Here is a quick walk-through of the various discounts that can land you a great deal.
Demonetization had a harsh effect on the customer sentiment, bringing about a sharp change in buying behaviour. With car prices spiralling upwards, customers heed discounts on new cars. To ensure that you strike a lucrative deal, it is important to know the types of discount buyers are entitled to. Here is a quick walk-through of the various discounts that can land you a great deal.
The cars are cheaper during December, right before the new calendar year begins. Similarly, OEMs and dealers dole out discounts to clear stocks before a replacement model is on verge of launching. To help you understand how to get maximum discount on the purchase of new cars, let us have a look at the below mentioned pointers.
Customers usually wait for discounts rolled out by dealers and OEMs before zeroing in on a new model for purchase. What customers do not know is time when these discounts/deal/offers are doled out. Usually, dealer/OEM offers a deal around the festive season to encash the high customer sentiment. Do not expect discounts on a new model as these are mostly launched at introductory prices. Besides, cars that are in demand and have long waiting period do not attract much discount; therefore expect a 1 to 5% dealer discount. Hence, to get yourself a heavy discount bargaining is requisite. For cars that are not much in demandattract a higher discount of up to 10 to 15%.
Customers working for a PSU company, MNC or an established corporate company can avail this discount. OEMs offer corporate discount to expand their reach to the employees working with corporates. To verify the eligibility for this discount, one can inquire at the nearest dealership as they have a list of companies that are entitled for this discount.
This discount is offered by select OEMs for their existing customers. Buyers who own or have owned car of the same OEM can avail this discount. As mentioned above, this discount is not offered by all manufacturers, hence only a few OEMs give loyalty discount to customers that ranges between Rs 1 to 5%.
Another type of discount that is commonly known to customers is the exchange discount. Customers willing to exchange their old car for a new one qualify for this discount. Dealers get good margin for the used cars exchanged by the customers. As for customers, they are entitled to get 1 to 5% discount on exchanging their old car. Although, exchanging is a feasible option, customers can also sell their old cars online and use that money for the down-payment.
Discount on Finance
Dealers sell loans to customers and get 0.5 to 2% pay-out from finance companies. Dealers generally skew these pay-outs to the customers, keeping a trivial amount around 0.5%. In a bid to get more discounts, customers can ask for more pay-out.
Discount on Insurance Premium
Just like finance firms, Insurance providers also offer margin to dealers. These margins are hefty, ranging up to 40% on the insurance premium. Customers can ask for 30 to 35% discount on the insurance premium, please note that this does not include the service tax and third-party liability. If the dealer is reluctant to give discount, ask him if you can get it from somewhere outside. (It is important for readers to know that the dealer can refuse to sell car if customers do not get insurance from them)
For further discount, customers can ask dealers to give concession on other charges that are levied by dealers like service charges, handling charges and registration charges among various others. Now that you know what all discounts customers are entitled to or the various types of discounts one can ask for, it is viable to probe for a lofty concession.