10 steps to getting the best bargain while buying an automobile
1. Keep two cars on the list to buy: All the cars in the market today are equivalently well built with some being frugal while others better built. It is safe to keep two cars on the list since not all car makers have a dealer near you. Even more convenient if you have two dealers for the same car maker. I was looking to get a Honda Jazz, I was also looking at a Nissan Micra. In Ahmedabad we have Landmark Honda (my previous experience was sad with them.) and a newly opened Emerald Honda. Nissan has only one 'Petal Nissan' though.
2. Always Test drive the same car you are to buy twice: Usually dealers do not keep all variants for Test Drive. But if you do not get to test drive the same engine/ transmission option you want, just walk away. I wanted to test drive a Hyundai I20 Diesel before purchase. The dealer did not have a test drive car. For Honda Jazz ' gave us a test drive first at our door step and next at their dealership. Also remember to test drive the car on the roads you usually drive on in the way you drive. But, also remember that you do not own the car and you are not racing on the track.
3. Let the Salesperson call you back: Never call back or return to the showroom before the sales person calls you. It is important that the customer is provided with a call back. If the dealership does not call back, they are not bothered with providing you a good service either. I received a call back from Fiat Showroom three months after I had already bought my car. Additionally, letting them follow up shows that you are in control.
4. Keep a track of the bargain you are getting: It is important to understand the current schemes on the car before you even finalize on it. This is necessary for you to know how much you can bargain further. Also do not get book a car after seeing a heavy discount advertisement. It might be an inventory sell out for a new model. If it is then you can go crazy during the bargain. But make sure the car has sold enough to ensure easy spares availability. Maruti 800 went out of sale but the last units were lapped up by the market because spares are readily available. Skoda on the other hand had a 9 month old Fabia waiting to be sold. Another reason is because the car is slow selling. This should not bother if the car fits your requirement. A Tata Indigo Marina is not an everyday car for Tata but buyers who buy them are pretty satisfied. Sometimes competition encourages heavy promotion too. In the end it is always the buyer who wins. But remember that it is the total price you pay that is important irrespective of how big an amount the dealer shows to you. Ask them how much in total you pay.
Additionally, after you have decided to buy the car, ask the sales executive on what further discounts he will provide. For this step, you should be prepared with prices of competing cars in the market and prices from various showrooms. I initially began the bargaining talk by telling the sales person how the Volkswagen Polo petrol is cheaper than Honda Jazz and how he might lose a sale. The sales person wont match the price but it is a nice beginning to getting a bargain. Let him bargain and reduce the price before you show any intent. Once you get to level to of bargain, dish out what the competing same brand dealer is offering. I had a quote from Emerald Honda to show to Landmark Honda before he reduced the price. Do not hesitate to walk to the other dealer for a better bargain. This will take some time but it is worth it if you are looking to save good money. Bargain until both the dealers confirm they cannot go any low and you know there is no more margin for bargain.
PS: White and silver coloured cars are universally best sellers irrespective of the brand or model. Discounts are less on these colours and they also fetch higher resale. If you are planning to keep the vehicle for long and do not care about resale ask the dealer for a different colour to your liking for a better price. I selected a blue colour and I got a further cash discount.
5. Freebies are essential too: Depending on how well the car is equipped, you can begin bargaining further for the free accessories which form an integral part of the car experience. Here is a list of things you can get free or for a subsidized price.
1. Stereo system
2. Additional quality speakers for stereo system
3. Alloy Wheels
4. Glass tint/ Sun film
5. Floor mats
6. Cabin freshener
7. Bumper guards
8. Door protectors
9. Boot parcel tray
10. Teflon coating for body and engine
11. A full tank of gas
12. Extended warranty
13. Audio auxiliary/ iPod/ usb cable
14. Spoiler
15. Body kit
16. Fog Lights
17. Drilled pedal kit
18. Steering cover
19 Seat covers
20 Remote central locking kit.
The list goes on and you should try to get the most out of the deal. Remember, the showroom owner is rich and you are parting with your hard earned money.
6. Select your own car: The dealer is out to clear his inventory but it is important for the customer to remember that no two cars are built the same. Walk to the stock yard and look for at least two cars units before selecting on one. Check for the manufacturing date. If you got a huge discount, chances are that the sales person will sell you an older dated car. Check the VIN for more information. If you do not know how to read a VIN number just plain ask the sales person to show you car papers reflecting the VIN number. Look for defects/nicks/ or repair jobs. Then select the car you want. Make sure a proper PDI (Pre Delivery Inspection) has been carried out and the car meets the latest emission regulations.
7. Finance options: Many people pay cash upfront while many select Bank loans for depreciation/ tax benefits. For loan options a further loan payout pass on is possible for the customer along with insurance. While the dealership may provide more discount for upfront cash payment. Select the one that suits best. CAVEAT EMPTOR: Banks are white robbed bandits when it comes to loans, select the right financing options from a reputed bank and look where you sign even if they make you sign 500 pages. It is extremely important to note that while availing a loan can help you buy a premium car, it is up to self to ensure that the installments are affordable.
8. Check the documents and the transactions: Check the whole transaction with every minute detail possible. Inspect how and where the discount has been given and how it reduces your total price or adds an extra for a lower price. Seldom do sales persons play around prices to make customer feel they have got a good deal while that is not the truth. Do not go by the ex-showroom and on-road prices listed on the paper by the dealer.
9. ASK Nothing is as crucial and important. Ask reasons and replies for every single doubt or questions you have. Satisfy yourself that you are getting what you have agreed for.Ask for clarifications if even a single point seems fishy.
10. Warranty and coverage: A warranty these days is usually part of the deal that you get on the car. While other brands such as Fiat advertised a 24+24 warranty package, Honda has a 4 years warranty in place. Check all the details of the warranty. My Honda Jazz had issues with window linings leading to slow window operation. The four year warranty took care of it.
2. Always Test drive the same car you are to buy twice: Usually dealers do not keep all variants for Test Drive. But if you do not get to test drive the same engine/ transmission option you want, just walk away. I wanted to test drive a Hyundai I20 Diesel before purchase. The dealer did not have a test drive car. For Honda Jazz ' gave us a test drive first at our door step and next at their dealership. Also remember to test drive the car on the roads you usually drive on in the way you drive. But, also remember that you do not own the car and you are not racing on the track.
3. Let the Salesperson call you back: Never call back or return to the showroom before the sales person calls you. It is important that the customer is provided with a call back. If the dealership does not call back, they are not bothered with providing you a good service either. I received a call back from Fiat Showroom three months after I had already bought my car. Additionally, letting them follow up shows that you are in control.
4. Keep a track of the bargain you are getting: It is important to understand the current schemes on the car before you even finalize on it. This is necessary for you to know how much you can bargain further. Also do not get book a car after seeing a heavy discount advertisement. It might be an inventory sell out for a new model. If it is then you can go crazy during the bargain. But make sure the car has sold enough to ensure easy spares availability. Maruti 800 went out of sale but the last units were lapped up by the market because spares are readily available. Skoda on the other hand had a 9 month old Fabia waiting to be sold. Another reason is because the car is slow selling. This should not bother if the car fits your requirement. A Tata Indigo Marina is not an everyday car for Tata but buyers who buy them are pretty satisfied. Sometimes competition encourages heavy promotion too. In the end it is always the buyer who wins. But remember that it is the total price you pay that is important irrespective of how big an amount the dealer shows to you. Ask them how much in total you pay.
Additionally, after you have decided to buy the car, ask the sales executive on what further discounts he will provide. For this step, you should be prepared with prices of competing cars in the market and prices from various showrooms. I initially began the bargaining talk by telling the sales person how the Volkswagen Polo petrol is cheaper than Honda Jazz and how he might lose a sale. The sales person wont match the price but it is a nice beginning to getting a bargain. Let him bargain and reduce the price before you show any intent. Once you get to level to of bargain, dish out what the competing same brand dealer is offering. I had a quote from Emerald Honda to show to Landmark Honda before he reduced the price. Do not hesitate to walk to the other dealer for a better bargain. This will take some time but it is worth it if you are looking to save good money. Bargain until both the dealers confirm they cannot go any low and you know there is no more margin for bargain.
PS: White and silver coloured cars are universally best sellers irrespective of the brand or model. Discounts are less on these colours and they also fetch higher resale. If you are planning to keep the vehicle for long and do not care about resale ask the dealer for a different colour to your liking for a better price. I selected a blue colour and I got a further cash discount.
5. Freebies are essential too: Depending on how well the car is equipped, you can begin bargaining further for the free accessories which form an integral part of the car experience. Here is a list of things you can get free or for a subsidized price.
1. Stereo system
2. Additional quality speakers for stereo system
3. Alloy Wheels
4. Glass tint/ Sun film
5. Floor mats
6. Cabin freshener
7. Bumper guards
8. Door protectors
9. Boot parcel tray
10. Teflon coating for body and engine
11. A full tank of gas
12. Extended warranty
13. Audio auxiliary/ iPod/ usb cable
14. Spoiler
15. Body kit
16. Fog Lights
17. Drilled pedal kit
18. Steering cover
19 Seat covers
20 Remote central locking kit.
The list goes on and you should try to get the most out of the deal. Remember, the showroom owner is rich and you are parting with your hard earned money.
6. Select your own car: The dealer is out to clear his inventory but it is important for the customer to remember that no two cars are built the same. Walk to the stock yard and look for at least two cars units before selecting on one. Check for the manufacturing date. If you got a huge discount, chances are that the sales person will sell you an older dated car. Check the VIN for more information. If you do not know how to read a VIN number just plain ask the sales person to show you car papers reflecting the VIN number. Look for defects/nicks/ or repair jobs. Then select the car you want. Make sure a proper PDI (Pre Delivery Inspection) has been carried out and the car meets the latest emission regulations.
7. Finance options: Many people pay cash upfront while many select Bank loans for depreciation/ tax benefits. For loan options a further loan payout pass on is possible for the customer along with insurance. While the dealership may provide more discount for upfront cash payment. Select the one that suits best. CAVEAT EMPTOR: Banks are white robbed bandits when it comes to loans, select the right financing options from a reputed bank and look where you sign even if they make you sign 500 pages. It is extremely important to note that while availing a loan can help you buy a premium car, it is up to self to ensure that the installments are affordable.
8. Check the documents and the transactions: Check the whole transaction with every minute detail possible. Inspect how and where the discount has been given and how it reduces your total price or adds an extra for a lower price. Seldom do sales persons play around prices to make customer feel they have got a good deal while that is not the truth. Do not go by the ex-showroom and on-road prices listed on the paper by the dealer.
9. ASK Nothing is as crucial and important. Ask reasons and replies for every single doubt or questions you have. Satisfy yourself that you are getting what you have agreed for.Ask for clarifications if even a single point seems fishy.
10. Warranty and coverage: A warranty these days is usually part of the deal that you get on the car. While other brands such as Fiat advertised a 24+24 warranty package, Honda has a 4 years warranty in place. Check all the details of the warranty. My Honda Jazz had issues with window linings leading to slow window operation. The four year warranty took care of it.
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