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Tips to Get Maximum Discount on a Car Purchase

Snapshot: Getting discounts on a new car purchase is important, especially when cost-effectiveness is of a high significance these days. We take a look at how you could maximize the discounts and get a sweet deal!

In times when frugality and cost-effectiveness hold such high importance, getting discounts on new car purchases is as important if not more. But with the usual jargon thrown in, the customer can be intimidated a bit, and hence settle for a meagre discount. We take a look at how you could maximize the discounts and get a sweet deal.

Let's have a quick look at what could the possible discounts be; from corporate discounts to loyalty bonus, there are a few of them but don't let the words scare you. Before we begin, keep in mind that cars are cheaper towards the end of the year. That happens because the stocks need to be cleared and people generally buy cars in the start of next year to get a better resale value afterwards; But if you are looking to retain the car for a good amount of time, then getting a discount at the year end makes more sense.

Manufacturer Discounts
Starting with what carmakers offer from their side. These discounts from the manufacturer are generally available for a short period of time, especially when they want to boost sales. So, for example, there's a moderate demand for a car but the competition is tough, then the carmaker will offer a higher discount to keep customers interested. Similar discounts are available during festive season to further increase sales, because customers like you and I look for the best deals in the market. The high-selling models seldom get these, which is the only downer.

Discounts or Govt. and Corporate Employees
Manufacturers also offer discounts for government sector and corporate employees. The amount stays in the vicinity of 20,000-30,000. This way, carmakers pull in more customers (word of mouth works, always!) and the new customers benefit from the discount.

Dealer based discounts
Next comes the dealer based discount. Apart from what the manufacturer offers, various dealers cut back on their margins to ensure their sales are higher than other brands/dealers. Varying between 1 to 10 per cent of the cost of the car, both dealer and manufacturer discounts are inclined towards selling those products which have a slightly less demand in the market. Apart from these cash discounts, car dealers also offer accessories/services free of cost. These shouldn't be missed, and while they may not sound as attractive as a hefty cash waiver, free accessories make great sense for new cars. 

Now that we're done with flat discounts that the manufacturer and dealer might offer, let's have a look at the next discounts on the list. 

Exchange Bonus
Known as Exchange Bonus, it is applicable for those who exchange their cars while buying the new ones. The downside is that, since the prices quoted for used cars by new-car dealers are lower, the added bonus doesn't help in getting a better deal. At max, it equalizes the extra money one would have got by selling the car to an individual. The other bonus holds more value:

Loyalty bonus
Loyalty bonus is what it is called, and much like what the name suggests, it is dependent on what car you are upgrading from. As the bonus is for people who've owned a car previously, first time car purchasers cannot avail these offers. To put it simply, if you buy car of the same brand as the one you currently use, you can be offered (this is still at the manufacturer's jurisdiction) a loyalty bonus. Expect the bonus to start around Rs 5,000-10,000, and can vary according to the demand of the vehicle.

Reduction in the insurance premium
Car buying not just comprises of going to the dealer (or visiting online portals) but it also includes taking care of things like insurance etc. Every new car has to be insured at the dealer, and what that does is, open up another opportunity for you to get a discount. It is again going to be counted with what the dealer offers you, but a small reduction in the insurance premium won't hurt, would it?

Same goes for the finance options too. If you're getting everything done at the dealership, then you can try asking (and persuading) the dealer for a bigger discount.

As mentioned earlier, these are simple ways to get the most for your money. Manufacturers want you to be interested in their products, dealers want to sell the products, and you are in to buy these products. It's a win-win situation for all, so make the most of it. Don't be shy in asking for discounts, and make sure you get final quotes from various websites and dealerships before making the final payment. 

Happy car buying!

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