← Autodidact Archive · Original Dissent · Ed Toner
Thread ID: 12900 | Posts: 2 | Started: 2004-03-27
2004-03-27 22:12 | User Profile
I got this from a Forum I am a member of:
"I am the Internet Sales Manager for a Honda dealership.
There are certain things you can negotiate on.
Invoice price is the "listed" price that dealers say that they pay. That's not true. There is money under invoice called "holdback" This is a figure you can get by taking the "destination" charge and subtracting it from the MSRP. Take that number and multipy it by the percantage that the manufacture offers dealers. This is the "holdback" amount.
For example, Honda pays dealers 3% holdback. Take a $20,000 car, subtract $490 frieght/destination and do 3% of that. You get a figure of $585.30. So at $585.30 under invoice is whats called "dead cost" Now, there could be factory money to the dealer, which you might not know about.
If you are around invoice, with no add ons, then you're ok.
Please...whatever you do, whatever car you choose...make DAMN sure it is THE one you want to own through the term of your loan. Most if not all domestics lose so much value that its almost impossible to be in a positive equity situation until about year 4...
Good luck to you."
2004-04-01 22:57 | User Profile
I say, Get an old and don't get rid of it.
My car is old Volvo I got for about $1000. It still looks pretty good, runs great; and is easy to drive. I paid cash! No loan!
Old American cars are an even better buy. Hell, I know some people who have been driving the same car for 40 years!