After weeks/months of watching car prices and deciding which would be the most cost-effective car to have, and whether it would be full-license plate or weekend one, I finally made the legs go walking to Ubi Automart. I SMS'd mom, and got Shermaine to meet us at Paya Lebar before heading there.
Initially we were eyeing a 3-4 year old weekend Kia Picanto for about $13,000 range, but a <2 year old OPC one became a big consideration as it was only priced at $24,800 (opening price). Furthermore, it still had over 1 year of warranty left with Cycle & Carriage, it was black (the colour we shortlisted) and was the newer model with leather upholstery with red trimming! The clincher was.. its mileage was less than 5000km which is extremely low!!
The salesman, Tony from Creative Auto, was quite a hassle to deal with at first, since he needed to know our offer before we could test-drive the vehicle. It was unusual to me as I felt I wouldn't have the confidence to make a bid if I couldn't get some reassurance from a test drive first.
Luckily enough, while checking out the other shops for a similar offer, I saw an ad online for the exact car earlier, and it was offered at $23,800 (1K cheaper)! So after a fruitless walk to see other options, we returned for a 2nd look. We used the internet price and cut it down a bit more to a price that made Tony happy enough to let us out for a drive.
When we got back, we proceeded to talk shop in the air-con office. Of course Tony wasn't about to settle at just our offer and tried many ways to get us to up the price to $23,000. But the tag-team combination of Sherm-Mom-Me got him to eventually cave at $22,500.
Next, Tony listed the upfront fees that needed to be settled.
1) Transfer Fee
2) Insurance
3) 1st installment
4) Agreement fee
Waitaminit... what's this "agreement fee"?? According to Tony, "its like the 'registration fee' you pay at dealers for brand new cars". Eh??!!? So he goes on to say how they don't charge GST for cars because that would drive up the price of cars and no one would buy, so they need to take an amount to compensate, and that it would be listed and itemized in the receipt, so there's no cause for worry.. WTF?? It doesn't make any sense!! Whether the company is GST-registered or not, you should factor that into the price of the car already, its not the customer's onus to help the company settle their GST burden!
I stormed out to call some friends, managing to reach Mark. We pow-wowed and talked about this 'agreement fee' and concluded that there was no such thing. During this time, Sherm was working Tony over, appearing to help Tony realise that we've come so far in the discussion only to be balked at this unexplainable fee, and that it would be such a waste to lose the sale this close to making it. She's good la!
So I returned and made my stand, I'm not paying this fee. And he simply OK'd it, and cancelled it out. WARRAO!! So buyers beware! (This
forum discussion addresses this same issue of admin fees, kopi money, football money and GST charges.)
And now, I await the bank loan application to be approved (I got a call soon after from a Derrick from Maybank, and he assured me the approval would be immediate) before getting my keys. We'll have our new-old car of our own! We've already agreed that we'll name the car
Blackavar, taken from
Watership Down. My first debt - one of the essential milestones of growing up. =P
Anyway a good tip when buying a car, is to know that sales people don't just make money on the price of the vehicle per se. There are 3 ways:
1) price of vehicle
2) insurance commission
3) trade-in value of current vehicle
Click this link for
more information on how to negotiate for a car.
They wanted to take in my van for $5000. Good thing I had an offer above this already, so I knew how much another dealer was going to take it for. No way! We'd just trade it to the other dealer for more.
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I must commend Shermaine for having all the essential skills of good bargain management - able to be soft and yet firm, keeping a rational mind, and being persuasive. She really complements me in this regard! I must also thank my mom for being the complete opposite and giving the sales guy the impression that we MIGHT take whatever he threw at us. With this combination of 2 women on either side of him and a sour-faced decision-maker, we triumphed! Hooray!!