Negotiation Buffer (2nd Hand Car Dealer)

[Bionix77]

Hi all,

 

can advise on how much can one negotiate on the published car price in SG Carmart from the 2nd Hand Car Dealer. Dun wish to get them pissed off at making ridculous offer but at the same dun want to get chop "Carrot".

 

Example price as $61,000. Is 5k off the price too much to ask for? Thanks.

[Loki]

I suppose paper value plus whatever value you put on the car body. i.e. I am sure you are more willing to pay more above paper value for a say BMW than for a Kia for example?

[Rickster]

Sometimes car dealers' listed price has a condition - You need to take certain amount of loan from them at a certain percentage. So do check with them first before you make any offers.

 

But asking 5K off the asking rice of 61K, I'm not sure. But 2 or 3K off shuold be quite possible to get.

Edited April 30, 2008 by Rickster

[Bionix77]

How do I go about calculating paper value? Supposing it's a 3yr car with COE at 20k and OMV at 30K.

 

Paper value = (0.7 x 20,000) + (0.65 x 30,000) = $33,500?

 

Thanks

[Bionix77]

Have check with them. Price is neg without taking any loan. If take 100% loan, more discount will be offered but dun think I'll be taking this route.

[Gs300999s]

Best way to gauge is to be very firm. If got leeway they will budge at some point, walk away if necessary.

 

I have dealt with use car dealers who post very honest price and can bargain only about 500. The other end of the spectrum, advertise for 89k willing to let go at 81k.

 

Check out other similar yr and make on sgcarmart, that will give you an idea. But i guess generally 2-3k is do-able.

 

Having said that, I used to deal with financial loans and you will be surprise the margins some dealers has. Buy in like 55k, advertise for 68k. But less nowadays lah.

Edited April 30, 2008 by Gs300999s

[Tploh]

Dealer's cost of buying a car = Paper + Body.

 

Paper can be calculated exact to the day of the month of registration.

 

Body for an average 5 years old 1.6-2.0L sedan Japanese cars usually is around $3-5K. BMW, Mercs, Lexus obviously will fetch much higher body value.

 

So, you can more or less "calculate" the used car dealer's cost. But do add in reasonable profit or otherwise, they won't sell.

 

Reasonable profit = do some tests on a few dealers to calculate out yourself. I am afriad I might be by used car dealers one day, not even knowing the reason why.

[Skylander]

i think it should be

 

COE = (0.7 x 20000) = 14000

OMV = (82.5% x 30000) = 24750

 

Total = $38750

[Skylander]

you can try to bargain. some people actually got 4k off the list price. But its subject to your bargaining skills and giving reasons like

 

"but the car not in good condition leh",

"a new car depreciation almost the same as this car" or

"some other dealer selling same car model and yr but less than yours what"

 

but i think it would be better if you look at other dealers and test drive to get a feel first.