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2013 and earlier-Honda CR-V Prices Paid and Buying Experience

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Comments

  • isellhondasisellhondas Issaquah WashingtonPosts: 17,914
    No, I am "frustrated" over the number of customers who want to buy CRV's that we don't have to sell them.

    There are certainly no "sales goals" hidden mpney on CRV's either!

    All I am saying is what a dealer pays for a car means nothing. Cars sell for what the market dictates.
  • To be clear, you said you were frustrated about having to explain again what a holdback was in response to the conversation hyland and I were having about the profit that was made on my purchase.

    Today, no body said anything about wanting to buy CRVs that you don't have to sell them.
  • nearmspnearmsp Posts: 90
    Then how would cars sell at invoice or even below invoice unless there is hidden money coming in through bonuses for exceeding quarterly/yearly targets.

    Are sales people paid on commmissions or just straight salary? Some sales people do more deals - that is accept lower prices, so do they get less commission for each vehicle that they sell. I notice within a dealership some are keen to sell and others not. Even when you enter a dealership some just head straight for the customer while others are just sitting on their tables.
  • isellhondasisellhondas Issaquah WashingtonPosts: 17,914
    Oh, that happens sometimes but not on a brand new model with high demand. There would be no reason to do that.

    Most car salespeople are paid on straight commission.

    Some places pounce on every customer and other places are more laid back or maybe they sized up the customer and didn't want to deal with them?
  • BTW, Red Socks fan,
    How do you like the new (re-faced) "CITGO" sign on that building right next to Fenway Park? I didn't mean to bragg but I drew the baby with my own hands...
  • snoopy21snoopy21 Posts: 114
    Then how would cars sell at invoice or even below invoice unless there is hidden money coming in?

    i'm sure dealerships look at all the sales as a whole, with certain models contributing more to the bottom line than others. i'm also sure there are certain slow-selling cars sitting on the dealers' lots they want to move just to get rid of the associated carrying costs (financing, insurance, etc.) off their books.

    Some sales people do more deals - that is accept lower prices, so do they get less commission

    it's not the sales people that do the deals...these days, that stuff is all turned over to the finance manager

    I notice within a dealership some are keen to sell and others not. Even when you enter a dealership some just head straight for the customer while others are just sitting on their tables.

    i think they rotate and take turns.
  • Holdback is not profit. It is money that the dealer gets from the manufacturer but the dealership has massive expenses. At my dealership it costs over 400k per month just to keep the doors open. now at a net profit of lets say 500 per car try and figure out how many cars we would have to sell to stay in business??????

    forget about holdback, that is the dealers cash for bills etc.
  • the only way consumers can even buy a car at invoice is because of the holdback. if it were not for the holdback all of you would be paying at least 3% more for your vehicles.
    my advice to you is to work your price from invoice and forget holdback even exists
  • hondaguy67,

    I think you're right, except that I don't believe I would have gotten the deal I got ($200 over invoice) if I hadn't first made an offer of below invoice. And I never would have thought to make the first offer below invoice if I didn't know about the holdback.

    After a dealer said no to my first offer, we agreed that $1000 over what the vehicle cost them was fair, but this conversation would have never happend had I not first made the offer I did.
  • isellhondasisellhondas Issaquah WashingtonPosts: 17,914
    Our store would happily write a check to the store where you bought your CRV for each and every CRV he would sell us for 200.00 over invoice. These must be really distressed merchandise in your part of the country!
  • isellhondasisellhondas Issaquah WashingtonPosts: 17,914
    Well, holdback ***helps*** pay for some of the expenses. It falls far short!

    People don't care about our overhead and I don't want them to care. I just get tired of hearing about how holdback is pure profit.
  • isellhondas,

    I agree with a lot of what you say...I think a dealer can sell a car for whatever he wants or the market will dictate...if the car is hot the dealer would be stupid to give up whatever profit he can make on limited supply.

    People that think they are owed a near invoice sales price on a hot new vehicle like the CRV are high.

    The guy that got a deal of $200 over invoice must be in an area of the country or at a dealer where the CRV is not moving...but the bad thing is other people on this board in areas that are hot will think they should be able to get that price too.
  • I'm not sure where to put this post...

    I've never purchased an extended warranty before, but I've read that the time to buy one is for a remodel year. What is the convential wisdom? One of the reasons I'm buying a Honda is for reliability, but...
  • "for the umpteenth time, holdback does NOT fall to the bottom line as profit! "

    Actually, it does. Holback is really "contra cost of sales", meaning that the car manufacturer gives back to the dealer cash which offsets some of the dealer's initial car aquisition cost. From a finance P&L perspective, holdback will therefore increase gross margins and flow to the bottom line.

    Dealers sometimes make the (false) argument that holdback is supposed to pay for inventory holding cost (e.g. interest the dealer pays on the cars)and is therefore not negotiable. However, since dealers on this board claim that CRVs apparently sell like hot cakes fresh off the lot, there is really no material inventory cost at all.

    Also, here in the Bay Area CRVs are not in short supply and can be had close to invoice.
  • isellhondasisellhondas Issaquah WashingtonPosts: 17,914
    I disagree with you but that's O.K.

    Too bad about the Bay Area market. No reason to cheap sell a great car.
  • kyfdxkyfdx Posts: 31,059

    MODERATOR
    Prices Paid, Lease Questions, SUVs

  • stevedebistevedebi LAPosts: 3,863
    "I've never purchased an extended warranty before, but I've read that the time to buy one is for a remodel year. What is the convential wisdom? One of the reasons I'm buying a Honda is for reliability, but..."

    I would buy one, but get a good price. I recently saw about $1150 for an 8 year, zero decuctable, 120K warranty from college hills honda. Wherever you buy, be sure and get a genuine HondaCare warranty; other warranties are not directly honored by Honda.
  • Hate to say it, but I havent noticed. I live outside of town and avoid the city when I can.
    If you drew it, I will look for it next time. We are not talking about the neon landmark I assume, but a painted sign, what building or street if you will...
  • Yes, I am talking about the (used to be neon, now LED packs) landmark sign overlooking Fenway park. I remember I had to climb on top of that thing on a cold and rainy day...
  • While I agree with hondaguy that it is very expensive to run a dealership, it is not the New Vehicle Department that keeps the dealership in business. Used Vehicle Department makes much more gross profit on used vehicles but there is also the Service department. I read that about 50% of total gross for the dealership is actually made in the Service department. I honestly believe that is true. I bought a Volkswagen Jetta in 1997. I paid some $12,500 (it was used) when I was young and naive. It cost me about $2,000-$3,000 per year to keep that thing running. So, the dealership didn't make tons of money even on that used car. But boy, did I pay dearly for service...
  • rgraferrgrafer Posts: 17
    Had a nightmare finding and tracking down a CRV EXL with Navi, 2 WD, Borrego Beige. Finally purchased one at Key Largo Honda.

    Had a GREAT buying experience at Key Largo Honda, after being lied to and led on by both Ft Myers Honda and Tampa Hondaland.

    I have done tons of research and found that no one is going below sticker in FL on a CRV with Navi...why should they when they are in such demand and so many people are looking for one? :)
  • isellhondasisellhondas Issaquah WashingtonPosts: 17,914
    And a concept some people just can't understand.

    A 2WD NAVI in beige would be a tough car to sell in my neck of the woods!
  • stevedebistevedebi LAPosts: 3,863
    "A 2WD NAVI in beige would be a tough car to sell in my neck of the woods!"

    Your "neck" is in Canada, right? Man, that is two entirely different worlds.

    However, in Florida I would opt for AWD; when it rains suddenly in the summer, the roads just ooze oil, from the sea shells used in the asphalt.
  • I recently purchased my new CRV on Saturday and was impressed with the professionalism with Fremont Honda. They were very detailed in explaining how each itemized cost is derived, showed me the invoice of the car without me asking for it and after I bought the car, provided a checklist to mark off what is wrong with the car when I did my final inspection and finally showed the vehicle in and out, including the engine without me asking for it. I was done within an hour. They did not pressure me to buy anything extra, which is good! I dealth with sleazy dealerships as well, so I am happy that my experience was good. I highly recommend this dealership, ask for salesperson initials PWong.
  • isellhondasisellhondas Issaquah WashingtonPosts: 17,914
    No, I'm in the Seattle area.

    The vast majority of CRV's we sell are 4WD although once in awhile someone will want a 2WD for reasons I can't understand. People that will spend the extra money for a NAVI always want 4WD.

    Also, that beige color isn't the best seller here. I can see Florida becaue of the light colored interior for the hot weather.
  • Same here in Chicago. As a matter of fact only about 5% of our entire stock of CR-V's is 2WD. As far as the navis go there is no discount anywhere that I know of. There is just not nearly enough supply to meet demand. I know that will change in the future once production is ramped up however until then it will be MSRP or a courtesy discound of at most a couple hundred and then only to local customers.
  • Sure, we understand that when demand is great and supply low dealers have the final say like on your CRV w/NAVI. Or is it so? We still hold the wallet. It's a game. Either you pay what the market requires or you go and find another car. I chose to do the latter. And I found out, many people did just that. So, by holding the price high Honda effectively will get rid of some customers while they are making it up on others that decide to buy a CR-V and pay MSRP. Okay. That works for me.
  • Yes, I am one of the customers that Honda might lose. I got so tired trying to get a decent deal for a CRV that I stopped trying. Now the Auto Show is in town - I plan to look at the other SUVs and I am hoping I can find something I like as much.
  • stevedebistevedebi LAPosts: 3,863
    "Yes, I am one of the customers that Honda might lose. I got so tired trying to get a decent deal for a CRV that I stopped trying. Now the Auto Show is in town - I plan to look at the other SUVs and I am hoping I can find something I like as much."

    I suppose by "decent deal" you mean below MSRP...

    Well, the fact that Honda always seems to be able to sell their new models at MSRP for a year or so (usually with waiting lines here in SoCal) indicates that a lot of people think they are worth MSRP. Personally, I think there are a lot of small SUVs that are up there in quality, but I vastly prefer Honda engineering over (for example) Toyota engineering: Honda engineers a firm ride and taut handling. Toyota engineers a softer ride and more lean in the corners.

    It is a personal thing that every driver has to decide for him/her self. Drive 'em all and decide which fits your "decent deal" and personal choice criteria. Good luck in your search... :shades:
  • isellhondasisellhondas Issaquah WashingtonPosts: 17,914
    Some shoppers can get so stubborn that they can't get over the fact that MSRP IS a great deal!

    They will go buy "another car" that they can get a big discount on. They buy the deal and not the car.

    Later, when they go to sell it or trade it, they discover that that car sold cheap because there wasn't much demand for it. Even less demand as a used car while the CRV held it's value much better.

    Who wins in the end?
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