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

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-p=
g4.html
). If you think they're making $5k profit off a $12k car, they were
right to insult your intelligence.

On Fri, 10 Jun 2011 17:36:17 -0700 (PDT), Matthew Fedder wrote:


http://www.edmunds.com/car-buying/confessions-of-a-car-salesman-pg4.html

Wait until the dark days of November when they really need some
hard cash to pay the rent.

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.

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.

------------------------

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.

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.

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 ???

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.

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.

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 ???

------------------

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!

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 .

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.


------------------------

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?

IlBeBauck@gmail.com wrote:

You are, I take it, unfamiliar with the term "loss leader".

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.

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.

--------------------------

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.

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) .

IlBeBauck@gmail.com wrote:

seehttp://www.edmunds.com/car-buying/confessions-of-a-car-salesman-pg4.html

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

 He

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.

IlBeBauck@gmail.com wrote:

seehttp://www.edmunds.com/car-buying/confessions-of-a-car-salesman-pg4.html

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

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)