So where should I start on $$ negotiations?

[heaps79]

Ok I'm ready to go to a dealer - I want either a 2010 MC or 2011 MC Titanium Diesel hatch - where should I start my price
negotiations ? Am I correct in saying the RRP is $46990 - is there much play from this...start maybe 5 to 10% under this ? If I was to get a 2010
build would I expect to star under the 46990RRP ? I'm in Perth if that helps?

[In Focus]

Can't help you on this particular car, but I recently bought a Fiesta advertised at $21,990 for $20,500 drive away, and I'm sure I could've squeezed a few more hundred out of them if I wanted to haggle some more/threaten to go elsewhere etc etc.

Make it clear you're ringing around all the dealers. Some of them will tell you they can't negotiate over the phone/e-mail, but to come back when you have a price in mind. So get the best price you can Perth-wide, then get the same price out of your nearest dealer. And make sure you get mats, a tank of petrol, and so on thrown in.

Centre Ford, Park Ford, Lane Ford and Lynford are the biggest Perth dealers.

[Martyvan]

would expect there is around 10% movement on a new one, and maybe 15% movement on a '10 plated model.

I have secured a 23% discount on a different brand, being a 'last year' plated model

[Menai Mark]

Heaps 79

As per your previous post this is part of what I advised: If you're leasing a car (eg novated lease) then use the discount that they give the Fleet company to bring the cost down.
Tip: I dealt directly with the dealership and they gave me the full discount they would have given the Fleet company (without them keeping some of this for themselves. (refer to other thread for further info on this.)

However if you're purchasing it privately here's some tips (from an ex car salesman):
1. Take your time - its a marathon not a sprint. The more you put in the more you'll get out $$.
2. Sales cycles are month to month. Do all your looking around / research etc at the start of the month, go and speak to sales people, you'll be surprised what they tell you. Be open and frank and earn their trust. Only deal with those sales people that are open and honest with you. If they can't be honest with you before the sale - wait until after the sales done!
Do all your hard negotiations at the end of the month, especially the last weekend. The sales person and the dealer want to get their numbers up by the last weekend. If the numbers aren't there for them then they'll be more open to negotiating in your favour.
3. Cars have 2 levels of profit built in for a dealership - sales profit, and hold back. Roughly both are the same amount. Sales profit is what the sales person / manager plays with and affects his / her commissions. Hold back is what the dealership wants as a profit from the car including costs (ie finance to hold a vehicle on the lot, administration etc. My guess would be that there's around $3500 Sales profit built into the Titanium, leaving roughly $3500 hold back. The sales profit, if you play your cards right you should be able to get as a reduction reasonably easy. Hold back is a lot harder and it all depends how desperate they are to sell the car to get their numbers up. Some deals they just won't do. You know you're getting into hold back territory in the negotiations when the sales manager is heavily involved and he's also calling the Dealer Principle or owner.
4. The longer you spend with a sale person the more they'll be on YOUR side. Take the car for a LONG test drive with them when they offer. Get him to tell you all about the car, all its features, share some of these features with him / her if they don't know. If you spend 2 hours with a sales person BEFORE talking price he knows you're keen and they won't want to let you go. They want that sale and by god they're going to get it! I'm mean you've just spent 2 hours with them, they won't want to feel that their times been wasted, especially if one of the other sales guys has made a sale during this time! Tip: A good sales month for a sales person is around 12, any less and the dealership will be slowly increasing the pressure to get the numbers up, depending how short of this total they are. If they're sitting on 8 or 9 towards the end of the month they'll be putty in you hands!
5. The negotiation does not really start until the sales manager is involved, if you only shake hands on the deal with the sales person, then you haven't done your job - but he's done his. Sales managers are smarter operators than sale people, but they're bound by numbers, just like the sales people he looks after. Go low with an offer, but not so low they won't take you seriously. Be prepared to come up from your initial offer, but only after you have had further negotiations with the sales manager - and take your time. Stick to your guns, be stubborn, but also be fair and reasonable. Once you're about $1000 to $1500 away from their price vs yours, start asking for extra's. Say, if you threw in this, this and this I may be able to meet you at $x ($600 less than their offer). Throw in 4 or 5 things that can be used to sweeten the deal. You don't need to wait for them to offer, plus you get what you really want eg window tinting rather than fabric protection.
6. At the end of the day be prepared to walk. (Especially if you're feeling too pressured, threatened or just have a bad feeling about the whole situation. Remember you still have to deal with these people after the deal is done and sometimes the cheapest deal is not the best deal.) The dealership down the road is selling exactly the same car but at a better price - and tell them that when you go to leave. If they let you walk then you know you've got their best offer and the dealership down the road will probably not do too much better - maybe a tank of fuel, but at least its something. Let this be your judgement too. Do you want to go through the same stuff again just to get a tank of fuel?
7. The best sales person to do business with is the one you feel the most comfortable with, be friends with the sales person (to a point), it's the Sales manager you can be an AH to if necessary. It may also be that the sales person you feel most comfortable with, you won't necessarily get the cheapest deal but in the long run it'll be the person you get the BEST deal from and you won't feel like you've been screwed over.

Hope this helps. Let me know how you go.

[marcusturbo]

Very nice write up Mark. Lots of good info for "us" the car buyer to use to getting a better deal and as you say, walk away happy with new car/trade-in/deal etc.

Keep us all upto date Heaps, interested to find out what deal you can get on a new MC.

[heaps79]

Awesome advice Mark - wow a lot to think about but hopefully with all that in mind I'll be happy with the price !

[Menai Mark]

Originally Posted by heaps79

Awesome advice Mark - wow a lot to think about but hopefully with all that in mind I'll be happy with the price !

Sorry about the waffle. I posted this last night and just had a re read - a lot to digest. Sorry about that.

One thing I should have made clear. Don't just rock up at a dealership and within the first 5 minutes offer a low $ figure. They won't take you too seriously and will be more prepared to let you walk, as they'll be thinking "he's just shopping around for the cheapest deal - not worth my effort". This is because they'll be already thinking about the next guy that walks into the dealership - as they'll get more sales commissions from him and not you.

As the model is new, they'll be less prepared to discount - especially the Top of the range Titanium, and there's probably no 'factory bonuses' at this stage from Ford. Demand for the mondeo I believe is also high - there's not many on the lot, due to supply vs demand constraints at the moment. Your work will be harder to get a discount, but not impossible - that's why I've suggested to spend the time needed.

Just remember whatever price you pay you'll be happy with this car. You get heaps of bang for your buck with Mondeo (feature wise), especially the Titanium. It's very well priced in the current market (although some will disagree).

[heaps79]

Can someone just confirm with me that I have the RRP right ? $46990 for a diesel hatch ?

[csv8]

I know you are in Perth..Denmac Ford Brisbane have them for..but $1k transport to Perth ????
..2011 FORD MONDEO TITANIUM PWRSHIFT TDCI MC SD
4 Cylinder, 5 Seats. Located at: QLD 4076

VEHICLE DETAILS
Year: 2011 Make: FORD Model: MONDEO Badge: TITANIUM PWRSHIFT TDCI Series: MC Body: HATCHBACK Trans: SD Fuel Type: Diesel Cylinders: 4 Price: $45,999* Drive AwayKms: 10 Seats: 5 Rego: Stock: 546076 VIN: WF0EXXGBBEAG33391

[Allusion]

Originally Posted by heaps79

Can someone just confirm with me that I have the RRP right ? $46990 for a diesel hatch ?

Yes, rrp is 46,990 and I'd agree that the dealers can move around 10% without too much trouble

[heaps79]

Eeek - think I already stuffed up my negotiations. Had it in my mind if I spoke to a dealer I would let them tell me what price they would do for the vehicle before their question "whats your budget?", but under the pressure I told them what I was willing to pay first instead of playing hardball (I actually emailed a dealer and they called me so this has been over the phone)
My goal is to save as much as possible (like we all are) and get a car now rather than waiting (dont have patience to wait 3 months or whatever) so I decided I am going to go for a 2010 plated MC Titanium hatch. So I told the dealer that I wanted "a driveaway price very very low $40's". He basically didnt say no, he just said, I'll work with you to get you a deal.
Dont know if I have mucked it all up now, seeing he didnt come straight out and say no thats not possible, maybe I could of said my budget was lower? I wonder if my price expectation is reasonable?

[obione980]

heaps - back off! You haven't signed for anything yet! Settle right down and play 'nasty' on price. There are other dealers!

Remember - you owe the dealer nothing. He's the one striving to do business with you.

again - COOL IT!!

[car]

See my mate Paul at Titan ford - you will not do better. I have bought my last 3 Mondys from him.

[heaps79]

Originally Posted by car

See my mate Paul at Titan ford - you will not do better. I have bought my last 3 Mondys from him.

Thanks for that - I will