Haggling for a new car

Last activity 22 February 2012 by TheLegendLeads

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jyurongActive member19 February 2012 15:41:57

Is there any sort of "Haggling" that goes on here for new cars from a dealer showroom? I am wanting to get a 2012 Jeep Wrangler and when I went down to the showroom I was told it would 106000 SAR. I have been offered a lease from my bank, financing from the dealership (United Motor Corp in Riyadh), and a private loan from another bank. Can I expect them to come down on the price if I come in with Cash-In-Hand? What if I decide to do the direct financing?

Thanks!

TheLegendLeadsViP19 February 2012 16:43:13

5763

Yes, to some extent; but don't expect that it will make a big difference.

Unfortunately, things have been made in such a way that a COD (cash-on-delivery) benefits the buyer the most.

Let me describe 3 means of purchasing.

1) Cash on Delivery:
You pay them, they get the market value of the car. You get the car in YOUR name and can sell it any time you like. No permission papers required from anyone if you want to cross any KSA borders anytime.

2) Lease from the dealers themselves
They charge 7-10% of annual interest. Why should they turn down any offers?
The car remains in THEIR name. You can't sell it; nor you can drive it out of KSA without written approval from them

2) Loans from Bank
As soon your bank loan is sanctioned, the dealer gets 100% of their money. The car goes to Bank's name who charge min 5% interest from you annually. Again, you can't sell the car; nor you can drive it outside KSA without an approval from bank.

Now you tell me: why (as a dealer) I must agree on any big cash-on-delivery discounts unless I really have cash flow issues in my financial accounts.

Hope this helps.

BAKActive member22 February 2012 04:14:39

Though you won't get discounts on cash but you can always negotiate on the after sales services provided. I experienced it at GMC. And since Jeep is not a very well sold brand, they might be able to offer you something worthy.

As far as the financing options are concerned, I have calculated and compared options from leasing to bank financing and personal financing and concluded that the best option is to go for a personal loan and use the money to get the car.

It costs you the least since the lease options over here at any brand would rip you off.Secondly the car is also in your name.

TheLegendLeadsViP22 February 2012 05:06:30

5763

BAK wrote:
As far as the financing options are concerned, I have calculated and compared options from leasing to bank financing and personal financing and concluded that the best option is to go for a personal loan and use the money to get the car.

Agreed cent per cent. Some banks offer personal loans at interest rate as low as 3.4%.

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