What's a realistic discount to expect on a new car?

NotAGolf

NotAGolf

NotAGolf

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I'm looking at buying a car (Kia Ceed Sportwagon if it makes a difference). I was planning to buy a used model that's only a year or two old, but I'm surprised that the prices listed aren't that far off the cost of a new one.

For example, the OTR price for a new one on Kia's site is ~23k base spec (which is fine with me). Looking on Autotrader around here you're looking at 15-17k for a 68-69 plate, or 19-22k for a 71 plate (admittedly often the higher spec, but I'm not fussed by that).

I've never bought a new car so I'm not familiar what (if any) discounts are to be had when buying new. I'd be a cash buyer, which back in the day used to be a bonus, but I imagine there's more money to be made for the dealer on PCP/lease deals, so that's probably a negative now. I've got a car that I would potentially part-ex, but it's a 2012 Focus that's seen better days, so that's not exactly desirable!)

Could I realistically get much knocked off a new model?
 
NotAGolf said:
I'm looking at buying a car (Kia Ceed Sportwagon if it makes a difference). I was planning to buy a used model that's only a year or two old, but I'm surprised that the prices listed aren't that far off the cost of a new one.

For example, the OTR price for a new one on Kia's site is ~23k base spec (which is fine with me). Looking on Autotrader around here you're looking at 15-17k for a 68-69 plate, or 19-22k for a 71 plate (admittedly often the higher spec, but I'm not fussed by that).

I've never bought a new car so I'm not familiar what (if any) discounts are to be had when buying new. I'd be a cash buyer, which back in the day used to be a bonus, but I imagine there's more money to be made for the dealer on PCP/lease deals, so that's probably a negative now. I've got a car that I would potentially part-ex, but it's a 2012 Focus that's seen better days, so that's not exactly desirable!)

Could I realistically get much knocked off a new model?
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At the moment? Probably 0
 
0% and a lengthy wait for delivery.

That's one of the reasons why newish cars are holding their value because you can actually drive them away less than 6 months after buying.
 
Thanks guys. I forgot about all the supply chain issues. I remember reading about them during the covid but didn't get consider things aren't back to normal yet.

Maccy said:
I can't imagine putting ~£23k of cash into a new Kia Cee'd Sportwagon is a good way to spend that sort of cash...
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It's a bit of a sad day when you realise the only thing you care about when it comes to buying a car is how big the boot is and how reliable it is and/or how to good the warranty is :D :(
 
0% discount for cash these days as the dealer margin is slimmer than an Ethiopian on a Weight Watchers plan.

Their only profit comes from finance arrangements and selling you extras such as seat/paint protection, gap insurance and service packages.
 
NotAGolf said:
I've never bought a new car so I'm not familiar what (if any) discounts are to be had when buying new. I'd be a cash buyer, which back in the day used to be a bonus, but I imagine there's more money to be made for the dealer on PCP/lease deals, so that's probably a negative now.
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Take out HP/PCP to get any incentive/increase the dealer's profit, then use the 14 day cooling off period to pay it off in full early. Other's here will probably know how you go about this, and whether it's still worth doing

NotAGolf said:
I've got a car that I would potentially part-ex, but it's a 2012 Focus that's seen better days, so that's not exactly desirable!)
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You say it's not desirable, but given the value of even old cars is on the rise (due to the shortage of new cars), it's probably worth more than you expect.
 
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Load up carwow and pick the car - even these days, there are often small discounts to be had for not a lot of effort if you want to buy new.
 
Good luck getting any kind of discount (aside from via stuff like Carwow as mentioned above maybe) - as one of them said to me recently they have no incentive unless a car has been sitting around awhile as if I don't pay the asking price someone else usually will shortly.

I managed to get some extras on my most recent purchase but I suspect a good bit of that is due to being a regular customer.
 
You won't get the same deals as you could three years ago, but the market has softened a bit in recent months so there are now bigger discounts to be had on new cars than say a year ago (although this is offset a bit by the fact list prices are higher).

As you have surmised, you will get bigger discounts for taking out finance. But you can withdraw early from them, so the way to do it is buy the car using the minimum amount of finance allowed to get the manufacturer/dealer contribution, then a couple of weeks after receiving the car you contact the lender to withdraw. You will take a small hit on interest etc but obviously a lot better than paying cash or just paying off the finance over a couple of years.

DriveTheDeal suggests you should be getting about £3.7k discount on the Kia Sportwagon so paying £19.5k (https://www.drivethedeal.com/buy-a-..._5dr_101261.html?Capid=101261&type=discounted ). That's a broker that connects you with dealers offering the best deals but obviously you can just take that quote to a local dealer and see if they will get close to it. You might prefer to pay a few hundred extra for a local dealer in case of issues, up to you.

Also get quotes from carwow, sometimes they are better than DTD.

FWIW my conclusions are similar to yours in that buying new is a relatively better option than it was a few years ago, it used to be you could buy nearly new with 30-40% discount or whatever, but now the margins are a lot closer (as mentioned because used cars have no wait time).
 
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if you know the car and trim you want carwow 100%, get some rough prices and then contact the local stealers.

As for cash buyer nah that wont do you any favours tbh simply use the PCP/PCH option to get any deposit contribution the manufacturer are providing then pay the finance off.

There's been a few Kia deals posted over at HUKD recently... https://www.hotukdeals.com/search?q=kia
Most of them fall into the 2nd hand price bracket youve put above of 19-22k
 
Third for carwow.

Local dealer gave the “best price” blah blah blah supply chain to the MIL & my wife when they went there.

She went on carwow and ended up with the better engine model (KIA RIO 2 1L turbo) for the same money and better trade in (about 2.5k better off on a £17k car). The local dealer would only sell them the 1.25 no turbo model which is underpowered and wouldn’t budge on price/pushy typical old school nonsense stereotype sales pitches.

Bought from a dealer in Birmingham all online/over the phone they delivered it up on a transporter and took their old car away on it.
 
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Armageus said:
Take out HP/PCP to get any incentive/increase the dealer's profit, then use the 14 day cooling off period to pay it off in full early. Other's here will probably know how you go about this, and whether it's still worth doing
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It's interesting to hear that as I saw the dealer contribution on one of the pcp deals I saw and thought about doing exactly that, but when I looked into it, the termination options were not available until you'd paid off 50%.

I'd be worried that something would go wrong and I'd get trapped in the deal, or that they'd turn around and say its fine to cancel in the first 14 days but I'd have to return the car and pay some 'restocking fee' or nasty equivalent.
 
NotAGolf said:
It's interesting to hear that as I saw the dealer contribution on one of the pcp deals I saw and thought about doing exactly that, but when I looked into it, the termination options were not available until you'd paid off 50%.

I'd be worried that something would go wrong and I'd get trapped in the deal, or that they'd turn around and say its fine to cancel in the first 14 days but I'd have to return the car and pay some 'restocking fee' or nasty equivalent.
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It's against the financial conduct rules. The dealer has nothing to do with anything. You call the bank and cancel the finance within 14 days and pay the balance. Worst case you get a settlement figure and pay a few days (3 months iirc) interest.
 
Just checked and Sutton Park Group were the KIA dealer the MIL went through via Carwow.

It was a may/June order for delivery October/November.
 
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