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Smart Shopper Out The Door (OTD) Pricing questions
228 messages, Last post on Sep 07, 2009 at 1:13 PM
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Replying to: krs1 (Sep 09, 2005 6:12 pm) I am not a dealer, but I am an experienced (though not always successful) shopper. The one thing you simply can't do with vehicles is apply a blanket mark-up percentage that amounts to a "good price" for all vehicles. Some vehicles can sell below invoice - if you want to pay 5% over invoice for a vehicle that currently sells below invoice, you're obviously welcome to do so. But if you offer 5% over invoice for an in-demand vehicle (c.f., Odyssey, Prius), good luck to you. Since it's Saturday and I hope he's taking the day off, I'll quote member isellhondas: It's the market that determines pricing. (emphasis mine) |
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Replying to: krs1 (Sep 09, 2005 7:11 am) I seriously doubt you will find any 2005's left at this point but why would you want one? The 06's only went up a couple of hundred dollars. A few years from now when you move on, it'll be worth a LOT more than an 95! |
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Replying to: krs1 (Sep 09, 2005 6:12 pm) When we buy our Honda Accords, we compute: OTD = invoice + X + Y + transportation (about $600) + sales tax (3.1% here in Fairfax VA) + $50 for tag/title. X = our estimate of the invoice price for any options we want. Usually we get two extra keys and mud flaps. Y = dealer markup. In the past, this was about $200 for an Accord. In March, it was -$500. That's right - Accords were selling for about $500 under invoice. I just looked at Honda Odyssey prices, and the 2005 invoice for an EX model with leather and entertainment (no NAV) is $28872. You can assume it will be $29K for a 2006. What is the dealer markup? I have no idea. Go to the Prices Paid forum and see what others are saying. That was where I found that Accords were selling for $500 under invoice. Does this help?
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Replying to: bobst (Sep 10, 2005 8:43 am) You Bet, You Helped. Thanks very much for the OTD formula. Couple of questions though... 1. Why do you order the extra keys you want from the dealer? As opposed to getting keys made at the hardware store? 2. Is the Destination Charge the Same as "Transportation" 3. Why would a dealer sell a car less than what he paid for it? Isn't he loosing money? 4. I am still a little fuzzy regarding the dealer mark up. Are you a dealer or a Experience car buyer???
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Replying to: krs1 (Sep 10, 2005 9:23 am) 2. Destination and transportation fees are the same. 3. They are not loosing money selling a car. There may be dealer incentives going on that are not public knowledge. 4. Dealer mark up is the profit that the dealer is going to make. Depending on the model, this can and will vary. bobst is not a dealer
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Replying to: danf1 (Sep 10, 2005 9:55 am) Now the tough part is up to you. You should go to the Prices Paid forum and look for the Honda Odyssey topic. There will be a bunch of confusing posts, but if you persevere you might get an idea how much under or over invoice to offer. After you compute your OTD offer, then go to the dealer that has the Odyssey you want and make your offer. Unless your offer is very high, it will be turned down. Then you can walk out like we do and hope they accept your offer once they see you leaving, as has happened to us on our last three purchases. On the other hand, you can attempt to negotiate a price after your offer has been turned down. Sorry, I can't help you there. I don't know how to negotiate. Good luck. From what I hear, the Odyssey (affectionately called the Oddity) is very good.
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You asked about the keys. These days keys are very expensive, especially the kind Honda uses with the remote built into the key. Go to the Honda parts dept and ask what they cost. The valet keys are cheaper, but still cost quite a bit. We got two extra valet keys in case one of our kids needed to borrow the car or in case we lost a key. I read once about a Camry owner who somehow lost all of his keys. It cost $2300 to put in a whole new security system. |
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Replying to: krs1 (Sep 10, 2005 9:23 am) Check out the Prices Paid Forum, but if you see a "price paid" that is way out of the norm, it probably didn't happen. Good Luck! |
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Replying to: bobst (Sep 10, 2005 10:19 am) I am grateful for the simple well explained advice from both you & your protege Dan. Things are a lot clearer & I feel more comfortable with the terminology and a sense of how things work. few more Questions please.... I heard the best time to go into the dealer is at the end of the month with the OTD Price? Is this a good strategy?? I also heard Xmas time & Thanksgiving holiday are good times to head down to the Dealers, because most consumers are "wrapped up" in buying for Xmas (no pun intended)  and car dealers experience a decline in sales... dealer/salesperson would be more inclined to take an "invoice up" OTD Thoughts???
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