It seems Hyundai Dealers wont budge on the MSRP on a new car (2012) sale

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I test drove a 2012 Accent with auto trans and a/c , and was very very impressed with the ride, comfort, roominess, and acceleration. The 6 speed auto trans shifts very nicely and the car feels rock
solid. So when i return from the test drive, I ask the enthuastic Salesman who was in the Parking Lot waiting for me to come back, how much could i expect to be taken off the MSRP for a cash sale ? He said nothing . (Then he went on to insult my intelligence by telling me 'all the Dealer makes on this car is $700 ' --- so after he get his $500 commission all the Dealer makes is a measily $200 ??! . These people must think the Public are a bunch of gullable fools) .
Before i pay MSRP on a 2012 Accent, ill buy a slighttly used 2011 or 2010 privately and save a ton of money. I dont care if it isnt exactly like the reconstituted 2012 model or not .
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wrote:

People seem to think cash matters to a dealer. THEY DON'T WANT YOU TO PAY CASH! They get a kickback from financing your purchase - so if you tell them you're paying cash, you're indicating that a) they're getting no extra financing money, and b) you're probably the kind of intelligent customer who isn't going to be blowing money on service contracts, fabric protector, paint protector, etc. (For those items, they practically count on the fact that you're paying no extra money up-front to undermine your willpower to resist the add-ons).
And let's face it - they DON'T make a lot of money on sub-compacts. $700 might even be the real number. (Also, the salesperson's commission is based off the dealer's profit, not the base price of the car - see http://www.edmunds.com/car-buying/confessions-of-a-car-salesman-pg4.html ). If you think they're making $5k profit off a $12k car, they were right to insult your intelligence.
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On Fri, 10 Jun 2011 17:36:17 -0700 (PDT), Matthew Fedder wrote:

Wait until the dark days of November when they really need some hard cash to pay the rent.
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Look, theres NO WAY they could stay in business if all they made is $700 profit per vehicle or on sub-compacts . The size of this Dealership is big with a ton of overhead and expenses. $700.00 wouldnt even pay the electric bill for a month at this place . There are numerous ways a Car Dealer can make money off of the sale of a car including kickbacks, special promotions, etc..from the Manufacturer and from externals like paint protector, et al , ad infinitum. Im not a Buyer who falls for the lieing antics of Salesmen so youll pay sticker price on a new car --- its obvious they want the public to pay top dollar for a high MPG car in light of the gas prices at the pump ; this Buyer isnt going to pay sticker price on a car, ever, which is why ill opt for a sub compact a couple years old with low miles on it. Ill also escape the instant depreciation of driving a new car off the dealer lot . A Dealer has to be getting at least $4-5,000 profit on the sale of a new car if they hope to cover their business overhead, expenses, and be able to make an individual living. Profit isnt a dirty word...but blatant gouging of the Public is a disgrace I wont contribute to . And no...it is not right to insult a persons intelligence and common sense.
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Look, theres NO WAY they could stay in business if all they made is $700 profit per vehicle or on sub-compacts . The size of this Dealership is big with a ton of overhead and expenses. $700.00 wouldnt even pay the electric bill for a month at this place . There are numerous ways a Car Dealer can make money off of the sale of a car including kickbacks, special promotions, etc..from the Manufacturer and from externals like paint protector, et al , ad infinitum.
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They aren't making a PROFIT from you period. Unless you are buying a/c and some electronic button stuff, they will be losing money by selling this car to you for cash.
Why dick around and waste with some cheapskate over an Accent when there are Sonatas, Santa Fe's and Genesis to sell, cars that make a profit for the dealer.
The only benefit to selling you an Accent is to increase market share for the brand and to have you advertise for the brand.
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Profit also comes from selling a $15 wax job for $300 and $2 of upholstery protector for $150. The service bays are a source of profit also. My dealer recommends services that are far beyond what Hyundai calls for in their maintenance schedule too. Annual fuel injector service for $129? You have to know how to say NO.
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Totally non - sensicle ! They are in business to MAKE MONEY otherwise they would fold. They have to make money on every car they sell . It is absolutely imperative. They are not in business to make nothing . If you had a Business of some sort, would YOU sell your product for no profit ???
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They do have to make money, but not on every car. If they gave you the car at actual cost they could make a tidy profit if you return for service for the next five years or so. Bit of a crap shoot on that though.
I've been in business and I've sold product at no profit for various reasons. Retailers often sell product below cost to move it out and free up shelf space and get cash flow so they can buy more product to sell at a profit.
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A big car dealership has to make a profit...and frankly, they are entitled to so they can keep on serving the community and so the Principals and employees can go on making a living. BUT , in a free enterprise system, the Consumer needs to really shop high dollar purchases because on a $16 k . new car, SOME dealerships would be willing to knock a thousand or two off the sticker price to make SOME profit instead of loosing the sale. And, that is the fun of new car shopping , at least in my book.
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Totally non - sensicle ! They are in business to MAKE MONEY otherwise they would fold. They have to make money on every car they sell . It is absolutely imperative. They are not in business to make nothing . If you had a Business of some sort, would YOU sell your product for no profit ???
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Learn what a loss leader is!
Supermarkets do NOT make money on milk. They lose money selling milk. It's a fragile product and has to be constantly refrigerated and it's a highly competitive market. So why does a supermarket sell milk? Because if they don't they will lose customers to rivals. The other advantage of selling milk is they place the milk fridges at the very back of the store forcing you to walk past products that do make money, hoping to entice you to purchase those items in addition to milk.
The Hyundai Accent is a loss leader. Unless you are purchasing options, or service contracts, or financing or alloys etc etc etc, they lose money on every Accent they sell. Unless you are purchasing option packages that are profitable, why oh why would they budge on a Accent being sold for cash?
Learn what a loss leader is!
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A 2012 brand new Accent is NOT a lost Leader...it is a highly desirable car considering its MPG and incredible ride and re- engineering. I like it quite a bit more than my present 2002 SantaFe which ive grown very fond of . But when you consider how much longer its going to take to save money at the gas pump due to the inflated sales price Dealers are demanding you pay, its going to cause many people to either hang onto their older car(s) or opt to buy a car thats one or two years old .
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A 2012 brand new Accent is NOT a lost Leader...it is a highly desirable car considering its MPG and incredible ride and re- engineering.
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The BMW M3 is a highly desirable car. The Accent is a cheap car that caters to a certain market and does well to that certain demographic. It's not a high desirable car to anyone except a narrowly defined market.
Why buy a CTS-V or an R8 when you can have an Accent. Heck, why does that damn F-150 keeping selling the most every year for 40 years in a row when instead they can have an Accent.
There are three cars off the top of my head in 2012 that are safer, better engineered and more fuel effcient than the Accent in the sub-compact class, although the Accent is the lowest priced.
Yes let's all stop driving $30 000 Camrys and Accords and Explorers so we can buy $13000 Accents. After-all the Accent is a HUGE money maker!
If you are so interested in fuel economy you have taken a look at the BMW I1 correct? Or the Leaf? or the Volt?
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snipped-for-privacy@gmail.com wrote:

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P.S. Im not 'a cheapskate' -- I like the Accent and all i need is very basic transportation. If it were YOU looking at a new car and all you required was something basic, would you be willing to label yourself a Cheapskate ?! No...youd consider yourself a wise Shopper . So please stop your defamation which shows your character.
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P.S. Im not 'a cheapskate' -- I like the Accent and all i need is very basic transportation. If it were YOU looking at a new car and all you required was something basic, would you be willing to label yourself a Cheapskate ?! No...youd consider yourself a wise Shopper . So please stop your defamation which shows your character.
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I'm not being critical in your choice of automobile. Of course you should purchase an automobile that suits your reasons.
I was only criticizing your suggestion that the Accent cash MRSP is gouging.
And I'm a cheap fellow myself. I routinely buy used vehicles and look for scratches and bald tires on two year old vehicles so I can hammer the price down. Also I try to buy the last day of the month. The dealers want to move inventory and meet quotas etc that day. I only pay cash for cars too. Never borrow money for a depreciating purchase unless the interest rate is 0.0% or you can claim it for tax purposes.
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The Dealers are only concerned about their bottom line profit . Period. If a car due to high MPG is sought after, they will stick it to the Consumer in hopes they can get away with it. They wont / cant with this Consumer. Id like to see the Manufacturer of Cars step in and prevent Dealers from doing this, but the Manufacturers are only concerned about their bottom line profit too ; yet on TV Commercials they want you to think that they are 'your friend' . (only for the gullable) .
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snipped-for-privacy@gmail.com wrote:

You think paying MSRP is gouging? Most MSRPs on autos are 10% or less above the dealer cost. There are very few consumer products you buy where the retailer's profit is less than 10%. Real Estate agents make 6% on the sale of a house and they take on no risk, carry no inventory, have little overhead, etc., so it doesn't seem to me that 10% is outrageous for a car dealership.
So just what is gouging with respect to new car sales?
Matt
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Gouging is demanding the consumer pay full sticker price because the Buyer wants to buy a fuel efficient car due to very high gas prices. If the gas prices werent as high as they are currently, they no full well that No one would pay sticker price.
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snipped-for-privacy@gmail.com wrote:

No, that is simply a free market working as it is supposed to work. Things that are in high demand will command higher prices. Nobody is forcing you to buy the car at that price so if you get "gouged" it is your own fault.
Matt
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True...and i dont plan on getting gouged with it being my fault. Ill either find a Dealer who knocks some off of the MSRP or ill opt for a used Accent with low mileage on it. (end)
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