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Honda Ridgeline Prices Paid and Buying Experience

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Comments

  • tbone0103tbone0103 Member Posts: 9
    Just an FYI... Monday, I bought a 2008 Formal Black RTL w/o nav., w/ leather, cargo tray, window tint, moonroof visor, pin stripes, door edge protectors, wheel locks,, mud guards, for $26,099 + TTL came to 27,541.... I think that is a pretty good deal..... about 9000 off MSRP for the basic RTL w/ no dealer packages... Any thoughts?
  • mplshondadlrmplshondadlr Member Posts: 409
    Thats a great price. The RTL comes with tinted windows standard.
    The MSRP is $33725.00
    Invoice is $30796.00
    minus $4500.00 dealer cash
    minus cost of accessories $529.00 (MN prices installed)

    = You bought the Ridgeline for $529.00 UNDER invoice - About $8000.00 off MSRP.
  • jfritschjfritsch Member Posts: 958
    10k off msrp (with the favorable financing) would be good. Almost 12-14k off (10k plus the favorable financing) I would like to see myself. Although I wouldn't go off in a froth of denial if I saw one, just scepticism. Really, ever since the Ridgelines intro many dealerships have had to let some go for 7000+ off msrp around july, especially the higher trims. 8k off is nothing to write home about now in "bad" times.

    10 k off (in cash or cash + financing) isn't exactly giving a 34000 msrp vehicle away especially when you may be very lucky to trade it in on something else (or more accurately, for cash) for $ 20000 in 12 months. Numerous members on the ownersclub forum have bought used 07s and 06s from dealer retail for kbb wholesale (trade in) value or less.

    I'm not telling you every dealer in every city will line up to drop his pants for 10k off for emailing him, and I'm not going to email 100 even of the 1000 or so honda dealerships around the 100 or so major metropolitan areas and some in the stix so you can consider yourself the victor on this one mplshondadlr.

    Good luck
    --jjf

    You may not get iti in your area but the concept that 10k off (especially including favorable financing) is pie in the sky is mistaken."

    The proof is in the pudding -- be prepared to put your money where your mouth is. Here is a challenge for you, the expert: Get a verifiable quote from ANY dealer in the United States for $10k off the MSPR + the low rate APR option. Email me the dealer name so I too, using my email can get the same quote. It must also be verified with a phone call to the person who sent you the quote. If it's true and verified, I will buy the Ridgeline on the spot.

    I'll be waiting...

    The truth is you're going to say, "I don't have to prove it" but you the expert knows it can be done. Not only will you not provide proof but you'll also try to disparage me for calling on to the wool.
  • sbddrjsbddrj Member Posts: 8
    It is funny seeing a dealer on here trying to dispell what others are saying about prices for a Ridgline. Just shows how depserate they are, and how much time they have on their hands becuase of decreasing car sales. The fact is the sales figures for the Ridgline were down 41% for June 08 and now down 47% for July 08. They are going to have to provide some larger incentives to dealers so the can move their inventory. I think $10,000 off MSRP is realistic, and taking into consideration like you are saying that the consumer is really the one that will take the hit in resale value, it is not an unrealistic expectation on the consumer's side. mplshondadlr tries to invoke fear by saying that if you wait thinking you can buy lower later, then you will miss the boat. The trend is down for the past few months for Ridgline sales, and I doubt the rest of the year is going to buck that trend. With back-to-school coming up and then the holiday season, and the fact we are in a recession, who is going to be buying new cars? Not many can afford it. Gas prices are still through the roof, and will continue for years to come. Even if we start new drilling, it is going to be 5-10 years before we see realize the benifits. You would be dumb to jump on the current incentives, especially when they are going to have to ultimately raise the incentives to move inventory, especially on their gas-guzzling Ridgline. I will sit on the sidelines and wait myself, and I would not buy a Ridgleine for more than $10,000 off MSRP, especially if you want to limit your downside on resale value. The problem is that Honda always give "secret" dealer incentives to protect their image and they will say to protect consumers from decreasing resale values. But, would they secretly pass those incentives to you if you signed an agreement not to disclose them? No, they would never tell you if you did not read this board and others and find out about them off others' experiences. That is the risk of buying right now. More secret dealer incentives are going to have to be worked to move inventory, and you don't want to be the one who finds out about them on one of these boards when you thought you just got a good deal, and little did you know you are now thousands of dollars more upside down than you expected. Buying a car is never an investment, but you have to limit your losses. I heard a radion add while in Atlanta last weekend of a dealer offering the $4500 dealer incentive plus 0% for 60 months for Pilots and Ridgelines. That tells me there are more incentives out there that are not being disclosed. It is supply and demand, and they hate it when the ball is in the consumer's court, which it most certaintly is now. I hate to see a company lose money, as it puts Americans out of work, because ultimately it will be the workers that take the hit, not the company or the bigtime executives, but why would I buy a car right now and take part of that hit for the company?
  • bikerhikerbikerhiker Member Posts: 1
    Located in Western Iowa, area dealer hit my bid last night on a new 2008 Ridgline RTS for 22,800 all in (includes all his bogus fees etc). Am glad I bought the truck and have it now, but feel if I'd waited until Sep 30 (end of quarter) could have gotten it for 21,000.

    Been tracking inventories in my area from dealer websites past 2 months, and it is an absolute train wreck waiting to happen out there before the 2009s come out. Based on July sales pace in my area there is 22 months of inventory among the 5 dealers within 150 miles of me.
  • mplshondadlrmplshondadlr Member Posts: 409
    "mplshondadlr tries to invoke fear by saying that if you wait thinking you can buy lower later, then you will miss the boat." (I said that when?)

    Nice -- I'm creating fear? What ever, take the tinfoil hat off. My dealership has just three Ridgelines left for the 2008 model year. Thats it, nothing else in-bound. In the Minneapolis area there are fewer then 25 2008 Ridgelines left to serve 3+million people.

    Right now every Honda dealer is offering the Ridgline $5300.00 UNDER invoice which is close to $8k off of MSRP.
  • sbddrjsbddrj Member Posts: 8
    It looks like the dealers in your area have done well in managing supply. I see 82 vehicles available with 250 of Minneapolis. Or, there just is not any demand for the Ridgline there, and they know it. Kudos to your dealership. However, if you perform the same search for 250 miles of my zip code 35758, there are 624 Ridgelines available. Of course this is not real time inventory figures, but reliable numbers. Like I said $10,000 off MSRP is what I would buy a Ridgeline for. My question to you is would you pay top dollar on a Ridgeline trade-in, or even above KBB trade-in value? I doubt it, so why would I as a consumer want to pay market price for it knowing my fate after the purchase? Honda would be a lot better off with the Pilot and Ridgeline if they would just price them really competitively up front, limit supply, and not offer any dealer incentives at all, other than maybe sales incetives for selling the most in your region or something. Then, there would be a win/win situation for the dealer and consumer. However, with having to offer up to $8,000 off MSRP, and doing it habitually every year, then consumers have come to expect this discount, especially the informed ones. Therefore, the Honda image for resale value and quality just does not equate to anything for the Pilot and Ridgeline, because later on when you want to trade, you find yourself upside down and find noone wants your vehicle. And the thing that makes me so mad about it, is as long as this has been an issue, dealers just don't want to find a way to buck this trend.

    As far as my comment, you siad "Dont listen to other people, you can not get $10000 off the MSRP. If you hold out for that kinda pricing, you'll be a forever shopper, never a buyer."

    As far as I am concerned, if I do not see $10,000 off MSRP and I don't get to buy one, then that is fine as well, as I won't be the loser in the end. Even at $10,000 off MSRP, I would be taking a big hit in resale value later, but I would feel I got a quality vehicle for a "reasonable value" considering the economic conditions.

    I think $10,000 off MSRP is possible, considering consumers have been getting $7,000 - 8,000 off MSRP religiously for the past couple of years. Now that gas is up big, and we are in a recession, then I would say $10,000 off MSRP is fair. If Honda takes a hit, then maybe they will hire a better economist to manage supply and demand.
  • mplshondadlrmplshondadlr Member Posts: 409
    In order to get 10k off MSRP Honda would have to offer $6500.00 in dealer cash. I doubt very much they would ever offer that kind of money :confuse:

    Regardless, you're going to continue to think what you want no matter how much I try to educate people about actual costs.

    Here in the Twin Cities we may have fewer available because we have a climate for 4wd vehicles. Afterall, our winters last from late Ocober to mid April :mad:

    "My question to you is would you pay top dollar on a Ridgeline trade-in, or even above KBB trade-in value?"

    No. But the more you reduce the selling price of a new one, the more you reduce the wholesale value of a used one. At some point the market will adjust.

    "Honda would be a lot better off with the Pilot and Ridgeline if they would just price them really competitively up front, limit supply, and not offer any dealer incentives at all, other than maybe sales incetives for selling the most in your region or something."

    I AGREE!

    Lastly, we are not in a recession, last quarter the United States experienced 1.9% growth and gas prices are falling as we speak. As you know, we have to have to quarters of negative growth yo be in a recession.

    As I said earlier, $8K off MSRP for a Ridgeline is still an awesome deal!

    Thanks for the conversation. I hope you'll get your deal and become a happy Ridgeline owner ;)
  • tbirdtbird Member Posts: 19
    For those of you that are pricing or have just purchased a Ridgeland what has been the best combination of price below MSRP and interest rate. You would need to give us a term to balance it out. I want to purchase one in Georgia and the best I've been given is right at 8K below MSRP and a rate for 48 to 60 months of 4.75.

    Thanx,

    T-Bird
  • tdbrphtdbrph Member Posts: 40
    Biker,

    Care to share the name of the dealer? I got no where near that at the end of July from Dealers from Kansas City to St. Louis.

    Thank you.
  • wysedomwysedom Member Posts: 1
    honda cars of bellevue, ne
  • jfritschjfritsch Member Posts: 958
    How can you educate people about actual costs when these are not well known. (Especially with Honda, and more advertised and unadvertised dealer incentives than most?) This in very true now, with a once in a lifetime re-adjustment of capacity to manufacture 20mpg vehicles

    Honda's (or any other nameplates) discounts do not reduce wholesale prices, or the other way around. A weak demand in the used market usually indicates a weak demand in the new vehicle market. The ridgeline had a trade in value since its intro of about 10000 from msrp. Thats where the used ones would move. Honda found it had to discount the (majority) of the new stock 6000 around july to clear the way for the new RL's (and pilots)

    The dodge Ram 1500 msrp 40000 has a trade in value of 20000 12 months after purchase. They regularly sell for 12000 off all year (to people who don't buy many cars and can't believe 12000 off) and for 15000+ off to those a bit smarter. Still deals nothing to write home about. Thousands of knowlegable wholesalers making bids on what the car actually demands in the marketplace in as new condition as possible (about 12 months) shows a much different picture. MSRP is a figure concocted by marketing and printed on a piece of paper.

    Why would honda put a 31000 msrp on a Pilot for years that they could only move most for in june for 24000? Why did they sell many of the 24000 msrp 07 accords for 20000 or less? Why no customer $2000 rebates on tv? (other than the so called brand image a smart move if one can do it).

    Simple. Research (actually dealers know) has shown for years that about 20%+ of walk in buyers (non internet with few or no compeitive bids from other dealers) pay msrp. Admittedly this may contain its share of $100 wheel lock and undercoat packages for $1000 included in this. Most car buys are also made during some sort of duress. This has been true for years. Walk in buyers may provide less than 40% of a dealerships unit sales but 60-70% of the profits.

    Also in a perverse sort of way buyers who get deals on the better end of the spectrum give mediocre to poor buyer surveys while people who get royally screwed tend to report the best "buying experiences".

    Pay $5000 more than the average guy for a vehicle and 4000 for extended warranty, wheel locks and vin etch and "pro pack", finance for 72 months at 8% with great credit and I guarantee one will be bragging about how quickly they were processed, the whole experience was "painless" , how floor mats,cargo tray, net etc were just thrown in and the whole experience took less than half an hour!. Our salesmen took a whole hour to demonstrate all the features and took us all to Mcdonalds! He filled our glovebox with his best glossy cards to give to our friends who he hopes are as good cultured and intelligent customers as we are! I would highly recommend ACME motors of Walla Walla Washington and gave them great marks on the factory's dealer survey. We even wrote in great comments about our salesman Jerry's great attitude in his struggle with his Wife's illness and child's cerebral palsy (In actuality, the picture on Jerry's desk came with the pictureframe)

    Any attempt by any manufacturer exec to reduce msrp's to reflect "real world" values would not only be impractical in most cases (sales vary greatly by region) but would wind up with said exec winding up with Hoffa.

    8k off a Ridgeline is in no way a giveaway. 8500 off a pilot this summer either. Most of the inventory accumulated until June and was blown out at 6000-7000+ off msrp for years, and this was with $2.00 gas. (Still, about 25% of the inventory moving close to msrp the 1st 6 months)

    10000 off msrp is more like it (probably possible including cash and favorable financing on the RTS and above trims) and no great shakes for a likely trade value in 12 months of 13000 off sticker if lucky. They only make 50000 of this niche vehicle a year, so maybe they might be able to finesse the inventory down, but the SUV mkt is against them.

    Obviously shoot for as much off as possible within 200 miles of your locale and take the best bids you can get if your really want one. Just don't buy it because at 8000 off it is a great once in a decade bargain you can't pass up because it isn't at that price.

    Good luck
    --jjf

    In order to get 10k off MSRP Honda would have to offer $6500.00 in dealer cash. I doubt very much they would ever offer that kind of money

    Regardless, you're going to continue to think what you want no matter how much I try to educate people about actual costs.

    Here in the Twin Cities we may have fewer available because we have a climate for 4wd vehicles. Afterall, our winters last from late Ocober to mid April

    "My question to you is would you pay top dollar on a Ridgeline trade-in, or even above KBB trade-in value?"

    No. But the more you reduce the selling price of a new one, the more you reduce the wholesale value of a used one. At some point the market will adjust.

    "Honda would be a lot better off with the Pilot and Ridgeline if they would just price them really competitively up front, limit supply, and not offer any dealer incentives at all, other than maybe sales incetives for selling the most in your region or something."

    I AGREE!

    Lastly, we are not in a recession, last quarter the United States experienced 1.9% growth and gas prices are falling as we speak. As you know, we have to have to quarters of negative growth yo be in a recession.

    As I said earlier, $8K off MSRP for a Ridgeline is still an awesome deal!

    Thanks for the conversation. I hope you'll get your deal and become a happy Ridgeline owner
  • mplshondadlrmplshondadlr Member Posts: 409
    "How can you educate people about actual costs when these are not well known."

    All I'm doing is sharing information, and trying to dispell some of the vast misinformation spread on this board. If you do not like/need the information, don't read it.

    I have been with Honda for six years and have no reason what so ever to misrepresent anything here on this board. None.
  • kderobertiskderobertis Member Posts: 82
    I guess I will hold out for the 2009, it's worth the wait.

    image

    image

    50 Significantly Changed and New Features

    Exterior Styling and Features

    Grille (design)
    Front bumper (design)
    Rear bumper (design)
    Headlight (color)
    Taillight (color)
    Bed tie-downs (two additional, eight total)
    Integrated trailer hitch (new for RT, RTS and RTL)
    7-pin trailer wiring connector (new for RTS and RTL)
    Daytime running lights (new)
    Three new exterior colors
    Fog lights (RTL)
    18-inch Alloy Wheels (RTL)
    4WD emblem (design)
    Powertrain

    Horsepower and torque (increased)
    Magnesium dual-stage intake manifold (previously aluminum)
    Camshaft (tuned for low-end torque)
    Intake valves (larger)
    Starter motor (ultra-fast)
    Transmission gear ratios (lower for better acceleration)
    6-degree crank pulse sensor
    Airflow meter within the air intake tract
    Optimized engine block coolant passages
    New EGR valve
    Interior Styling and Features

    Steering wheel design
    3-D-look speedometer, tachometer and IP meter designs
    New front seat active head restraints
    New trip computer
    New MP3/WMA compatibility
    Auxiliary audio input jack (RTS and RTL)
    Cloth seating materials (RT and RTS)
    New black interior color
    Power lumbar support (RTS)
    Carpeted floor mats (RTL)
    New integrated rearview camera (RTL w/Navi)
    New Bluetooth HandsFreeLink (RTL w/Navi)
    New multi-information display (RTL w/Navi)
    Interior color schemes (revised)
    Air conditioning controls (more ergonomic)
    Air condition display (larger icons)
    Clock display (enhanced)
    Headlight switch (recessed, more ergonomic)
    Door handle design (more integrated appearance)
    Sunroof button (improved)
    Cruise control button (improved)
    Accessories

    New motorcycle bed extender
    New bed-mount bicycle attachment
    New 18-inch accessory wheel
    New Bluetooth HandsFreeLink adapter
    Accessory grille (restyled)
    New Front lower air deflector
  • bolivarbolivar Member Posts: 2,316
    I see nothing significantly different from my 2006.

    Still missing are these important items:
    -Power passenger seat.
    -Memory controls for seats and mirrors.
  • aspesisteveaspesisteve Member Posts: 833
    I agree - the changes listed are not significant

    significant for me would be an increase in fuel economy
    maybe some more comfort in the back seats.
  • kderobertiskderobertis Member Posts: 82
    Well I'm lookling at the 2008, but the little improvements are going to make me wait for the 2009:

    Integrated trailer hitch (new for RT, RTS and RTL)
    Daytime running lights (new)
    Three new exterior colors
    Fog lights (RTL)
    18-inch Alloy Wheels (RTL)
    Horsepower and torque (increased)
    New black interior color this is key for me
  • bolivarbolivar Member Posts: 2,316
    Ohhhhh, I agree about the rear seat.

    I rode for some hours in the back seat of our 2006.

    The bottom of the seat is ok, but the back is somewhat hard. Worse, it is too straight up. If it would only be reclined more, it would be much more comfortable. With the seat back not movable, I would think it could have more of a recline. It might reduce the legroom, but I think the loss of a couple of inches would be worth it in comfort.
  • ida4128ida4128 Member Posts: 6
    I heard today the new exterior colors will be Sterling Gray, Bali Blue and Mocha Matallic. Officially, the new colors, trucks and pamphlets will be available on 9/3 per Honda. I hope my source was correct on the colors.

    With the information posted on the various discounts for the 2008 model, I am trying to make a decision on whether to hold out for a 2009, prices unknown.

    Any general thoughts on what Honda dealerships will do price wise once the 2009 MSRP numbers become available? Does Honda typically offer any incentives (rebates, financing, cash to dealers, etc.) at the start of a model year? I checked the local inventory of 2008 models and there are 104 within 30 miles of my zip code in AZ. My sense of reading the postings in this Forum is the Ridgeline is not moving very well in most parts of the country. That being said, how will that effect the pricing for the 2009 model? Thanks for any feedback.
  • kderobertiskderobertis Member Posts: 82
    I don't expect any of these automobile manufactures to be in any better shape next year, since they are expecting oil to increase back up to the $150 mark by winter.

    With that said, I expect discounts to be available on all type of SUV/trucks.

    Why take and year-end 2008 that has depreciated, when a 2009 offers improvements along with a discount by the holidays. The financing rates may be better for a 2008, that what will be offered for the 2009.

    Just my two cents.
  • aspesisteveaspesisteve Member Posts: 833
    you won't see big incentives on the '09's until the '08's are significantly thinned out.

    I'm guessing the '08's will be heavily discounted in the fall when you would typically see few remaining.

    MSRP for the Ridgeline didn't last much past the initial release of the vehicle. I think Honda misjudged what the masses would be willing to pay for this truck - and that was before the sudden rise in fuel prices.
  • sethnagasethnaga Member Posts: 50
    This is the best I got so far :

    Offered price for an RTL with navi :26394+TTL. (MSRP:35760) -$9366 Below MSRP
    Offered price for an RTX is 20650+TTL (MSRP 29170) - 8520 below MSRP

    The price above include all fees (Doc fee, Dealer fees etc). Only extras are Tag, Tax and title

    Is this a good deal?
  • mplshondadlrmplshondadlr Member Posts: 409
    How much is the DOC fee?
  • sethnagasethnaga Member Posts: 50
    No extra Doc fee; Every fee is included in the price above
  • kderobertiskderobertis Member Posts: 82
    The RTL w/Nav is a great deal, but I'm holding for the 2009.
  • sethnagasethnaga Member Posts: 50
    Today I purchased an RTX for 21950 OTD. Here is the price breakdown

    Truck Price: 20650
    Tax, Tag:1300
    Total out the door:21,950

    I also got 0.99% financing for 36 months
  • aspesisteveaspesisteve Member Posts: 833
    you did great imo

    1% apr for 36 was just icing on the cake
  • ida4128ida4128 Member Posts: 6
    I checked the Ridgeline inventory in the Phoenix area via the cars.com link mentioned in other posts. I am only able to get the inventory of four of the eight dealerships in the area. Any ideas on how to get the other four inventories? The '09 is due out on 9/3. If anyone has the '09 msrp info, please share on how to obtain it. I may have to wait until Edmund's shows it, hopefully next week.
  • straussianstraussian Member Posts: 4
    I am shopping for a Ridgeline in the Dallas area. I have the most interest in the RTX version.

    Using the Edmunds price quote function today, I have so far received RTX "bids" of $22,033 and $21,133. One specifically says (and I believe it is true for both) that it includes destination charge. I see the MSRP with Destination Charge is $29,170 according to Edmunds. Bottom line: with almost no work at all we are at $8,000 off MSRP.

    However I prefer to ignore MSRP and just get as many "bids" as possible and then work down from there. As far as I am concerned, invoice and MSRP are meaningless--just find out the real world price through multiple "bids" and negotiate from there.

    I do believe in the old advice about shopping at the end of the month or end of the quarter, buying at the end of a model year, etc. Buying a car involves micro- and macro- economic decisions whether I know about them or not.
  • straussianstraussian Member Posts: 4
    By the way, I feel compelled to ask mplshondadlr a question: You mention "Dealer Investment" when talking about what a dealer pays for a car that he sells, but isn't it true that the vast majority of cars are floorplanned? That is, isn't it true that dealers don't buy a car for $20,000 and then sell it for $25,000, instead dealers pay Honda or a bank a monthly fee to have the cars sit in their showrooms and when a sale is made the dealer pays for the car?

    I may not have made it clear, but the point is this: Dealers "invest" almost nothing in the cars they sell (though they obviously pay a great deal to have the infrasctructure surrounding all those cars they don't own).

    The bottom line is that if I spend $1,000 to have a car sit on my lot, sell it to you for $25,000, then pay Honda $20,000 for the car only after I have received the money from you then I am making a very, very high return on my investment--$1,000 invested (the floorplan fee) returned me $5,000 in a few weeks or months.

    The obscurity of floorplanning will sometimes lead to the following sales pitch:

    A salesman says, "How much profit should a dealer make?" Hoping you will say a "low" figure of 5%, he will happily take the "dealer invoice" and add 5%. Or he might say, "Shouldn't car dealers make as big a profit as a grocery store?" Grocery stores are famous for low margins on their inventory. The salesman will want to show you the "dealer invoice" and add a "reasonable" profit--all of which is meaningless if you know about floorplanning.

    I will let the dealer worry about his profit while I worry about getting the best price.
  • mplshondadlrmplshondadlr Member Posts: 409
    You're kind of right. When floor planning with Honda, Honda lends you the money to buy the car from them at 2.8%. Every dealer holds a note for invoice minus the hold back and pay interest on those cars while on the lot. So in a sense, that is dealer investment.

    For us, we just built a brand new 30 million dollar store. It's not cheap to build a nice facility that should last 30 plus years while also creating a warm and inviting enviorment that is up to Honda specs. Meanwhile, other Honda dealerships in Minneapolis have aged facilities with 25% (or less) of our overhead, so these dealerships can really offer better deals. The lower the overhead the less profit needs to be made. Less profit equals a better consumer deal.

    "The bottom line is that if I spend $1,000 to have a car sit on my lot, sell it to you for $25,000, then pay Honda $20,000 for the car only after I have received the money from you then I am making a very, very high return on my investment--$1,000 invested (the floorplan fee) returned me $5,000 in a few weeks or months."

    That really doesn't happen. If you think we're making $4000.00 on a car, you're WAYYYYYY off base. At least in Honda - Chrysler or GM, maybe.

    However none of this means anything to you. You are a consumer, looking out for number one: YOU. I don't blame you. As a consumer I do the exact same thing. Except I tend to pay more for good service. For me, it's not always about price. Anyone can cheap sell you something, that doesn't mean they have a right to earn your business. I'm more then happy to pay a bit more to buy from a place that is well kept, where the people are well trained and friendly. Again, thats just me.

    Good luck and happy shopping. Oh, BTW - I just bought a black RTX for $22999.00 plus TT&L AND got 2.9% for 60 months.
  • straussianstraussian Member Posts: 4
    mplshondadlr, thank you for the gracious and thoughtful reply.

    You must occassionally (20% of the time?) make $4,000 (or much more) above "dealer invoice" on a car, right? And you seem to be conceding my main point, right?

    Let's say it is just $1,000 "profit" above the $1,000 floorplan expense; you make a 100% return on your "investment" (the floorplan cost) in a month or two. I'm getting 5% return or less on my savings account in one year. Yes, you built that beautiful showroom at great expense. Now why would you do that? Was it to lose money? Are car dealers not among the most successful and wealthiest people in any city? How is that?

    One of the interesting things about the car business is that we are not allowed to buy directly from the manufacturers (Honda, GM, Ford, whomever). Powerful lobbies create closed shops state by state and require that cars (among many things) be sold by local retailers. Why can't we order our Accords from Honda America instead of John Doe Honda of Dallas? The dealer lobby is EXTREMELY powerful because it is extremely wealthy. It takes money to make money, I guess.

    Texas used to have a law prohibiting branch banking. Consumers suffered for years, but the local owners of banks benefited from an artificially restricted market. Third world countries require you to have a local partner when doing all kinds of business. It helps the local partner, but it does consumers no good.

    FREE THE MANUFACTURERS!

    Okay, don't worry. I'm half-joking.

    By the way, congratulations on your new car. I like the RTX part, but black is a slightly less popular car color in Texas due to our wonderful summer heat. With global warming, I'm sure I'll be moving to your part of the country soon.
  • mplshondadlrmplshondadlr Member Posts: 409
    "Let's say it is just $1,000 "profit" above the $1,000 floorplan expense; you make a 100% return on your "investment" (the floorplan cost) in a month or two."

    That $1000.00 is called gross profit. On that thousand subtract 25 or 30 percent (depends on the commission scale). The on average you have about $144.00 per car in advertising. Then you have about $250.00 per car in admin expense (office staff, attorney fees because you have them on retainer, ETC...). Finally you have facility investment which is about $350.00 per car on a 30M building. That leaves about $6 in net profit.

    Everyone knows dealers have lost the margins in new car sales. But, the used car sales, F&I office, service, parts and accessories - thats the profit center.

    Speaking of global warming, we haven't had much of a summer here and a really bitter winter last year, so I might be heading south.
  • straussianstraussian Member Posts: 4
    Everyone knows dealers have lost the margins in new car sales. But, the used car sales, F&I office, service, parts and accessories - thats the profit center.

    It sounds as if new cars are the razors while used cars, F&I, service, parts, etc., are the razor blades--at least for now.

    Speaking of global warming, we haven't had much of a summer here and a really bitter winter last year, so I might be heading south.

    We all may need to set it up like my aunt and uncle: condo in Austin, Texas, for the winter, condo in Madison, Wisconsin, for the summer. I don't know how they decide on spring and fall. It helps to be retired, of course.
  • ridgeliner1ridgeliner1 Member Posts: 1
    I just bought a Ridgeline RTX today (8/30/2008) in Dallas, Texas.

    SUMMARY
    $ 21,245 Truck
    $ _1,328 Tax
    $ __ 227 Title, etc.
    $ 22,800 Out The Door (OTD)

    I have no idea whether that is a good deal or not. I just know that nobody I talked to would take less than that, and tomorrow everything could be different.

    DETAILS
    The color is Silver. No add-ons to the car that I am aware of, and nothing is listed on the window sticker. (Several salesmen told me that Honda "requires" add-ons. So much for that.)

    This section is all information from the window sticker:
    $ 29,500 MSRP
    $ _1,000 RTX Discount
    $ 28,500 MSRP Less Discount
    $ ___635 Destination and Handling
    $ 29,135 Total Vehicle Price

    This section is from Edmunds.com:
    $ 28,500 MSRP
    $ ___670 Destination Charge [Please note the $35 difference from above.]
    $ 29,170 Total

    Tax on a car in Texas is 6.25%.
    Title, license, etc. varies but estimate at $177; anything above that is probably a dealer add-on fee (i.e. a phony "fee"). You could negotiate the add-on fees away, but since I was negotiating from the Out The Door price, I didn't care.

    This section is from the Bill of Sale:
    $ 21,245.10 Price (Vehicle and Equipment)
    $ ________ Trade In [I had no trade in.]
    $ ________ Rebates
    $ _1,327.82 Sales Tax [6.25% on cars in Texas]
    $ ___ 44.53 Vehicle Inventory Tax
    $ ___ 70.80 License Fee
    $ ___ 33.00 Title Fee
    $ ________ Road/Bridge Tax
    $ ___ 23,75 State Inspection
    $ ___ 50.00 Documentary Fee [dealer add-on fee, I assume]
    $ ____ 5.00 Deputy Fee
    $ ________ Luxury Fee
    $ 22,800.00 TOTAL [Out The Door (OTD) price.]

    The $22,800 is the number we negotiated by. I ignored MSRP, dealer invoice, dealer holdbacks, super-secret holdbacks, etc.

    I called every dealer within 75 miles and some in Austin. I asked for someone in "Internet sales." After getting quotes from everyone, I called back the best 4 or 5 to see if they could do better. I never gave away my favorite color; I just said "it depends on the price." I got prices for the RT, RTX, and RTS in order to be able to negotiate with flexibility. I visited two dealers with my checkbook fully prepared to buy immediately.

    Ultimately, I was surprised to find that the first phone quote was always firm--nobody would ever go lower even if I showed up with my checkbook and even after I walked away from two different dealerships. Still, I would again go through the extra work of negotiating and walking away because that is the only way I know of to be somewhat certain that you have gotten the dealer's best price.

    Someone (probably someone who works for a dealer) might say that of course they wouldn't go lower, you got a great deal. Dealers ALWAYS say you got a great deal--what else COULD they say? But not going lower is not what surprised me; what surprised me was getting the best and only price by phone just by asking for "Internet sales." It was so "easy" that I have to assume there is something wrong--like maybe I overpaid.

    By the way, I walked away from the first dealership when they wouldn't go lower than $24,500 OTD for the RTS. That OTD would be for a sales price of about $22,850. I walked away from the second dealership when they wouldn't go lower than $22,800 OTD for the RTX. After getting home, I decided to buy the RTX instead of the RTS; I would have enjoyed the upgrades, but I was happy to save $1,700. I'm pretty sure the first dealer would have had the best price on the RTX, but they were out of them as were numerous other dealers. There are lots of RTSs out there, but very few RTXs as far as I could find.

    Also by the way, I knew before they told me, but several salesmen told me on the phone, when they couldn't beat a price I quoted, that I would get to the other dealer and the price quoted wouldn't include add-ons and other fees, that the other dealer was using (this is my phrase) bait and switch tactics. I found that dealers DO try to use bait and switch to a greater or lesser degree. I tried to minimize this by covering that idea on the phone. For example, I might ask, "Does that price include all fees and everything? Is it the true Out The Door price?"

    Another by the way, I never had anything in writing at any time. All I had were my notes. I consider the whole "get it in writing" idea a distraction. If I show up with my checkbook and an offer, that is all that matters. A piece of paper from another dealer means nothing to the dealer I am talking to. His best price won't go lower just because some other dealer puts something in writing--why should it? All the dealers SAY they will beat the other dealers' best prices, however all but one of them has to be wrong.

    My apologies for the long post.
  • tbirdtbird Member Posts: 19
    Just had delivered a RT with Honda hitch and the upgraded wheels on the RTS/RTL. Ridgeline had 1700 miles and was perfect. Person to person sale (guy was laid off at work 2 weeks after getting his RL) so no sales tax in Georgia which saves me 7%. Paid $19,980.40 plus $645 shipping for a total of $20,625.40. Been driving the truck around town doing some shopping and just enjoying the change from my 1999 Tacoma base model with 194K miles. What a major upgrade! :)

    T-bird
  • kyfdxkyfdx Moderator Posts: 236,588
    ridgeliner1.. Congratulations! That does look like a great deal..

    You also give good advice on how to negotiate... In the forums, we need breakdowns of the total price, as taxes and fees vary between states... but, once you decide on what you want, then OTD negotiations are the way to go... It's hard to play around with the number that goes on the check!

    regards,
    kyfdx

    Edmunds Price Checker
    Edmunds Lease Calculator
    Did you get a good deal? Be sure to come back and share!

    Edmunds Moderator

  • kderobertiskderobertis Member Posts: 82
    Options and Pricing
  • ida4128ida4128 Member Posts: 6
    Honda is delaying the 2009 model release until January. The $4,500 dealer cash and the 0.9% financing incentives have been extended until 9/30/08. The 2009 pamphlet is available at dealers. What are the thoughts out there about this being a gimmick by Honda to move the 2008 inventory still on dealer lots. Anyone know if car manufacturers have used the tactic of planned release/delayed release/release early in order to move the old inventory? I was planning to get a '09, but do not like the idea of waiting four months. Any other financial items out there other than the $4,500 and 0.9%?
  • doublesharpdoublesharp Member Posts: 32
    OT. Anybody else having trouble getting on Ridgeline Owners Club?
  • kderobertiskderobertis Member Posts: 82
    This is not good news, since I was looking to pick up a 2009 RTL in a couple of months. I think regardless of the incentives, people will wait for the 2009, with the improvements.

    Wheather you get a 2008 or wait for the 2009, I believe there will be deep discounts on the 2009 once they are released, since oil is claimed to climb back up for the winter. If it means moving these trucks, heavy discounts will be the only way.
  • kderobertiskderobertis Member Posts: 82
    My local Honda dealer said the 2009's will be available at the end of October.
  • badgemanbadgeman Member Posts: 1
    I'm ready to buy in Dallas. Which dealer did you end up with?
  • aspesisteveaspesisteve Member Posts: 833
    i don't think delaying the release of the '09 is a "gimmick", but rather just reflective of the current glut of inventory.

    In this world of releasing '09 models in early '08 or even in '07 it's kind of refressing to see an '09 actually release in '09.

    It doesn't do your dealers any good to force feed them inventory when they are drowing in aging inventory out there.
  • aspesisteveaspesisteve Member Posts: 833
    i don't think delaying the release of the '09 is a "gimmick", but rather just reflective of the current glut of inventory.

    In this world of releasing '09 models in early '08 or even in '07 it's kind of refressing to see an '09 actually release in '09.

    It doesn't do your dealers any good to force feed them inventory when they are drowing in aging inventory out there.

    I wonder if the '09 will have an MSRP more accurate to what the market will bare.
  • ida4128ida4128 Member Posts: 6
    The msrp for an '09 RTL w/o navigation ($33,980) is up $890 over an '08 per Honda. The '09 will include the trailer harness and integrated trailer hitch, fog lights and carpeted floor mats to name a few standard additions.

    I have received numerous responses re the '09 release date. The rep at Honda America said there was a delay with no release date set. I have two local dealers saying they each have two '09 models enroute and due next week at their dealership. I have two others saying the release will not occur until late December or January. I have another saying late October which is similar to the info in #732. Time will tell on who is accurate.
  • mplshondadlrmplshondadlr Member Posts: 409
    "Honda is delaying the 2009 model release until January." - ida4128

    WRONG! Two 2009 Ridgelines just hit the lot today. Not a moment too soon either, we're down to our last three 2008 Ridgelines.

    Honda's web site just changed to the 2009 as well.
  • ida4128ida4128 Member Posts: 6
    Thanks for the info. If you can, please educate us on why American Honda would advise the 2009 RTL release is delayed and there is no set date for the release, yet you just took delivery on some. I called American Honda via their 800 number on Monday (9/8) and was told that. I have been told a number of different stories from local dealers and I do not know what to believe. If you did take delivery of '09 models, American Honda needs to inform their reps who answer the phone to pass along accurate info.
  • bolivarbolivar Member Posts: 2,316
    Why?
    -They've got several hundred tons of 2008 inventory.
    -They are car salesmen, and they do that.
  • mplshondadlrmplshondadlr Member Posts: 409
    Care to further explain your cryptic message? Or, should I just assume you're calling me a liar?
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