Internet price vs. being fair to Sales agent

[Veramocor]

So I test drove 3 different brands of cars about 2 cars each dealership.

I am thinking of choosing the Camry (yes boring I know).

The dealership has MSRP listed with their "internet" pricing on each vehicle in stock (about 3-4k off MSRP this falls in line with Edmunds TMV values).

I don't think it is fair to use the salesguys time and just go direct to the internet to purchase the car. The salesguy has to make money too. But how much more than their listed internet price should I be willing to go If I purchase it with the original salesman such that he still gets a fair commission too.

 

[brianmanahan]

trust me, no matter what you do, they get a fair commission. salesmen try to squeeze extra dollars out of you in any possible. dont worry about the salesman, worry about yourself.

 

[desy]

Agreed, they set the ability to internet purchase. The model for purchasing is changing its up to the manufacturer to figure out how to compensate the dealers

 

[Pacfanweb]

Don't feel bad about paying the price THEY set. They have something for the saleman included in it.
If you make contact through the internet, you still end up going to the dealership and test driving, etc.
So the only difference is, you've already identified the car before you get there.

 

[xSkyDrAx]

take that money you think they're missing out on, put it in an envelope, and mail it to me.

 

[thescreensavers]

If you dont mind, what other cars did you test drive

 

[Greenman]

So the sticker has two prices on it, MSRP and internet? Why would you even consider paying MSRP? Spiff the salesmen fifty bucks if it makes you feel better.

 

[manimal]

Never feel sorry for a salesman.

 

[Bignate603]

So the sticker has two prices on it, MSRP and internet? Why would you even consider paying MSRP? Spiff the salesmen fifty bucks if it makes you feel better.

The sticker typically only has the MSRP price. There will then be the price that they start negotiating at for people that walk in the door and a lower price you start negotiating at if you contact them through the internet.

 

[TechBoyJK]

I paid msrp for my kia. But it's a rare koup sx. There isn't one within 200 miles according to autotrader.com

I asked them to come down, but the situation was they just received it and they said they knew they could sell it at msrp.

http://www.autotrader.com/cars-for-...rchRadius=0&minPrice=24000&sortBy=distanceASC

 

[NutBucket]

Wow, since when did Kia turn into Honda and think so highly of themselves? LOL!!!

 

[rh71]

I wonder if the following is still true from carbuyingtips.com (site's been around forever) but has updates...

http://www.carbuyingtips.com/car4.htm ...

Your Offer: 5% Over Dealer's Actual Cost

That's 5% over dealer's cost, not over invoice price. They'll gladly take 5% profit, dealers survive on 3%. I've verified this with salesmen. Grocery stores earn 1-3% profit. This 5% profit pays dealer overhead and sales commissions. Dealer expenses include rent, utilities, salaries, loan interest, etc. If they use cost controls, and low rent, their cost of sales is less. Many dealers charge ad and dealer prep fees to make up for costs. They get incentives if they meet sales goals, which offsets expenses.

Keep in mind dealer cost is less than invoice price. Then you're supposed to add 5% to dealer cost as your offer. After I do that on a '13 Elantra, that's only $300 less than MSRP (20,421 dealer cost (from truecar.com) + 5% = 21442... vs. 21720 MSRP). That MSRP does include $775 destination. Does the dealer really have so little markup on a vehicle like that, or is 5% too much these days? Seems like so little wiggle room to begin with.

For those in the know, how much profit on a vehicle is usually bare minimum acceptable?

 

[KDKPSJ]

Wow, since when did Kia turn into Honda and think so highly of themselves? LOL!!!

Welcome to Year 2012, the year fully loaded Kia's midsize family sedan, Optima, is priced at $36K

 

[Pulsar]

If a salesman isn't making money on a sale, he won't sell to you.

/thread.

 

[mvbighead]

If a salesman isn't making money on a sale, he won't sell to you.

/thread.

This. And a salesman will bend you over and take 1000 more than he should if can get you (or someone else) to do it.

Never, ever, ever feel sorry for a salesman. They're screwing somebody. Just be sure it isn't you, unless you're into that sort of thing.

 

[JTsyo]

Welcome to Year 2012, the year fully loaded Kia's midsize family sedan, Optima, is priced at $36K

Kia seems to be putting out higher priced cars while Hyundai takes over the lower segments.

 

[Veramocor]

If you dont mind, what other cars did you test drive

I test drove the Sonota SE (4 turbo) and GLS (4).

Suburu outback.

At toyota I test drove the Camrys (4 and 6) and the Prius V.

Nissan altima.

I've owned both a sonota and a camry. I am replacing a 11 year old camry with 97k miles (needs wheel berring replaced, the engine/transmission is great but the body and glass surfaces are terrible, plus the newer models have added a lot of safety features)

In the end I decided on 4 cylinder engine because its still 40+ HP more powerful than my old car and the extra 2500 dollars isn't woth it.

The Sonota is very temping maybe 1000 or so cheaper when including incentives + the longer warrantee. But I liked the toyota better inside.

------
The internet price is below the invoice prices with all the options (even after adding in a bogus 199 administration fee). They must be getting some type of manufature to dealer incentives to lower their price in addition to the normal holdback of 3%.

 

[NutBucket]

True. Check Truecar to show the factory-dealer incentives that you aren't being told about otherwise.

Is the admin fee something every dealer is charging or just the one you're working with? I would definitely refuse to pay that...or maybe get some accessories thrown in to make up for the added cost.

 

[rh71]

I PM'd a former car salesman this morning (hey do they have their own message boards? )... he mentioned that you should have no problem getting them to accept just 3% profit from their actual cost (which again is lower than invoice - look at truecar.com) because they also have factory holdbacks to play with (estimated 2%?). It's not "profit" but it's still money they get. Gonna try that myself soon... and if they don't take it, I'll reluctantly remind them there's 2 other dealers within 15 miles that may - I do like their perks like lifetime carwashes and loaners though.