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You are in the Prices Paid - Buying & Leasing Experiences
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Honda Accord, Coupe, Sedan
#18491 of 29567 Re: 2008 Accord - Bought at end of month $100 over invoice! [japs]
Dec 01, 2007 (11:41 pm)
If you believe a casual inquiry to a dealer, then you will leave money on the table. I definitely got 5.34%, no prepayment penalty with a 20% down payment. Just like the car price can be negotiated, the interest rate can be negotiated if you have good credit... and it helps to be serious (ie actually buying the car) and to have other options for financing the purchase. I told them I was going to write a home equity check, so the finance guy knew he had to make it low if he wanted to persuade me to take their financing (he also commented that I had the highest FICO score he has seen). I took along my trusty TI BAII plus financial calculator and confirmed that the payment calculations were correct.
I am still sitting on the fence about whether to pay it off with my home equity loan at 6.73% since there is no prepayment penalty on the Honda financing. After the tax deduction the "real" interest rate is a little tess than 5%, but it is adjustable quarterly, so there is a risk that the rate could go up in the future.
After I was done with all the closing paperwork, I asked the finance guy if the dealer makes any profit by getting the customer to take the Honda financing. He said a dealer can earn extra profit by quoting a higher interest rate to the customer than the rate given by Honda. He assured me that there was no margin in the rate he gave me.
PS Thanks to all the people posting on this forum. I spent a good amount of time reading the posts here and got a good feel for what what was happening in the market and kind of deal I could set for a target.
Dec 01, 2007 (11:45 pm)
It could be due to additional dealer profit by marking-up the interest rate. See my other post from just a few minutes ago.
#18493 of 29567 Re: 2008 Accord - Bought at end of month $100 over invoice! [jaxs1]
Dec 01, 2007 (11:50 pm)
I almost didn't take it. I was going to write a home equity loan check, adjustable quarterly, currently 6.73%. The Honda rate is fixed at 5.34% for the life of the loan, which is why I did it. I can still pay it off with a home equity check at any time.
#18494 of 29567 Re: 2008 Honda Accord V6 EX-L without Navi [viet]
Dec 02, 2007 (1:06 am)
Which dealer in Northern CA is offering the EXL V6 to you for a little over invoice? Thanks.
#18495 of 29567 Re: 2008 Honda Accord V6 EX-L without Navi [parviz]
Dec 02, 2007 (1:11 am)
Honda of Oakland, Capitol Honda, Los Gatos Honda
#18496 of 29567 Re: 2008 Accord - Bought at end of month $100 over invoice! [skywalker4]
Dec 02, 2007 (3:59 am)
It does not matter how much under or over invoice the car is... what matters is the OTD price.
#18497 of 29567 Dealer Ratings & Reviews
Dec 02, 2007 (9:35 am)
Hope everyone will stop by our Dealer Ratings & Reviews page to let the folks in your area know of your experiences - postive and negative!
#18498 of 29567 Re: 2008 Accord - Bought at end of month $100 over invoice! [jb_turner]
Dec 02, 2007 (10:30 am)
No. Posting OTD prices are useless because they only apply to that city, state and dealer.
The prices need to be itemized so you can see what the dealer is charging before their local government fees are added.
How much is the selling price of the car, how much is "dealer fees" and how much of it is government registration fees and taxes.
The sales price of the car would be more useful since each person can calculate their own local sales tax and registration fees to that number.
Also details on any trade-in that would have either positive or negative effect on the deal and what financing was involved at what rates also give the big picture.
Just saying "I paid $23,500 OTD" is useless.
#18499 of 29567 Re: 2008 Accord - Bought at end of month $100 over invoice! [jaxs1]
Dec 02, 2007 (12:10 pm)
I concur. OTD is a meaningless term.
#18500 of 29567 Re: invoice,,,humbug [japs]
Dec 02, 2007 (3:32 pm)
You remind me of another guy who was here right before launch telling us that we will not be seeing invoice on the Accord until next year!! Maybe you are intentionally closing your eyes to facts on this forum: people have paid invoice for the Accord!! I do a lot of driving and i see a whole bunch of sedans and coupes at dealerships. With this mortgage foreclosure mess, dealers are doing whatever it takes to get you in a car. NOBODY should be paying more than invoice on an Accord sedan or coupe. Common, its an Accord we are talking about not a Ferrari!