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Volvo S40, Sedan
#215 of 698 S40 2.4i, manual, premium & climate pkg.
Mar 17, 2005 (5:45 am)
I've just closed a deal in Philadelphia area for the new 2005 Volvo S40 2.4i, with manual trans., premium package and climate package. MSRP: $27,175.
Using "magic number" from this forum, I try to negotiate price with two dealers to MSRP -10% -$1,500 = $22,957. Both of them agreed on $23,000.
But when one of the dealer could not get car with my colors, he offered me metallic paint for the same price! It means that there is still some room for negotiation ($385 ?)
Anyway, I bought car with the colors I wanted for
$23,000 - $500 (trade hardly worth 500) - $500 (Grad. Discount) =
Total: $22.000 + $1,320 tax + $118 tags.
Everybody, thanks for the tip!
#216 of 698 Re: motivated to sell S40's? [cici]
Mar 17, 2005 (6:04 am)
Always work with more then 1 dealer, better 3-4, call them with other's offers and make them compete! They will sell for MSRP-10%-(all incentives) or even less!
Incentives I've got were:
$1500 dealer cash and
$500 graduate cash.
Edmunds.com does not show all incentives for March, there are a lot more.
Mar 17, 2005 (4:17 pm)
The wife would like this car in the basic form with just the automatic tranny.
What do y'all think would be a reasonable otd price to pay? Color is really of no concern.
#218 of 698 Re: S40 2.4i, manual, premium & climate pkg. [bob__]
Mar 17, 2005 (8:39 pm)
Bob Deal Recap:
MSRP - 10% - Incentives = Magic Number
27,175 - 2717 - 2000 (1500 Dealer Cash + 500 Grad) = $22,458
WOW! Excellent Deal, congrat on a great deal using the Magic Formula
Normally dealers are more motivated to sell what they have in stock, or a particular unit because it has been on the lot for a long time.
I don't know what your trade is or what your financing terms are, but your car might worth $1200 wholesale, and the dealer could pick up another $500 in financing. Even if they sell the S40 at cost or below they pick up $700 in your trade and $500 in financing. I just throw these number for information and discussion purposes only. So with your deal, assuming the numbers above, there is about $1200 to work with. Hey keep in mind dealerships are in the car business to make money somewhere, somehow
You should be able to buy your Volvo within +/- 2% of the Magic Number (depending on your deal and area) I'll be following the board for others who get deal using this simple formula. Good luck!!!
#219 of 698 Re: S40 2.4i, manual, premium & climate pkg. [bons]
Mar 18, 2005 (6:21 pm)
My car - '97 Chevy Venture, 86k, no transmission and also electrical problem with power locks - nobody would give me more then $500. Dealer encouraged me to sell it to somebody else. )
I think I overpaid ~ $50 vs. the "magic number", but whole process was so nice - it worth it. In general, Volvo dealers were as nice as Volvo itself. )
#220 of 698 Confused on What to Offer for S40 2.4i
Mar 20, 2005 (4:50 pm)
I'm ready to make an offer tomorrow on the following vehicle:
According to Edmunds the MSRP (incl. Dest) is $28,225. The invoice is $26,525.
According to the "Magic" formula. I should offer MSRP-10%. That would be $25,402.
My question is: The 10% reduction is below Invoice (by some $1,100). Why would that offer even be considered by the dealer? It is before the $1,500 cash to dealer incentive.
If I then add in the $1,500 incentive, my offer would be $23,902.
Is this a reasonable offer. I have purchased/leased many cars over the past 10 years, but never offered much below Edmunds invoice. How can they be dealing so far below invoice (before the $1,500 incentive).
#222 of 698 Confused on What to Offer for S40 2.4i
Mar 21, 2005 (5:54 am)
Not sure what the "holdback" is on these but even at 1% they still make some money and move the unit,most of the deals I have done on cars they are very reluctant to get in to the holback $. Very interestd as well to see if others have been able to go that much below invoice with this MSRP-10% formula and had sucess.
#223 of 698 Re: Confused on What to Offer for S40 2.4i [blerner2]
Mar 21, 2005 (8:08 am)
I do not know what is the trick and how they make money, but I've just got my car for price much below Edmunds' invoice. Above I listed all numbers for my deal.
There was a small "catch" when I came to pick up my car - real sticker price was $300 below the official sticker price for March, i.e. my calculation for "magic number" was at least $300 off.
My car was delivered from another dealership, ~60 miles away, so when I got it, it slightly over 100 miles on odometer - my dealer lowered price by $100.
#224 of 698 just ordered from factory...
Mar 21, 2005 (1:47 pm)
S40 T5 AWD
-Barent's Blue Metallic
-17" Saggita wheels
*Dynamic Trim Package
Price: $28,208(including $1,850 factory incentive) - $500(recent college grad) - $500 (AAA membership)
Final Price(before taxes): $27,208
Volvo of Princeton
Rt. 1 Lawrenceville, NJ
*Dynamic Trim Package(for some unknown reason) cannot be factory ordered in Barent's Blue Metallic. So i had to tell the dealer to order the parts, paint, and put on the extra parts. I am not sure how much this costs totally because i didn't want the rear spoiler only the ground effects. The dealer quoted me $850 for this. A little steep in my opinion, but it makes the car look a lot cooler IMHO.