dont forget dealer incentives+holdback.
Buying process/dealer holdback money
- Thread starter 32ValveSymphony
- Start date
dont forget dealer incentives+holdback.
That is dealer holdback incentives. 56k invoice will be about 54k dealer cost.
Sure the dealer can sell it for that or less but they will not be making a profit.
A dealer will not make the profit off the car but will make a profit off warranty repairs and financing and other items as such. Sell at a loss on one item and reap the rewards on others.....
Still the point of this thread was that a 2k profit is good enough for the dealer. And yet the OP has no idea that the holdback is not profit at all.
OP originally stated(has since edited) that a dealer could go 800 back of invoice and make 1k profit.
After the 80 buck tank of gas that is 920 profit. After advertising/marketing that is 820 profit. After sales comm that is 520 profit. And so on and so on. You get the point.
If it is a small dealer with 1 or 2 allocations per year they need to pay 1k fee per year to sell the GT500.
Again a former dealer owner has stated that for 20 years straight he never once made a yearly profit on new car sales. Sure dealers will sell cars for invoice and back of invoice but dont try to make it seem like they are making money on that sale. More than likely they lost money. Nature of the beast
Let it go, man. I edited the original post because I made it sound like I thought the dealership was making $1800 profit with the hold back money. I didn't think I would need to spell out to you that I understand they have to pay bills, just like any other business.
The point of the thread, if you actually read it, is that I think invoice is a fair starting point for negotiations. Would I expect them to jump on that deal this early in the game? Of course not. But it gives you an idea what the markup to MSRP is. If you want to ignore the other $1800, that's your problem.
The difference between invoice and MSRP is much more than $2000. It's closer to $5000. I'm starting to think you're the one who's confused.
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32 valve symphony- do a search.
I've covered this 6 different ways in this section over the last few months.
We used to own a small dealership with low over head and a high service absorption- $1800 turns into less than $500 in gross. That is not enough money to make on a $60k car.
I've helped many here get a great deal on this car. But I'm sorry- you probably wont get this car for less than invoice.
Please use the search function as I have covered this many times.
Good luck in your search.
I've covered this 6 different ways in this section over the last few months.
We used to own a small dealership with low over head and a high service absorption- $1800 turns into less than $500 in gross. That is not enough money to make on a $60k car.
I've helped many here get a great deal on this car. But I'm sorry- you probably wont get this car for less than invoice.
Please use the search function as I have covered this many times.
Good luck in your search.
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*sigh*
I'm not trying to get the car for less than invoice. Invoice will be my first offer, though. My point with the holdback money is that dealerships get ANYTHING LEFTOVER after paying bills with the holdback money, and the money they make OVER invoice on car sales, to put in their pocket. I'm talking on the car itself. No service, no warranties, no lifetime super duper paint sealant. They're not going to agree on the deal if that number doesn't work for them.
Lots of people don't even know about holdback money. There's a big difference between having to pay bills on any money made over invoice alone, and any money made over invoice AND holdback money.
Sorry if that ruffles any feathers. :shrug:
This is probably the best method when negotiating for the actual price of the car. Bring in your researched notes and used it as leverage! Of course walking in with $60k in your pocket would give the buyer the upper-hand!
Unfortunately, I'm going to have a trade-in, so that muddies up things a bit.
I love threads that have to do with dealerships. The comments are awesome and make me laugh!
Since they dealers make money on the financing, cash doesn't help.
I'm sure you're much smarter than to pull a trade-in! Dealers will not give you a FMV on trade-ins. You are better off selling it yourself and collect what ever you earn towards the new Pony!
These threads make me laugh. there is no way to know what a dealer will sell a car for, in actuality their bottom line probably changes day to day, and depends on what salesman is working the sales manager, what kind of working relationship they have, how many cars the dealer has sold that month, what their sales goal is at the moment, how close they are, etc. Just too may variables.
The only way to be sure to get the best deal is to play multiple dealers off against each other. To to that, you really need a few to have either allocations or actual carS, as in more than one, on hand, which is a situation not likely to happen as I see it, even in 2014.
The only way to be sure to get the best deal is to play multiple dealers off against each other. To to that, you really need a few to have either allocations or actual carS, as in more than one, on hand, which is a situation not likely to happen as I see it, even in 2014.
In my experience, you're almost always better off selling your car outright and then negotiating a deal on the new car without all the extra BS of the trade in.
Having said that, I have found a few dealerships that are very fair on trade ins.
I'm aware of that too. However, money talks bro and he rest walk as the saying goes. You honestly think that dealers are not willing to negotiate when I walk in with $60k in my pocket?
I agree completely. This is why you arm yourself with as much knowledge as possible about all the variables at play so you can make an offer and settle on a number you'll feel comfortable with the next day when the car is in your garage and not in the showroom.
No, because the next fool down the line that has $0 in his pocket down and will finance the entire car will give them more profit than from you. And getting the "cash" from the bank is just as easy and quick as getting cash from you on the spot.
So cash on the spot doesn't talk, because when you get a dude financed for 4% you still get cash on the spot from the bank. There's no difference to them where the money comes from, whether it be your pocket or the banks.
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