Do you feel that you could have got car price discounts on your last new car purchase? Or are you buying a new car and are afraid of being taken for a ride by the dealer? You need not worry, we’ve got you covered with our research on car price discounts.
Types of Car Price Discounts
There are several types of car price discounts you can avail of when purchasing a new car. But for that, you have to be aware of the available discounts. Below are the discount offers you can ask for while buying a new car.
Corporate Car Price Discounts
The car manufacturers offer a discount to attract the employees of a highly reputed corporate firm or MNC. Always ask for such discounts when buying a new car. If you are unsure about the eligibility, do ask the dealer, as OEMs provide a vast list of companies for the dealer for applicable discounts.
It is a discount provided by the OEM (Original Equipment Manufacturer) or the dealer. Typically, OEM/dealers offer this discount during most times of the year. However, do not expect such discounts on a newly launched car or a vehicle in high demand. The dealer may provide you with this discount without you asking. But there is still room for negotiation to maximize the offer.
Some car manufacturers offer these car price discounts to their existing customers. If you own a car of the same brand and purchase another vehicle, you are eligible for a loyalty discount/bonus. However, not every manufacturer provides this type of discount, but there is no harm in asking the dealer for such offers.
If you are trading-in your existing car for a new one at the dealership, ask the dealer for an exchange bonus. Dealer happily offers exchange bonus because he gets a good margin on your used car that he buys. The exchange bonus should be in the 1-5% range.
However, if you are not in a hurry, our suggestion is not to get misguided by the exchange bonus and sell your car yourself. We highly encourage you to sell your car through an internet portal or sell it to an individual directly. By cutting out the middleman in the sale, you save a lot of money, typically 5-10% of your used car’s price.
Finance companies usually pay out the dealers for selling car loans. Hence, the dealer also makes a tidy amount of profit if you opt for a car loan to purchase your new car. So, always ask for the maximum car price discounts the dealer can offer for opting for a loan.
Car Insurance Discount
Ask the dealer for a discount on the insurance premium of your new car. Insurance providers offer a margin of up to 40% to dealers. You can ask for a discount of up to 30-35% on insurance premium (excluding third-party liability and service tax). If the dealer is hesitant in giving you discount on your car insurance, ask him if you can get it done on your own. Please note the dealer has the right not to sell you a car if you don’t opt for insurance from him. However most of the dealers will not create a fuss around it.
Car Price Discounts on Additional Charges
The dealer levies several other charges on you while purchasing a car. Sometimes a dealer can even overcharge you in the name of handling charges. Hence, always ask for a discount on additional costs such as vehicle registration charges, service charges, handling charges, etc.
Now, if you sum up these discounts, you will find that you have saved a fair amount on your new car purchase. Even if you manage to squeeze 3-4 of these, you are good. Be a smart buyer!!!