rajwany

correct me if iam wrong. even with credit card in hand and hassling through 5 dealerships,u still ended up paying 2000 over and not 1000. 2000 to 2500 is norm anyways. do u not think this kind of tactics might work on a 20000 car and not necessarily on a 70000 luxury.
just my 2 cents

Nospinzone

That's why I mentioned that there were 5 dealerships near me. That competiton certainly helped. At the beginning of this year most people were paying at or very near MSRP for these cars. Another advantage is I wanted the SWB which was in greater supply. Few buyers were getting these cars at $2000 over invoice then, maybe now, buy not then. If I was trying to buy one last fall at that price, I would have walked away empty handed. Dealers here were actually getting over MSRP by adding required extras to the car.

As far as a $20,000 car, you would be overpaying to start at $1000 over invoice. For example, a Chevy Impala that lists for $21,000 has an invoice of $19,900. So if you offered the salesman $1000 over invoice, i.e. $20,900, that would only be $100 off of MSRP. He'd kiss your butt for that deal!

sphereman

great post..

how much is dealer holdbacks on SWBs nowadays??

rajwany

do u not think this kind of tactics might work on a 20000 car and not necessarily on a 70000 luxury.
just my 2 cents


how we tend to read through the lines. i said these kind of tactics, i am not talking about 1000 over or 1000 under the cost. but anyways iam sure my Point did get through...............

iam glad texas dealers were not charging over Msrp.

Nospinzone

Oh, sorry, I see what you mean. I know the tactics work regardless of what you are buying and whatever the cost. There may be a few things where they wouldn't apply, but certainly they do on any commodity item.

Yea, one dealer near me was adding Simoniz and something else (I can't remember what it was) to the car pre-delivery and adding that to the MSRP. Of course these were overpriced extras that people not only didn't need, but didn't want.

rajwany

you r right, "SHow Me The Money" works in many places where bargaining is done.

hate those paint sealant protectors, and pin stripes dealers add on and charge 100's of $ extra

zzzzdoc

I just negotiate the dealer to death. After the second consecutive salesman I negotiated with was hospitalized, they usually just give me the car for what I want.

Don't give me too hard a time about this. It was a tasteful funeral.

I usually bring a novel to the dealership (Tom Clancy novels seem to work well), put my feet up on his desk, NEVER GET UP TO STRETCH OR PEE, and make him go back and forth to the "nonsense" meetings with the manager.

Every single time they have caved and I've gotten the car for exactly what I wanted it for. The deaths were just wierd karma that occurred soon afterward.

JDMUSCLE

iTrader: (1)

let me ask all you negotiators a question....how do you justify selling something for 65000 and making 1000 dollars as a profit......dont you think thats silly...everyone is in business to make money...i bet you dont work for free.....cars have the lowest mark up when it comes to profit of any other product that is sold in the retail industry.....how much mark are there on your iphones....furniture...electronics...etc etc!! holdback is something that keeps the lights and the heat/ac going on at the dealership.....

daryll40

There is nothing to justify. It's all about supply and demand. If a dealer wants the sale bad enough, they'll sell at a miniscule markup. If not, then not!

Sometimes there are volume rebates that manufacturers give to dealers. You never know when it just might pay a dealer to sell a car at (or even below) cost to maybe move into a certain volume category, for instance. Or perhaps they think they'll make money on financing, warranties and repairs.

It's all about supply and demand. Economics...

sphereman

exactly.... $1000 is $1000. would you rather sell one 'additional' car for $1000 or just turn it down and let the car sit there for next few weeks or months? it is not like one of a kind commodity that has limited supply.

also, i understand the other poster's position as well. $1000 might be too small a profit for a dealer to even bother. that is why i asked this question about the currnet market situation

JDMUSCLE

iTrader: (1)

i understand what you guys are saying...average time a lexus sits around in a dealership is about 3 weeks...so if not you someone else..all things said and done...its all about the timing....this time of the year, car business is very slow and they might even entertain the 1000 over invoice but...on a car that they only get 4 or 5 a month depending the dealer size....why would they even give it away!!....for instance...take the ny nj ct(tri state dealers) there are only about 30 to 40 ls460's sitting around....how many people do you think are there in the tri state area looking to get one of those cars....see what im trying to say...imagine you wanted a black on black with a ceratin package...the odds are the dealer you are at doesnt have it...which means he must either locate the car or factory order it.....why would he even discount a car thats not even in his floorplan to a level where it doesnt even matter as far as allocations go....cause it will take atleast 3 months to get that particular color combo and the package!!

JDMUSCLE

iTrader: (1)

believe me there are no such thing...when it comes to money toyota is the most stringent manufacturer....volume rebates....who has been lying to you!!

rominl

iTrader: (4)

lol doc, that sounds like a plan. for sure i will be talking to you when i get my next car

the price of the car has NOTHING to do with the selling price. it could be an expensive car, but when there is a price, there is a buyer. and when dealer agrees on a price, there is a market. everything is supply and demand. if the dealership is really into that we can sell for msrp all the time, by all means. no one is using a gun to make them agree to the price.

all stuff are sold for a certain price due to a balance of demand and supply. cars like ferrari, demand is sooo high that a lot of times they are sold for 50k to 200k over sticker (in some areas). people are paying so dealer can do it. you go in and ask for msrp and they will just laugh at you. period. it's always two ways

bottom line is dealerships and a lot of sales are making decent money.

Mike_TX

$1,000 on a $65,000 car is 1.5%. That's not an unheard-of margin for MANY businesses. But keep in mind that car dealers don't make their main money off new car sales. They make a ton more on the pre-owned trade-ins, service, parts and accessories.

Even so, my local dealer sells close to 3,000 cars a year, and even at $1,000 a pop would be making a quarter million a month - $3 million a year - just off new car sales (and of course they average more than that). And don't underestimate the holdback and bonus money ... it can be considerable. That dealer's annual sales are over $400,000,000.

So don't shed any tears for the dealer making a sale at "$1,000 over invoice". He ain't doing so badly ... and he wouldn't do it if he didn't want to.

.
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rominl

iTrader: (4)

very good points there. dealership i go to, they sell about 300 lexus every month, that's just on NEW lexus. for summer event and december to remember, a lot of times lexus has a target for them, if they hit the target they will get more bonus as well.

and mike has a great point that dealership makes most of the money from services.