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Comments
Getting SE for $14,882 plus 6.5% tax and $161 transfer plate or $181 for new plate.
and GLS with Preffered Package (3) for 14,465.
Both silver color.
Are these good deals in OHIO ? I know Taxas has extra 500 $ rebate for finance and california has extra $1000 rebate. I I am looking for best price in areas closer to me.
I need to decide this weekend to go for one of these or go for a Corolla LE with SideAirbag,ABS,Audio Package(VV) for $16.3K.
Advice please
Santa Fe and love it.
* Comfortable driving position (Corolla's stinks, for me)
* Roomier interior, especially the rear seat
* More equipment for the money, e.g. XM radio, 4-wheel disc brakes, and alloys (SE) vs. plastic covers on the Corolla LE
* Better styling (subjective of course)
* Better handling
* Less noise at cruise
* And the warranty
So even if the Elantra cost more, it would be my choice over the Corolla. But it doesn't.
For example, I used Sonata, not Elantra, beccause I have the actual figures from the Sonata we bought in February. The Sonata is an SE w/XM, no package or options other than floor mats. We paid $18,189 including all rebates, fees and taxes, "out the door." Edmund's TCO says the price OTD is $20,825 including rebates, fees & taxes. So right off the bat, in our instance Edmund's is "off" by over $2600.
Edmunds shows 1st year depreciation over $6100 and a resale value of $15,334. (That depreciation is apparantly taken from MSRP, but it still is "off" a little). IF resale on our '07 Sonata SE is $15,334, the depreciation on our purchase price of $16,651(before fees, tax & reg) is only about $1300.
We, in CT, have to pay personal property tax each year on a car's value. That is not contemplated in the TCO. Insurance costs vary from town to town and there are too many other variable for TCO to give a reasonable estimate.
We financed $15700 for 60 months @ 5.9%. If we go the full term of the note, our finance charges will be almost $900 less than TCO projects.
TCO is an estimate based upon general assumptions. Those assumptions don't always hold water and I don't think they change from month to month as the real world market does.
Otherwise, you could not know. Or you are mistaken.
P.S. Hopefully they can repair the hail dents with paintless dent removal so they don't need to touch the factory finish.
Just to clarify, I don't consider legitimate business expenses to be profit - the dealer does not keep that money. Lease of building, office equipment, utilities and taxes are the cost of doing business. Where I take issue is with things such as "dealer doc fees", "ad fees", and other assorted fees which are doubled, due to the fact that those type of fees are already included in the invoice price.
Let's also not forget that the dealer has to pay for the car - they are a middleman.
The bottom line is this - we, the consumers, need to figure out how to get cars straight from the factory without dealing with the dealer middleman, just like we get jewelry, furniture, and electronics.
P.S. - the last time I bought a new car (6 months ago), the dealer made $318 profit (plus whatever extra they could get from the sale of my trade - I'll never know that number). I'm sure someone bought a car from them the same week and gave them $2000 in profit.
Our Sonata purchase 4 months ago was $1900 under invoice before $2500 in rebates. We also paid $189 doc fee and the registration & title fees were probably about $100 high--call these fees $300. Do you think the dealer actually lost $1600 on that sale?
Good question though about whether the dealer lost money on that under invoice sale. I don't know how anyone but the dealer and manufacturer could know for sure. My guess is that occasionally a dealer will cut his profit into negative figures on a deal occasionally, in order to come out ahead in some other way. One example is when they need one more sale to qualify for some special bonus from the manufacturer. The bonus may be many times more than the amount of profit lost on one of those occasional "losing" deals.
And, there is such a thing as a loss leader in car sales too. An offer to sell a limited number of cars at a loss just to get customers into the showroom. Overall, the dealer thinks he'll profit in spite of losing money on the advertised special.
http://www.autonews.com/assets/pdf/07_anwc/wilhite_steve.pdf
25% profit? Doesn't look like it.
How can that be? Because the dealer BORROWS all the money! And the interest he pays on the loans are figured as business costs so do not cut in on any calculated profit. The interest charges are paid out of sales proceeds before the profit is determined.
But yeah, I do know a really big Hyundai dealer not far away. He's got to go about 320. He's about 5' 6", so not tall but still big, right? He's a nice guy and has a great sense of humor too. And, when we go out, he always picks up the bill at the All-U-Can-Eat Country Trough Buffet. (We like rib nights best.)
This was not a special deal that we negotiated or lucked into. It was their standard internet offering available for the month of February. The price was the price, no haggling-take it or leave it- and applied to any Sonata, regardless of trim level or options. As of the start of business on 2/24/07 they had already sold 70 Sonata's that month. I don't know how many were internet sales.
They quote their prices on the internet relative to invoice, not MSRP. June pricing: Elantra $1200 under invoice plus the $1,000rebate totaling $2200 under invoice. Sonata is $1400 under invoice, plus $2,000 rebate plus $500 loyalty (if qualified)totaling $3400 or $3900 under invoice. Quoted prices include destination.
Good point on "gross profit." Accounting sometimes has different definitions than common language. We'd really need to see the definition of "gross profit" as there could be other "costs" besides "interest" considered before determining "gross profit."
Check out Edmunds and you'll see that the car (with floor mats & destination) has an invoice just under $17,900).
That temporary registration makes it legal for you to drive on the roadways of the U.S. until you can get your home state registration all squared away.
We have a similar thing in my state for in-state car owners who need to drive to get their new registration or emissions tests, or even to drive to get repairs so the car is more likely to pass the inspections next time.
Our temporary registrations in those cases cost $1.00.
So I guess you did get charged a little (like $199) too much and you should NOT expect a refund.
But, like you said, it was all part of the deal that you approved, so no worries. Enjoy your Sonata.
And on the profit thing, either that dealer makes a lot of high profit deals to offset the losing advertised internet prices, or those internet deals actually were profitable despite the apparently no profit pricing.
Regardless of what a person might infer from a common joke, it is awfully hard to sell cars at a loss every time and make up for those losses with high volume. (But with lenient corporate tax and bankruptcy laws, the ever present stock market shenanigans and community incentives meant to attract businesses, I could be wrong about that. I guess it all depends on whose money is being counted in the end?)
Don't tell the dealer this part..
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Agree with Joe131 - I did my research for a few weeks - went to four dealers in NJ. Got a sense of price. But as Joe says - you have to have to know what you want. My routine - and I love buying cars - is to walk in, tell them I'm a committed buyer, that I'm going to buy. I know exactly what I want and what I want to pay for it. I will pay XXX dollars. (okay to start $500 below what you'll really pay). They'll check with sales manager - will be too high - tell them you're interested but you work hard for your money and every penny counts - too bad they can't come down lower. AND you have to be willing to walk out the door.
Even in places I didn't buy I was able to bring the price down between 1000 and 2000 in about 20 minutes. What's sad is the number of people who accept the first offer. BUT you have to be willing to walk out and they have to know it.
I bought mine over the phone. At the end with one dealer I asked "is there anything else I should know re: processing fees, etc. - "oh, there's the destination charge of $600." I went ballistic - I assumed this charge was already in - I told him how disappointed I was - how it was deceptive. He called me back in ten minutes offering to forget the $600.
I see that Huffines has a nice quicksilver Elantra Limited - http://www.huffineshyundai.com/frameset.htm?url=/about.htm
Go in and offer them 15,500 and tell them you'll write a check right then and there if they can do it for 15.5 K plus tax, title and processing fees. I bet you can close it at 16K with the 1000 rebate.
Good luck.