Golf mkVII Buyers - What was the deal closer?

[DV52]

I guess that for many of us, buying a new Golf can be a harrowing experience. Let's face it, Joe average enters the negotiating arena very much behind the eight-ball when pitted against a new car salesman (please read my gender specific terms generically). Sure there are dud salesmen but in general these guys are professional negotiators, plus they know all the tricks to cajole, tease and to influence the outcome. In truth, selling cars is their full time job and most are very good at it!

Joe average on the other hand probably buys a new car once every blue-moon. Whilst he might think that he is gun negotiator, in reality, any perception about Joe-average's equal position in the bargaining process is flawed because of the huge information asymmetry that exists. Even if Joe-average is himself a negotiator in another stream of work, the information available to the car salesman is always far better than that possessed by the buyer.

However, despite the tilt in the level-playing-field, in many cases deals are done and cars are sold with increasing frequency these days.

I reckon that a good way of helping to re-level the playing field is for new car buyers to share their experiences in a forum like this. Specifically, I think that it would be interesting to hear from others about what it was that actually sealed the deal. I'm not asking for anyone to discuss prices - except if you want - and then only in the broadest of terms.

In general, the question is: What was the thing in the negotiating process that drove you sign the sales contract? Was it for example, the salesman's manner (or his snappy suit and tie), or the free goodies, or the reputation of the dealership, or the quality of the coffee that the dealer offered, or anything else?

Interested in your responses.

[veew]

Price is the main factor.

I'll have a price in mind after researching, discussing with sales people personally/over the phone, comparing to other peoples prices on the forum etc. Once I've set my price I approach the dealers I'm likely to buy off and silent auction them off between themselves until I have the best price.

The harrowing factor for me was mechanical issues that I had been following online for 5 years...so yeah I've been looking at potentially buying a Golf on and off for that long haha

[egsolomon]

For me, at the end of the day, it is the change over cost.

I'm lucky enough to be in the position of not needing finance of any kind, it is simply a back cheque in favour of the dealer. With the current 103TSI Highline that I just purchased (moving down from a VEII SS), I was happy to walk away and keep the SS if I didn't get the change-over I wanted.

I'm upfront with the dealer, and let them know that change-over is all that counts, I don't need finance or anything else. This I have found with my last 3 purchases appears to put me and the wife in the drivers seat.

When I wasn't in that position, it came down to which dealer was offering the best deal, finance wasn't an issue, as we simply used the redraw on our home loan.

[Alex31]

With the current 103TSI Highline that I just purchased (moving down from a VEII SS)

Moving Down form a VE?


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[giveway]

What don't you understand about moving down from a commodore?

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[Alex31]

Touched a nerve, sorry... I Think going from a GM to a VW would be considered a move up. Even with the loss of size and cylinders


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[ziggyboy]

In general, the question is: What was the thing in the negotiating process that drove you sign the sales contract? Was it for example, the salesman's manner (or his snappy suit and tie), or the free goodies, or the reputation of the dealership, or the quality of the coffee that the dealer offered, or anything else?

It's really just price. I've got an Asian background and grew up watching my family and friends negotiate their asses of in many countries we've visited. We're immune to things like the salesman's manner, good demeanor, or small talk (LOL). Again, just price!

This is just for sales though. Choosing a dealership or mechanic to service your car is a different ballgame. The reason I don't mind buying from the dodgiest dealership if they can give me the best price is I don't need to return for warranty repairs or service. I can always go elsewhere.

I visited a Mazda dealership to look at the 3 couple of weeks ago. He had everything you mentioned...presentation, politeness, endless small talk, offered us coffe..everything. But we were really just there to check it out. He even talked about the possibility of giving us a really good deal. Afterwards the gf and I agreed that anyone else who never had experience buying a car would have bought one on the spot.

Sorry but I never understood the whole "my salesman was such a great guy to deal with, that's why I bought a car from him!" excuse!

[Finance_Analyst]

It's really just price. I've got an Asian background and grew up watching my family and friends negotiate their asses of in many countries we've visited. We're immune to things like the salesman's manner, good demeanor, or small talk (LOL). Again, just price!

This is just for sales though. Choosing a dealership or mechanic to service your car is a different ballgame. The reason I don't mind buying from the dodgiest dealership if they can give me the best price is I don't need to return for warranty repairs or service. I can always go elsewhere.

I visited a Mazda dealership to look at the 3 couple of weeks ago. He had everything you mentioned...presentation, politeness, endless small talk, offered us coffe..everything. But we were really just there to check it out. He even talked about the possibility of giving us a really good deal. Afterwards the gf and I agreed that anyone else who never had experience buying a car would have bought one on the spot.

Sorry but I never understood the whole "my salesman was such a great guy to deal with, that's why I bought a car from him!" excuse!

I second that. being also of Asian heritage, it all comes down to the dollars and cents and the value for money proposition. That is what our culture is built on. Case in point

1. My sister bought a 103TSI in Jan. never dealt with Norris, as I bought my GTi from GC VW. Gave them a chance, got the price down to $30,800 when RRP was $36,200. Promo not negotiable price was $31,990 but still fought for the extra $1200. Dealer was ok to deal with but getting that discount was all that mattered.

2. For my Range Rover, all dealers were offering free on roads etc as part of main event promo. Went to GC, tried to con me by not initially wanting to sell me a white car which I only wanted (partly to avoid paying the rip off metallic paint charge of $1,800), which also happens to be the most popular colour. When I would not budge, they suddenly found a white one not in the system and said it was my lucky day. BS!! Then went to Brisbane Land Rover, got the white one and free servicing for 3 years. The experience there did count for something as I do not like to be BS around when I know what I want and how much to pay.

Conclusion. I am not fooled by the sales pitch. While a nice experience is a bonus, as long as I get what I want at the right price, the extra bits are irrelevant but an added bonus if they come through

[Dutch77]

The dealer threw in one of the new GTI caps..

Kidding - price, price and price again.

FWIW, dealers generally aren't making much on a discounted new car and always will try and make it back on the top ups afterwards whether that be finance, insurance or paint/rust packs. Therefore as a cash buyer not using those services I never rule that out until AFTER signing for the car as there can be times where the dealer might go a little lower in the hope of picking it back up on the add-ons.

[giveway]

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[DV52]

It's really just price. I've got an Asian background and grew up watching my family and friends negotiate their asses of in many countries we've visited. We're immune to things like the salesman's manner, good demeanor, or small talk (LOL). Again, just price!

I second that. being also of Asian heritage, it all comes down to the dollars and cents and the value for money proposition. That is what our culture is built on.

Gee it would have been great to be raised as a child in a culture where the exquisite art of negatiation is such a fundamental part of life! What a great legacy for your folks to leave their kids!

Price is the main factor.

For me, at the end of the day, it is the change over cost.

Kidding - price, price and price again.

I'm going out on a limb here, but I'm sensing an emerging pattern to responses. Not unreasonable to make "price" a necessary condition to close the deal. This was also a necessary (and sufficient) condition for me.

In my case, I first chose the car that I wanted and then I did a kind of "Tender" in which I invited five different dealers to give me their lowest price. I told each of the dealers, that I would not disclose any prices to other bidders and I held firm to this undertaking (despite repeated requests by salesman for me to disclose competitor prices). Four were willing to participate and in the end, two of the four gave me almost identical prices. From the two, I chose the one that was physically nearest to where I lived. Still not sure if this was a good process, but I couldn't think of a better one at the time.

A couple of responses mentioned buying a 103TSI (mine was also a 103TSI). I reckon that we all thought that we got the best price, but (for those of us that bought the same car) I bet that each of our prices were different!

So here's the rub:- why did we all consider the purchase price as being a good price? In looking back at my own experience, here's where I think the recommended retail price came into play. For me (and I guessing for many others), my expectations of what I would be prepared to pay for my 103TSI was set very early in my purchasing process by the dreaded RRP. I'm annoyed to admit that it was a sub-conscious decision that I made and it set the yardstick by which I would consider all subsequent proposals from dealers.

Does anyone ever pay RRP for a new car? I guessing probably not, so what's the use of it? Well, I reckon that it's sole purpose is to establish the buyer's expectation of value, so that it forms the reference point for the buyer's ultimate decision. Competition is meant to reduce the price of goods down to cost plus a margin, but I very much doubt that this happens when buying a new car. I have absolutely no idea of the cost of a new car to the dealer, but I reckon that it has very little (if anything) to do with the RRP. Hence my assertion that information assymetry is alive and well in the new car industry!

[egsolomon]

With the current 103TSI Highline that I just purchased (moving down from a VEII SS)

Moving Down form a VE?

Down in size,cylinders, overall power and torque, top end speed, 0-100 in 4.8 secs (and yes a slightly worked V8 with full exhaust, intake and reprogrammed)...and only three years old.

it came down to what I need right now, no kids, no more long commutes, now work 5 mins from home, and no more towing a boat. So no need for 16l/100km. That will change in the future. But really enjoying the Golf right now.

[cox11]

I've had a Mini Cooper S for the past 3 years and with a 10 month old getting him into the back was getting awkward. We were determined to manage with a small car so We narrowed our choice down to a countryman S or a GTi. We went for the GTi for 2 reasons. 1 after driving the mini we thought the countryman was the ugly, slightly handicapped sister of the Cooper s. 2 the countryman was considerably more expensive

[veew]

RRP is used as part of the psychological game to give you the impression of a good deal. A great deal can always be had, but there are always factors that influence the price we have in mind. Factors such as when car was built/complianced, concurrent promotions, levels of stock and how long you're willing to wait for the car.

For me I got sick of waiting after 2 months for my factory order and looked around, glad I did as I ended up getting a car much sooner with leather for only $1000 more. I can tell you, however, that in the back of my mind I was working out how much more I was willing to pay to get the car as soon as possible.

If you are buying a car through the factory backed promotions, keep in mind that dealers get kick-backs from the factory for the eligible vehicles so you just need to find a dealer who is willing to shrink their margins further than the standard deals. Looking at the recent threads, it seems people are getting some great deals below the Volksfest Highline drive away prices.

[ziggyboy]

I just hope you don't mistake my upbringing as being too money centric. My parents are Christians and I was brought up as one (though I'm not one anymore), but every single person on this planet will have to participate in some form of commerce in their lives. I'm sure even the pope concerns himself with Vatican financial matters and church purchases. I just want the best price I can get anything for.

What this demonstrates is that the purchasing process is very much a cultural thing. It's very easy for one party to get insulted if buying norms are different-- like I've heard of people get angry when someone offers 50% the original cost. But what they don't understand is that the buyer likely doesn't expect to buy it at that price.. but maybe something in between.

Another example is when I bought my bulldog as a puppy. Dog lovers here will know they are not cheap. After agreeing on the price, I told the breeder that I would like to pick up the puppy weeks earlier than originally anticipated. Because of this, my puppy will get 1 less vaccination shot than originally planned. I asked if I can get a "discount" on the puppy taht's approximately the cost of the vaccination he won't get. I was accussed of being too concerned with money and if I can't afford $150 I shouldn't be owning a bulldog etc etc. Let's just say that this person doesn't live in a part of Australia where he'd be exposed to a lot of different cultures with different buying habits. I still bought the puppy from him though.. mainly becaue they are very hard to come by and demand was high.

Last but not least... price is important but I will buy a car even $100 more than the cheapest if it was more convenient (ie 10kms from home vs 100kms). I'm not THAT crazy about a bargain.....