dealer cost

I think we should find the dealer cost not the invoice or msrp.
How do you do that??

 

Why? I don't think it's anyone's business what they pay. They're entitled to make a profit and they charge what they need to charge in order to stay in business. Just my 2 cents.

 

All I have read said no to pay MSRP or invoice -give 500 over what they paid.

 

You will never find the actual dealer cost for any vehicle. MSRP and invoice are almost the same since the auto industry has made changes to invoice prices with the advent of the internet. I do remember reading somewhere that Ford Motor Company makes an average of 15K on each F-150 they sell. I don't begrudge they making a profit but that amount of profit makes me shy away from any new vehicle.

 

Quite honestly, there is NO way to be certain you know what the dealer paid for the vehicle, or any other item for that matter. Especially with automobiles there are often secret deals including rebates, offsets, incentives and the like that can affect the price a dealer pays for the car.

And, I agree with Shadeladie, it really isn't your (or anyone else's) business what the dealer paid. It is ALWAYS up to the seller of anything to determine the selling price.

And don't believe what you may read in national publications or on the Internet regarding the "dealer cost" of automobiles. In addition to the items I mentioned in the first paragraph there just as often are LOCAL costs that are added on to the "dealer cost" by governments, lenders, transportation companies and the like. These additional costs to the dealer MUST be recovered if the dealer wants to remain in business.

All that stated, you CAN ascertain a close estimate of the average dealer cost by checking various publications found in the magazine area of your local department store or public library. Internet publications can also help but kn ow that this will ONLY give you an approximate cost to the dealer. Use this information to make an offer and be prepared to walk away if it is not accepted. You may come crawling back a few days later with a higher offer but don't worry, the dealer will not hold it against you.

 

Agree with Furd and Shadie. I always said, regardless of what the dealer profit might be, if YOU are satisfied with the deal then its a good deal. There is always the fellow who will say, I can get or had a better deal no matter what you paid. Pray tell I bet if you got the car for free, some wing nut will say the dealer paid him to take the car.

 

There b some way to come up with a figure to offer a dealer how do you go about that

 

Don't go in with the thought that you need to beat the dealer. It ain't gonna happen. Determine your price range and what you can afford. Don't tell the dealer your high end but you want to steer him to what your looking for and the range you can afford (low, mid or high end price range). If you plan on a trade-in tell them up font. Don't try to spring it on them at the end. They know how to cover that. Again, don't worry about paying to much. If you feel its a price you can handle and you like the deal, go for it. Let them make the profit they need. If you can't afford it, walk away. If they can negotiate down they will stop you from leaving. Stick to to your price range and don't over buy something you can't afford. They will not sell a car at a loss or even a break even. They will make a profit.

 

That is true no matter what they say!! My wife helped one of her sons buy a new Nissan. They wouldn't drop the price down to where she thought it ought to be [and what her son could afford] so after some intense negotiations that failed, they left. The dealer called the next day and agreed to the price they previously said was below cost. While they might not have made as much on that sale as they liked - you know they still made a profit!!

 

Just my two cents worth, but buy a good used car; you'll save way more than you will by trying to talk a new car price down a few bucks. Last new car I owned was a 1986 Corolla and it was a reduced price demo. Price of new vehicles these days is insane and then there are a variety of junk fees that can be tacked on top of that.

 

I don't disagree with a used car, however you are getting a limited warranty and you should assume you will need to put in another $1000 for some type of repair within the year. That's not a bad thing, just consider it. Dealer demo cars can be a good deal if they have what you want. You usually get an almost new warranty.

Even on a used car if they won't meet your price and let you walk out then you know you're too low and should re-asses your priorities and price range. Also remember, all those bells and whistles will cost you dearly. But any car of the same model will be the same basic frame, body and drive train as the one with all the neat stuff on it. Do you need that big back up screen, or high end stereo? On the other hand most cars come with all the bells and whistles and you can't really negotiate on those type of items. Seldom will they remove them just to make a sale.

 

Of course that theoretical $1000 repair in the first year is more than offset by the IMMEDIATE depreciation as soon as you drive the new car off the lot. [Side note we bought a low-mileage 2009 Camry two years ago and it's needed nothing; ditto the 2004 Toy pickup with 195k miles I bought three months ago.]

 

Determine what car you want to buy and type that into a Google search. Read the articles in Edmunds publications as well as Road & Track and other similar Internet articles. All of these will suggest a starting point for negotiations. The same publications can be found in magazine racks of larger stores that sell lots of different magazines.

Be aware though that your LOCAL dealers may have other criteria affecting their costs and these MUST be taken into consideration. Not the least of criteria is how popular a particular make and model is in the local area. When the Volkswagen Rabbit Diesel was first introduced in my area (my wife at the time wanted one) there was absolutely NO DEALING on the price. Every single car was sold before it ever hit the dealer's lot and it was sold at a premium price way over MSRP.

When I bought my Dodge (Mitsubishi) D-50 pick-me-up in 1980 I had done the research (paper publications) and came up with a price that I thought was reasonable. I went to the dealer, said, "That one!" and the saleswoman said $7.599.98. I repeated the figure, asking if that was correct, the "out-the-door" price and she stated, "Yes, plus taxes and license". I thanked her, stodd up and started to walk away and she asked what I would pay for the vehicle. I offered $5,000 including all add-ons and fees. She went and got the sales manager who tried to tell me they would make no money at that price. I again said thank you and proceeded to walk away. The sales manager then asked me to follow him to the "back room" where he showed me all kinds of awards from Chrysler Corp on the walls stating what a wonderful dealership they were. He then introduced me to the owner of the dealership who showed me what he (owner) stated was the actual dealer invoice for the vehicle I wanted.

I was very polite but also pointed out that I personally had no way of knowing if those were actual invoices or that maybe he had had them printed up to show the rubes like me. He admitted as much and said the truck was mine for $5,000. He told me he was making a slight profit and he would give the original saleswoman $25 for making the initial contact. We went into the office, made out the paperwork and added on a "rust-proofing" treatment for $100. I had asked for the Z-Bart rust proofing treatment but what I got was a simple undercoating. When I found this out I was furious and they refunded me the $100. Doing more research I found that the Z-Bart treatment cost $400 and $100 was the going rate for the simple undercoating so I took the check back and gave it to the sales manager. I told him I could not in good conscience accept it as I DID get what I paid for. He shook my hand, thanking me for my honesty and told me if I EVER had a problem with the vehicle to see him personally.

About two weeks later I found a stress crack in the windshield starting above the rear view mirror mount. It was only about 1/4 inch long from the rubber but absolutely no sign of a rock chip or any other cause. I took it in for warranty replacement, left it for the day and when I picked it up the windshield had NOT been replaced. The body shop manager stated that he absolutely would not replace the rock-damaged windshield under warranty. I went and found the sales manager and told him what I had been told and he asked me to wait while he spoke to the body shop man. He came back and asked when I could again leave the vehicle and I told him. I went out the truck and the crack now extended half-way down the windshield. I suspect the sales manager simply took his fist and banged on the glass causing the crack to extend itself.

Bottom line, it PAYS to allow the dealer some profit. When you undercut their profit too much when you need service they won't give you the time of day.