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Prices Paid: Buying & Leasing Experiences Honda Ridgeline Prices Paid and Buying Experience
796 messages, Last post on Nov 10, 2009 at 6:21 PM
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Replying to: sethnaga (Aug 21, 2008 4:19 pm) |
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Today I purchased an RTX for 21950 OTD. Here is the price breakdown Truck Price: 20650 Tax, Tag:1300 Total out the door:21,950 I also got 0.99% financing for 36 months
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Replying to: sethnaga (Aug 23, 2008 12:17 pm) 1% apr for 36 was just icing on the cake |
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| I checked the Ridgeline inventory in the Phoenix area via the cars.com link mentioned in other posts. I am only able to get the inventory of four of the eight dealerships in the area. Any ideas on how to get the other four inventories? The '09 is due out on 9/3. If anyone has the '09 msrp info, please share on how to obtain it. I may have to wait until Edmund's shows it, hopefully next week. | |
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I am shopping for a Ridgeline in the Dallas area. I have the most interest in the RTX version. Using the Edmunds price quote function today, I have so far received RTX "bids" of $22,033 and $21,133. One specifically says (and I believe it is true for both) that it includes destination charge. I see the MSRP with Destination Charge is $29,170 according to Edmunds. Bottom line: with almost no work at all we are at $8,000 off MSRP. However I prefer to ignore MSRP and just get as many "bids" as possible and then work down from there. As far as I am concerned, invoice and MSRP are meaningless--just find out the real world price through multiple "bids" and negotiate from there. I do believe in the old advice about shopping at the end of the month or end of the quarter, buying at the end of a model year, etc. Buying a car involves micro- and macro- economic decisions whether I know about them or not. |
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By the way, I feel compelled to ask mplshondadlr a question: You mention "Dealer Investment" when talking about what a dealer pays for a car that he sells, but isn't it true that the vast majority of cars are floorplanned? That is, isn't it true that dealers don't buy a car for $20,000 and then sell it for $25,000, instead dealers pay Honda or a bank a monthly fee to have the cars sit in their showrooms and when a sale is made the dealer pays for the car? I may not have made it clear, but the point is this: Dealers "invest" almost nothing in the cars they sell (though they obviously pay a great deal to have the infrasctructure surrounding all those cars they don't own). The bottom line is that if I spend $1,000 to have a car sit on my lot, sell it to you for $25,000, then pay Honda $20,000 for the car only after I have received the money from you then I am making a very, very high return on my investment--$1,000 invested (the floorplan fee) returned me $5,000 in a few weeks or months. The obscurity of floorplanning will sometimes lead to the following sales pitch: A salesman says, "How much profit should a dealer make?" Hoping you will say a "low" figure of 5%, he will happily take the "dealer invoice" and add 5%. Or he might say, "Shouldn't car dealers make as big a profit as a grocery store?" Grocery stores are famous for low margins on their inventory. The salesman will want to show you the "dealer invoice" and add a "reasonable" profit--all of which is meaningless if you know about floorplanning. I will let the dealer worry about his profit while I worry about getting the best price.
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Replying to: straussian (Aug 27, 2008 2:03 pm) For us, we just built a brand new 30 million dollar store. It's not cheap to build a nice facility that should last 30 plus years while also creating a warm and inviting enviorment that is up to Honda specs. Meanwhile, other Honda dealerships in Minneapolis have aged facilities with 25% (or less) of our overhead, so these dealerships can really offer better deals. The lower the overhead the less profit needs to be made. Less profit equals a better consumer deal. "The bottom line is that if I spend $1,000 to have a car sit on my lot, sell it to you for $25,000, then pay Honda $20,000 for the car only after I have received the money from you then I am making a very, very high return on my investment--$1,000 invested (the floorplan fee) returned me $5,000 in a few weeks or months." That really doesn't happen. If you think we're making $4000.00 on a car, you're WAYYYYYY off base. At least in Honda - Chrysler or GM, maybe. However none of this means anything to you. You are a consumer, looking out for number one: YOU. I don't blame you. As a consumer I do the exact same thing. Except I tend to pay more for good service. For me, it's not always about price. Anyone can cheap sell you something, that doesn't mean they have a right to earn your business. I'm more then happy to pay a bit more to buy from a place that is well kept, where the people are well trained and friendly. Again, thats just me. Good luck and happy shopping. Oh, BTW - I just bought a black RTX for $22999.00 plus TT&L AND got 2.9% for 60 months.
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Replying to: mplshondadlr (Aug 27, 2008 2:21 pm) You must occassionally (20% of the time?) make $4,000 (or much more) above "dealer invoice" on a car, right? And you seem to be conceding my main point, right? Let's say it is just $1,000 "profit" above the $1,000 floorplan expense; you make a 100% return on your "investment" (the floorplan cost) in a month or two. I'm getting 5% return or less on my savings account in one year. Yes, you built that beautiful showroom at great expense. Now why would you do that? Was it to lose money? Are car dealers not among the most successful and wealthiest people in any city? How is that? One of the interesting things about the car business is that we are not allowed to buy directly from the manufacturers (Honda, GM, Ford, whomever). Powerful lobbies create closed shops state by state and require that cars (among many things) be sold by local retailers. Why can't we order our Accords from Honda America instead of John Doe Honda of Dallas? The dealer lobby is EXTREMELY powerful because it is extremely wealthy. It takes money to make money, I guess. Texas used to have a law prohibiting branch banking. Consumers suffered for years, but the local owners of banks benefited from an artificially restricted market. Third world countries require you to have a local partner when doing all kinds of business. It helps the local partner, but it does consumers no good. FREE THE MANUFACTURERS! Okay, don't worry. I'm half-joking. By the way, congratulations on your new car. I like the RTX part, but black is a slightly less popular car color in Texas due to our wonderful summer heat. With global warming, I'm sure I'll be moving to your part of the country soon.
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Replying to: straussian (Aug 27, 2008 6:26 pm) That $1000.00 is called gross profit. On that thousand subtract 25 or 30 percent (depends on the commission scale). The on average you have about $144.00 per car in advertising. Then you have about $250.00 per car in admin expense (office staff, attorney fees because you have them on retainer, ETC...). Finally you have facility investment which is about $350.00 per car on a 30M building. That leaves about $6 in net profit. Everyone knows dealers have lost the margins in new car sales. But, the used car sales, F&I office, service, parts and accessories - thats the profit center. Speaking of global warming, we haven't had much of a summer here and a really bitter winter last year, so I might be heading south.
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Replying to: mplshondadlr (Aug 27, 2008 8:04 pm) It sounds as if new cars are the razors while used cars, F&I, service, parts, etc., are the razor blades--at least for now. Speaking of global warming, we haven't had much of a summer here and a really bitter winter last year, so I might be heading south. We all may need to set it up like my aunt and uncle: condo in Austin, Texas, for the winter, condo in Madison, Wisconsin, for the summer. I don't know how they decide on spring and fall. It helps to be retired, of course. |
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