Any Questions for a Car Dealer?

jmurman42

It's really up to you. I dont see any changes to the 2002 Civic, except in price.

mnowak1

Thanks for the information!! How much would it cost me if I wanted to get si rims put on?

andre1969

When I bought my Intrepid, the sales guy let my uncle and me take 3 vehicles out, unsupervised. Of course, they DID get a copy of my license, first ;-) I prefer it when the sales person lets you take it out by yourself, although, I can understand how that could be a liability. I guess it could be a judgement call, too. If I was some punk kid that just came in off the street, it'd be a different story, I'm sure.

jaki30

Just got back from looking at compact P/U trucks. Had one dealer tell me
they could sell cheaper because they had a vehicle in stock vs. having to locate
one from another dealer. Problem is I don't care for the color. Is it true that a
dealer will sell a vehicle cheaper if he has it in stock?

raybear

Usually they will, because they don't incur any costs associated with swapping the car, usually about $100. If color's that important, you may want to pay up or continue shopping.

audia8q

in addition to what Raybear said...in many cases your dealer will lose the holdback, which is a % of invoice that the mfg send the dealer to offset dealership sales costs...When this is out of the picture the dealer must sell you the car at a higher profit to make up for this loss.

hope this helps...

Rich

landru2

In my area, dealers frequently trade with each other and the standard price is $100 over invoice. And yes a dealer will not get the holdback if he buys a unit from another dealer. The original dealer keeps the holdback. In Canada, Ford's holdback is 2% so on an expensive unit this can be a significant amount. I have often seen barely-over-invoice offers rejected with the customer encouraged to try at one of the smaller area stores. We end up transferring the unit to other store, they get the barely-over-invoice deal and the poor CSI score while we make much more just on the holdback.

twistinmelon

In my area (Chicago), the two Honda sales guys I've talked to claim there is a 2 percent advertising fee the dealers have to shoulder.

Does your $100 over invoice reflect an advertising charge? If not, the maximum holdback would be eaten up by the advert fee (assuming it's the same or similar in your area), and you'd be grossing $100 per car, which means no profits as far as I can tell.

What am I missing?

twist

jaki30

for the info. The color the dealer has is one I don't care for at all.
I am having trouble locating an 01 and will probably have to wait
for the 02 now. Nothing is cheap in Ct. so I'll just have to pay for
what I want. Thanks again.

jmurman42

When I say that 100 over invoice is the price, its true. At 100 over invoice that price would not include any options that might be on the car, or options that you might want on the car. I can make a little there, maybe I can make a little money on the financing or on the trade in. At 100 over invoice I can have a decent small profit deal. I would rather sell 5 of these smaller profit deals than "skin you alive on one deal".

I love the saying "that you can shear a sheep many times, but you can only skin him once"

You would get a good price and a NON hassle purchase...that seems to be the biggest motivation here, the NON hassle buying experience. PLEASE dont get me wrong I AM NOT soliciting your business here. Just passing along pricing and a personal business philosophy.

jmurman42

The extra wheels I usually dont quote on. Honda had a problem with a major supplier of their "after market" wheels. I usually just send people down the road to a tire and wheel company that our dealership group owns.

Jerry

mnowak1

Are the SI Rims after-market? I have seen only on two occasions and 01 Civic having the si rims on them, and they came from the dealership like that. Can you buy the si rims from an after-market company?

mnowak1

raybear

The Chicago area dealers are assessed a "voluntary" advertising fee. You can avoid it by shopping outside the area. I couldn't find the fee on invoices from Ohio, Indiana, Missouri or Wisconsin.

mica88

split between the salesperson and the dealer the same regardless of over-invoice sales price?
That is, if the price is $1000 over invoice, is the percentage paid to the salesperson the same as for a price that is $600 over invoice? Or, does the salesperson earn a set commission, with the dealer keeping the balance, regardless of price?

jmurman42

usually the dealership will have a 'minimum commission' called a 'mini'. At my dealership this figure is $50. We work on a graduated scale with comissions from 10% to 25%, however, we are also paid on "back end", trades, and volume. So, all things considered a $mini' deal can turn out to be a decent comission to the rep if money is made on other parts of the deal.

Some dealerships will charge the sales rep a 'pack' this is the dealerships way of saying...we don't care about all the work YOU did...we want ours first.

mica88

the quick response. It does seem to be a fair deal if, in addition to the 'mini', a sales rep receives a commission plus a cut from trades, volume, etc.

rroyce10

........ All dealers are different as far as structure, bonuses and commissions and such.

But, the majority will pay the salesperson 20 to 40% on the gross of the deal, that is after the pack, which can be $100 to $1000 ( depending on the dealer ) -- for example, if the invoice is let's say $10,000, and the dealer has a $400 pack and the vehicle is sold for let's say $11,000 .. the salesperson is paid on the $600 and depending on the dealer, it could be 20/25/30/40% and depending on the vehicle it could be more ( rare, but it does happen ) ... any thing less than the $10,400 price will pay the salesperson a "Flat" which can be anything from $25 to $100 depending on the dealer and their bonus structure ----



I was on the "floor" for a long time, and I can only tell you, that the sales staff earns every dime of it ....

Terry.

bulkleycorp

Looking at some used accords - 98-99, the pricing for these are incredibly high, within 2-3K of a new accord (depending upon the model). I know there isn't a right answer to this question but I'll ask anyway - what kind of negotiating room is there on a used accord -- generally speaking?

thx.

tboner1965

With all of the press about the tragedy in NY, I actually noticed a commercial on the radio. These commercial things have become increasingly rare in the past few days on the talk radio station I listen to in my car.

Anyway, one of the screamer ads is touting, "Prices so low, we can't say them on the air" or something to that effect. Prices so low, we can't legally mention them here.

The only things I can think of are:

a) They are not real, so you can't mention them.
b) There is something in the franchise agreement that states you cannot advertise new cars at some pre-determined amount below the MSRP.
c) They've already been sold.
d) The boss said, "Don't mention the price!" 8^)

So what's the deal on these screamers?

TB

CarMan@Edmunds

In my opinion, saying that their special prices are too low to mention on the radio is probably A) easier than updating the ad every time you change your pricing and an easy way to convince people to come into your showroom without having to honor any specific advertised prices.

Car_man
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im_brentwood

Probably its' what Car_Man said.

Although Jaguar never let us advertise prices below MSRP.. But then Jaguar dealers generally dont need to run screamer ads.

Bill

isellhondas

" All credit applications will be accepted!"

Yep, they'll "accept" them all right! Then they will turn the people down or else give them "mouse house" rates of 29% or something!

andre1969

...what is the highest interest rate any of you has ever seen on a vehicle? I've heard of 21.6%, 23%, etc, but have wondered just how high they can go?

im_brentwood

State Rate in Florida depends on the year of the car, but can go as high as 29%.

I even deal with a finance company with rates between 26-28% (Which I dont get a piece of.. I have to pay at least a 10% discount on top of that!)

But, when you have someone with 2 repos after a bankruptcy......

Bill

audia8q

interest rates maximum caps are set by each state...

Here in connecticut we have an interesting situation..our state max on a new car is 15% and used car is 19%. Beacuse of this no sub-prime bank will originate loans to people with credit issues in connecticut and most wont do any business here. Simply the rate spread isnt enough to be profitable. Some sub-prime banks run loss ratio's (repo's) as much as 40%. A more traditional lender who loans to more qualified citizens runs a 2-3% loss ratio.

In Tenn. we had a cap of 26% and anyone could get a car loan...but in CT if you have bad credit your walking or paying cash.

So at first glance a low cap on interest rates seems like a good idea...but in reality a much higher cap would allow the people who need the help the most to actually get a car loan.

Rich

ldyjul

I have set a deal at my local dealership for a car. We worked at the price and payments.
They could not locate the car on any lot in my state area.
They will run the reports and when a dealership gets the car, they will have someone drive the car to the local dealer.
There is only one local dealer in my area.
The farest away is 8 to 9 hours away.
My Dealer said they will have someone drive it not trailer it.
My concern is I am paying for a new car and I would like to break the car in myself.
The Dealer informed me that if I dont want the car to be driven I would have to pay $120 to have the car trailed to my local dealer.
Is this Correct? I am buying a new car and I have to pay $120 to have the car delivered without having miles on the car.
Please Explain or is the Dealer taking advantage.

im_brentwood

I'd spend the $120.

That's to have the car trailered in from 8-9 hours away? Thats REAL cheap. I'm a dealer.. and..well.. I can't get cars to, say, Chattanooga for $120!

Sounds quite fair to me.

Bill

ldyjul

The closest Dealership is about an 1 1/2 the farest is about 8 to 9 hours away and that is the place where the cars come off the ship and hauled in to be put on the trailer.

They said where ever the car comes from I would have to pay $120 to have the car hauled in. My dealer claims that he is one of the largest dealers.
When people put special orders on their cars, are they driven into the dealership also with those miles?
I just wanted to know if this is fair?

mvargo1

The offical policy of every dealer I can think of except Jaguar is to drive dealer trades from one dealer to the next. If you do not want the car driven most dealers will expect you to pay for the shipping. $120 is cheap usually flatbed service charges at least $1 a mile plus $25-$50 dollars for every load or unload.

Jaguar is the exception they require that dealer swaps de transported

CarMan@Edmunds

Ldyjul, if you are having the dealership that you are working with swap for the exact model and combination of options that you want it definitely is not out of the ordinary for them to have someone drive your car to their location. This is how most dealer trades are done. If you want to have your new car brought in on a flatbed then it is likely going to cost you extra. Given the going rate for shipping vehicles, if you are having your new vehicle shipped from two hours away or more I definitely think that $120 is reasonable. I would probably have the car shipped rather than driven if I was in your situation. Even if the person who was driving my brand new car was extremely careful, I would rather have a car that has very few miles on it and that I have broken in myself. When you consider the fact that having your car driven from another location will put miles on it that will cause its value to depreciate, the actual cost of having it shipped is not $120 but really $120 minus whatever depreciation the extra miles would have caused.

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mica88

Up to how many miles would be acceptable on a new car? How would those miles normally have been accumulated by the dealer?

rroyce10

...... $120 for a drop, that my friend is cheap ...

I just paid $300 for a 125 mile run and I'm a dealer. Sooooo, $120 that's super cheap --- hey, email this guys # .. I can use him, my email# is in the Profile..

Terry.

newfordman1

I have seen it listed in ads without describing what it is. Could someone help me?

CarMan@Edmunds

Newfordman1, Conquest incentives are Cash offers from manufacturers to owners of their competitors' vehicles. So for instance, Ford might provide conquest cash good towards the purchase of a new Explorer to current Jeep Grand Cherokee and Chevrolet Blazer owners. If you let me know exactly what model you are interested in, I will look around and see if I can find out if there is any conquest cash available on it and if so what the details of the program are.

Car_Man
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dardson1

When 9/11/01 came along, I was close to doing a deal on a new car trade. The environment has changed. My personal consummer confidence has taken a nose dive. A deal that sounded OK on Monday the 10th is much less appealing a week+ later, all things considered. My salesman, poor kid, calls every day pushing to make the sale. They've bumped my trade up $200 but I suspect we are moving from a neutral market to a buyer's market. It's an intersting situation. While I'm guessing the dealer is doing all he can at the moment, I wouldn't be surprised at some stronger manufacturer incentives around the corner. Any thoughts? Make my best deal now, or sit tight?

cos35

I'm itching to pull the trigger on a new Explorer, but feel with G.M's new incentives and the state of the economy , Ford will step up with some cash. There is a 500.00 rebate that expires 10/08. I will wait it out until they do better. That's only my opionion.

audia8q

run down to the Ford or Mercury dealership...
They announced some very aggressive incentives today....no cash except to returning explorer/mountaneer buyers or jeep owners but strong finance rates.

Rich

jkink88

Ok now.... I'm ORDERING a new 2002 Jeep Wrangler Sport w/ the exact options I want next week. I will NOT be purchasing a vehicle that is now or will ever be on the dealer's lot. There is no trade and I will be paying w/ bank financing. It will be delivered in 6-8 weeks. I'm trying to figure out what I'm going to (or should be) paying the dealer. I have done a lot of research on many different sites and have obtained significant knowledge regarding how to go about buying, negotiating, etc. I cannot, however, find out the answer to the following question.... it is critical to my final decision. The question is:

Does a dealer get a 'holdback' on an ORDERED vehicle?

I'm assuming if you know what a 'holdback' is (and/or you have worked at a dealership) you may be able to answer this question.... I have heard that for a Wrangler it is 3% of MSRP. If this is true (and the dealer does, in fact, get the holdback on an ORDERED vehicle) I am assuming that the current offer my salesman has given me of $500 over invoice can be brought down lower .... Thanks in advance for the help .... JK

cos35

audia8q; would you mind giving me more info on the new incentives?. I am comming off a Jeep lease with Chryslar. I hope it is like the 1750. conquest cash that expired 8/30. I live on Long Island. Thanks

audia8q

I am located in the Boston Zone which may have different incentives on the vehicle you want..Its very common for some differences between the two zones. Call you local dealer for the accurate info...

here the incentives on the 2002 are
0.0% for 36 mo....0.9% for 48 and 2.9% for 60 months...

the conquest reward was not renewed like I was expecting...

rich

afk_x

On an ORDERED car a dealer DOES get the holdback. Whether or not you can get a better deal than 500 over on an ORDERED car I have no idea. From the dealer perspective it makes more sense to make a better deal on a car in stock rather than an ORDERED car. A bird in the HAND is worth TWO in the bush!

Good luck I hope this HELPS.

rworrell

LOL - I thought that was very FUNNY.

godeacs

what's so funny?....sounds good to me....

bolivar

You ORDERED a car without a firm order price signed????

What are you thinking?

How can you 'dicker' when the car comes in? The dealer knows that you 'want that car'!!!!!

What did you sign? Anything?

Of course the dealer gets the holdback.

AFK_X - you are sounding like a car salesman. Once a car hits the ground, the dealer starts paying interest on the loan he has on it. An ordered car costs the dealer NOTHING in interest. It comes in, you pay for it. The very cheapest deal SHOULD be on an ordered car.

Now, I know, because dealers look at the world screwy, especially when they look out their windows at millions of dollars of car loans and the interest accumulating each day, they will give better deals on in-stock cars. Because they are losing money all the time on what sits on the lot.

But this is just more of the bass-ackwards thinking of car dealers. Until the early 1990's, I always ordered cars. But then came the huge dealers, 100's of cars on the lot, and all of a sudden manufactors had to give REBATES to try to move this massive inventory. And would not give a rebate on an ordered car.

Yep, the car people really twisted their world around. Pay interest for cars on the ground and then give buyers money back to buy them.

Course the buyers did it to themselves. "I've gotta have a 'HOTSELLER XLX SPECIAL'! It's got to be a EveryMan Platium Silver! I can't wait, gotta buy one this weekend! Order one and wait 6 weeks, NO WAY! Take one with $2,500 of options I don't want and pinstripes, undercoating, vin eching, and fabric protection (on the leather?) added on by the dealer - OK! But get me into it TODAY!!!!!!"

rroyce10

..... Even more fun !... the dealer starts paying interest on the vehicle as soon as the MSO or invoice hits the store, and vehicle could be still weeks a way ....

I always like that part l...o...l...

Terry.

rworrell

What was FUNNY was the unusual way the orignal POSTER chose to capitalize his WORDS.

afk_x picked up on this and capitalized words such as HAND and HELPS. That's what's funny, not the actual content.

jkink88

I've I got to tell ya 'rworrel'.... your response.... it took me HOURS to get off the floor from laughing so hard.... amazingly sophisticated humor you've got going for you.... hmmmm. There is always a method to the madness. I need a specific answer to a specific question. I have been utterly astonished by the number of well meaning folks that absolutely cannot answer the question asked. A wonderfully brilliant example of this is post #499 by 'bolivar'. I very much appreciate the time he took to respond to my original post. He did not, however, READ my question.... he believes that I have already ORDERED the Jeep. I specifically state, in the very first sentence no less, that I am ORDERING the Jeep next week. I think you can see where I'm going with this.... haven't we all experienced this? One cannot be wishy-washy with the questions asked. I'm not sure how much more specific I can get with my question as it is currently written. Unless maybe I CAPITALIZE for emphasis....! Perhaps that would work.... ummmm.... nope! Now THAT is funny my friend....

I appreciate your response, 'afk_x'.... I certainly hope that you are correct about the dealer getting the holdback.... thanks.... JK

rroyce10

...... Yep, on all ordered vehicles, the dealer gets the holdback ...

Terry.

jkink88

Thanks Terry.... you have answered my question. Since you have worked in auto sales and now own dealerships, I will accept your response with much regard. If you catch this post as well, I have only one more question. It is:

With this knowledge, can I reasonably expect a salesman or dealer to give me a better price on the deal than $500 over invoice?

I've been told that the holdback is 3% of MSRP on a Wrangler. If this is true, that's approximately $700. I would imagine if I shopped around I might be able to get a lower offer.... maybe under invoice. If a dealer does not dicker on the holdback, please advise.... Thanks.. JK

rworrell

I wasn't even the one who first started using the capital letters. Do you really think afk_x would capitalize the word HELPS in a normal message if you hadn't capitalized so many words in your original message? Think about it.

What is your problem? I wasn't trying to do anything other than note to afk_x that I thought the way he had formatted his response was kind of clever--that's it. I had no opinion on your post, I wasn't a well meaning person who tried to respond without reading your question, I had no interaction with you at all. I even specified in my second response that I wasn't referring to the content at all.

Perhaps you should comment to afk_x about his sophisticated humor at imitating your capitalization style. You seriously need to lighten up. No one was attacking you or your post, yet you've chosen to attack me personally for something I didn't even do.