Most Australians pay more than they need to for a car because they don't negotiate. Or they negotiate badly. Here's exactly how to get the best price, with scripts you can use word-for-word.
Rule 1: Know the Real Price Before You Walk In
The dealer's biggest advantage is that they know the margin and you don't. Level the playing field:
- Check the RRP on CarSorted. this is the manufacturer's recommended price, not the dealer's price. Dealers can sell above or below RRP.
- Get 3 quotes via email. email 3 dealers asking for their best driveaway price on the exact spec you want. This creates competition without face-to-face pressure.
- Check the driveaway price. RRP + stamp duty + registration + CTP + dealer delivery. Ask for driveaway, not RRP. That's the only number that matters.
How Much Can You Actually Negotiate?
| Car Type | Typical Discount | Notes |
|---|---|---|
| High-demand (RAV4, HiLux) | 0-2% | Dealers won't discount. There's a wait list |
| Average demand (CX-5, Tucson) | 3-7% | Negotiate on driveaway, not RRP |
| Slow sellers / runout | 8-15% | End of model year, excess stock |
| Luxury brands | 5-12% | Higher margins, more room to move |
| Demo / display cars | 10-20% | Low km, full warranty, best value |
The Best Time to Buy
- End of financial year (June). dealers push to hit targets. Best time for fleet/ABN buyers.
- End of calendar year (Dec). clearance of current-year stock before new plates arrive.
- End of quarter (Mar, Jun, Sep, Dec). dealers have quarterly targets. Last week of the quarter = most flexible.
- Model runout. when a new model is announced, old stock gets steep discounts. The car is the same. just a year older on paper.
- Avoid: January (new stock, no pressure to discount) and when a car first launches (high demand, zero discount).
Negotiation Scripts
Opening (via email)
"Hi, I'm looking to purchase a [Car Model] [Spec] in [Colour]. Could you please provide your best driveaway price for [State]? I'm getting quotes from three dealers and will make a decision this week. Thanks."
Why this works: it signals you're a serious buyer (specific spec + colour), creates competition (three dealers), and sets a deadline (this week).
Counter-offer
"Thanks for the quote. I've received a driveaway price of $[lowest quote] from another dealer. Can you match or beat that? If you can, I'm ready to put down a deposit today."
Why this works: you're using the competing quote as leverage, and "deposit today" signals you're not tyre-kicking.
Final push
"If you can include [floor mats / tinted windows / first service free], I'll sign today. Otherwise I'll go with [other dealer]."
Why this works: accessories and servicing cost the dealer almost nothing but have high perceived value to you. They'd rather throw in $500 of extras than lose a sale.
What NOT to Do
- Don't mention your trade-in until AFTER negotiating the new car price. dealers inflate the new car price to make the trade-in look generous
- Don't discuss monthly payments. dealers use this to obscure the total price. Always negotiate on driveaway price first, finance second
- Don't accept dealer finance without comparing. get a pre-approval from your bank first. Dealer finance rates are often 2-3% higher
- Don't buy paint protection or fabric protection. these are $50 products sold for $800-2,000. The biggest profit centre in any dealership
- Don't feel pressured by "today only" offers. the deal will be there tomorrow. Walk away if pressured
Dealer Add-Ons: What They Cost vs What They Charge
| Add-On | Dealer Price | Actual Value | Verdict |
|---|---|---|---|
| Paint protection | $800-2,000 | $50-100 | Skip |
| Fabric protection | $500-1,000 | $30 | Skip |
| Window tinting | $400-800 | $250-400 | Negotiate free |
| Extended warranty | $1,500-3,000 | Varies | Only for non-Toyota/Mazda |
| Floor mats (rubber) | $200-400 | $100-150 | Negotiate free |
| First service free | $0 (to dealer) | $300-500 to you | Always ask |
Used Car Negotiation
Used cars have more room to negotiate because pricing is subjective. The script is different:
- Research comparable listings. show the seller 3 similar cars listed for less. "I've seen the same model with fewer km listed for $X"
- Point out flaws. every scratch, stone chip, and worn tyre is a negotiation point. Get a pre-purchase inspection ($250-350) and use the report
- Don't be the first to name a price. ask "What's the best you can do?" first
- Cash is king for private sales. offering to settle immediately in cash (bank transfer) is worth $500-1,000 off
How Much You Could Save
On a typical $45,000 car with average demand:
- No negotiation: $49,500 driveaway
- Basic email negotiation: $47,200 driveaway (~5% off)
- Full strategy (timing + competition + counter): $45,800 driveaway (~8% off)
- Saving: $3,700 for a few hours of emails
Compare the RRP of any car on CarSorted before you walk into a dealer.