thats good info.

 

when i was working at honda, basically the fits were priced $600 over invoice, civics, elements, crv's and accords @ $1800 over invoice and s2000's, Odyssey's and Pilot's were ~$3600.

most dealer incentives were in the $700 range.

and there are no dealership "processing fee's" you talk of. there are taxes and DMV fees, but that's uncle sam reaching into your pocket, not the dealership.

 

ah, that makes sense then. You said the magic words, "left over". They are very motivated to get rid of left over inventory. Plus they get kickbacks and money from GM/Dodge, whoever to move the left overs. But good luck getting a new Camaro for $100 over invoice.

 

not sure if this was aimed at me or not, but yes, the dealership does make money on extended warrantees and paint protection or undercoating. The dealership I worked for back in the 80's was Van Nuys Chrysler Plymouth. We didn't do any paint sealing or undercoating. But we did things like alarms, sunroofs, phone installs, window tinting, pinstripes. But these were always done after the sale if the customer wanted it (or was pushed into it if he got some of the unscrupulous salesmen that I worked with, I didn't operate that way) I was one of those crazy car salesmen that treated people the way I wanted to be treated. Then the sales manager would get ahold of the deal and **** it all up and **** the customer off.
And yes, the service and parts departments usually carry a dealership. Especially with the CRAP Chrysler was putting out back then, the service department was always busy. But the service departments DON'T PAY THE SALESMAN'S COMMISIONS, CAR SALES DO. They have to eat too.
Oh, and there was a $250 "pack" price that was the owners cut. It wasn't added on, it was just that they wouldn't go below $250 over invoice. The owner was going to get HIS even if everyone else in the deal got left out.

 

Perhaps there are no "processing fees" in your area, here in VA most dealers slap on a $150-$250 processing fee as an add on in the total sale, in effect charging you to process the paperwork they already have to process anyway. And that is not from the '60s/'70s, that is going on today!
Clyde

 

I'm not paying any mark-up.
I've got a great running beautiful 4th gen thats paid for....
I can wait quite a while for prices to stabilize.

 

Probably the same.

GOOD LUCK.

Plus dealer holdbacks as mentioned in another response. There is generally also a min commission that a salesman makes and it isn't $25 from those I've spoke with; it's not $1000 either to be fair.

Dealer holdbacks, last time I checked, was 3% for all GM models. Keep in mind they generally consider this "sacred" money. What it really does is allow the "pay $100 under invoice" marketing campaign that they use to draw you in on the high volume movers. IMO, we will not be able to consider that in our negotiations.

But look what you bought "under invoice"...

To make a long story short:
1) I expect the dealers will try 3-5k ABOVE MSRP for the first 2-3 months.

2) I expect that after that short waiting period, not only will you be able to buy below MSRP, but I would bet deals in the invoice+$1000 will be common. I don't expect much below that unless there's end of year fac to dealer incentives on remaining models which is unlikely IMO.

3) I will be trading my SmartBuy GTO in, in September, for a Chevy vehicle, probably Equinox, for the wife and driving her Galant until it's lease is up in May 09. One advantage to SmartBuy: savings on sales tax just like a trade in...When that happens in September, I will pin down whatever Chevy dealer is willing to make that deal and a pricing deal for TWO Camaros in May. I'll obviously be getting one and my 62 year old father, reliving his childhood, told me to make a deal and tell him where to pick it up... Three new vehicles should give me some buying clout. We do have the largest volume Chevy dealer in the country 5 years running, Paddock, here in Buffalo so I'll start there.

 

i am going 2 be paying msrp for it but i wouldnt mind paying 1,000 over msrp

 

Not American dealers. Only Imports. I have bought 4 new cars in the last 4 years all in VA. Nissan and Subaru dealers tried to charge me 250. I refused to pay it at Nissan and they dropped it. I ended up paying it on a Legacy because it was still 500 below anyone else and they were they only ones that had 08 legacys on the lot at the time. Not one time have I ever bought a domestic car and had to pay that processing fee.

 

I will not pay MSRP because its based on a value. If MSRP is 32,500 (just an example...) the cars actual worth the next day would probably be $28K if I am lucky.

I'll let someone else pay the 24-hour tax.

 

That's why some only buy used cars.

 

I don't know what rules prevent GM from forcing their dealers to only charge MSRP, but I know that Ferrari will revoke a dealers franchise if they charge a premium, or if they are caught selling to guys looking to flip the car for a profit.

 

I think that would be price fixing.............although I think the price fixing laws have been relaxed somewhat.

 

if a dealer only relied on the holdback money on profit, they would not be around. they have to pay interest on cars sitting over a certain amount of days, usually 60.

at the dealership i was at the "mini" was $100, and the dealership "pack" was $400 and "detail" took another $50. And the sales guy doesnt get his cut untill AFTER the managers got their cut (sales manager AND "closing manager"), so after all said and done, a full pop MSRP deal was worth $250. FULL POP. and then discount the car even just $800 from MSRP and you got yourself a mini.

 

I wouldn't think that setting a price ceiling would be price fixing. They're not saying they can't sell for less, only that they can't sell for more.

At any rate, I can't see paying a premium for a car that they'll be making tens of thousands of for years to come.