This post is a follow-up to this earlier question about buying the right SUV
Hi John. With the brokers you recommend, once I select a vehicle can I get their price before I go to the dealer? I've previously had company cars and on mid-range Ford and Subaru WRX (not me) we'd get $5-6K off but that's gong back nearly 10 years so maybe that sort of discount is not there any more. I can possibly buy using an ABN as I'm self employed - do the brokers know the in-outs of that situation or is it more a question for my accountant?
I've booked test drives next week for a few vehicles - Mazda CX-5, Hyundai ix35, maybe Hyundai Santa Fe, Kia Sportage and Subaru XV. The Mazda CX-5 Akera (felt very at home inside) at Mazda Goulburn has a drive away price of $54,305 so it looks like it'll be over my budget - maybe there's an EOFY sale coming up. They said taking out finance wouldn't influence their best price as it cost them nothing to do that. If I go CX-5 it might need to be the Maxx Sport ($43,923 or $45,458 with Safety Pack - although only the blind spot monitoring seems of value - a couple of reviews have commented that the blind spot is on the larger side).
I'll test drive the Kia Sportage but the seats don't fold flat so it's not really a contender now. I've put the Subaru XV on my list to drive as a wild card because it's the type of vehicle I originally wanted but didn't know anyone actually made one - a hatch that can go off road a bit. It's sparten compared to the CX5 and has a tiddler of an engine but interesting so worth a drive. Regards, Mike
Hi Mike. Go to the dealer first. Negotiate a price but don't pay a deposit or sign a contract. Then see if the broker can beat that price. See below video on how to negotiate with a car dealer. There are definitely very good discounts on some vehicles, but it depends entirely on the dealer and how motivated he is at the time you approach him. This is why a broker works so effectively.
More on the brokerage process here. (I'll also get Ben from the brokerage to call you to discuss.)
BUYING WITH YOUR ABN
It wouldn't hurt to ask your accountant. Perhaps you should consider an novated lease. (You get to purchase the vehicle GST-free - which puts the Akera back on track, budget-wise.) More on novated leases here. Also of interest could be a chattel mortgage (where you claim the GST on the purchase in the first month after you own the vehicle). More on car finance options here. Ben can talk you through these options as well - it's the kind of thing he does all day long. Plus, see if they can beat the dealer's finance quote - they should be able to murder it.
EOFY & CAR FINANCE
Watch the above video - especially the bit about separating the transactions. NEVER use the dealership finance. They are lying to you when they say taking the finance doesn't affect the price. They get a nice, healthy clip out of the finance, and they can afford to discount the vehicle more heavily if you take the finance. That comment from the saleperson doesn't stack up. A great proportion of what dealers tell customers are lies.
That dealer is conning you - Mazda.com.au gives the recommended drive-away price for that CX-5 Akera at $54,095 (using Goulburn postcode). That includes an overly healthy dealer delivery charge - which you should always negotiate down.
Below is a screenshot of the official Mazda drive-away price (click to enlarge). Remember, this is where negotiations are supposed to start.
BLIND SPOT MONITORING
Blind spot warning systems are a joke. They false-alarm too often, and you end up ignoring them. Reviewers who talk about the size of a vehicle's blind spot don't know what they're talking about. Blind spots don't exist - at least, they don't if you adjust the rear-vision mirrors properly. This is advanced driving 101. Video on how to eliminate blind spots below. (Sorry about the quality - it's one of the first videos I ever shot.)