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True Cost to Own (TCO) - Hidden Costs of Car Ownership

160 messages,  Last post on Dec 31, 2009 at 12:08 AM

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Messages Page 13 of 16

#121 of 160 Re: [fw360] by mikefm58

Jun 17, 2007 (4:07 pm)

Replying to: fw360 (Jun 17, 2007 1:07 am)
Dealer holdback: Additional revenue paid to the dealer from the manufacturer if certain sales incentives are met. So why is the dealer adding this item as a cost to you? I don't have a clue.
 
My advice, run, not walk, away from this dealer.

#122 of 160 Re: [mikefm58] by tidester

Jun 17, 2007 (5:57 pm)

Replying to: mikefm58 (Jun 17, 2007 4:07 pm)
if certain sales incentives are met.
 
I don't think holdback has anything to do with incentives. It helps the dealer with cash flow, increasing profit and minimizing commissions to salespeople - see the link I provided in my previous message.
 
tidester, host
SUVs and Smart Shopper

#123 of 160 Re: [tidester] by british_rover

Jun 17, 2007 (6:02 pm)

Replying to: tidester (Jun 17, 2007 5:57 pm)
Sometimes holdback is tied into meeting certain objectives or CSI scores. It all depends on the brand.

#124 of 160 Re: [british_rover] by tidester

Jun 17, 2007 (6:10 pm)

Replying to: british_rover (Jun 17, 2007 6:02 pm)
Thanks, BR, but do you mean that without meeting those objectives or CSI scores there is no holdback?
 
tidester, host
SUVs and Smart Shopper

#125 of 160 Re: [tidester] by british_rover

Jun 17, 2007 (6:27 pm)

Replying to: tidester (Jun 17, 2007 6:10 pm)
Depends on the Brand it would more likely be reduced not eliminated. Most of the euro brands that don't have holdback in the same way that the domestics and Japaneses brands do but the do have incentive money that is directly tied to CSI, volume and various audits.
 
Perform poorly on any one and the financial consequences can be dire.

#126 of 160 Re: [mikefm58] by isellhondas

Jun 25, 2007 (7:21 am)

Replying to: mikefm58 (Jun 17, 2007 4:07 pm)
You are so wrong and I am so tired of trying to explain what holdback is and how it works.
 
It is NOT bottom line profit!
 
People who are obsessed with holdback should also think about the trememdous OVERHEAD that dealers pay every month just to keep the doors open!

#127 of 160 Re: [isellhondas] by mikefm58

Jun 25, 2007 (6:52 pm)

Replying to: isellhondas (Jun 25, 2007 7:21 am)
No need to scold me, I "think" you replied to the wrong msg. Where in my post did I say anything about it being bottom line profit?

#128 of 160 Re: [mikefm58] by isellhondas

Jun 25, 2007 (8:36 pm)

Replying to: mikefm58 (Jun 25, 2007 6:52 pm)
That wasn't my intension. I guess I get sick of "some" people acting like holdback somehow belongs to them.

#129 of 160 Re: [isellhondas] by mikefm58

Jun 26, 2007 (5:31 am)

Replying to: isellhondas (Jun 25, 2007 8:36 pm)
Yeah I agree, I did some work here in Florida when the hurricanes were bad in 2004 running a tree service business. Some people think charging $50 an hour for labor when a business has 2-3 workers at a time on the job is outrageous.

#130 of 160 Lose your car in 5.5 years by dave8697

Jul 03, 2007 (10:10 am)

I was checking the cost to buy a G5. A Pro-Honda person wrote that TCO is high for the G5 in her quest to uplift the Civic as an alternative. Curious, I tallied the depreciation, the maintenance, and the repair costs from TCO for 5 years. For the G5, I plotted the depreciation from the TMV price. Then I subrtacted the maintenance and repair from the depreciation curve. The result for the G5? The net value of the car was ZERO in less than 5.5 years. This takes away any shred of truth for me for that part of the TCO data. I wonder if you would lose a Honda Civic in 5.5 years also, or is this opinion (not data) just strongly biased against American engineers and American led assemblers output?
 
How can the G5 have almost $4000 of repairs and maintenance in just the 4th and 5th years of ownership while still under the 5 year, 100000 mile powertrain warranty and the lifetime or 100000 mile rust thru warranty, and just coming off the (dlr makes everything perfect at the end of the)3 yr bumper to bumper warranty?
 
So someone paying the sales tax down on a loaded G5 ending up with a 5 year payment of $383 a month must plan on $145 a month additional for repairs and maintenance all thru yrs 4 and 5? Then what? The powertrain warranty ends and the thing starts to really fall apart?
 
I budget $150-200 a year in maint and repairs for each of my '96, '98, '98, '99 GM and Ford cars and much less for my '01 Chev. That includes tires and oil. I always spend less.

Messages Page 13 of 16

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