Last post on Feb 16, 2013 at 5:26 PM
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What is this discussion about?
Apr 25, 2002 (9:50 am)
there are a lot of cars that sit on lots for more than 90 days. The holdback from the quick turners helps prop up the slow ones.
Apr 25, 2002 (10:24 am)
Will a consumer get a better deal on a car just off the truck because the dealer gets almost all of the holdback or one that has been on the lot for 90+ days because the dealer is trying to move it?
Has any dealer ever tried this and do you guys think it is a good idea. Open a dealership and have just a few vehicles of each model for customers to test drive and see. Then they can order the vehicle exactly like they want for a flat amount over invoice, say $500. The customer would have to sign a contract that they will definately buy the vehicle when it arrives. The dealer makes the small front end profit and has no floorplan fee and pockets all of the holdback. The customer gets the exact options and color they want. I understand that this would not work well for models that take months to arrive but for domestic makes that could be shipped in a month it might work. I have found it very difficult to get the exact options and colors of cars that I have looked for in the past.
#92 of 131 You don't get a better deal
Apr 25, 2002 (11:55 am)
because of the holdback, see the post above. The oldest car on the lot has the most push to sell it. I actually sold a Frontier today $300 below net, because it was the oldest new one on the lot.
As to your idea of ordering cars, I don't think it will float. Most buyers are "impulse" sales. When they have finally made up their mind that they're going to buy a car, they're going to look around until they find the closest thing that is to their ideal and they're going to buy it, even if it costs more than waiting 4 months. Note that I said "MOST." There are folks who order cars, and wait, but they are probably only 1% of the buying public, or less.
Another thing that you're missing is that most of the "Japanese" cars come from the States.
Many of the "American" cars are made in Mexico or Canada. They build Camrys closer to me than they build Suburbans. Weird, huh. The pipeline for a Japanese built vehicle is about 4 months long, very few people have that kind of patience. A US built car is about 4-6 weeks.
I have no experience/clue about German or Swedish built cars.
Apr 25, 2002 (7:16 pm)
I understand what you are saying about "impulse" buyers. I am sure you are correct about your numbers, but I think this may be a symptom of the system. People see all the cars on dealer lots and just buy that way because they do not know any better, and thats the way they have always done it. Plus dealers are trying to sell the cars on their lots. When I have looked at vehicles, the salesman has never offered to order me a vehicle, he always trys to get me to buy off of his lot. I am very particular about color and options on my vehicles, just wanted to see you guys take on what you see everyday from customers. I wonder if there were such an alternative store for ordering vehicles how the public would react. I agree it would definately start as a niche market.
#94 of 131 What will happen is that the
Apr 26, 2002 (5:43 am)
local "big guy" dealers will undercut your prices until the customer becomes color and option blind, until you go out of business.
#95 of 131 masspector,
Apr 26, 2002 (6:04 pm)
Just have a few around to show and drive?
Let's see, Ford F-150, 3 engines, 2 transmissions, all in either 2wd or 4wd, 3 different body styles, 5 different wheelbases, 3-4 different trim levels for each body, 4 axle choices, 4 diferent tire sizes, ten colors, 9 different interiors - each in 2 or 3 colors, etc., etc.
Nahhh, I doubt that would work.
Apr 26, 2002 (7:50 pm)
In relation to ad fees..they are invisible on the MSRP, but do show on the invoices. They are charged to the dealer by the manufacturer to cover the manufacturer's regional advertising costs.
As far as Toyota Invoices... if you look at the base invoice of a Camry, say, $20,000 on edmunds.com for example, the real invoice may show: Camry $19,200, + Holdback $800.
So actual Toyota invoices just break it down. The "total invoice" is what the dealer is billed for the car once it is shipped fromthe factory.
Hope this helps!
#97 of 131 Buying sight-unseen?
Apr 27, 2002 (9:24 pm)
I'm a new member, thanks for a very interesting forum. Question:
When using a alternative buying method like ABT, how can you test drive the specific vehicle you are buying to be sure it is satisfactory, everything works, etc? Is it acceptable to make the sale contingent on a satisfactory inspection before closing? On a related note, if I find a problem, I expect the dealer to fix it before closing, not have to have it fixed on warranty after the sale. Typically, it seems dealers don't want to do it that way, but it seems reasonable to me. I would want this to be a contingency of sale. If I buy this way, as I probably will, I will consider the offer serious, but I would want a way out if it's not satisfactory in some way, since it is basically sight unseen. I can see a potential problem if, for example, the car shimmies or pulls or just doesn't drive right, the dealer could disagree that it's a real problem. There can be reasonable disagreements on subtle problems, too. Getting dealers to do legitimate warranty work can be a more miserable experience that the sales experience sometimes is. But I guess that's probably another forum. If not, I'm starting one!
Apr 29, 2002 (3:14 am)
Thanks for the info.
Apr 29, 2002 (4:25 am)
always base all sales upon a satisfactory test drive/inspection of the vehicle once it arrives. If there's anything wrong, we either get it fixed to the customer's satisfaction, or they aren't obligated to take the vehicle.