Aug 10, 2001 06:31 PM
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The interiors of an Accent are good and the comfort too is good. The mileage is between 9 to 9.5. The air-conditioning is effective. The performance is very good.
But, one has to be aware of a few tips for better negotiation with the car dealers.
There are bsically three types of discounts which are normally available and can be negotiated.
1) Dealer's discount - This is normally the commission which a dealer passes on to the customer to entice him. Currently, the going discount is in the range of Rs.17,500/-on an Accent in Delhi. Most of the customers are aware of
this type of discount.
2) OEM Subvention - This is a discount offered by the car manufacturer. This normally is not known to the customers and goes to the kitty of a dealer. This is currently Rs.3,500/- on an Accent.
3) Pay Out - This is a commission given by the car financier to the dealer. This too is normally not known to the customers and goes to the kitty of a dealer. This is currently 3% of the loan amount for an Accent.
Assuming even a minimum of Rs.3.00 lacs loan, the total discount thus works out to a whopping sum of Rs.30,000/- or higher if the loan amount is higher.
To add to this, normally, there is another type of discount i.e. the corporate discount. This is normally given by the car manufacturer to a corporate or employees of a corporate which purchases a certain minimum no. of cars within a specific period e.g. for Accent if at least 4 cars are bought in a space of 6 months, an additional discount of Rs.5,000/- per car is given.
Another important factor that remains is the interest rate. Always a customer must ask for rate of interest on a reducing basis. The current rate in the market is about 13.75% to 14% on an Accent. Pleas remember that the more expensive the car, the lower should be the interest rate as the customer is perceived to be from a strata of society where he has more to lose in terms of social standing, in case of a default.
One can also negotiate for 1.5 years free servicing.
The last and the most important thing to remember is that never get fooled by the zero interest schemes, as there is no free lunch. A financier wants to earn money on the amount loaned, so in the case of a zero interest scheme, their benefit is the discount which a customer could have bargained for. Normally, the benefit a customer gets in a zero interest financing is lower than the discount which he / she would have received. It is precisely the reason why a dealer tries to push sales with a zero interest funding. Also, do note that you should not pay for processing charges on the loans as these are discretionary in the hands of the manager of the bank or financial institution. Never ever forget to check the pre-payment clauses and other penalties as these can really spiral up the cost of your acquisition.
