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But my question is:
What is going on with the Accords. Similar deals below invoice, Better ?
___A little bit more as to how Honda dealerships might be pricing below H/B but it doesn’t explain away most of the extremely great deals found in the last 2 months? I found this over on TOVTEC today
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I talk to a heck of a lot of people who believe, including alot of people in the car business that holdback is designed to pay interest on cars.... this is not the case with Honda... Honda pays the dealer 3% of holdback, plus the dealer receives $30 to fill up the tank, marketing allowance, and a separate account pays for floorplan interest....
If you would like to negotiate a better deal on a 2005 Accord than your dealer is willing to give and he tells you holdback pays interest show him this...
This grid shows the exact value a dealer will be paid for interest over and above the holdback and marketing allowance.
I will post the marketing allowance in a thread to follow.
This is a list additional money that a Honda dealer receives from the factory.
Contrary to popular belief "Holdback" does not actually pay for floorplan interest on cars.
American Honda pays the dealer a set amount per car that will pay for the interest if the
car sits on the lot for 60 days. Sixty days is the ideal turn-time for a dealers inventory.
4D 2.4 DX 5-Speed Manual - $75
4D 2.4 DX 5-Speed Automatic Transmission - $80
4D 2.4 LX 5-Speed Manual - $90
4D 2.4 LX 5-Speed Automatic Transmission - $95
4D 2.4 EX 5-Speed Manual - $100
4D 2.4 EX 5-Speed Manual w/Leather - $105
4D 2.4 EX 5-Speed Manual Leather w/Navi - $120
4D 2.4 EX 5-Speed Automatic Transmission - $110
4D 2.4 EX 5-Speed A/Transmission w/Leather - $110
4D 2.4 EX 5-Speed A/T Leather w/Navi - $120
4D 3.0 LX 5-Speed Automatic Transmission (V6) - $105
4D 3.0 EX 5-Speed A/T w/Leather (V6) - $120
4D 3.0 EX 5-Speed A/T Leather w/Navi (V6) - $125
I do believe this will help my fellow TOV users to negotiate a better deal on their next car.
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___Good Luck
___Wayne R. Gerdes
___Never stick with YOUR dealer unless he is willing to match or at least come very close to matching the deal offered by another dealer in your locale or wherever.
___If you are looking for PZEV Accord’s but you don’t live in the states of CA., NY., ME., MA., or VT., you are looking at some travel anyway. If you are looking for a std. Accord, this forum is loaded with tips as to how to attempt to procure your Honda for an even better price then just your local dealership. Do not get caught up in this local dealership service thing. I live in Illinois and purchased the Insight from South Dakota. I popped my one and only CEL on the way home. The Honda dealership not 2 miles from me covered it under warranty just as they do any other car. I did purchase the MDX from the closest Acura dealer (I almost purchased it out of Alabama but the local dealership matched at the last moment) but receive $9.36 oil changes if I bring my oil and filter into this same nearest HONDA dealership. The Ranger was purchased from a Ford Dealership up near Milwaukee and has never seen a shop but if it does, it will go to the local Ford dealership 1 town over. In other words, purchase your Accord from a dealership offering the best price given your warranty and any other service is going to be performed similarly at any Honda dealership in the country including the local one. Do however offer your local Honda dealership the ability to pick up your business by matching your best price just before going to pick it up from somewhere else you never know as was the case with the Acura ;-)
___Good Luck
___Wayne R. Gerdes
___I don’t think it works quite that way? This would mean that the trucking company that picks up Accords built in Marysville and delivers them to Dublin, Ohio gets the same $515 per automobile as another trucking company that picks them up from Marysville and delivers them to let us say Madison, Wisconsin. The destination charge has to go to American Honda first and is then transferred to the various rail and trucking companies to pay for the transport of said vehicles to the dealerships wherever they are located and that cost is averaged out. Whether AHMC makes a $ after all is said and done is anyone’s guess but I bet they do since you can one-off an automobile from an E-Bay auction and have it delivered to anywhere in the lower 48 for less then the destination charges charged by many of the auto manufacturers. At least it appears that way to me?
___Good Luck
___Wayne R. Gerdes
2014 Malibu 2LT, 2015 Cruze 2LT,
___I wonder how destination would explain the additional up-charge of a completed Japanese Accord on the boat from Japan, railed to New York, and trucked to New Jersey vs. just the ICE and tranny to Marysville and the completed Accord trucked to New Jersey for example? Somewhere, someone at Honda is being billed for all of this but when considering that truck delivery to Dublin, Ohio vs. Madison, Wisconsin, there is a profit potential there indeed.
___On another note, someone posted a few pages back that these recent outrageous under invoice deals might disappear after the New Years? In Today’s Chicago Tribune, the Honda ads were out in force like I have never seen and Grand Honda was as usual advertising a brand new 05 EX V6 Sedan w/ Auto for $23,588 including destination. The Invoice on this is $24,539. This dealership is the 3rd largest Honda dealership in the Chicagoland area IIRC and I have no doubt that they will receive all the Accord’s Honda could send this year given the thousands they sell each and ever year. Next years allocation allotments don’t account for this below invoice and even below what we know as Hold Back pricing either? Somebody somewhere has to work at a Honda dealership and know what the actual pricing details are so we the uninformed consumer can bargain to an actual number instead of using the crystal ball in regards to Accord’s?
___Good Luck
___Wayne R. Gerdes
I don't blindly buy from my local dealer. As a matter of fact I got a great deal on my '04 EX-V6 from one who's 90 miles away but I do have my service done here locally.
On the subject of information I'd say that you and everyone else on this forum are already pretty well informed. You won't ever, nor should you, know every last pricing detail 'cause if you did then you would expect the dealer to sell to you at product cost which is neither realistic nor appropriate.
Do you really believe what a car dealer says?
On the subject of information I'd say that you and everyone else on this forum are already pretty well informed. You won't ever, nor should you, know every last pricing detail 'cause if you did then you would expect the dealer to sell to you at product cost which is neither realistic nor appropriate.
___You are right in that respect. That said, I usually take between 6 and 9 months to do the purchase. With that time, I thoroughly enjoy the knowledge gained and camaraderie of fellow enthusiasts of whatever automobile I am currently in the hunt for.
___What I would like to find is an eventual $500 to $1,000 (or more) FTD incentive on the 05 Accord’s starting about March of this year and procure a PZEV based Accord Sedan I4 EX-L w/ Auto and NAVI for ~ $22,000 - $22,500. If Accord sales fall any faster then they have in the past year, maybe an even better FTD incentive would really heat things up I was offered an 04 from 2 different dealerships for $22,500 a few months ago so anything is possible?
___As a kind of joke, last night I saw a commercial for the new Chevrolet Cobalt. It looks like the Cavalier it replaced to me and when I priced out that little box with some basic amenities, it was up to $18,000 + at invoice including the $750 rebate! There is no way Chevrolet will survive selling that compact car for that kind of price when for $18,000 you can pick up an 05 Accord LX! I almost choked after seeing the Edmunds pricing on that poor little thing knowing what many here are taking Accords off dealerships hands and both the Honda dealerships and those consumers appear to be very happy with the deal on both sides.
___Good Luck
___Wayne R. Gerdes
Happy new year!!!
I thought it interesting too that a different dealer who recently gave out an awesome deal didn't even bother to call me back after I explained that I was after a similar low price. I can only presume that the great price from the week before was to make allocation quota - a week later the same dealer wasn't motivated.
I could be way off base here but I think the way Honda's allocation quota works is that if a dealer sells 110% of what he sold last year for each model, he's guaranteed to get 110% of what he sold this year again next year. Thus Honda grows, the dealer grows and, more importantly, Honda gets a good idea of their expected production volume for the following year. Just a guess.
Here in Atlanta, the lone Honda add I saw this weekend was for Pilots and CR-V's only. My guess - that dealer is still trying to make his allocation quota on Pilots and CR-V's.
Okay, in Chicago there may be a bunch of Honda dealers who still haven't made their allocation quota and they continue to run aggressive ads. Still, I believe that most dealers around the U.S. have made their target quotas and that they aren't doing it at the very last minute before the sales deadline (12/31 or 1/05?).
If January price increases turn out to be myth, then I apologize in advance. My point was that, in future years, I'll be looking for the best deals in mid-December, not after Christmas when it may be too late.
What does it matter anyway?
Freight charges are AVERAGED between dealers. It's the same if the dealer is in the city where the cars are built or Fairbanks, AK.
It is just a habit they get into and find hard to break.
Do you ever get tired of hearing the "Who's on first" routine?
Can you tell me the breakdown price for your OTD quote?
Thanks,
05 Accord Sedan EX V6 w/ Auto:
MSRP: $27,215
Invoice: $24,539
___Both include destination of $515. Holdback = 3% X $26,700 = $801
An additional amount that a Honda dealer receives from the factory.
Contrary to popular belief "Holdback" does not actually pay for floorplan interest on cars.
American Honda pays the dealer a set amount per car that will pay for the interest if the
car sits on the lot for 60 days. Sixty days is the ideal turn-time for a dealer’s inventory.
4D 3.0 EX 5-Speed A/T w/Leather (V6) - $120
___Any 04’s still have a $1,300 FTD incentive. The 05’s only have the 1.9% financing.
___05 Accord Sedan EX V6 w/ Auto: $24,539 - $801 - $120 = $23,618 including destination which should be the dealer’s actual cost?
Chicago Tribune - 01/02/2005 Transportation Section - Grand Honda: 05 Accord Sedan EX V6 w/ Auto: $23,588 including destination.
___How this dealership can sell hundreds to thousands of Accords at a loss like this day after day, week after week, and month after month is unknown? Read back maybe 4 or 5 pages as to what the best prices on the Accord V6 EX’s w/ Auto have been. They have gone out at lower then the Grand Honda deal posted above.
___See Post # 6348 Re: 2005 Accord EX V6 w/leather:
I just paid 22,835.00 including destination charges at Autowest Honda Fremont. I drove 2 hours on New Years eve to make the deal. No other local dealer was willing to match the deal. Autowest has a local dealer that suggested that I better make the trip because they couldn't match the price. I think I got a really great price and the dealer was easy to work with.
___Good Luck
___Wayne R. Gerdes
Thanks a lot for the info. I really appreciate it.
The dealers in my area very rarely advertise a selling price for the EX V-6. They usually only advertise the selling price for the 4 cylinder models or a lease price for the V-6.
___Quick question if you do not mind? How are Honda dealerships around the country selling Accord’s for less then Dealer cost when Invoice, Holdback, and the Honda Floor-plan allowance are taken into account? Someone has to pay the salesmen/woman, the lights, taxes, interest(s), the building, advertising, and the Boss’ 4,500 Sq. Ft. Home in the Hills? Are there hidden Factory to Dealer incentives that the average Consumer has not heard about from the likes of Edmunds, KBB, Car Point, etc. If so, would you mind telling us what kind of incentives they are? Sell 200 Accord’s in a month and receive an extra $1,000/Accord or other such deals to the dealership as a whole?
___Second, you wouldn’t happen to be a salesman from California, Maine, Massachusetts, New York, or Vermont, would you ;-)
___Thanks in advance.
___Wayne R. Gerdes
My advice: Get the EX... unless you have an aversion to sunroofs, and since you want the alloys anyway, you'll probably come out even, after you factor in slightly better resale and the cost of the alloys..
regards,
kyfdx
Edmunds Price Checker
Edmunds Lease Calculator
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I'd recommend either getting the EX -OR- wait until you can replace the tires for quieter ones and then get 16" tires and wheels.
I've visited dealers (only 3) in the area (Connecticut) and gotten quotes thru the internet, always asking for their best prices.
The highest I got was 21,391 (+TTL) and the lowest 18,400 (+TTL). The lowest was from a dealer on Long Island, a 2 hour ride one way for me.
All along I've been checking the price on CarsDirect, which was 19,396. The last week of the year when I checked, the price was 18,194 so I decided it was now or never.
I contacted CarsDirect on 12/30/04 and set up an appointment for the next day. When I got to the dealer, the Internet guy was so busy I had to wait 2 hours. CarsDirect had told other people to pick up their cars at the same time! I was the fifth car he sold that day, and there was one party after me.
Details- 2005 Accord LX, Auto, 4-dr, 4 cyl
Car - $18,194
PZEV(Since CT is between MA and NY, all Accords here come with PZEV
- $135
Doc fee - $179 (other dealers were $149,$159)
Lemon Law - $3
Total - $18511 + TTL
I've seen posts here where people have paid less, but I'm happy. I also got 1.9 financing.
Thanks to all who have posted here.
BTW, the highest quote I got was from the same dealer I eventually bought from (Fair Honda in Danbury, CT). The difference in quotes was $3,197! Can you imagine there are people who only go to one dealer and buy a car!
On to the owners forum!
You got yours for $19700 plus tax, so that is $700 under invoice. Sounds very good to me.
How did you do it? Just ask for a price and they gave it to you?
Thanks
Thanks
We went over the car together when they got here, and then my husband and I drove it around--no problems, everything was great. There were no surprises in the documentation either--the figures all matched up to the penny with what I'd been told over the phone. He did ask if I was interested in a 7-year, 100,000 mile extended warranty for $995, but I said no, and that was that.
The car + dest. was 17,722, and my OTD was 19,139.60. Not quite as amazing as a few of the other after-Christmas deals I've seen here, but I am happy. I used the Fighting Chance packet and was pleased with the results. I am not a wheeler-dealer by nature, so I appreciated the boost the packet gave me.
Out the door price $25,200.
I used to negotiate as a auto broker part time, so that helped. Plus, got some oil changes added as well.
Bought on December 31st, so that was a huge factor since Honda is trying to claim the #1 selling car in America title.
Reply with any questions & good luck!
___OTD pricing means very little to most of us? What was your price before state sales tax and license and where (what state) did you purchase it from?
___As for Honda trying to grab the sales title from Toyota, they aren’t even close so that is not a reason for the great prices seen over the last few months.
___Good Luck
___Wayne R. Gerdes
I'm looking for an ex v6 w/ leather coupe and was curious about how you found out about the $1300 factory rebate and $800 holdback. would this be the same amounts for the coupe.
thanks.
Yes, Honda alloys are expensive but they do fit well and the have the correct offset.
I do agree with the others. I would simply spend a bit more and get an EX if alloys are THAT important to you.
Did anybody now a dealer in the Eastcoast with a price under invoices. I live in Florida and nobody here will go under invoices. When to a dealer last Sunday and they will not go under invoices. Any help will be appreciated.
Thanks
I purchased my 2005 Accord EX V6 on 12/31 and the breakdown is as follows: The dealer also threw in the Trunk Tray and Wheel Locks.
23,450 Car
108.70 Splash guards
199 Conv. fee
1,425.46 Tax
85 Transfer Registration
Total OTD $25,268.46
Endmunds suggested the 'true market price' was much higher...I don't know they get their numbers but that was not the true market price when we purchased.
-D
Originally though, the price they were quoting me was $19,608 for an EX ("Plain" as you put it)
Keep in mind, the dealer attmepted to add about $400 additional to the price when I got there for some protection package which included wheel locks, mud guards, and door guards. Typical and expected, but every dealer seems to be doing this.
Also the price I got was way below invoice due to the end of the year, since I bought the car 12/31/04. THEY ARE TRYING TO SELL AS MANY HONDAS AS POSSIBLE, contrary to what some are saying on these posts.
Just remember this rule of thumb, as I have worked as an auto broker...Offer 20% below what you are willing to pay. Then when they laugh or sigh, and look at you like you're dumb. Thank them for their time, and get up to leave. Walk away. Next person that calls has lost the game, so wait for their call. Move on to the next dealer.
Please let me know if you have any questions.
Good Luck!
Here's the breakdown:
23714.29 (including 515 Destination)
100 Processing
1190.71 Tax Maryland
191 Registration & Tags
===========
25,198 OUT THE DOOR
Wayne----As to grabbing the sales title, HONDA IS TRYING TO DO THIS, even if it is a last ditch effort. End of year numbers are the bottom line for many dealers and bonuses. Regardless what their real motives, we the consumers have greatly benefited. If you didnt' get your Accord on 12/31/04, you missed out! I saved over $4700 off of MSRP...I don't CARE for the reason anywayz...
Good Luck!
Price: $18250 + TTL
Negotiated Out the door price: $20,000 and the dealer threw in mats, mudguards, wheel locks, etc.. along with a free oil change.
This car was purchased in Southern CA could we have done better?
Is that the price you paid for a 2005 Accord v6 with Navigation?
Thanks,
___Thank you for the break down. $23,700 is a great deal given the Dealership cost (that we know about?) is ~ $23,430. A great deal on your part and a small profit for the dealership to make both parties happy! I hope you enjoy it as much as I will someday ;-)
___In regards to breaking the Camry’s top sales, it wasn’t really even close. Honda is expecting another 7% decline in Accord sales this year in fact. The year ended with Honda posting 386,770 Accord’s being sold, down 3.1% from 03 although there was a nice percentage increase in December Accord sales (+ 39.3%) vs. December of last year. I sure wish I knew what the incentives actually were? Isellhonda’s is saying nothing and the new Honda salesperson, Talleydealer, did not reply? Toyota’s year end Camry sales hit 426,990 in 04 which makes it the “Best Selling Car in America” for the third year in a row :-(
___There is still a lot of room for great Accord deals in 05 but some of the $500 to $1,000 under dealer costs including the small floor plan allowance and hold back are probably gone for the time being? I will be watching this Friday’s, Saturday’s, and Sunday’s edition of the Chicago Tribune to see if Grand Honda here near Chicago will still be offering those EX V6’s for ~ $20.00 below HB and Floor plan allowance prices or not this coming weekend as they did last, and the weekend before that, and the weekend before
___Good Luck and thanks again for the breakdown as this is the exact Accord trim I am looking at as well.
___Wayne R. Gerdes