Post by
gottafly »
https://forums.nicoclub.com/gottafly-u51923.html
Sun Dec 10, 2006 8:48 am
Paid $18153 including delivery, before taxes, for an S trim with Auto Trans, VOP, ABS and standard paint. Here's my story:
Subscribed to the CarCostCanada service. Wanted an S trim with auto trans, VOP, ABS and standard paint colour. Here's the breakdown of the quote they provided: MSRP versus Dealer InvoiceVersa S -Auto $15498 vs $14500Freight $1150 vs $1150VOP $1400 vs $1310ABS $500 vs $468Red Paint nc Total $18548 vs $17428
So, they have a little more than $1100 markup to MSRP, not including holdback. With holdback of 3% of total invoice being a little under $500, if you get one ordered from the manufacturer, they have the potential to get a max of $1600 profit after dealer cost of approximately $16900 on this particular car if I was to pay MSRP. They have a bit more room on the price if they get to keep all the holdback. According to some, it is recommended not to mention the holdback to the dealer when negotiating, just factor it in - in your head when deciding whether to deal on a particular car on the lot. They'll be a lot harder to deal with if it has been there for a while.
Got an online quote from one dealer who was part of the CCC program, but it seemed a bit high. Took the CCC quote down to the local dealer and started the process. Their first move was to try and upsell me to the SL, which I declined. Then the salesman indicated that they didn't normally discount from MSRP because the vehicle was in demand. I asked him to spare me the propaganda and asked him why they had 7 of them on the lot and there was no waiting list. I said I'd like to get serious and I showed him the CCC quote and asked him how much over dealer invoice he needed to close the deal. He went away and came back with a $500 markup and some kind of "vehicle tracking system" for $449 - which is really a very expensive VIN etching thing. I told him that I would be happy to pay the $500 markup but that I didn't need the tracking system - just another way of disguising markup so far as I was concerned. With $500 markup and all the holdback, they would already be clearing about 6% profit over their cost - that is not too bad for a car that actually has good demand - not that I'd ever admit to agreeing with that statement in the showroom. He said that was it, so I got up to leave. As I was getting up, he said there was some potential for a reduction in the registration program. I did really have to go, so I told him I'd be back later.
When I did go back, I agreed to split the $449 with them, if they gave me a loaner car until they delivered my car, as I had just sold our second car and needed another right away. As well, they agreed to eat the metallic paint fee if they weren't able to locate a black or red one. This was agreed to, and we sealed the deal, with me declining all attempts to sell me undercoating and extended warranties. This means that I ended up agreeing to a total markup of $725 over dealer invoice - with some sort of VIN etching that really should cost about $25 included. This was good - my aim was to hold to approximately $600 over dealer invoice, but the value of the loaner car to me for the 10 days it took them to deliver was $300-$400, at little or no penalty to them, so everyone was happy. They gave me a 2006 Sentra from the used car lot, which I wasn't impressed with.
My cost was $18153 - including delivery, plus taxes for the S trim with Auto, VOP, standard paint and ABS . This equated to approximately $400 below MSRP, and gave them a quite healthy profit of approximately $1200, if you include all the potential holdback they could receive from the manufacturer. Did about $500 better than the dealer who provided the online quote with CCC. Factor in the need not to rent a car until I got the Versa and I think I did alright.
Had some fun with this car buy, and I think that the CarCostCanada service is pretty good value for those of us in Canada who don't have the luxury of the dealer cost info being posted for free. Gives you the ability of working up from the dealer invoice (while remaining mindful of the holdback) instead of trying to come down from the MSRP.
Don't ever believe the hype of no discounts from MSRP for so-called "hot" cars. These aren't Porsches or Beemers after all. They want you to think they're doing you a favour by letting you pay MSRP and then they try to throw in "admin fees" or "registration programs" to push the envelope and happily waive them when you get indignant - all the while knowing that they are making the kind of profit on this economy car that they'd be happy with getting on a Pathfinder or Maxima. I'm not against letting the dealers make a respectable profit. I just don't see the need to facilitate any greediness, by giving away my money. The real crooks are furniture dealers, but that's another thing altogether.
Modified by gottafly at 10:59 AM 12/10/2006
Modified by gottafly at 11:00 AM 12/10/2006