In Australia, what kind of discounts can you get at a car dealer when paying cash?

I’m migrating to Perth in 2 weeks and will be wanting to buy a used car when I get there. If I have cash to buy a decent car (say -20k) what sort of discount is it normal to expect, if any? Also, is it compulsory to buy extra insurance, as I understand that the rego gives the driver basic insurance when you buy it.

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3 Responses to “In Australia, what kind of discounts can you get at a car dealer when paying cash?”

  1. nysenutz says:

    Dealers do get a commission for selling finance, so they really like to get the extra money. When you pay registration, you are covered for third party insurance. This means the insurance will pay for any injury costs to other people if you are involved in an accident. If you own the car, there is no requirement for you to take out extra insurance, however, if you have an accident and you are at fault, you will be responsible for the repair costs of any damage done. This includes other cars, fences, light poles, traffic lights, or anything else you may bump into. So extra insurance is highly recommended.
    As far as the discount is concerned, yes, they will give you a discount, as it is quick easy money..a "clean skin" deal. No trade in to worry about. Without even haggling, you will be able to get 6 months rego. Its best to go through a dealer for the sake of a warranty. you will pay a little more than from a private seller. Check out the newspapers, and see what private sellers are asking for a similar car. When haggling, start at that price. Just a note…..average kilometres is approx 20,000 per year. So you can expect a 5 year old car to have 100,000ks on the clock. Obviously there will be differences, but this is just a rule of thumb.

  2. pjbthree says:

    In the US most dealers aren’t impressed because they also make money on financing. Banks pay them a commission to direct loans to them.

    You need to look into whether this is also the case in Australia. If so, you want to negotiate the best price they will give you because they are assuming they will also make money on the financing and when the deal is done tell them you have cash.

  3. Paul says:

    Here in the U.S., dealers don’t LIKE cash buyers, because if they can sucker you into financing, they get a handsome kickback.

    I’m assuming it’s the same there, so cash will probably end up costing you MORE.

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