Negociating Finance And Prices With A Dealer

[markquinton]

Hi all

I've seen 59 plate Avensis T Spirit Tourer at my local dealer which i've fell in love with but I can only get it if they are willing to negociate. The standard APR on PCP finance is 9.9% or 10.9% (with 2 years servicing)but the monthly payments are a little to much. I have a part ex which has a value of 2.5k which helps a little but what I really want to know is can you haggle with a dealer with regards to the APR rate on PCP or HP? Will they attempt to match a personal loan APR??

Also how much is it possible to haggle off the list price of the car? I was thinking 1k?

Any advice would be a great help.

Thanks

Mark

[Bemused]

You do not say how much they want for the Avensis and what mileage, history etc. If it is 10k for instance, you are asking for a 10% discount, a bit high, around 5%-7% is more likely with a lot of haggling. Most dealers are prepared to negotiate whether they dress it up as offering more for your P/E or reducing the cost of the car they are selling.(Or throwing in 20 quid floor mats!!) In other words the cost to change. I very much doubt that you will get them to reduce the PCP finance rate, or offer you a discounted APR on a straight loan, but on the latter it is worth a try. Shop around if you go for a personnel loan and present them with the APR quoted and ask them to beat it.

Hope you succeed.

[markquinton]

Thanks

The car is £17,995 which seems a bit higher than others at dealers i've found on Autotrader and it has about 25k miles. As it's a pre 2010 it's only got the 3 year warranty which I also believe is a haggling point.

[Jamesbelfast]

Dealers generally can't negotiate on interest rates of payment schemes as they will be dictated by the finance company. So if you want to find an interest rate that suits you then make direct contact with loan or HP companies. That way you have a better sense of what finance deals are out there.

When buying a car never divulge how you intend to raise the finance until you feel you have negotiated a fair price within your range. At that point the dealer may think he has a potential sale. At this point they will then attempt to close the deal and that will be the time to push for better conditions that may suit you.

Car salesmen are always eager to find out how much you can afford to pay per month so never divulge this information unless you have to.:)

[Cyker]

Haggle on the price of the car!

[mintalkin]

when i aquired my 59TR the dealer would not shift on the price but i haggled out of them,

Protection Pack

Roof Bars

Rear Parking Sensors

Front Parking Sensors

Boot Liner

All Toyota items and togeather worth a few £, if they think you are going to walk away they will throw stuff in to get the deal.

[Phoenix999]

I prefer to tackle things in a simpler way when I am buying a new car.

1. I tell them the car I want

2. I show them car that I have in p/x

3. I tell them how much I am willing to pay per month and the number of payments (never more than 36 in my case)

Then I leave it to them to get back to me. You could be surprised if you approach them this way as they have a clear target to aim for and can often hit it

Good luck

[markquinton]

Phoenix999 would that be on PCP or HP?

[Druid Boy]

I took finance from the dealer as the rates and conditions were the same as my bank was offering. The dealer then stuck a £200 admin fee on top. Cheeky git. Shop around for a deal you are happy with, there are loads of pllaces offering finance and you may be surprised at how competitive your bank is.

[Thermal]

Hi,

2 years ago, when I had the eerie feeling that my 12 year old previous car wouldn't make it into oldtimer-hood, I decided to either sell it to a hobbyist or scrap it if it wouldn't last the delivery of a new car.

I did some homework, went to 5 different brand dealers and presented them the following list:

- Model (new) I wanted.

- Towbar fitted

- Parking Aid rear fitted

- Cruise Control fitted

The list ended with the amount I wanted to pay and my telephone number.

Not sure if this method works in the UK, but I had 4 positive reactions and 1 "invitation to talk" within a week over here, to choose from.

Of course all dealers tried to pursuade me into their next higher model, which I declined.

Total off was 11.8% and both sides looked happy.

Flowers for the wife (who had maybe shown a bit more than usual interest in that new Yaris in the showroom...)

[Parts-King]

The dealer then stuck a £200 admin fee on top. Cheeky git.

The dealer does not stick admin fees on, the finance company does. This seems to be standard fayre these days, set up fee, admin fee, option to purchase fee on PCP's, these are fees charged by the finance house NOT the dealer who gets nothing out of these fees whatsoever

As with all purchases, haggle, the dealer wants to sell cars but be realistic, Ive said on here hundreds of times that the deal you get is dependant on the time of month, the purchase you are making and a hundred other things. If you dont get the deal you want, try him again at the end of the month, or even better at the end of the quarter (March, June, Sept) as the dealer might offer an even better deal if he is only a few cars off target. Dont leave it too late though as any car purchased has to be bought AND registered in the month!

Kingo

[markquinton]

Thanks for all your replies. One of the main problems is that Dingles Toyota in Norfolk seem to list their cars at slightly higher prices than some other dealers around the country. It seems I can save up to 2k on occasions if I'm willing to travel. This is probably the same with other dealers as prices do seem to vary dependant on geography. However the issue is that the T-Spirit Avensis is extremely rare as most people opt for TR or T4 spec. I love the car but i'm strugling to justify part exchanging my car for £2500, paying an additional £1000 deposit and 36 monthly payments of £303 and then still having a balloon payment at the end. Maybe i'm just out of touch with how much fairly new cars cost to buy per month but that seems a lot of money just to effectively rent the car and the warranty runs out in 1 1/2 years. So far the dealer has reduced the car by £500 if I sign up by the end of the month. I really want the car but I could do so much with £300 per month if I just keep my 56 reg Mazda 6.

Decision time!

[KenMavor]

Maybe see if you can sell your old car privately for £2500, or more, and then haggle a discount for no trade in.