So you’ve already made your decision on which car to buy. Now comes the harder part; how to get the best deal on the car of your dreams.
Everyone knows that buying a brand new car is the second most expensive purchase any person will make, next to a house—with the least expensive car running up to P500,000. So saving even one percent can already be considered as big savings. Just imagine, how many liters of fuel a one-percent saving (P5,000) would buy
There are several ways on how to get good deals in buying a car. However, just like anything else, you have to do your homework and have a little bit of patience as well.
Unlike in other countries where the price of cars varies from dealer to dealer, car dealerships in the Philippines have to stick with the manufacturer’s suggested retail price (SRP). The only time the price of a car exceeds the SRP is when the unit is purchased in a provincial dealership and is charged with a shipping or transport fee.
Every dealership provides each sales agent (SA) with a working margin for each car. And with that margin, SAs have the option on what discounts of freebies he or she can give to the buyer.
Freebies such as LTO registration, floor-mats, tints and what have you are all charged against the working margin. The less the SA gives to the buyer, the bigger more he or she makes. In-house insurance coverage can also be included as a freebie although more often than not, its equivalent price will be considerably more when compared to a regular priced coverage from other reputable providers. It would be best if you do your homework and research how much each freebie costs if you purchase it yourself. After doing so, just ask for a cash discount from the dealer and purchase the add-ons yourself.
Watch our for promos
Most car companies hold sales promos several times a year. Normally, promos come out at the start of the summer season, before classes start and when the ‘Berr’ months begins. An industry source disclosed that most families buy new cars before the summer season starts so they can use it for their summer outings. Come May, there is another surge in car buying as college students and fresh grads get to buy their first cars. The final splurge happens during the ‘Berr’ months when salary bonuses are usually released. It would be wise to time your car purchase during these periods as better deals are usually provided by both the manufacturer and the dealer.
Visit different dealerships
Each dealership has different margins and offer various add ons. When shopping for a car, visit different dealerships and try to get more for your money. Dealerships also have a monthly sales target that they have to meet. Generally, dealerships have to sell-off their stocks by the end-of-the-month so they usually give bigger discounts during that period.
If dealerships have to meet their monthly sales target, car manufacturers do, too—but in a much bigger scale. Manufacturers do not want to have their stockyards full with inventory so they push their dealerships to get more units from them. And in order for the dealerships to order more cars, manufacturer-initiated promos are usually given including more freebies and even better bank/loan rates. The best deals usually happen during the latter part of the year when manufacturers try to unload whatever old stock they have left in the stockyard and convert it into sales figures. This is the time when promos get aggressive and the best deals abound.
Can’t wait for the promos?
A buyer can still get a good deal by just shopping around. First, a buyer should shop around with the banks on which will give the best rate. Have yourself pre-approved by the bank so when you are ready to get the car of your dreams, you won’t be held hostage by the loan agreement being fed to you by the dealerships.
After getting pre-approved by the bank, search for a reputable insurance coverage. Insurance agents have quotas to meet on a monthly basis and can give discounted rates on the premium of a car insurance. Just make sure that the insurance coverage you get is accredited with the bank (if a loan was taken) and that it has the necessary coverage required. Insurance premiums can be lower by the thousands if you purchase the coverage on your own.