How much discount can I realistically get when I buy a car?

By Marin Pretorius

We all want to get the best possible value for our money. If that means trying to get a discount on the car you want to buy, you're definitely going to try getting as much as possible slashed from its price. But how much can you really cut off the car's pricetag?

The dealer wants to make money, while not losing money either

Every dealership exists with a single purpose: to turn as profit profit as possible. This can be accomplished by either maximising their profit margin, or by reducing their costs to a minimum. They will come up with an initial offer during your negotiations by optimising these two factors for their own benefit.

But this is just the start, as there is a fair amount of fat built into this proposal. You can negotiate for a virtual discount by insisting on a higher trade-in value, for instance (which increases the dealer's cost). Or you can simply try to bring the purchase price down (which will shrink their profit margin) and score a real discount. The bottom line is that there's always some wriggle room in any offer, and it's up to you to exploit that wriggle room.

This also applies to pre-owned cars, especially less-desirable models, or cars with unpopular engines or options. Sure, you might not end up with exactly the pre-owned car you really wanted, but you'll net a tidy discount just because the dealer will be eager to get rid of these unpopular cars as quickly as possible.

Sometimes it's seasonal

December is a great time to buy a car, because dealers are under pressure to meet yearly sales targets, clear old stock, and earn some incentives from the manufacturers. Likewise, the period between July and October is also a great period for negotiating on new cars, as dealers have to make room for the next model year's releases in the showroom. It will definitely be beneficial to try and make any new-car purchase during these periods, as any leftover stock effectively costs the dealer money with every passing week.

Buyers often prefer to wait for the new model, but meanwhile the old stock is a constant drain on the dealer's bottom line. Not only does the dealer lose on interest with these depreciating assets sitting on their floor, but they take up space which could have been better utilised by new stock. In the end, most dealers would rather take a cut in their profit before spending any more money to keep the old stock around.

It also depends on the manufacturers

The battle for sales leadership in the new-vehicle marketplace is incredibly fierce, especially with a marketplace as saturated with highly competitive products as ours. Manufacturers will do just about anything to attain that coveted best-seller spot, and this includes heavy assistance packages on offer to their dealers.

We've used this example before, but it's worth repeating: just about all the double-cab bakkies on our market benefit from massive sales assistance from their manufacturers or importers. We're talking about tens of thousands of rands being sent the dealers' way for them to use to entice buyers to buy their product, in the form of trade-in assistance, added-value accessory packages, or simple discounts.

Find out which dealerships offer the best manufacturer-assisted incentives, and get ready to save a very tidy amount on your new vehicle. While the biggest discounts can usually be found on popular, key models in the new-car ranges, thanks to the manufacturers' assistance packages, smart shopping can net you between 6- and 10% discount even on deals which aren't supported by manufacturer incentives.

It all depends on your timing, and your willingness to compromise on your requirements. 10% doesn't sound like very much, but over the total payment period, just the reduction in interest charges will leave you with a fair boost to your bank account. Saving a little in the beginning could help you save a lot over the long run, so go ahead and bargain for all you're worth!