Friend offered price below invoice on Civic EX, but I don't see what incentives support it.

deutschmarques

My friend texted me. He's at a Honda dealership in CT looking at a Civic EX on the lot (2.0 CVT, $21,875 MSRP). He wanted my advice because the salesman asked him to make an offer. While he was texting, the salesman thought he was stalling and talked to the sales manager then came back and offered the car for $18,000. Invoice is listed as $20,389 and I can't find any incentives.

Any idea how the salesman came up with this price? My goal is to recommend a number that is fair to both my friend and to the dealership. Normally I'd say offer Invoice+a percentage for profit. But if the salesman is offering less than invoice without any prompting, I'd like to know why so we can make sure everyone is happy.

stever

You're a good friend.

TMV is even more than invoice for a Hartford zip - $21,336.

New model, selling well, no "public" incentives and it's not the end of the month.

Beats me what the catch is.

Sounds like a great deal from here.

stever

Oh, your friend can call or text Edmunds direct for free advice. Contact info is at this link.

isellhondas

The fact your friend didn't jump all over that Civic for that price tells me he a (being nice here) "non serious buyer"!

Your friend got "lowballed" pure and simple!

kyfdx

Oh yeah..that doesn't include destination.

Oh yeah, that's only if you finance at 5.9% APR.

Oh yeah, that doesn't include the $995 protection package that is standard on all of our cars..

deutschmarques

isellhondas said:

The fact your friend didn't jump all over that Civic for that price tells me he a (being nice here) "non serious buyer"!

Your friend got "lowballed" pure and simple!

No... he is indeed a serious buyer. As the "car guy" in our group of friends, everyone comes to me for advice. He went to the dealership to test drive and make sure the Civic was the car he wanted (he's driving an ancient and well-used Corolla now.) But when the salesman started talking sales, he panicked and texted me asking what to do. He decided to go home to talk it over with his wife and consult me before doing further. I helped his wife pick out and buy her car a few years ago.

deutschmarques

kyfdx said:

Oh yeah..that doesn't include destination.

Oh yeah, that's only if you finance at 5.9% APR.

Oh yeah, that doesn't include the $995 protection package that is standard on all of our cars..

Yeah, that's possible. He should have asked for the details. He's a recent college grad, so he should be able to qualify for HFS's 0.9% rate. Be interesting to see if the dealer is willing to do $18K with no add-ons and the 0.9%. Sounds like that would be an excellent deal...

isellhondas

kyfdx said:

Oh yeah..that doesn't include destination.

Oh yeah, that's only if you finance at 5.9% APR.

Oh yeah, that doesn't include the $995 protection package that is standard on all of our cars..

You are dead on here! " something" is going to rear it's ugly head.

" Oh, that was a one day deal we were running....you should have bought it that day"

" I didn't SAY I would SELL it for that price, I simply ASKED if you would pay 18,000!

I used to have to deal with lowballs from other stores constantly. Usually Destination charges that weren't included. etc.

Sadly, lowballing often works. The weary shopper won't go back to the store that was honest with them because they are embarrassed to admit they were lied to. Instead, they cave in and buy from the store that lied to them.

isellhondas

I once told a shopper..." Our Sales Manager said he would buy ALL of the Civics on his lot for that price and that we would even pick them up...he is ready to hand deliver a company check"

The customer actually used his cell phone and called the Sales Manager of that store and told him that!

" Ah....you wanted an LX.....right?

" No an EX! Your salesperson knew that!"

" Ah....I need to have a talk with my salesperson"

An hour later he was driving his new EX home! Done deal!