Car buying question

[texascoder]

I'm helping my son shop for a new car and he's focused in on a new Honda Accord I think. I'm just curious what a reasonable profit ought to be for an Austin-area Honda dealer right about now on a new Accord. We know the dealer invoice price and the dealer incentives in affect. Just want to make sure we don't end up paying more than we really should for the car.

Anyone have any guesses as to what might be a reasonable amount over dealer cost to try to settle on?

Thanks

 

[HoustonHorn93]

Don't know any numbers but a friend of mine here in Houston bought a new Honda Element last month. While talking to the sales manager he was told that if we wanted an Accord he could essentially name his own price. They had so many of them that they were accepting all reasonable offers just to move them off the lot.

 

[Turtle]

I would tell them that you will buy if you get invoice price, plus any incentives. If they don't go for it you can try another dealership. I would not pay any more than $200 over invoice. Just checking edmunds.com I see the 09 Accord has a $1500 dealer cash available as well. With this incentive you should be able to get price way below invoice. Even at invoice price the dealer still makes $$ by way of dealer "holdback". Honda has 2% holdback.

 

[texascoder]

Yeah, I have a Consumer Reports dealer invoice on the car and the dealer invoice cost is 26724, plus there is the $1500 rebate, plus the $574 dealer holdback. So the rock bottom dealer cost is $24650. Initial quote via email was $26479, but me thinks the real negotiating will start tonight

We want to negotiate up from the actual dealer cost. I was mainly curious what a reasonable profit would be for the dealer... CR says between 1-5% above dealer cost depending on make, model, demand, etc... My assumption is that with the economy the way it is, the dealer ought to be willing to make closer to 1% than to 5% on the sale.

 

[Smurfette]

For 26K I'd be looking at a new Jetta TDI. Better gas mileage and prob better options.

But, VW isn't offering a whole lot of deals. You'd prob. need to get financing through a bank.

 

[texascoder]

Hmmm, that VW seems like a nice car, but I don't think a 4-cylinder will cut it for a 23 yr old

 

[Clarence Iba]

Another alternative is the Ford Fusion. Before the naysayers get their two cents in, I've owned both Accords and Fusions for the last 10 years. Both are excellent cars. I have a 2008 Fusion I've never had a single problem with. It gets great gas mileage and has a powerful V6. I have a 2007 Accord that is also a V6 that has had some interior problems. I know this is extremely rare for Honda, but I'd certainly give the Fusion a second look as it truly is a satisfying car to own.

If you're really wanting an Accord, I'd checkThe Link -- they work with people in all 50 states and do offer great deals. Tell them you're shopping nationwide and they'll really come to play financially.

I think the Fusion has 0.0% interest through Ford Credit right now, which could save your son thousands on the car.

 

[texascoder]

Thanks for the information... He was able to find a couple of dealers in Houston that were willing to make a great deal on a Honda. I think he got what he wanted for about 25,150 or thereabouts which is only about $500 over the dealer's cost (after figuring in the rebate and holdback). So, I think he got himself a pretty good deal, and will head over there to pick it up this weekend. Unfortunately, the two Honda dealers here in Austin would not come anywhere remotely close to that price. Apparently the Honda market is doing much better here than in Houston.

BTW Clarence, I think you're right about the quality issue. People that still take for granted that the Japanese manufacturers are way above American companies with respect to quality are mistaken. I honestly think that at least Ford has made a lot of progress in the last 5-10 yrs. I've owned several Fords (I currently own a 2004 Mustang GT vert and a 2008 F150) and I haven't had any quality problems with them at all (knock on wood).

 

[Smurfette]

hahahaha... The new jettas actually get up and go... you'd be surprised!

Glad he got the deal he wanted though

 

[HornBud]

Great choice and great deal!

BTW, unless it was a short term lease (3 yr), I'd avoid VW like the plague. After 4 years their reliability is worse than Chrysler.

 

[UnBiased Horn]

^^^ Ding Ding Ding

been there done that recently.

 

[Smurfette]

I wouldn't buy any european gas engine. But the diesels are great. I paid 5K for a VW- 2000- drove it for over 200K.