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

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On 6/15/2011 10:02 AM, snipped-for-privacy@gmail.com wrote:


I'm just curious why you think if you are being charged MSRP that you are being gouged. When you go to the store and buy milk for $2.50 a gallon, because that is the price that is listed, are you being gouged there as well? If you said the dealer was charging 10% more than MSRP then you might consider that you were being gouged but just because the dealer doesn't want to give you $2000 off doesn't mean he is gouging you. In case you are unaware of the current market let me just give you my take - Six or seven years ago it was difficult to give Hyundai's away and you could get some pretty nice discounts -in '06 my daughter bought an Azera Limited and saved over $5000, in '08 my son bought virtually the same car and saved $3500. As Hyundai's product and image improved those savings are no longer quite so high and in fact I have seen the new Elantra and Sonata models with little to nothing off depending on the trim level. Most of the other manufacturers, as well, have cut their incentives. In almost all circumstances it is wiser to buy a 1-2 year old model so that you don't have the depreciation that comes with driving it off the dealer's lot. Of course the advantage of a new model is that you might want the long term warranty as the original purchaser or some feature(s) that aren't available on an older model.
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jp103 wrote:

Yes, I was curious about that also. Even at $2,000 above MSRP no gouging is occurring. It is simply the market at work. As long as someone wants the vehicle at the price the dealer is asking, then that is BY DEFINITION the market value of the vehicle. You can choose to pay it or choose not to. Hardly a gouging issue.
This is no different than me doing most of my car shopping in December. The dealer needs to move vehicles at that time and that puts me in the driver's seat, pun intended.
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Historically and traditionally , Car Dealers come down off of the MSRP on a new car especially when theres competition . Ill either shop the new car heavily, or, ill get a 1-2 year old car with low to medium mileage . I agree on the depreciation factor.
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Back in the 80's, people happily paid $1000 or more over the Honda Accord sticker to get one. I've seen other dealers add to the MSRP also on certain brands and models. One dealer called it a "value adjustment"
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snipped-for-privacy@gmail.com wrote:

Absolutely. But that doesn't mean they are gouging when they sell at MSRP or even above MSRP for vehicles in high demand.
Matt
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snipped-for-privacy@gmail.com wrote:

Which is as it should be.
So why the rant against the dealer who is just acting rationally?
Matt
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" snipped-for-privacy@gmail.com" wrote in message
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 .
For whatever it is worth, my buying service, which will line me up with a dealer and a guaranteed price, lists a 2012 Accent 4 dr sedan GLS with automatic and premium package for $14,628. That's well below MSRP. If you belong to a credit union you might also get a deal.
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Interesting, because the Sticker Price on the same car i looked at was $16,040.00 . Thanks for your info.
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I understand I'm a little late to this party, but there are some things to be addressed here.
1. You're not likely to get any dealer to budge off the sticker on a 2012 Accent in the near future. They're still in relatively short supply, so they're confident they'll sell all they have at the actual sticker price. As supply outpaces demand, expect to see the dealer negotiate the price as well as Hyundai begin to offer rebates or other incentives.
2. Depending on how you calculate profit, the $700 figure could be entirely accurate. If you were to subtract invoice price from MSRP, I wouldn't be surprised if that's about right. What it ignores is the fact that all dealers of any brand with which I'm familiar receive what's called holdback money after the sale of a vehicle. In some cases, it's a fixed amount of money for each model. In others, the amount per vehicle will vary depending on how many cars the dealer sells. From what I've been able to tell, the amount of these payments is closely guarded and most dealerships will have no one below a general manager who actually knows how much money this is.
3. The Accent is not a loss leader. While a dealer might keep one loss-leader car in stock so as to be able to use it in advertising to attract buyers, this won't be the case for all the cars of any particular model. So, while a dealer might have one stripped Accent for a loss leader, that dealer will still be selling all the other Accents for a profit, once all moneys are considered.
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3. The Accent is not a loss leader. While a dealer might keep one loss-leader car in stock so as to be able to use it in advertising to attract buyers, this won't be the case for all the cars of any particular model. So, while a dealer might have one stripped Accent for a loss leader, that dealer will still be selling all the other Accents for a profit, once all moneys are considered.
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I think that was the consideration. All basic Accents are lost leaders but the model as a whole is not because many Accents will have made a profit in the sale of options?
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On 6/16/2011 10:54 PM, The Henchman wrote:

The premise that all basic Accents are loss leaders is more than likely incorrect. Not knowing the true cost, to Hyundai, of an Accent makes it impossible to determine that. Having said that I find it highly improbable that any manufacturer would sell a line of cars below cost on a regular basis.
According to Edmunds.com the stripped down Accent Hatchback GL's MSRP is less then $100 above it's invoice. The invoice may not reflect the dealer's actual cost as there are incentives, holdbacks and other inducements as have been expressed. There may be times when a dealer will take out an ad saying buy this Accent for $500 under invoice which would, in this instance, most likely qualify it as a loss leader but there may be only one available. The intention is to bring more customers into the showroom and perhaps interest them in a different model. All stripped down Accents are NOT loss leaders. It is the dealer that creates the loss leader as a sales tool.
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wrote:

Not true. Auto companies have to maintain a certain MPG on their overall products in the U.S. Ford, for example, was losing money on each and every Escort they sold. But they had to keep that car around to keep their average MPG at a certain level. What they count on is selling extras and dealer maintenance to make a profit. Also, your trade-in. My buddy traded in his car and got $3000 for it. A week later, he went to the used car portion of that same dealer and saw they were asking $7000 for his old car. All they did was clean the interior up and put new tires on it.
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On 6/10/2011 11:00 AM, snipped-for-privacy@gmail.com wrote:

price from a local dealer depending on where you live. Here in Phoenix, I can get only about $300 of MRSP for a 2012 with auto and AC but can get $1500 off a 2011 but there will be limited choice. Of course yopu will be subject to all the upsells that they push for additional profit not to mention the notorious documentation fees. Still, you avoid a lot of the haggling. BTW, Consumers Reports has a similar if not identical service to overstock.com.
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