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Prices Paid: Buying & Leasing Experiences Acura MDX Prices Paid and Buying Experience
9217 messages, Last post on Dec 08, 2009 at 9:04 PM
You are in the Prices Paid: Buying & Leasing Experiences Forum. Your Hosts are steve_ & tidester
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Replying to: acurasales3 (Dec 08, 2009 11:21 am) Also, you are going to validate what people think about dealers being sleazy and it's going to affect some dealership out there when someone reading this thread goes to buy a car. Most dealerships finance managers act like loan brokers. They get your SSN and then see what prequals are available and offer something which is mutually beneficial. I don't see what the problem is if I get a rate at which I'm happy and the dealer gets a commission from the bank or lender. This *should* help sales by making it less about margin on the new cars. I know dealers use NADA, but not when dealing with customers, so it's moot. My point was that consumer has no knowledge of what a car is selling for at auction when they walk in to buy a used car or to trade in their existing car, but the dealer does. And, no dealer I've ever heard of shares this information with a customer. If a customer walks into a dealership with a trade-in, dealer references KBB. The dealer will give them an offer based on KBB trade-in, knowing full well the price at which they can profit by selling at auction based on reports on what's sold in the last week. Likewise, when customer comes in to buy a used car, negotiation is not from NADA auction prices from the last week, but from KBB. If MDXs stop selling well at auction for whatever reason (oversupply, lack of demand, whatever) it would not affect a customer's price in negotiations with a dealer. So back to the original point - why not push dealers hard on new 09 MDXs? They don't want them sitting on lots longer than 90 days, especially with sales slowing, tax credits expiring this month, and 2010s coming on the lot sometime soon? Further, the only thing a consumer will know walking in to an Acura dealership is what other people paid. So I understand your position but you shouldn't fault consumers for aggressive negotiations since the dealership is doing the same. The idea is to find a price both can agree with and the dealer knows better based on all the ways they can earn revenue from a single sale and they won't start from their bottom line.
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Replying to: tastycakes55 (Dec 08, 2009 12:39 pm) Yes we do act like a loan broker when there is no special financing. When there is we are pencil pushers and this is why all the items in the finance office are offered. That’s why it is about margin. Example. Our cash transaction on cars year to date is 47%. Almost 1 out of 2 the people write a check. No opportunity of finance and no flat. So what do I do? I sell, value added items, yes I am very good at it, however if a client comes in my office writes a check and buys nothing I make nothing. Everyone in a showroom is commission. Regardless of what you have read things like incentives to the showroom from the factory very rarely happen. I’ve worked with close to 10 manufactures and over the course of time I’ve seen that happen about a half a dozen times. No most dealers use NADA for trade in and retail values. KBB is a bank site it is not intended for real value. We pay more for a trade versus and auction due to the fact that we can do a more accurate inspection. When you buy a car at the auction you don’t get to throw it up on a rack and find out that a bearing is bad. So how is that relevant? You are right we don’t adjust our prices on lot if the auction slows down. Do you know why? Cause cost is cost. The auctions don’t reimburse us 30 or 60 days later. Yes every dealer takes a loosing deal it’s part of doing business. I don't fault people for wanting a fair price. I want one as well. I also want a level field. By that I mean if there is to be full disclosure in my industry then there should be full disclosure with every item on the market. I find it crazy that my local music shop makes close to $200 on some of there high end cymbals. This is why 1 price new car priceing is the best thing for you and me. No games no fake fees no BS. |
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Replying to: acurasales3 (Dec 08, 2009 7:50 am) 1. Nobody said that a 1.95% higher interest is going to break the bank, but you are grossly understating the cost. My car cost $42.7K plus another $3K in taxes, registration, document fees and god knows what for a total of nearly $46K. I made a $14K downpayment ($9K trade-in and $5K on Amex), leaving a $32K balance on the loan. The monthly installment on a 5-yr $32K loan with a 2.9% interest is $574; with a 4.85% rate it goes up to $602. So, the difference is $28/month, more than twice the $12 figure that you quoted - or $1,680 extra interest over the life of the loan. 2. Adding $5K more debt is "unlikely" to change your credit profile so much that it would bring down your FICO score. At least in my case it did not; I know that because I subscribe to Experian's Triple Advantage service. According to your own post, only a certain kind of people "should be shopping for this caliber of car". Do you think $5K additional credit is going to have a meaningful impact on the credit score that kind of people? 3. You still fail to explain why paying with credit card is "illegal". You said making a down payment with a credit card is "against federal banking regulations". Why would a dealer be aiding and abetting anybody in violating federal banking regulations? They run a business themselves; so certainly they would not be doing anything so publicly to run afoul of the law! 4. "Credit on credit" is a bogus term. I Googled it and the number of results I found was ZERO. If I understand correctly, what you are alluding to would be similar to retail investors borrowing on credit card (or a bank loan) and using the proceeds of that loan as a margin to get additional margin loan from the brokerage house to buy shares. And clearly, that's not even close to what I was trying to accomplish here. Your credibility just went down the toilet. |
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Hi everyone. I am currently entertaining an offer for an mdx with tech package for $39,086. Is this a good price for the car or can I do better? Thanks in advance.
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Replying to: jurizar (Dec 08, 2009 6:38 pm) |
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Replying to: hifiver25 (Dec 08, 2009 6:55 pm) 
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Replying to: jurizar (Dec 08, 2009 6:57 pm) BTW, where in SoCal do u live? I lived in LA between '91 and '96. I lived in a number of different neighborhoods there, but spent the longest part in Santa Monica, 2 blocks from the 3rd St. Promenade.
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Replying to: hifiver25 (Dec 08, 2009 7:05 pm)
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Replying to: jurizar (Dec 08, 2009 6:38 pm) That seems like a good price with technology pkg. What dealer in socal? I am in PV and looking as well, but I also want entertainment. The best i have so far for that combo is $40,800. Corsche |
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Replying to: hifiver25 (Dec 08, 2009 6:55 pm) about our Linance manager blogging,I think everyone on board now understand what his act was about..I dont know if he deliberately meant to bash our thread or it's just a act of bored man sittin in his office since there's no customer's in his dealership (probably they let'em go over 1000$ argument  )
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