Dealer Wont Deal???

Hi-TecDesigns

Barely any difference? The difference is nearly $2k for the base and $2.5k for the touring. Tack on another $400 difference if you want the sport package. Decreasing the cost of a car by 8% seems worth the fight, don't you? Well, maybe not you, as you already said MSRP would have been fine.

A $40k car costs around $133/month in interest on a 4% loan (and that's assuming a top of the line touring model with all gadgets). We're talking a 370Z, not a fully loaded GT-R.

And it's difficult to have sympathy for a salesman/manager who refuses an offer that nets them $1k in profit from holdback, not to mention what they'll make from financing, because it's not $150 over invoice like they wanted. Fine, I'll come back in a month, that car will still be sitting there. My price point hasn't changed, but the dealership just lost $150 in interest. If they sell it at invoice now, they lose $300 off of what they wanted... had they sold it to me last month, they would only sell it for $150 less than what they wanted. If they're unlucky enough to have a car that no one wants for several months, they can take a real bath in the loss department... sometimes it's better to sell at a known (and decent) profit than take the chance on getting a much smaller one months down the road.

If I go through USAA's car buying program, the dealership has pre-negotiated $825 below invoice (for the model I was looking at), and they're STILL making a profit off of that sale, so why bicker about invoice at all? It's called risk. The dealership is taking a risk that they can make me cave and buy the car for their original asking price before walking out and losing the sale entirely. Some dealerships are bigger risk takers, and the size of the risk will depend heavily upon their sales for the month. Dealers don't like guys like me... I'm willing to walk away (and have been for the last two months) if the deal doesn't strike me as good enough. When I was shopping for the Cube, I finally found a dealership willing to accept my price (invoice, since I knew it was a popular car that had just come out less than 3 months before) after 2-3 minutes... and they got my business. The car had just come in a day or two before, they made the sale, lost only a few dollars to interest, but most importantly they made almost their entire holdback as profit (not to mention helping increase their allotment). It cost them a few hours of paperwork, improved their business standing, and made them a tidy profit...

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