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Comments
As we get closer I see in the Dallas Auto Section, a dealer offering an EX V6 Sedan for $23235. While I know we've gotta compare OTD prices, we can make a 5 hour drive for $840. I also see an above post suggesting %700 under invoice is possible. That would put her car a bit under $23k and more than a $1k savings.
I've seen nothing that tells me Honda is kicking in more money to the dealers, but a below invoice buy would suggest it's so. Any advice before we pull the trigger? Don't want the local guy to break out the Champagne when we leave...lol
I have a couple dealers who will definitely commit to an EX-V6 Sedan or Coupe (not sure which I want) at Dealer Invoice + Dest Fee
Research shows Dealer Inv for ex-v6 sedan at $23,200 (or $23,015??) and ex-v6 coupe at $23,315
with $460 dest fee, brings sedan to $23,660 and coupe to $23,765 (before any mudguards, sunroof visor, etc. - which dealer has oddered at their cost
With dealer holdback at 2% I believe, this leaves dealer making $460-500 - anyone seeing/getting better deals on year end clearance?
That holdback is on a sliding scale and is based on number of days on the lot. If the dealer sells a car straight off the truck he gets the full amount. For every day on the lot it is prorated based on 90 days so if he's had the car a couple of months that incredibly gigantic humongous overwhelming "profit" of 2%, which so many people seem to think is more than fair and almost to the point of theft by the dealer is cut by two-thirds.
After 90 days there is no holdback so buying at invoice is buying at cost on any particular unit. Before anyone flames out or wigs out, yes there are bonuses on achieving unit quotas and there can be some money coming in at the end of the quarter or year however it isn't any fortune.
That isn't to say anyone shouldn't get the best deal they can, that's just to say that the salesman and dealer aren't getting rich from your purchase even if you pay a few hundred over invoice. The fair amount isn't the same across the board either. Some stores add more value than others and are justified in asking and getting a little higher price based on convenience, extended service hours and other values of doing business with them instead of another store.
Thanks for the info about the Waukesha dealer. FYI-when I lived in Mpls a lot of people bought cars from Sunny Jim in Sioux Falls SD. He used to deliver on a transporter free of charge to S Mpls. Got my best deal from Car City in Chippewa Falls WI which is adjacent to Eau Claire. Bought in August and got all of the hold back-they really wanted to move cars to get their allotment up for the new model year. Peter is the guy to work with at Car City-an honest car sales person.
"no car ever sits on a lot for the entire 90 days"
My local Honda dealers have hundreds of new Accords on the lot, and I'm sure plenty of them have been sitting there for awhile. Especially this time of the year. Not only do they not make as much money the longer the car sits, but will eventually start losing money. Do you think that the manufacturer gives the dealers the cars? The dealer basically pays interest on the car until it's sold.
In the perfect world, every car will be sold the day it arrives, at invoice, with no need for negotiations. The car will never come back in for warranty service. The dealer makes money, the customer gets a good price, the salesman gets paid, the bills get paid, everybody is happy. Unfortunately, we don't live in that world.
If any car sits on the lot for the entire 90 days, especially a Honda, then something's wrong on the dealership end. My beef is that I bought a yearend 03 accord and 3-4 places I went to tried to sell it to me for $400-$600 OVER invoice. Maybe for an '04, but definately not an '03! I finally found a dealer that sold it to me at invoice on the 5th attempt.
How is it that people have posted that they bought accords lately for UNDER invoice? How could a dealership afford to do that when they have to pay finance people, mechanics, salespeople, electric, water, taxes? Where's the logic in that UNLESS there are things we don't know about, Naw, that stuff never happens.
b_baz... if you go somewhere like L.A. or some other large city you will probably be able to get one, if it is worth it. I mean, realistically, if you spent 20 hours saving yourself 400(not unrealistic 4-5 hours each dealership) it's not "worth" it to me if I get paid 25/hour at work for much less hassle... Hope you enjoy your new Accord.
I've been known to get a bit cranky sometimes but I also know when to back off.
I enjoy a spirited debate until the venom starts. This doesn't happen often. Most of the posters here are friendly people. we may not agree with each other but the "conversations" are civil.
In light of this, and due to the fact that you have called me a liar and a phony, I shall refrain from any further interchanges with you.
Some people come here to ask questions and to learn. Others, like yourself seem to have a different agenda.
I won't rise to your bait.
$575 under invoice!
bazinet, your economics class failed you just as your math class did. $10k on a $20k car is a 100% markup. A 50% markup would be about $13,350 starting point. There may be that much markup on some items however it isn't in autos in today's market. The markup from cost to sticker price is not that high on anything from Honda.
In addition to being wrong, it doesn't matter what the markup on production cost is. The only markup that matters is the markup from dealer cost to selling price. If Honda can make the car for $832 and the dealer has to pay Honda $18,000 on a car with a sticker of $20,360 that $832 figure means nothing.
bazinet, I'm curious what you do for a living and how you are compensated. Perhaps that would give an indication of why you consider auto dealers and salespeople to be so outrageously compensated. To keep a large well stocked dealership requires employing, AND ADEQUATELY COMPENSATING, a large number of people.
Using your example of $651 holdback and estimating an average 30 day selling cycle leaves $434 and let's add to that another $400 over invoice providing $834 to compensate the salesperson and cover receptionist, secretary, porter, and numerous other positions. At that level the salesman is going to make $100 to maybe $150 maximum. That is to cover the several hours total he spends both in front of the customer and behind the scenes getting the car ready to deliver.
The dealer has around $700 left to split between the sales manager, general manager, owner, electric company, water company, telephone company, security company, cleaning company, county tax authority, school tax authority, and numerous other hands that must receive something. Luckily, if it's a high volume store it will do maybe 4000 cars a year. WOW, THEY ARE GETTING SO VERY INCREDIBLY WEALTHY THOSE DIRTY ROTTEN THIEVES!
Don't bother flaming back that they're obviously making plenty because they aren't going out of business. They are making it primarily because of the service department however the new car sales must make some profit to go along with the service business.
Until you've worked on the other side of the desk don't generalize and don't accuse. Take a refresher in basic arithmetic and read through that economics book again. Then after working the other side come talk to us again and tell us what crooks we all are. Oh, and what is it you do and what kind of profit are you allowed to make and how often are you called a crook?
She ended up buying a Graphite LX at Steven's creek for $19,400.
I know this is not the correct forum, but I don't see you on the Element one to ask my question. When are the 04 Elements due in at your dealership and what changes have you heard about them?
Probably won't see any 2004 Elements until probably late September. Since they are new, I wouldn't expect any changes...maybe a new color or something?
I got my 03 Accord LX 4 Cyl Auto at Fremont Dealership $18,880.00 out the door (I believe that's $1,200.00 below invoice price).
That someone is us, the people who buy them.
Same thing in any business.
I bought a EX V-6 with leather last week in Milwaukee,WI for $21,700 plus tax/title. $21,700 includes the $460.00 destination charge. So effectively this came to be $975.00 under invoice.
Thanks!!
After a little over a month I'm very happy with it. Kinda regret not getting the Navigation, though. My only real complaint with the car is that it doesn't downshift as often as I would like, most noticeably going up inclines at around 45-50 mph.
I was very impressed, I was reading a post that suggested to try them out.
They deliverd it to my house and the paper work was signed in my living room.
Nothing get's easier than that.If your from the so.cal area give them a try.
Invoice $20,619.
I am getting prices including destination charge from $20,400 to $21,200 + tax & tags. What is a good price? What kind of credit score do you need to qualify for the 2.9% financing?
Even considering the $150 bucks for gas and a motel, the difference will make the first 2 payments. If I get really anal and consider how much $ I have to earn to net $829 after tax we're talking $1200.
Lessons learned: don't be lazy, always shop, and do the math. Why one dealer is happy with $979 less than another is none of my business. My job is to shop a car. I figure I made about $250 an hour by doing the homework.
Good luck to all!