While buying your next car, one thing you would definitely like to know is how I can get the best possible deal! What is the best discount I can negotiate with the dealer? Below are some of the typical discounts offered by OEMs, dealers or third party agents (banks, insurance companies, etc.)
- Outdated model / stock can get you significant discounts. Typically a model that's not selling well in the market or model that's about to be phased out or being replaced by a facelift or newer version may give you some good pricing benefits. Dealers would try to give higher discounts to sell off their outdated inventory and unblock their capital. Discount could be as high as 10-15%
- Timing of your purchase - Festivals like Diwali & Dhanteras drive significant buying in Indian market. This is the time OEMs/Dealers offer discounts to drive volumes and capitalized on increased consumer spending.
- Dealer discount - Especially in a highly competitive scenarios, dealer may either offer direct cash discounts or discounts in form of add-ons or accessories to increase their sales. Though this scenario may only happen if we the car is not in very high demand.
- Corporate Discount - Some PSUs or major corporates may have tie-ups with OEMs to offer additional corporate discounts
- Loyalty Bonus - If you already own a car from the same make, OEM / dealer may offer loyalty bonus to retain their customers
- Discount on Insurance& Loan - Insurance providers offer a significant margin to dealers on insurance premium of new cars. The margin increases as the value of car goes up. You can negotiate a decent amount of discount on this. Also if you are planning to go for financing, you may get a small discount (part of the cut they give to dealer for selling their loans) or some banks may waive off the loan processing fees
- Exchange Bonus -Since a dealer may not offer you a price as high as market price, they may offer you a small exchange bonus
- Other Discounts - Always ask your dealer a complete breakup for the price of car. This would allow you to see various cost heads and give you advantage to negotiate on certain costs which don't seem very logical. This could be in form of small cash discount or free accessories given by dealers
Other good time would be December & January. As the model year changes, OEMs offer discounts to clear off their stock. Older model year can have a negative impact on the resale value. So, in case you are planning to keep the car for longer duration, you can use this window to negotiate some good discount