Buying a New Car

Hi, I’ve been in Taiwan for some time now and have a steady job making ok money. However, I have to travel 30 minutes to work by motorcycle on a pretty dangerous road(aren’t they all).

What I’d like to know is if any of you can help with the buying of a new car in Taiwan. I’ll have credit through my girlfriend, but we are not married so it won’t be great credit. She makes decent money for a Taiwanese our age: @42k / mo + chinese new year bonus. What I want to know is what to watch out for when buying a car in Taiwan.

A few questions:

Do I have to finance through the dealer? If not, are there any good online car loan companies or credit unions that I can have with me when I go in to buy a new car?

Is there any way for my girlfriend to find what her Credit Score is?

The dealer suggested we put it in her mother’s name, however this doesn’t really help my gfs credit at all. Does taiwan have Co-signing? Is it a good idea to put it in her mother’s name for insurance / interest reasons?

Can I shop around for full coverage insurance? Are there companies that offer free insurance quotes?

Are there ways to shop for extended warranties before I go into the dealer?

Are there any ways to look up invoice prices (how much dealers pay for cars) as a negotiating tool?

Are salespeople in Taiwan commissioned?

Sorry if these questions are not relevant in Taiwan. It’s clear that I know nothing about buying a car in Taiwan. Even the salesman said we know nothing. haha. I hope to go back in much more informed about the process of buying a car in Taiwan. I did a search on these forums and didn’t find anything so I apologize if this has been covered before.

That would be your best option for a new car. For example Ford has their own separate finance company in Taiwan which means they will offer you better terms than a generic lender. Most dealers are still offering 0% credit, it’s a no brainer.

Not really, but depending on the lender they may not even look at credit history at all. If they do they will be looking at any revolving credit card balances or any missed/late credit card payments in the past year. Credit history in Taiwan is almost exclusively limited to credit cards, bank loans and mortgages. It’s not limited to a pass/fail scoring system like the US.

No, that’s a terrible idea. Any time you need to do anything with the car’s title you will have to get mom involved. It will not be any cheaper than using your gf’s name.

Get a quote from the dealer for the insurance you want then take that quote and shop around. Our cars are insured through Tokio Marine (tokiomarine-nichido.co.jp/en … far-e.html) and we cherry picked the coverage items. For example we have very comprehensive coverage in case we hit someone else, fire/theft insurance and third party damage but we saved around $30k/year by avoiding full damage insurance. That means if my wife or I total the car due to our own fault the insurance will not pay out but the chance of that happening is not worth the insurance cost. We are still covered in case some uninsured driver hits us. Also bear in mind that due to the low cost of bodywork in Taiwan you would have to do major damage to make up for the cost of increased premiums after making a claim (most insurers will raise your premiums for 3 years after a claim).

No, if you are concerned about that you will just have to shop around the cars that are offering a longer warranty period.

Not really, but you can find the current retail prices at tw.autos.yahoo.com

Yes, of course. What you do not bargain from them is going in their pocket. There is probably little if any room for movement on the price but there is a huge opportunity for extras such as leather, accessories, entertainment system etc. The salesperson will also have some wiggle room on credit terms (they will have a maximum budget to bargain with and a table that lists what each credit option will cost the dealer). Also ask for at least 3 free services (pretty much just oil changes with a new car).

I’ve bought two new cars in Taiwan and Llary’s advice is spot on. :bravo:

toyota is offering 4 yrs 100,000km warranty now…but dont think this will help their sales though

My bro in-law is buying a new 2.4 accord but the salesman said no car now, gotta to wait till May / June as most camry buyers are now switching to their car.

[quote=“llary”]
There is probably little if any room for movement on the price but there is a huge opportunity for extras such as leather, accessories, entertainment system etc. [/quote]

Wow, so most people in Taiwan pay the MSRP on a new car? ok so the things I should be haggling are the cars options? CD changer, leather seats, etc. How does that work? The dealer is likely just to show me the car with the options already included in the price. Sorry for my ignorance :stuck_out_tongue:

You have to wait until June for the new Mazda 6 too. Availability has little to do with people switching from Toyotas. It has everything to do with supply, demand and finances though. Most Camry buyers are buying Camrys.
Of course demand for all vehicles change over time, but manufacturers and suppliers must anticipate change and often get the supply numbers wrong. Taiwan doesn’t cope with excessive numbers of cars given its limited ground space. They much rather work to fine supply numbers than risk having to pile up large numbers of cars which can be very costly and troublesome to store.
With the present economy many numbers of fresh supplies can be slashed as companies don’t want to face an oversupply situation. Its simpler to make customers wait. It happens to smaller companies more than larger companies. The last time Skoda came to Taiwan you had to wait six months for a car which you wouldn’t know the eventual price of or specification. That’s not to say that Skoda was popular at the time. In fact it was the opposite reason which limited their supply.

Of course salesmen talk as salesmen should though to sell their products. People giving up Camrys to flock to buy Accords sounds like a great reason to buy one, especially when you have someone already in the showroom looking.


As additions to some of the answers llary has already offered.

Percentage differences on repayments can at times be red herrings. Profits on more popular models of vehicles are largely pretty much fixed. Higher repayment percentages are often found in cases where the vehicle is more heavily discounted to begin with. On zero percent repayment schemes it can simply be the case that the profit is added in to the sales price to begin with. Of course prices and percentages will vary from place to place, but never assume that a zero-percenter will always be the cheapest option. You will need your calculator ready and get your walking shoes on to find the best price.

Insurance costs and coverages for most insurances that come up to about NT$10,000 are pretty much identical between companies and you may not find much more of an advantage in one over another. Of course the more you pay the more coverage you may be able to negotiate. I always recommend insuring the third party property and persons for more than the basic legal requirement covers. Depending on your typical passenger’s situation you may wish to consider insurance which covers them too as basic insurance generally does not. Taiwanese may worry less about this as many people already have personal injury insurance, but for foreign visitors this may be different.

Bargaining room on vehicles usually changes dramatically depending on the popularity of the vehicle you are considering as well as the supply. I can tell you that bargaining room on a 2006 Prius in 2007 was huge as the car simply wouldn’t sell as the market didn’t understand it at that time. In three years they had sold only about 300 cars in total as opposed to 300 per month several years later and couldn’t get rid of them fast enough. Bargaining room on a Camry at the time was almost none as demand was high and supply was low.
To get the greatest of deals you must always understand the ratio and market patterns, but that’s only if you want to limit depreciation on your vehicle.
Another recommendation at this time is to sniff out Skoda once more, as it has returned to Taiwan. It offers large discounts on vehicles which are equivalents to the VW and Audi brands and a very attractive choice for some.

[quote=“xyu”][quote=“llary”]
There is probably little if any room for movement on the price but there is a huge opportunity for extras such as leather, accessories, entertainment system etc. [/quote]

Wow, so most people in Taiwan pay the MSRP on a new car? ok so the things I should be haggling are the cars options? CD changer, leather seats, etc. How does that work? The dealer is likely just to show me the car with the options already included in the price. Sorry for my ignorance :P[/quote]

You will always get more optional extras when purchasing from the dealer as they will buy those things in at closer to cost.

tinted windows, seat covers, GPS, CD changers, alarm systems, stereo components, body kits, trims etc…

what car are you thinking to buy? if local made cars like toyota, honda, nissan, then most of them already include leather seat, cd player, etc, etc as standard so ask for more discount …but if imported one then yes u can bargain for those items

yeah that could be the one, salesman talk only… :smiley: but still, 2 months wait for a locally build car?..gee…oh and I dont like the way honda move the ac/radio display to make a way for a TV/DVD/DTV screen…it’s just wrong to put that ac/radio display that low imo…but it’s a free upgrade now

How long are looking to own this car?

If you are going to be trading or selling it in the short term, like within 3 years you want to look first at depreciation costs and market demand. Used car buyers (wisely) disbelieve any mileage figures the seller claims and base value estimation simply on the age of the car from manufacture or import and the make / model. Everyone knows cars can be smashed horribly or drowned and then made to look new. Age and model are the biggest factor in value.

If you’re in for the long haul you can shop for leftovers. As Sulavaca mentions, the importers tend to be cautious and bring in less cars than they might be able sell, for fear of having them still sitting on a lot somewhere when the new models come in. However, that still happens pretty often and I have three times bought new cars, last year’s model, for a very healthy discount over the new model year which is coming in. If the spec hasn’t changed much this can be a great deal. You will get less for the car when you sell it because it’s considered a year older, but after say 5 or 6 years this is much less of a difference in price than at 2 or 3 years. Of course if there is a complete revamp of the platform and you buy the now obsolete one it can be more of a loss in used value that takes longer to even out. Shop carefully.

Also as mentioned, credit is a complex factor. Sure, many brands are able to offer 0% finance. On the other hand, many sell at a different price depending on whether you are getting finance or paying cash. 0% finance isn’t always the killer deal and you can end up paying more than if you’d bought cash.

IME, long negotiation often pays off if you have the patience. If you don’t get the area sales manager involved you are probably not getting the best possible deal. Salemen often have a bottom price they can sell at, though the dealer may take less if inventory is high, or they are falling short of sales targets etc. Of course on briskly selling cars that have low stock you may have to bite the bullet and pay sticker price. If things are a bit slow at the dealer then they can be pushed hard and there is money to be saved. You will only know what the real bottom line is by going to the dealers. Although list prices are out there on the internet there are often deals to be had that they do not publicize.
As stated above, the dealers very often prefer to ease the pain of discounting by including options that they can buy in at a price well under what the sticker says. For example if an audio upgrade is marketed at 10k and they can buy it for 5k, they can appear to be giving you a 10k discount which in fact only costs them half that.

Be prepared to shop different brands. If you stick with one brand there is little to be gained going to different dealers as they all report back to the same sales manager and they will quickly figure out what you’re up to. Bring your calculator and figure out the value of the credit they’re offering over the cash price. Compare the details of the insurance cover they’re offering if that’s part of the deal. Make sure you are comparing apples to apples and that all taxes and delivery / inspection charges are included.

1 Like

yeah that could be the one, salesman talk only… :smiley: but still, 2 months wait for a locally build car?..gee…oh and I don’t like the way honda move the ac/radio display to make a way for a TV/DVD/DTV screen…it’s just wrong to put that ac/radio display that low imo…but it’s a free upgrade now[/quote]

Two months isn’t a big deal really in local terms.

What Redwagon said - I bought a 2008 Audi A3 in 2009 for $500k less than the price of an identical 2009 model.

new A3 is around $1.3~1.4m (yours CMIIW is 1.8T rite?) so u only pay $0.8~0.9m?..wow that’s a lot of discount!

Yes, but Audi are ridiculously overpriced at list…

The Taiwan spec 1.8TFSI was around $1.79m list or $1.6m-1.7m actual sale price. I would not have bought one for that price but I was happy with it at the price we paid. They just couldn’t shift the 1.8s because the 2.0s were originally selling at almost the same price and higher means better, right? Since Audi came to take over from Tai Gu the 2.0 TFSI is now selling for around $1.6m. Audi are actually gouging the least out of all the German luxury marques in Taiwan but I’m not sure if that will last once they start to build up the brand here.

That’s a big ‘IF’

[Sorry. Totally off topic I know]

Audi do the best they can with marketing, but the fact is that it can only sell as many new cars as there are people willing to put up with their huge depreciation and lack of after market support. The fact that they have not yet been able to open a used car centre is really holding them down. Without it they cannot control their used prices. On the open market there is little interest in them. The brand doesn’t hold up to either the BMW or Merc branding and so isn’t as attractive. There isn’t any extended support or warranty offered other than an Ah Huang contract and parts don’t get any cheaper for them after three or four years. This leads to more support for Audi’s main competitors and any cheaper alternative.
I’ve said this to Audi before. No used car centre means extended poor new car sales well into the future as it cannot offer greater financial security and support for its new products and customers.
And in regards to new Audi management, (Daniel Khoo is a great guy who knows what he’s doing by the way) it doesn’t matter who is steering the ship when you’ve lost one propeller. You simply can’t reach your destination as quickly as every other vessel.
Unless it somehow starts to build cars which are either directly competitive to Japanese cars (which isn’t likely or indeed possible) or sacks its marketing division and actually starts marketing itself not as a direct alternative to BMW Merc and Lexus, but more as the ‘vehicle solutions provider’ that it is. It does a more flexible range than either BMW or Merc which people don’t seem to as directly identify with.
Thing is that Audi is stuck fast, right in between being a Luxury brand and being a VW. Its neither one or the other. Its a Golf in a skirt one minute with its A3. Its an R8 the next minute which is a 911 alternative. Its an A8 in the next breath, not a 7 series.
Its pretty damn dynamic then. Dynamic, but not inventive enough in business.

A product which reminds me of Auid’s dilemma in Taiwan was SAAB. They got it right though and did an amazing job of marketing themselves. They got trained stunt drivers to blast up and down arenas pulling 180s and going flat out nose to nose. An instant crowd pleaser that drew attention to its product and gave people the impression that it was a performance, specialist’s car. They even put out a free video of their cars doing their stuff in Taiwan. Even I was impressed with it and actually applauded their efforts from my living room sofa I thought they did such a splendid job. They didn’t just don a suit and line up with the already dressed and polished German Merc and Beemer crowd which is what Audi seems to be doing. Even Lexus haven’t gone that way. Lexus knew they couldn’t match the German’s in the being German department. They’ve gone the other way. They’ve gone out and out to prove their product works and works for far, far longer. They have gone with what the Japanese do best, quality of build. And slowly but surely brought their performance up to match. Now they even have their own supercar!

Audi has tried a bit of this and a bit of that, but it hasn’t done any one of them quite as well as anyone else has and hasn’t quite invented a new product to suit an original need. As I say, its stuck in the middle of a few things and I think the local market recognises that.

Personally if I wanted a fast luxury car I’d have a Lexus. If I wanted another Audi product then I’d get a Skoda instead.

I think Audi is great. I do wish they would live up to their potential though in at least one area. I kind of wish they would just let me sort them out! Having said that though, I might also prefer working with Skoda as they have even greater potential, yet nobody seems to recognise it.

Hi, thanks for all the information. I’m really bad when it comes to buying a car so I’m probably going to bring a “good guy, bad guy” couple into the floor room with me. (my gfs father and uncle). hehe.

The car I was looking for was the new Mazda2, I thought it was made locally but found out quickly that it was imported and had a much heftier price tag so I went for the Mazda3 5 door. They were asking 69.8萬 for the 2.0. Their financing estimation was kind of high but I think that was because they knew we were naive first time buyers. We would be in for the long haul, i don’t see us trading it in and would probably just drive the wheels off.

We checked some other cars as well. The Tiida had much better financing, however the price was similar. Ford focus wasn’t a good deal at all. and the saleswoman was unprofessional.

Audi’s already pulling stunts…Every Audi dealer I see has these great big R8 banners all over the place…with no R8 in sight (not on the showroom floors). I guess the sales pitch goes like “We make the R8, so buy an A3. You’ll be on the same team”.

back on topic. Like others have said, take your time with the purchase and negotiate until you’ve got what you want, not what they want. They’ll often try to compromise on a big extra first (ex: 1 year road tax paid) and then try to end negotiations…don’t let it end there…keep going and you’ll be amazed at what you end up with. (cheap LED doorsill lights don’t count).

Tip: If the dealer throws in any ‘free’ accessories for the car (mud guards, window rain covers, tinted windows…etc), be sure to specify on paper what these items are and that they must be OEM (except tints). I’ve seen Suzuki dealers throw in mud guards with a new vehicle sale only to install by drilling in cheap rubber semi-truck style items. Same with tints. They’ll usually go with the cheapest, darkest tint and put it on ALL the windows of the car (incl windscreen). If you want to see any night, you may want to be very specific about your tint % , which windows not to tint and what brand to choose (I recommend 3M).

Good luck

[quote=“xyu”]Hi, thanks for all the information. I’m really bad when it comes to buying a car so I’m probably going to bring a “good guy, bad guy” couple into the floor room with me. (my gfs father and uncle). hehe.

The car I was looking for was the new Mazda2, I thought it was made locally but found out quickly that it was imported and had a much heftier price tag so I went for the Mazda3 5 door. They were asking 69.8萬 for the 2.0. Their financing estimation was kind of high but I think that was because they knew we were naive first time buyers. We would be in for the long haul, I don’t see us trading it in and would probably just drive the wheels off.

We checked some other cars as well. The Tiida had much better financing, however the price was similar. Ford focus wasn’t a good deal at all. and the saleswoman was unprofessional.[/quote]

The Tiida is a reasonable car for what it claims to be and I like its functionality. Lack of airbags and steering wheel adjustment brings it down a bit though.

The Mazda 3 is a brilliant car to drive and yes, the hatch is even more usable than the saloon. I’m a big fan of it. Quality is not quite as good as some other Jap cars on the market, but it more than makes up for it in function and feel as well as cabin design. I think Mazda has the best overall line-up at this time of certainly all Japanese manufacturers, but many European ones as well.
If I were in the market for a Mazda 3 however, then I’d really have to think hard about whether or not to go for used. Used 2.0s 3s are tricky to source, between those that have the tits driven off them and the really nice ones. If you can find one though, then you can certainly reap the rewards as the used ones drop in price considerably in their first year.
Of course if you don’t care about the depreciation factor, then go new. I’ve found the biggest discount on any new car ever on a three or four month Mazda 3 though.

[quote=“sulavaca”]
The Mazda 3 is a brilliant car to drive and yes, the hatch is even more usable than the saloon. I’m a big fan of it. Quality is not quite as good as some other Jap cars on the market, but it more than makes up for it in function and feel as well as cabin design. I think Mazda has the best overall line-up at this time of certainly all Japanese manufacturers, but many European ones as well.
If I were in the market for a Mazda 3 however, then I’d really have to think hard about whether or not to go for used. Used 2.0s 3s are tricky to source, between those that have the tits driven off them and the really nice ones. If you can find one though, then you can certainly reap the rewards as the used ones drop in price considerably in their first year.
Of course if you don’t care about the depreciation factor, then go new. I’ve found the biggest discount on any new car ever on a three or four month Mazda 3 though.[/quote]

I also heard about the depreciation of the Mazda, but like you said, finding one that wasn’t owned by a 20 year old who drove it like a maniac might be difficult. I checked some online sites like ocar.com.tw/ and 8891.com.tw. The mazda3 was around 350,000-400,000 on average. for 2004-2007 models. I couldn’t really find the hatchback though, i can’t read chinese, it’s probably an option in the search criteria.

Is there anything i could look out for when buying used as well? The good thing about these mazda3 is there are a lot of them on the used car lots. I’m sure the test drive will be important. What should I look for. Don’t want to buy a lemon.