance: Finance companies give about 1-5% payout to their dealers/DSAs for selling loans. Current market trends say, despite the fact that dealer passes on most of the finance payout to the customer, he earns a tidy amount on your finance deal (around 0.5%). Ask for the maximum finance payout.Alternatively, you can ask your dealership to give you only car quote and you can get in touch with CarWale regarding your finance. We have partnered with a highly reputed bank and can guarantee you a better interest rate than your dealer and will pass on 100% of the finance payout to you.
6. Discount on Insurance Premium: Ask the dealer for a discount on the insurance premium of your new car. Insurance providers offer a margin of around 40% to dealers. You can ask for a discount of up to 35% on insurance premium (excluding third-party liability and service tax). If your dealer doesn’t give you this discount, get in touch with CarWale. We will give you a really great deal on your new car’s insurance.
7. Discount on Other Charges: There are several hidden/apparent charges levied on you by your new car dealer. Sometimes the charges look justifiable but often, they are too much. You can ask your dealer to give you discount on registration charges, handling charges, service charges etc.Now, if you sum up the seven discounts, you will find that you have saved a fair amount on your new car purchase. All the discounts mentioned above are quite feasible for the dealer. Be an informed buyer.Do let me know what you think about this article by giving your feedback.
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