buying a car in crisis times..?

I am planning to buy soon-ish a new, compact-sized car, I have not talked to any car dealer yet... Do you know how big is the margin for bargaining from the catalogue price in CH? Any other hints/tricks for buying a car now? - perhaps due to the crisis the discounts are easier to negotiate? (I've seen some official Honda promotional discounts on the web, but just that) Are the sales of the previous years models available and worthwhile? Thx!

I have just ordered a new car. Had been thinking about it for a few months, but saw a good deal in an advert in the paper for a "special" model with all sorts of features we did not want. We went back to the dealer we had a previous quote from, who then gave us the original discount and increased to match that in the advert, but on our specification of car, and gave us a very good deal on winter tyres and alloy wheels, and included the services and bits to convert one of the seats for a child seat for free.

I also then got a better price than *I* was expecting (quoted) part exchange for my current car.

We worked out this to be about 5500Sfr saved.

This was for a lower end Ford Focus.

Pat

Thanks, Pat. Your 5500 sounds like a good reference point - I am looking for similar type of a car - and the method of showing the comparison of discounts to the dealer seems to be also Swiss-convincing

Kudos to you. That's a substantial sum saved.

Check to see if you can get a fleet discount through your employer.

...and once you've convinced the dealer the competition are snapping at their heels (may take a while ) then start what they would call the up-sell. Don't worry about negotiating the price below a reasonable offer (rarely successful), but get them to include stuff in the price; winter tyres, GPS, extra levels of servicing, aircon, chrome wheels etc. This can add up to serious money.

They'll not come down on the CHF, but will go up on the specification. Don't haggle - that's for stalls - but tell them you'll need XYZ to convince you. Once they've agreed to the aircon, then mention the GPS et cetera .

Think also of the depreciation of your vehicle; when it comes to selling it, the fancier models will go first. Nobody buys a car without GPS now.

Walk away if you don't get what you want. Read that line again.

Also, don't go at the start of the week; targets dictate end of week sales and your dealer will be desperate.

Does Saturday count as the beginning or end of week for car dealers?

In times like these the normal dealer margin is almost irrelevant as all the manufacturers are trying to move metal desperately so they are going to be pushing bonuses at dealers for achieveing volume targets.

Mostly they work to monthly cycles and quite often, round about the 20th of the month, when they start to see they're not going to hit their month end target the manufacturers start offering extra incentives to dealers to move more metal. Usually the bonuses are paid not just on the single few extra cars - they're often based on pretty much the whole month's sales volume of the dealer, that means by selling just a "few" extra cars the dealer can earn more money on all the cars he's moved that month.

The pressure is usually highest at the end of a quarter since they all have to publish quarterly accounts and want to get the best picture out to the marke.

If you're not set on a particular model then shop around amongst different makes and make sure you tell each dealer the sort of offers you've got elsewhere, playing them off one against the other is a good plan.

If you already know which car you want then it still pays to have references of other makes for similar cars but it's also worthwhile "touring" the dealers of the make you want. You can do that by phone but face to face is often best. If the salesman sees you're interested he'll run to his boss to see how much he can get off the deal.

The money he's got to play with is pretty much the same in terms of whether he will give you more for your old car to trade in or more discount on the new car you want. If you;re interested in accessories though you can probably get a bit better apparent value. CHF500 in discount off the car means CHF 500 off the margin but CHF 500 in retail value of accessories probably only costs the dealer CHF 400 or so therefore he can afford to give a bit more (make sure you understand the fitted price though so you don't end up with an extra labour bill as a surprise at the end of the deal).

Shop around for the next few weeks to see what you want and the sort of offers that come out - but, if you can, wait until around about the 25th of the month to start negotiating in earnest and don't be afraid to play one dealer off against another. They don't like it much but right now is a buyer's market.

How much you can get off will vary from model to model but don't be surprised if you find 20% or more on the table for the right deal (they've got less to play with on the smaller more basic models of course which are often priced to get people into the show room to then be able to "sell up").

So Chris, it seems that the end of March is the best time to finalize the deal? It is almost exactly when I wanted to buy the car )

And I do not have a fixed make in mind... I think of civic or golf perhaps down to seat ibiza or up to bmw 1 (i do not know if it is a good idea, as I "look serbian" to the swiss police, although I am not..) So the idea of shopping around sounds good. Thank you for the hints!

This is also exactly what I've done buting a car previously back in my country - I decided: "citroen c3 diesel or honda jazz" wherever I can get a better deal - and surprisingly I ended up with a honda...

Consider also buying a used car. So much more for your money

Honda Civic 1.4

new price: CHF26,200 ( link )

2 years old with 24 month guarantee: CHF19,980 ( link )

CHF6000 difference on a much-loved Japanese car, known for it's longevity. Add that extra 2 year guarantee and you're giggling.

Or! For almost the same price as this lowlier model, upgrade to the 1.8l at CHF26,500, with 60km on the clock! ( link ) I guess it was a Demo car

Currently used prices are in flux as manufacturers dump new prices. Shop around! Other brands available... have fun!

The third option looks definitely best for me - and it is may also be within the official "aktion" of Honda due to the suspended for 3 monts manufacturing of that model in the UK. I consider it seriously.

Btw, 83HP "european" civic is not bad, still a bit funny in comparison to the typical american version 2.0, 180HP But that's it for our narrow roads and high tax in the petrol...

I have to say that the rates of depreciation here in CH are far lower than the UK. In the UK you can pick up a late 2006 Audi A3 2.0 TDI at fleet auction for about 13-14k (new price 23k). The depreciation on Fords, Alfas, Vauxhalls (Opel) etc.. is even more dramatic, especially once they've passed the 3 year (end of warranty) mark.

I've heard that cars are cheap in Switzerland, perhaps they are new or on lease but not second hand. I've seen 1998 Honda Accords (200k miles) being advertised for 6k CHF. Back in Uck that car would be a grand at most.

Yes, I've been looking at used cars on autoscout24.ch and can't believe how much more expensive they are compared to the same cars in the UK.

Probably because so many have low milage, in clean (near pristine) condition plus well maintained with a documented service history that comes with most used cars in Switzerland.

Shall I tell you about the used car I bought in the States which had to be towed back to the dealer 2 hours after purchasing it because the whole exhaust system collapsed onto the roadway..

Like I said - the same car (so in the same condition, same mileage, full service history) is significantly more expensive in Switzerland.

And thanks to lower taxes (if not base price) new cars are cheaper. But the Swiss market wants top spec'ed models and recent currency changes have muddied the situation...

Probably because it is more difficult to export used right-hand-drive cars

from the UK to the eastern Europe

Alfa Romeo dealers give you up to 10% discount. The new MiTo is a nice city compact car.

Obviously if a car is just a toaster on wheels to you... can't go wrong with a honda, even a used one. Or get the new Golf 6. Can't go wrong with that one either.

The official VW/Audi dealer in Thalwil has been giving 10% of all new VWs and 5% off all new Audis for years. I just asked what discount he gave and bought 2 Golfs over the last 12 years...

CHROME WHEELS?!

Uncle Max, please slowly say: I am not American, I do not trade narcotics, I do not have guns. Repeat.

While I agree to the strategy, please do not put heavy chrome on otherwise perfectly light weight rims...