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Best new car deals ever seen

image Let me do a deal for you: Dale Goodman with some of his stock at John Newell Mazda.

Our tips on how to get the best price?

New-car buyers have a unique opportunity to bargain with dealers as the industry weathers a perfect storm of plummeting demand, rising costs and fallout from the credit crunch.

“Right now, it's an epic fire sale. We'll never see this repeated,” Channel Nine motoring expert and consultant John Cadogan said.

“If you've got the money, now is the time to buy. It won't be this good again.”

Some brands are offering huge incentives, including extended warranty, free on-road costs and price reductions running from $1000 to more than $10,000.

Mr Cadogan said that for a determined buyer these were merely the beginning.

“The basic formula for getting a discount is to ask for the drive-away price, subtract 15 per cent and offer that,” he said.

“If they won't be in it go somewhere else, because some dealer somewhere will trade in for that sort of discount. Be prepared to compromise on colour and trim if you have to.

“And even if it's not the make you want, you will get the same sort of car.

“The only caveat is that the car has to be in stock.

“When it's on the floor, the dealer is paying the finance cost of owning it because he has to buy it from the manufacturer.”

AMP chief economist Dr Shane Oliver said car sales were “in the process of falling off a cliff”.

“Given the urgency with which some dealers need to get rid of their stock rather than have it repossessed, there are bargains out there,” Dr Oliver said.

Federal Chamber of Automotive Industries chief executive Andrew Mackeller said brands are “doing what they can to clear the decks. There are excellent deals to be had on 2008-plated stock.”

The window will not be open for long.

The Australian dollar's dramatic plunge against major currencies will soon bite hard, forcing prices to rise.

For the moment, dealers disadvantaged by the credit crunch and the market downturn seek to urgently shift stock.

This buyer's market has been brought about by a downturn in car sales so dramatic that Holden has suspended production at its Adelaide plant for the first three months of 2009.

New-car sales for October were down by more than 10,000 units on the same month in 2007.

Dealers have also been hit by the withdrawal from the car market of financiers GE Money and General Motors Acceptance Corporation. This has caused a funding shortfall of about $2 billion which affects as many as 30 per cent of the nation's dealerships.

 

10 TIPS TO A GREAT DEAL

* Look for slow-selling models

* Look for 2008-build models

* Compare prices from dealers

* Go for a car that's in the showroom _ these are the ones the dealer needs to get rid of

* Big, thirsty cars are unpopular, but the savings on the purchase price can equal a year's worth of fuel

* Demand the driveaway price and offer under that

* Demand extended warranty and on-road costs

* Lean hard on the dealer to include optional extras

* Compromise on colour and trim and even make in order to save big

* Be ready to walk away there's no lack of competition out there

 

START HERE AND THEN OFFER 15 PER CENT LESS ...

HONDA ODYSSEY: $39,290 (Driveaway)

MITSUBISHI LANCER: $20,990 (with $2008 cashback)

HYUNDAI ELANTRA: $19,990 (Driveaway plus $1000 gift card)

NISSAN MICRA: $14,990 (Free on-roads)

 

Comments on this story

Displaying 3 of 9 comments

  • Its obvious to see some of these comments have been made by dealers.....

    Jeff of QLD Posted on 01 April 2009 3:46pm
  • Through a relative I got employee pricing on a FG XR6 Turbo, saved about $14k, but the pricing was only for exisitng cars that were sitting in the yard. I was just lucky they had exactly what I wanted sitting there (ZF auto, colour, premium sound, etc)

    Matt Werner of Newcastle Posted on 02 December 2008 6:04pm
  • There are discounts to be had for cars in all price ranges....just bought a 2008 BMW 520d Demo (Oct registered) for $60K driveway......thats a saving of $33K.... You just need to shop around and bargain hard....happy shopping

    Jake of Sydney Posted on 02 December 2008 7:43am
  • Wolf, In fact I did very recently (less than 1 week ago) pick up a Mazda 3 Neo Sport Auto with Safety Pack for just a small tick above $24k. Including the accessories that I have asked for (mats, weathershield and reverse sensor), the RRP is approx $28k. Furthermore, the $28k is the discounted RRP after deducting the free CTP and free rego under Mazda's current promotion. In other words, I've saved approx $600 from Mazda's promotion and have received an additional $4k discount from the dealer. Just in case you may be wondering, no I did NOT have to settle for a dealership floor stock as the dealer have to order the colour I'm after. I'm certainly NOT saying that I have the best deal in town, but just thought it's worthwhile to highlight that a $4k discount (approx 14.3%) is possible with a Mazda 3 Neo Sport. smile

    OURS of Croydon - NSW Posted on 30 November 2008 10:07pm
  • John Cadogan is an expert in what?? Why would someone who profits from the motoring industry want to kill it. Most of the large car manufacturers are doing it tough ( not so much VW, Toyota, Honda and PSA ) but definatley GM, Ford, Daimler Chrysler. So why would you offer $25490 (15% LESS) for a brand new commodore when they are at $29990 driveaway? Not only will it kill resale value ( which Cadogan obviously knows nothing about) but it will surely kill off the commodore forever! The motoring industry is one of the most cut throat markets out there, where consumers are able to test drive vehicles at their local dealers, then go home and send away for hundreds of quotes via the internet to get a better price, then rock up to the local dealer ( who spent the time with test drives etc with them) and service their new car with another dealerships sticker on it? Technology has changed the market forever, and it is absolutely in control with the consumers? So again Mr Cadogan is it worth buying a Commodore for $25490 new, and having them close the factories next year and see more unemployed Australians? Get your hand off it!!

    Kommen Cents of Queensland Posted on 26 November 2008 8:43am
  • So what you're saying is that I can pick up something like a Mazda 3 Neo Sport for 4K off the on road price? I called a few dealers on the weekend after seeing this article and the most I could get off one was around the 1K mark. The price wasn't a big deal anyway, I guess considering i'm not looking at buying a car that's rubbish they have no reason to need to flog off their cars. If anything, the conversations i've had with some of the dealers suggested they were cleaning up off the back of people downsizing and going for more affordable options.I found a fair deal with a dealer was obtained by not beating him around on the price side of things, but being straight with him about what I was prepared to spend. I figure (and maybe it's just me) that wanting a 38K model and having 35K to spend mean two different realities. I compromised, got myself the right car and funnily I don't feel like I was ripped off. I suppose if I were in the market for a Holden or Ford the 15% thing wouldn't be too far off, as my dad just picked up a GT Falcon for over 16K off the asking price, which he fund quite easy to get. Makes me wonder what the Government is giving Holden and Ford 6 billion for?

    Wolf of Sydney Posted on 26 November 2008 12:36am
  • i think he's talking the prices for demonstrator vehicle. not brand new ones, hence the compromise for colour and specs/trim levels. but 15% is still very optimistic. if you try and offer 15% off a brand new ones you might as well stay at home because no dealer would want to waste their time in dealing with you.

    rx8 of forest lake Posted on 26 November 2008 12:03am
  • my daughter just bought as brand new oooooo on the clock KIA RIO for $14,000 white in colour 4 door hatch in june this year with 12 months rego and a 5 YEARS UNLIMITED kilometer warranty she can drive the wheels off it for 5 years the other big makes go on and on about RESALE I COULD,NT GIVE 2 HOOTS about resale were looking for VALUE for money and we,ve found it wih kia

    david mckee of toowoomba Posted on 25 November 2008 8:59pm
  • Mate you are joking with the 15% off Driveaway prices. Considering these prices have already been discounted by $2500-$4000. If anyone purchases a new Odyssey for under $36000 I would be very surprised.

    t Posted on 24 November 2008 4:16pm
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