Entering a car lot is a bit like that scene in Behind Enemy Lines when Jude Law blunders into a booby-trapped minefield - in short, you're going to get badly burned. (Germans might also shoot at you, although that's pretty rare.)
Fortunately, it's possible to drive out of the dealership in a new car without blowing up your wallet in the process. Here are ten expert tips to ensure you get the best deal.
This article was written in partnership with CUA, helping you boost your savings while you spend with Savings Top Up. Click here for more..
We asked David Lye, founder of the money-saving app Price My Car, to share his expertise on the mistakes people make in the car lot. Here are his top ten tips.
While some are tried-and-tested (you should bring a friend in tow to help with decision making, for example) others you probably haven't considered. No matter how dodgy the dealer is, following these steps should put you in a good negotiating position.
#1 Knowledge is power: "Research, Research, Research. Read reviews, view the manufacturer's online brochures, engage in forums, and examine the current deals and discounts people are getting on sites like Price My Car."
#2 If it's possible today, it's possible tomorrow: "Don't be afraid to say no. There is no reason any particular price should disappear if you don't say yes straight away."
#3 Don't compromise on colour: "Even if it means waiting longer or paying more for expensive metallic paint, you'll see it every day and you'll regret it if you chose a 2nd or 3rd choice to save a week's wait or a few hundred dollars."
#4 Be nice to the dealers (no, really): "Contrary to what others may have you believe, they are human beings and respond better to firm negotiation with professional courtesy rather than aggressive demands and ultimatums."
#5 Consider resale value: "Some car models depreciate at twice the rate of others so getting a 'great deal' up front may not count for much in 5 years’ time. (Note Price My Car has a resale value calculator for over 300 new car models)."
#6 Say no to extra accessories: "Not only are dealer accessories expensive, you'll also be charged stamp duty on them if you buy them with the car. Buy them a week later and you avoid that tax!"
#7 There’s no such thing as fast-forward: "With new cars on forward order, be sceptical of any dealer offering a delivery date faster than the others. They all come from the same factory, arrive in Australia on the same boat and get distributed to dealers at the same time. As much as you want to believe it, you'll likely have to wait as long as the longest estimates."
#8 Don’t fear the Lion’s Den: "While many people refer to car dealership as 'The Lion's Den', you're much less likely to be ripped off at a car dealer than buying privately. Often it's well worth paying a reasonable premium to make your purchase through a licensed & regulated motor dealer."
#9 Take a friend: "For a second opinion, moral support and a handbrake if you get carried away."
#10 Buy towards the end of the month/year/financial year: "Yes it's true, dealers do have targets and they do get hungrier as the cut-off approaches!"