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Comments
Others think and operate differently. They spend weeks or months analyzing things to death. They carry laptops into dealerships etc.
Nothing wrong with this style, I guess but it's not me!
I hate it when a trade kills a deal.
Is the Edge really competition for the CR-V? When I priced one out it was well north of $30K.
Only a dumb salesperson will promise a firm delivery date. Too many things can happen. I always add a week to the date I really think it'll arrive. This takes off the heat and the phone calls. When I call and give them the good news the car has arrived early, they are happy!
Nissan and VW are both coming out with similar category vehicles. Are there any real pressures on Honda to give incentives? will there be a bunch of CR-Vs sitting around the lots in the next couple months looking for buyers? what's your crystal ball say?
Those dollars come from somewhere...the buyers!
They are on a treadmill that they can't excape. This was short term thinking. do whatever it takes to move product and worry about tomorrow later.
I hope Honda never falls into that pit.
Also, Honda doesn't have any rebates that I'm aware of. They usually run lease or financing specials.
That being said, you should be able to buy a new CRV in the next few months (maybe now) for at least $500-$1000 over invoice. Keep checking the CRV prices paid forum.
actually Honda already has special financing on Accords, Elements, Odysseys, Pilots and Ridgelines, so they are already in the game and have always been there. It's just a matter of supply and demand, but with the CR-V there is currently more demand, and when that subsides there will be offers.
I agree that this is all a game and rebates and other deals are all a farce. The real problem is that buying a car in 2007 is still like negotiating the cost of a chicken in a street market in a 3rd world country.
Nobody looks forward to the car buying experience. The manufactureres should fix the cost and reduce the fear that you are always going to have to negotiate a price. The price you walk out with depends upon how easily you gave in. So, the nice person unfortunately never wins.
This is a problem that can and should be fixed, and it maintains the lack of trust that most people have towards car dealers.
http://www.globalethics.org/newsline/members/issue.tmpl?articleid=11219922225391-
I'm not saying that all purchasing experiences are disasters, I have had some very good ones, but they are overshadowed by the bad experiences.
And, you know, the "nice person" does win in the end. They leave happy and content with the deal. The customers who pit dealer against dealer and grind for the last penny are never happy. They leave unhappy fearful that someone else, somewhere may have paid less. These are the people who give us bad surveys etc.
Ask anyone in the business if this is accurate.
as to the whether it's the customer, or the dealer that causes the bad reputation of the car dealer I tend to disagree.
I purchased 2 cars last year, I sat across from one dealer and he turned his monitor towards me and showed me all of the prices up front, they easily beat the Edmunds TMV price and the deal was closed in 20 minutes.
The other car was a disaster, it was the typical going back and forth to the mysterious managers room, and at one point I was asked to give him a blank check or a credit card to "prove" that I was serious about buying the car.
I can tell you that the "nice person" would have done fine with the first dealer, and would have been taken advantage of, by the second dealership.
The problem is that the car industry's policy of having flexible pricing established by the dealer lends itself to aggressive sales tactics, misleading advertising claims and hidden costs.
I'm really not trying to pick on the industry, but there is much that can be done to repair it's reputation, a reputation that is probably tainted by a fewer number of "bad apples".
regards, j
And, on the other side, there are customers that I want nothing to do with.
that's definitely a long drive from the US
is there a Honda Dealership there?
j
Long story...
So tell me, why do you hate it so much when the trade kills it?
Your car may be more than 5 years old, isn't a cherry, is a model that moves slow, or he already may be up to his neck in used cars and will have to wholesale it himself. He may also be in no hurry to sell a hot crv and get a slow moving trade.
You may also have received a super great price in return for the trade. Its hard to tell with little details. However with $2000 under you probably were loballed for any of the above reasons.
The nada and kelly wholesale prices are averages and a significant # of cars may sell $1500 below it. Even the averages themselves may vary by $2000. Try to shop your trade to 4-5 of the nameplates dealers. This takes a few hours. Leave a message if you need instructions on how to do this. I did this on a cheap car for $500 more than wholesale or the highest bidder. $165/hr. In any event it gives you a price your car is truly worth.
--jjf
We were in the same position today. The trade value was a full $2000 less than Edmunds, Kbb, or Nada. Is this just typical with the honda dealers? It's the first time we've considered going non-domestic and we don't want to sell it outright, we want fair value.
So tell me, why do you hate it so much when the trade kills it?
Really, I know it's not about what they give you for the trade or what you pay for the vehicle but the final deal, but when the vehicle price is pretty much set by demand, it leaves the only place for negotiating in the trade. I fear the best route maybe to explore a different vehicle.
Is there a on-line Forum for recent buyers of CR-V to discuss things like the "nuts and bolts" of accessories rather than prices paid?
Or, you can peruse the entire CR-V group of forums..
Honda CR-V
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I wish there was a way to have the various internet sources buy these cars for what they tell people they are worth.
The trade in may be an unpopular car that the dealer knows he will have trouble selling. Cars with high miles are almost impossible to sell. Yes, the guides say to deduct 1000.00 for those miles but in reality, it'll take much more than that to move the car.
Why do I hate it?
Because I have to be the bad guy. After all, the customer "knows" what their trade is worth! They are shocked when I hit them with reality. They will often go elsewhere hoping to get more. When they find out I was right, they just buy from the other store. By this time they are tired and weary from the process.
Here is what a trade is worth...a trade is worth what a dealer can buy a similar car at the local auctions for.
If the finance company has a one-pay lease program, you can save some of the finance charges, but it isn't nearly as much as you would think.
regards,
kyfdx
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If you are returning the car I will advise to invest the money and pay for your lease monthly. You may get a better return on the investment and offset the interest paid.
Looking at what others have said (esp. in Oct '06), it seems MSRP is what I should expect in the Seattle area. Is that true?
Anyone have recent buying experiences in Seattle for this vehicle?
And I'm willing to look at any of the trim levels, and will decide based on best value (how much below MSRP can I get it for). Although I'm really not interested in paying for a navigation system.
Is edmunds.com's TMV accurate?
Thanks in advance.
Sure, every manufacturer spends millions if not billions on developing a new model, factory upgrades, tooling, machines, and other equipment and then artificially lowers the output so that the dealers can charge more. Honda sells cars to dealers at invoice. Honda does not see any extra money that dealers charge over the invoice.
So, yes, it totally makes sence (NOT) that a manufacturer would spend billions to achieve economy of scale only to slow it down so that dealers can make more money.
(in case you didn't notice, the whole post was sarcastic)
There is only a handfull of people walking into the dealership who qualify for the special finance rates. FICO of 720, and really good debt to income ratio is required. Honda Finance Corporation does not like risky buyers, hence minimized losses.
Honda does offer great finance rates though. I financed the Civic (2002) at 1.9% for 60 months, and CR-V (2005) at 2.9% for 60 months. But, it made more sense to take the "free" money, than spend the money I had working for me earning more money. When they run credit reports, they see exactly what you can and can not afford. When you have the amount equivalent to the purchase price sitting in the bank ready to be disposed, they offer you very low interest rates.
Also, Honda offers "marketing support" money to the dealers. The Ridgelines had almsot $5000 in marketing support from Honda last year. If you know about it, you can negotiate it into the price of the vehicle. But, because it is not a publicly advertized rebate, it does not affect the resale value down the road.
Are all CR-Vs currently coming from Japan ( in NJ these are the only ones that I see on the lots). It may not be an artificial supply issue, but a real one if all cars are only coming from Japan.
any insight on whether Ohio will be (or is) making 07's?
1. It's a Dodge Dakota
2. It has 122,000 miles on it.
That truck is pretty much saleproof and seriously "back of book".
It's not the demand for the CRV that is the problem. It's your truck.
Thanks for any input.
MSRP - $28,595
Dealer Invoice - $26,482
Dealer Holdback - $840
(what they receive from Honda for every CR-V sold)
Rock Botton Cost for Dealer : $25,642
Figure in that the dealer should make a profit on it of 6 to 8 percent which is the average mark up for a vehicle; therefore a good price for the CR-V should be between $27,181 to $27,693.
If your numbers are indeed correct and the average markup is really 6-8%, cars in low supply and high demand like a CRV should be above average, wouldn't you think?
And for the umpteenth time, holdback does NOT fall to the bopttom line as profit. FAR from that. Holdback "helps" pay for some of the flooring and advertising.
Also, that invloice is wrong. It's 26,662 and your holdback number is wrong as well.
Consider selling it yourself. You might be pleasantly surprised.
I think the reason that people think holdback is profit (and for the umpteenth time you tell us it's not).....is there are a number of scenarios where it appears that it IS profit.
To make a very simple example, let's assume for last year that the Honda dealership is either breakeven or has made a profit for the year. To make up the numbers, we have $30Million in sales, $27Million in costs, and a resultant $3Million profit. It's Dec 31, and I come in and buy that new CRV(so we can have this discussion in this forum) that is just getting delivered....and we agree to do the deal at "invoice".
Incrementally, that holdback has added to the dealerships yearend profit position, it falls right to the bottom line as profit because all of the other costs have already been accounted for with previous sales.
I understand Jan 1 we start a new accounting year and there are a ton of costs just by opening the doors up.....but if you assume the dealership is profitable and in the black, then the holdback = profit.
What's wrong with that simple example?