Your Guide to Negotiating for an AWESOME Car Deal

Everyone wants a “great” deal on a car. Fortunately, almost every single luxury deal in Malaysia has a negotiation process involved, and that is opportunity for you to seal a great deal. Cars & watches are no exception to this, unless you are a Rolex Daytona, the Nautilus, Royal Oak, or a La Ferrari. This article is going to go equip you with the necessary know-how to net yourself that deal, because no one is giving it up for free. Most of this will be contextualized with the Automotive industry in mind, but easily can be reflected in other subsets of the luxury retail market.

Your Guide to Negotiating for an AWESOME Car Deal

General Rules of Thumb:

1

Negotiation is a human interaction- take into consideration that both parties need to mutually have respect and to some extent, fondness. You will be surprised how many buyers choose to degrade and belittle the salesperson, rather than cooperate. By being the “nice guy”, you will stand a better chance in getting VIP treatment, simply by virtue.

2

You want to buy a car and dealerships want to sell a car. It is not a versus situation, it is a “let’s make this work” situation.

3

Dealerships are businesses too. They exist to make commercial profit, low-balling without proper research, and the rejection that will surely come, is not productive for anybody.

Study the business as a whole

Taking note of the location is one of the easiest ways to gauge how much of a discount you will be able to get. Dealerships located in more expensive locations like in the city center, will generally not be able to cut as much off the top as compared to a smaller dealership in the outskirts. More importantly, look at the size & scale of the business, dealerships that invest heavily into their showroom and personnel are likely to be premium dealerships. Take for example #DropTheTop Cars & Coppee, where we have plenty of facilities and highly experienced personnel to serve a luxury experience. These are all associated costs that at the end of the day, benefit you. Lastly, independent dealerships are more likely to offer a steep discount, when compared to corporate.

Research! Research! Research! This grants you insight to the dealership and how they operate, their company values, quality of service, etc. You determine what is the value to those factors.

Factors to consider:

Location (City Centre vs Suburbs)
Independent or Corporate
Premium vs Conventional

Understand what you are trying to buy

As many self-help gurus will say, self-awareness is key. For the negotiation process, we think that market awareness is key. As an informed consumer, understanding the small but important nuances can hugely affect the discounts you can expect to net. This is even more so the case when it comes to luxury cars such as Porsche, Bentley, and Range Rover, where there are an almost endless amount of customization available for each car right out of the factory, being able to differentiate the specs from one car to the next will do two things for you: The salesperson will be forced to be honest & upfront with you, because you know your stuff, you know the market, you know what’s available and what’s not. Good on you. And two, sellers approach informed buyers carefully- in a market where ingenuine ads and gimmicky prices get the most attention, a genuine seller will appreciate your business that much more and aim to get you the best deal as a result.

Rarely do advertisements list higher than market prices for cars with no rhyme or reason. It puts them at a visibility disadvantage, as more expensive listings are just lesser seen. In our experience, this is where you can get the most bang-for-buck value in terms of quality. To each their own when it comes to requirement of luxury car specifications & accessories.

Factors that influence discounts:

Are you looking for a car with high specifications?
Desired condition & mileage?
What’s the current market availability of cars that fit your criteria? Who are the dealers who have these cars?

Ask yourself, ‘Am I ready to buy?’

Never, ever, not-in-a-million-years start negotiating without being prepared to buy. In our experience, many buyers that are unable to commit to the deal will posture and test the waters. This is a big no-no in the luxury retail business, and it shows a lack of commitment to their word.

On the other hand, displays of commitment to the purchase are guaranteed to aid you in the process of negotiation. When dealers recognize a sincere buyer, the entire process will be an honest one. Just like how we as end-consumers of other businesses can review the business and service, the opposite can happen, sellers evaluate customers based on past interaction, and most importantly, authenticity.

Show your commitment through actions such as paying a deposit, making a loan submission, considering your trade-in options. Simply showing up to the dealership in person makes a huge difference to the dealership. It fosters an atmosphere and weaves a bond of trust. Dealerships are businesses, businesses are run by people, and people like authenticity.

Factors to consider:

Are you ready to buy right then and there? If not how soon?
Am I considering inventory from other dealerships? Let them know.
Can I make a visit to them in person? If not, what alternatives are there? Let them know so they can figure out a way to accommodate and collaborate.

Understand the market climate

The pandemic has brought its’ fair share of pain, a lot more than it deserves. Damages don’t stop at the threat and loss of human lives but extend its’ deadly reach at the very weave of world economics and human society. The snowball effect has pushed logistics & manufacturing to a near breaking point, causing mass disruption in many industries. The automotive industry also suffers no differently. Semiconductor shortages, logistical obstacles, and a bruised economy does not help its’ case. As a result, automobile dealerships are experiencing a drying supply of allocated or incoming cars. It is much harder to get cars, and nearly impossible to get great cars. Particularly, if one is shopping in the grey market segment, for luxury cars, currency exchanges do not do us any favors in the current economic climate, as a bullish GBP inadvertently, and sharply increases costs. In these unfavorable climates, dealership margins are tight, and without desperation, negotiations do not net you much wiggle room.

There is really not much anyone can do in this situation. No one can singlehandedly innovate and fix the logistical issues overnight, and since no magic wand in a “Break-In-Case of Depreciating Malaysian Ringgit” is discovered, it is an adversarial for all involved. One can only practice empathy in these situations.

Of course, when the world eventually claws its’ way back on its’ feet, and these external factors are ironed out, when economies breathe more freely like an engine with a sports cat, death grips on margins loosen up, and wiggle room naturally appears.

Therefore, in uncertain times it is important to commit to a timeframe when it comes to the deal process. With many moving cogs in the machine, circumstances can change in a matter of days. That steal of a deal will not stay on the table for very long, unless there is a mutual agreement to.

Luxury Retail is an experience, not a transaction

Shopping for luxury cars should be an experience. Make it fun instead of stressful, and the process of buying a new car will be a celebrated occasion. When you bring forth a level of nonchalant positivity, instead of “I’m gonna murder this deal”, rainbows and sunshine appear. We cannot stress enough the importance of an empathetic, and respectful attitude when dealing with luxury products. When you make the other person feel good, they will reciprocate, and how do they reciprocate? By getting you a sweet deal on a new car. Reality is that the sales associate does not have the authority to grant you a better price without permission, when you proverbially “unlock” this person by building a rapport and a friendship, they are more than incentivized to get you what you want.

To paraphrase from Bobby Ang, good cars end up at poor dealerships, and poor cars end up at good dealerships. However, what serves you better in the long term, for sanity and wallet’s sake is to prioritize buying from the correct dealer. At Abadi Motor Penang, we are constantly trying to challenge the status-quo. Every aspect is scrutinized and quality maximized- this is evident in the excellent curation of our cars, our fantastic customer service, and the avant-garde #DropTheTop, Malaysia’s first Cars & Coppee concept store.

What having a cafe in an auto showroom is

Abadi Motor Penang

Malaysia’s first Cars & Coffee concept store where we bring together an excellently curated selection of cars, and artisanal coffee & treats bought together under one roof.

At Abadi Motor Penang, we specialise in convertibles that start from RM200,000, that’s the price of a pre-owned BMW 3series. On the other end of the spectrum, we’ve sold manufacturer flagship convertibles such as the Porsche Carrera 911 (992) Cabriolet, and BMW 8-series convertible.

Your Guide to Negotiating for an AWESOME Car Deal

Your Guide to Negotiating for an AWESOME Car Deal

General Rules of Thumb:

1

2

3

Study the business as a whole

Factors to consider:

Understand what you are trying to buy

Factors that influence discounts:

Ask yourself, ‘Am I ready to buy?’

Factors to consider:

Understand the market climate

Luxury Retail is an experience, not a transaction

All good relationships, Start here.

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