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Comments
-Frank P.
I always had to stop 3 times for gas. Small tank.
I've done Baltimore to Lansing MI a few times in one day, which is roughly 600 miles.
Bob
I know a guy on the i-club that lives in NY. He drove his RS to Tampa and traded it for a WRX.
http://mastrowrx.com/andy.html
That's his former dealer and they're a Prodrive distributor.
He's driven to Alaska 7 times. Once in his RS.
The WRX STi is more of a competitor to the Evo than the WRX. Sport Compact car has a comparo between the RSX-S and the WRX wagon!
Dennis
Stephen
-mike
So you're saying $1,125 over invoice is a better deal than $500 over? How is that?
You REALLY need to stop trying to correct people's figures...
-mike
Rex did you pay 5% over or get screwed at $250. jk
-mike
If they made a Barney-purple WRX and only made 50 of them, would you want one?
Laugh, but weren't purple Prowlers really popular?
-juice
Ed
I think the other colors (esp. silver and yellow - a friend was shopping for one last summer) are much more popular now.
defines much of my life. I have a magnet on my fridge that says "cleverly disguised as a respsonsible adult" I will have have devious pleasure out of buring the roads up "of course allways staying in perfect alingment of the laws!! " heehheheh This WRx is only in my life due to an unexpected inheritance. I am 43 and attending college. Studying for a masters degree and PLOP I find out im getting some money from a relative ive never met. I had no idea that it was going to be a nice chunk o' change that it is ,,,,,,,soooo I get to finish my school in a new car and more than ample funds during the process. enthusiam is contagious!!!!!!!!!!!!!
Dennis
And I've got a longer warranty than you :P
So you're saying that 5% over invoice is really 2% over invoice? That doesn't make any sense.
You take the invoice (as stated here or at KBB or wherever), and multiply by 5%. That's how you figure out how much over invoice 5% is.
Even if you were to take holdback out, you'd take it off the invoice price first - it wouldn't make your 5% over offer magically drop to 2%. So if the Invoice is $22,500, you'd subtract the 3% for holdback ($675) first, and then figure your 5% over off the new invoice amount of $21,825. 5% over that amount is still $1,091 (IOW, you saved yourself a whopping $34!).
Stephen
I think you shouldn't worry about holdback, etc. Just find out how much you are willing to pay for the car. If they say yes, it's yours. If they say no, either re-adjust your sights or pick another car.
If I owned a dealership, I would NEVER go into holdback for anyone. It should have nothing to do with the sales price of the car.
And also, either you did your calculations wrong or at least you are not explaining it correctly.
Take the number you got, add 5% and you get 22916.25 , which if you subtract the original "invoice" amount of 22,500 from , you are left with $416.25. As i originally posted. and 5% is viewed in the car industry as an acceptable margin. I paid 5% exactly (over dealer cost) for my Volvo V70 T5 wagon the second week they were released. Of course when I walked onto the lot, the salesman tried to tell me I would be paying sticker because it was new and "really hot, thats why we only have 3"
blah blah blah. I would urge you to read the posts on www.beatthecarsalesman.com for the real scoop on what most dealers will sell cars for. The holdback myth is a huge hoax perpetuated on the gullible consumer. Unfortunately there are a lot of suckers out there.
So if you buy for $1 under invoice, they lose money up front, but then make a couple of hundred bucks once the manufacturer pays them the holdback.
To simplify:
Dealer cost = invoice - holdback - any other incentives
-juice
But I see what you are trying to say. We are both saying the same thing, we're just using different terms.
There are tons of costs of doing business for a car dealership. Holdback just helps the dealership pay for it's staggering interest charges. Don't forget that they have huge insurance bills, salaries, benefits, mortgages, electric bills, etc.
Holdback is not 'pure profit'. It may or may not even show up on financial statements as revenue (it very well may show up as a reduction of interest expense). You'd probably want the dealership to not charge you for your car's portion of the electric bill since your car was only there for part of one day while the sun was up, too, wouldn't you? Maybe if you told them not to wash it, you could save $.30 on your portion of the water bill, too? Better yet, don't let a single person from the dealership touch it - you guide it off the truck and you prep it - and then you could cut another $50 off as well...
And the price you pay is not determined by you, it's determined by the market. Take BMW's (or Mercedes, or Audis, or Lexus) for example. If you went into a BMW dealership looking to buy a 325i and told the salesman you'd pay 5% over invoice but you wanted their holdback, you'd be laughed off the sales floor. Why? Because they can sell every single one they have for at or close to MSRP (which is $3-4k over invoice, BTW). Why should they sell to you for 2% over when the next guy in line will happily pay $500 under MSRP?
BTW - I'm a CPA, and I know a lot about the auto industry. I'm hardly a 'gullible' consumer.
-juice
Invoice-holdback-incentives+Profit to dealer = what I pay.
Profit to dealer = however much I feel the dealer should be making on the car as a whole, cheaper car profit is less, higher line car dealer makes more.
Generally my min dealer profit = $500-$700, max of about $1500 on a car <$30K
-mike
-juice
-mike
If you're not talking about me, please ignore this post.
-mike
PS mmcbride you do exhibit some characteristics of a troll.
As far as the whole "I've been here longer" thing, IMO, a true 'troll' has a short life at Edmunds. I think you'd agree to that.
-mike
-mike
No cruise control. Left Friday at 3:30 AM. Lots of coffee
Jim
I appreciate your opinions. Because I work for Subaru and drive a WRX, I'll refrain from my opinions because I know that one might think my opinions are slanted (they would be - but for more reasons than I've listed).
Thanks for sharing your thoughts. One suggestion, if you want people to be softer in their response post, you may want to consider eliminating the "P" from your sign-off and keep it more tongue in cheek? It may appear to be less taunting.
Have a good one!
Patti
As for time spent on the boards as some indicator of tenture or expertise, I disagree. I don't hold myself out as an expert, and I lurked here for almost a year before deciding to buy my Subaru in January 2000. I shopped Audi (A4 Avant 2.8 and 1.8T) and Volvo XC before deciding on Subaru. Reputation for reliability and long-term operating costs outweighed luxury and perceived prestige in my mind.
Thanks,
Ed
paisan - The holdback is based on MSRP, not invoice. :-p (oops, sorry Patti. Doesn't matter, paisan's never soft. :-D)
http://www.edmunds.com/advice/incentives/holdback/index.html
Dennis
-mike
TWRX