Author Topic: Dealer Cost important to Negotiating price?  (Read 2390 times)

Ssddfm

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Dealer Cost important to Negotiating price?
« on: February 25, 2005, 12:57:12 am »
Hello everyone

Quick question. I am looking to purchase a Subaru really soon. The last time I spoke to a dealer ( past weekend )he suggested that if I wanted to purchase that I should try to do it by the end of the month. The reason being is that there is a limited  500$ off incentive that the dealers have in addition to whatever discount they would swing due to the fact that Auto show is in town. This kind of puts me in a tough situation. I wanted to be prepared to negotiate my purchase by getting the dealer cost through the APA but I couldn't find my old membership number and I need to reapply to get new membership.  Would it make a big difference to my negotiations to know the dealer price?
What is a reasonable or average price that I can strive for instead of MSRP?

Any information would be greatly appreciated

thanks in advance everyone!

Exserviceguy

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Dealer Cost important to Negotiating price?
« Reply #1 on: February 25, 2005, 09:02:12 am »
Hi Ssddfm, Welcome to the forum.  As an ex-dealer guy I can tell you that the gross profit margin on a new car or truck priced under $30K has shrunk in the last 15 years.  A lot of this has to do with the ability of consumers to research on the web and the dealerships who price advertise.  The average margin is between $1200 and $1500 dollars.  These margins can be increased by manufacturers paying rebates and incentives to dealers to move slow moving product.  Month end is when all manufacturers push for sales numbers so their reports look good in the press.  Start by offering $2000 off their price and work from there.  Cash is not as big a carrot to a dealer as you might think because they make a commission from every carloan they write for a buyer.  You should also ask them to bump up the value of your trade.  And don't blow any savings you get from your salesman on things like rustproofing or fabric guard. (Most dealers make more profit per sale in the finance office than on the showroom floor).

Offline JSCC

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Dealer Cost important to Negotiating price?
« Reply #2 on: March 01, 2005, 09:45:43 pm »
Yup that's the case.
As an Automotive Sales and Lease Consultant, I can back Exserviceguy back.
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Offline 84im

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Dealer Cost important to Negotiating price?
« Reply #3 on: March 02, 2005, 12:35:48 am »
An Automotive Sales and Lease Consultant?  

(Message edited by 84im on March 02, 2005)
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Mark_n

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Dealer Cost important to Negotiating price?
« Reply #4 on: March 03, 2005, 07:28:18 pm »
people have called us worse!!  LOL

Ssddfm

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Dealer Cost important to Negotiating price?
« Reply #5 on: March 05, 2005, 01:59:36 pm »
Hi Everyone

Thanks for the useful info. I think I did okay on my purchase. Quick question. What is meant by the fleet cost of a car? How is it different from say APA quoted dealer cost?

ssddfm