Hi John, I have been listening to your approach re purchasing a new car on Radio 2UE and how I should get at least 10 per cent off the RRP. My question is, does this apply to a special offer? For example, we are looking at buying a Ford Territory TX Diesel (with added 3rd row). The special offer price is $39,990 from Ford. Dealers seem to hint they have less room to move, should the 10 per cent off rule still apply?
It's less of a rule and more of a guideline. Still, prices cannot be fixed under Australian law. That means sale prices are hypothetically just as negotiable as 'normal' prices.
You just offer to buy the car at a particular price; the dealer either accepts the offer or not. If not, you can choose to up your offer, or walk.
Obviously, someone is eating into their usual profit margin when a vehicle is offered on sale. However, that doesn't mean the normal negotiation strategy won't work. The asking price is only a starting price. You're a mug if you don't start your 'bidding' with a substantially lower counter-offer whether the vehicle is on sale or not.
The only time this doesn't work is when demand exceeds supply. If there's a waiting list, and buyers are queueing up, there's no discount for you.
As for the Territory, you do not want this vehicle. It's become one of the biggest, most out-dated dogs in the market. For starters it's older than the hills. It has had only minor revisions since launch in 2004 - making it one of the most out-dated vehicles available today.
Even when Ford introduced the diesel, that engine was already about as old as the dinosaurs. If the vehicle was a family dog, it would be about 17 years old.
Also, the third row of seats is a joke. There is no - repeat: 'no' - leg room. In particular there is no depth, so it's just right for sitting with your knees in your eyes.
A far better option would be a Hyundai Santa Fe - brilliant third row seating that folds away to reveal a practical, flat floor, and a current diesel engine with all the hi-tech bells and whistles. Better technology and a longer warranty - plus better value.
You will be disappointed if you buy the Territory - thousands of other Territory owners before you have been. Ford is shutting the factory in 2016. The Territory and Falcon are marketplace dogs. It will also be a depreciation disaster.
As an alternative, try the Kia Sorento - the Hyundai Santa Fe's twin under the skin. Same major body panels and drivetrain, same five-year warranty; different hair and makeup.
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