Discount on new car price

redbluecan

Will a dealership give me any discount on buying a new car from the list price? I want to pay cash plus my part ex (I don't want finance but understand that does not strengthen my position). The figures will be something like £23K for the car with £16K off my old one (price on we buyanycar.com). Really a bit out of touch and just wondering if they do offer any wiggle room. It is a Mazda car I'm buying.

EssexExile

What Car will give you an idea of what to pay. Check out people like Carwow too.

Robby1988

I'd try CarWow.

Also, do enquire as to what their best finance deals are as the best deals and offers are normally found here. You can settle the finance after 3 months with the money you have got, so weigh it up.

motorguy

redbluecan wrote: »

Will a dealership give me any discount on buying a new car from the list price? I want to pay cash plus my part ex (I don't want finance but understand that does not strengthen my position). The figures will be something like £23K for the car with £16K off my old one (price on we buyanycar.com). Really a bit out of touch and just wondering if they do offer any wiggle room. It is a Mazda car I'm buying.

Use broadspeed.com and drivethedeal.com for a yardstick on possible discounts.

Your local dealer should be able to match or get quite close on price. If they cant, then use the brokers.

vernall

Have done a few times, but do not mention it to them what you plan to do.......have taken on PCP finance just to get the huge discount they have offered, then upon picking car up, drive home,ring finance company and say you want to cancel the agreement, they have given me a settlement figure over the phone and I have paid it off instantly......no interest and never had to repay the discount I was offered

parking_question_chap

vernall wrote: »

Have done a few times, but do not mention it to them what you plan to do.......have taken on PCP finance just to get the huge discount they have offered, then upon picking car up, drive home,ring finance company and say you want to cancel the agreement, they have given me a settlement figure over the phone and I have paid it off instantly......no interest and never had to repay the discount I was offered

Who then loses out in this scenario?

I presume the car seller discounts the car as the finance company gives them a percentage of the interest on the loan? Thus the car company makes up the discount on the sale price through commission on the loan.

On that basis the car dealer loses out as they dont make back the money they have lost. Not saying thats a bad thing in any way, im just trying to figure out how finance enables the dealer to make discounts.

Or does it work some other way?

cranford

I have used carwow but for the sake of a few hundred have always used a local dealer.
Its worth getting a quote for than one make as the discount for similar sized cars can vary a lot.

alfie1950

As previously mentioned have a look a What Car magazine.....they used to quote a target' price that should be achievable but I found it to usually only about £1000 below list price.
Have a look at somewhere like 'Happynewcar' , if they list your model it will give an idea about the maximum possible discount you might get if you were willing to pick an in stock model from a main dealer , if you were willing to take credit ( and pay it off as within a month or so).

motorguy

parking_question_chap wrote: »

Who then loses out in this scenario?

I presume the car seller discounts the car as the finance company gives them a percentage of the interest on the loan? Thus the car company makes up the discount on the sale price through commission on the loan.

On that basis the car dealer loses out as they dont make back the money they have lost. Not saying thats a bad thing in any way, im just trying to figure out how finance enables the dealer to make discounts.

Or does it work some other way?

No. Its a finance contribution from the manufacturer / finance company, so its the manufacturer / finance company who lose out, not the seller.

Usually the broker prices include the assumption that you are going to take the manufacturers finance, however its common knowledge that you can just take out the finance then clear it a few days later to get the discount.

vernall

parking_question_chap wrote: »

Who then loses out in this scenario?

I presume the car seller discounts the car as the finance company gives them a percentage of the interest on the loan? Thus the car company makes up the discount on the sale price through commission on the loan.

On that basis the car dealer loses out as they dont make back the money they have lost. Not saying thats a bad thing in any way, im just trying to figure out how finance enables the dealer to make discounts.

Or does it work some other way?

motorguy wrote: »

No. Its a finance contribution from the manufacturer / finance company, so its the manufacturer / finance company who lose out, not the seller.

Usually the broker prices include the assumption that you are going to take the manufacturers finance, however its common knowledge that you can just take out the finance then clear it a few days later to get the discount.

What he said lol