Why is there a huge discrepancy in the price for the 2016 Accord

humzaq1

I have been shopping for the 2016 Accord EX w/ Sensing in Ohio. I just dont understand the huge discrepancies in prices from one dealer to the next. Using edmunds, I found an out of state dealer offering $2600 off MSRP, another in my state for $2000 off, and my local dealer for $800 off. I decided that $2100 off MSRP, at invoice, would be a fair price to bring to my local dealer. The salesperson essentially said that price is not possible, and that if I want to use the prices of other dealers to negotiate, I need to gather valid information.

This shopping experience is just so discouraging. I'm not sure if he was simply negotiating with me, or if he truly couldn't offer that price. I would be fine with only $800 off if that's realistic. But if they're making $2,000+ simply by my act of walking in and asking for the car, thats just not fair.

Does it have something to do with the size of the dealerships? I've noticed that larger dealerships offer a smaller discount than the smaller ones?

kyfdx

humzaq1 said:

I have been shopping for the 2016 Accord EX w/ Sensing in Ohio. I just dont understand the huge discrepancies in prices from one dealer to the next. Using edmunds, I found an out of state dealer offering $2600 off MSRP, another in my state for $2000 off, and my local dealer for $800 off. I decided that $2100 off MSRP, at invoice, would be a fair price to bring to my local dealer. The salesperson essentially said that price is not possible, and that if I want to use the prices of other dealers to negotiate, I need to gather valid information.

This shopping experience is just so discouraging. I'm not sure if he was simply negotiating with me, or if he truly couldn't offer that price. I would be fine with only $800 off if that's realistic. But if they're making $2,000+ simply by my act of walking in and asking for the car, thats just not fair.

Does it have something to do with the size of the dealerships? I've noticed that larger dealerships offer a smaller discount than the smaller ones?

Dealerships are independent businesses and prices are negotiable.

carboy21

Walking out of the door is the best negotiating strong point. Drive out of state and get the $2600 dealer. Its a known fact that local dealers jack up their prices if they know you are from the area.

isellhondas

A "known fact"? Really? I thought I had heard it all!

Make whatever offer you are comfortable and be prepared to walk out.

If a dealer allows a customer to walk out, the offer was too low. It's as simple as that!

Michaell

isellhondas said:

A "known fact"? Really? I thought I had heard it all!

Make whatever offer you are comfortable and be prepared to walk out.

If a dealer allows a customer to walk out, the offer was too low. It's as simple as that!

I'll second that .. though I suspect some dealers might accept an offer others would reject.

If dealer A has sold 99 cars in a month and a healthy bonus is made by selling 100 cars, whoever that next customer is might get a killer deal.

If the same dealer has sold 91 cars that month, there isn't as much incentive to sell the 92nd car.

hondaretailer

It's a known fact that you can make up any facts you want on the internet. In fact, no statics show 77% of all the comments made are completely fabricated.

The reason pricing is so different is because Honda say's the value for a 2016 Accord EX w/Sensing is $28,570.00 and a dealership with 12 of them may value the car at only $26,300.00 while a dealership with only one or even, none probably is interested in earning a small profit off of their limited inventory.

isellhondas

It's all about supply and demand.

Once in awhile Honda will come out with a color that is despised by 99% of shoppers yet, there will always be "someone" wh just HAS to have that color and won't accept anything else.

This can work for and against the shopper. If the store KNOWS that is the only color that buyer will accept, AND he pulls a "locate" and discovers he has the ONLY one in the region, guess what? That shopper will be paying a healthy price for that car.

If, on the other hand, the store is sitting on four of them and the locate shows other stores in the area are loaded up with them, that store will be willing to take a very low offer just to get rid on one of them.

thebean

isellhondas said:

It's all about supply and demand. Once in awhile Honda will come out with a color that is despised by 99% of shoppers yet, there will always be "someone" wh just HAS to have that color and won't accept anything else. This can work for and against the shopper. If the store KNOWS that is the only color that buyer will accept, AND he pulls a "locate" and discovers he has the ONLY one in the region, guess what? That shopper will be paying a healthy price for that car. If, on the other hand, the store is sitting on four of them and the locate shows other stores in the area are loaded up with them, that store will be willing to take a very low offer just to get rid on one of them.

I really enjoy your posts and insight into the car sales biz.

thebean

Wow, not sure what happened there.  When I posted originally, the posts didn't show up.  Sorry about the multiple posts. 

stever

The automated spam filter caught them for some reason.