for invoice price or less? Can someone please explain the whole procedure and is it better to buy at the end of the month? Why?

Thanks,
-Erik

 

sometimes moving merchandise is better than making profits.. they also gets prizes and bonuses for moving lots of merchandise.. besides they make it up when they rip you off for service

 

"Most" of the profit at new car dealerships come from service, parts, and used car sales. They can afford to break even or make very little there and still pull in tons of cash. Take for example the good trade ins that dealers get. They give you say $11,000 for your 2000 Maxima SE when you buy your new 2004 Maxima SE. After a bit of reconditioning and testing, they price the trade in at $15,500. It'll probably sell for $14,000-$14,500. Nice, tidy little profit.

 

Basically invoice is a fictitious number, but you have to start somewhere. So when you go to buy a Nissan, you need to let the salesperson know you are not interested in paying invoice, you want hundreds below invoice. Of course that wont work with a G35 but it will work with a Sentra or Maxima.

Anyway, there is usually a 3% holdback built-in, so even when a car is sold at the fictitious invoice price, profit on a 30k car is about a grand. Then you have factory to dealer incentives that the buyer never gets a piece of or sees for that matter, plus volume discounts. They can cry bloody murder please buy rustproofing and fabric guard from us because we're not making any money on this sale, but does anybody really think that's true? How do you think sales mgrs get to golf so much?

There is some truth to showing up 30 minutes before they close for the weekend at the end of the month that ends a quarter, in the middle of a 25" snowstorm. Their psyche is more apt to let you get a better deal. There is always a number at which they will not let the car go and would rather keep it for another month. Many people believe that's around $200 TRUE PROFIT. It's very difficult to find that magic number though. It's like trying to prove to somebody who just leased a 2k3 325xi that they got ripped-off at $349/mo. With the same amount down a Civic is gonna be around $456/mo! That's why successful marketers get the $$$. If you believe that $349/mo is a great deal on leasing a BMW, then you probably believe in the "no cost" refinance too.

 

Dealer hold back.

 

econ 101...sunk costs. already paid for the previous year...

 

amen