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Use the CarsDirect invoice price as your guide....
Posted by TKC (more from TKC) on Thu, 23 Jan 2003 13:04:38
In Reply to: carsDirect.com and other online sales sites, Ken B, Wed, 22 Jan 2003 22:40:18
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the CarsDirect invoice isn't the true invoice. It is above the actual invoice price by a few hundreds. That said, it is a good price point to negotiate. You don't want to get over this price as CarsDirect has already built into a profit of a few hundreds for themselves with this price.
If you want to take the dealer to the cleaners, you get the actual invoice, which Edmund or other sites have, take out the incentive and the loyalty discounts if you quality. This equals the true invoice minus all the incentives. There is also a dealer holdback of something like 2.2% (??) of MSRP of base price. The holdback is cutting the dealer to the bones and they don't usually like to give that to you unless they are really starved for a sale. After you have taken everything out, that price is the amount the dealer pays/finances the car. There maybe other complicated financing from Saab to the dealer but I don't think it is worth to negotiate down to that level and I doubt any dealer would even dig that deep to sell you a car.
My rule of thumb is that after you get to the true invoice minus all the incentives except for the holdback, add on roughly a $1,000 and you can be assured you can drive the car home and the dealer can stay reasonably afloat. This price is actually about the same level as the CarsDirect price. All these is without you trading in a car or other related deal. Sometimes the dealer can artificially lower the new car price but make up for it from your trade-in if you have one. So it helps to keep the deal simple.
Some here may think $1,000 plus the holdback is too good a deal for the dealer but think of the dealer overhead such as salary while the car is sitting on the lot. Say the dealer gross $2,000 out of the sale of a $30,000 car, it works out to be just under 7% gross per car. I don't think a dealer is getting rich with this kind of margin especially not at the volume Saab is selling.
However, if you finance or lease the car, things get more involved, as some incentives don't apply if you lease from Saab.
Good luck.
posted by 216.206.240...
Posts in this Thread:
- carsDirect.com and other online sales sites, Ken B, Wed, 22 Jan 2003 22:40:18
- Use info with local guy too.....please....., Mike Lynch
, Thu, 23 Jan 2003 18:13:51 - Use the CarsDirect invoice price as your guide...., TKC, Thu, 23 Jan 2003 13:04:38 <-- Viewing This Message
- I was a big fan of them, phred, Thu, 23 Jan 2003 12:43:01
- Re: carsDirect.com and other online sales sites, Jon in Chicago, Thu, 23 Jan 2003 11:25:31
- ventilated seats in the summer are worth more than, hdm, Thu, 23 Jan 2003 11:21:47
- Re: carsDirect.com and other online sales sites, chris74, Thu, 23 Jan 2003 07:29:18
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