How much do dealers actually pay?

Nov 03, 2003 9 Replies

I'm looking at a new 2004 WRX purchase. Blue 5-speed with premium package and auto dimmer rear view mirror. Base MSRP is $24,495, premium package is $1500 and the mirror is $183 bringing me up to a grand total of $26728 with the $550 destination and delivery. How can I find out what they REALLY paid for it so I can negotiate from that price up, and not the MSRP down? Anyone got unlimited access to Consumer reports or have a current new car price list from them? Thanks



Chad Soon to be WRX owner


You can't find out what they REALLY paid for it, but you can find out what their official cost is. There are several sites. I've found

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to be the best.

That site is actually

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The Motley Fool

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presents a good, alternative approach to buying a car. In short, rather than worrying about invoice price, rebates, dealer holdback, and such, a prospective buyer does a mass-faxing approach to get the lowest price possible. You might want to give it a look. Worst comes to worst, you can always go back to the 'ol "negotiate up from invoice" tactics.

I've negotiated up from invoice on a couple cars, and done the Motley Fool "faxing method" on a couple cars, and both generated reasonable deals. I think the faxing method chews up less time overall, however - and I'd rather be home watching faxes roll in than sitting in a cubicle while the salesman "talks to his manager" for an hour.

I will be picking up my new silver 5-speed with premium package on Saturday. Placed a factory order and the dealer met the Carsdirect price of 25,000. The list was about 27,300. I found this dealer by asking for a Costco quote which came in at 25,600. I told the dealer (via phone) I had found a better price and only wanted to pay only 25k even. He asked me to call him back next day. He agreed - we faxed some papers - I stopped by on the way home to sign - spent less than 10 min on the dealer premises. Works for me! And he has service loaners!

David

In addition to edmunds.com (already mentioned), there's

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which is a little more convenient forcalculating prices, at least to me. The major benefit that consumerreports (CR) has over those two sites is reliability ratings. What ismuch more important, CR has a record of independence and integrity. So,if you're looking to spend $25k, spending $25 for a yearly subscribtionto consumer reports isn not a bad investment, both to yourself and thecommunity.

If you're taking the time to educate yourself and shop around, don't be too much of a smartass when you walk into the dealership. Salesmen don't like it, and if you have luck like me, you'll get kicked out.

Paul

Yes, Consumer Reports does have a record of integrity, etc., but Consumer Guide does not. Don't confuse the two.

There are actually, 4 business units in the dealership. Parts/Service/Finance and the Sales Department.

The Invoice price you find on any of the buying services/ guides are close but are never correct. In New England, our distributorship, Subaru of New England adds on some fees as well as adjusts the invoice price. the MSRP stays the same. Destination and Delivery is $595. The dealership also has holdback. Money that is given from the manufacturer after three months to assist in keeping a car on the lot. In Subaru World, generally there is a margin of about 8.5% from invoice to MSRP, and Holdback is about 2.5%.

The Customer is entitled to any customer incentives, it is at the dealerships discretion whether to use any dealer incentives to make a deal.

When negotiating, a sales department must make a profit but does not need to make a killing. We hope that you will service and buy parts down the road.

10% of all subaru dealers are Stellar performers, that means we have met a certain criteria and for knowledge/service/customer satisfaction and numbers... We get assistance to provide loaner cars to our customers when they are in for service.

If I can be of any further assistance, please do not hesitate to reply to snipped-for-privacy@rcn.com

Marc Soloway Sales and Leasing Natick Subaru Natick, MA USA

508-651-2000 X 126

It's probably relevant in the USA. however it's a big world and there is a huge difference in each international market.

Please identify your thoughts to the market you are aware about.

EG There is a New England in Africa, Australia and Asia.

Thank you.

marc wrote:

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