Sales Tactics?

[pawmjw]

I am looking to purchase a 2008 GMC Acadia. I did all my homework on the net and narrowed down what I wanted and what the invoice price is. I have contacted a few dealers and these are my questions...

1. All but 1 dealer would not sell to me at invoice. The best they would do is $1000 under MSRP. Why? Is this a choice or is it policy? I realize this car is popular, but given the current economy, I cannot believe they would let a sale get away. 1 Dealer did say that they would discount the price more if I ordered the car which leads me to the next question...

2. The dealer who will sell at invoice stated that this is only for cars on his lot. The options I want require me to order the car (hey, if you are spending 40K on a car, you should get what you want). He then said if I order the price is higher and he would have to charge an additional shipping charge. What is the truth in all this? Extra shipping charge?

I live in Chicago and am going to the Auto Show tomorrow to look at what is out there. I really like the Acadia but I firmly believe that invoice price is where you start to negotiate, no matter how popular the car. I hate to haggle and negotiate and just want a fair price without any hidden costs. I would think that a car dealer makes far more money after the sale in service dollars. Be fair and honest with the customer at the sale and they will come back for service.

Any suggestions that you may have would be greatly appreciated!!

[montrealvue]

If the car is not in high demand, then invoice is not a huge deal to a dealer. In your case you are trying to haggle on a car that is in demand right now. You're not going to find many dealers that are trying to move 2008 Acadias when they know they can sell them above invoice.

You might try to poke around for an '07, you might have more luck as there may be incentives. Start shopping around in the last few days on the month. Dealers typically are more hungry at the end of the month (if there numbers are down especially) and you may luck out on a dealer that is willing to slit his own throat for a sale ...good luck

[pawmjw]

I have always heard that one should stay away from 1st year models because the "bugs" have not all been worked out. Is this true?

[sonjaab]

LOL!!!!!!!!! Ask toyota how things went on the "new" tundra!
Bad camshafts, tinfoil tailgates, failing transmissions and a host of
other issues !!!!!!!!!!!!

[unkillsam]

Originally Posted by pawmjw

I am looking to purchase a 2008 GMC Acadia. I did all my homework on the net and narrowed down what I wanted and what the invoice price is. I have contacted a few dealers and these are my questions...

1. All but 1 dealer would not sell to me at invoice. The best they would do is $1000 under MSRP. Why? Is this a choice or is it policy? I realize this car is popular, but given the current economy, I cannot believe they would let a sale get away. 1 Dealer did say that they would discount the price more if I ordered the car which leads me to the next question...

2. The dealer who will sell at invoice stated that this is only for cars on his lot. The options I want require me to order the car (hey, if you are spending 40K on a car, you should get what you want). He then said if I order the price is higher and he would have to charge an additional shipping charge. What is the truth in all this? Extra shipping charge?

I live in Chicago and am going to the Auto Show tomorrow to look at what is out there. I really like the Acadia but I firmly believe that invoice price is where you start to negotiate, no matter how popular the car. I hate to haggle and negotiate and just want a fair price without any hidden costs. I would think that a car dealer makes far more money after the sale in service dollars. Be fair and honest with the customer at the sale and they will come back for service.

Any suggestions that you may have would be greatly appreciated!!

Why would you expect to buy a very popular vehicle only in it's second year of production for under invoice?

Toyota and Honda dealers will not do this for you, why should GMC?
I mean come on, $1,000.00 under MSRP is a reasonable offer considering the turnover rate of these cars.

MSRPInvoiceNational Base Price
A note about advertising fees$29,735$27,802$28,883Regional Adjustment
for Zip Code Change--$31Optional Equipment N/AN/AN/ANo optional equipment selected Color Adjustment---$10 Blue-Gold Crystal Metallic Destination Charge$735$735$735Total with Options$30,470$28,537$29,639Incentives & Rebates -$500Customer Cash Adjusted True Market Value$29,139

According to Edmunds, the average Acadia is selling for around $1,000 under MSRP so like i said the offer was reasonable.

[Ed753]

I would eliminate the least competitive dealers and focus harder on the others, as you are aware, multiple dealers offering essentially the same, and your only going to buy one, so the others will loose-out.

Typically a dealer wants to move something they have on the lot, because after 90 days or so they have to start paying financing charges/costs on that vehicle.

The dealer that is willing to give you a better deal if you order, will make the sale, and deposit your money 6-8 weeks before they have to pay GM for the car, so they are willing to book that profit/savings into your price for a better deal.

The problem with that is cars typically increase in price during the model year, so one on the lot with MSRP of $35,000 built in October is going to be $35,500 if you ordered it exactly the same today. (GM had a price change/increase on the 2008 Acadia on October 5th and December 19th)

The extra shipping, I'd guess with the continued increase in the cost of fuel GM probably increased the destination charges, which is part of the MSRP.

Hope this helps, GM should be throwing some Auto Show Cash too, if that is in town, so I'd shop and move quick if you are ready.

[pgill00]

If you suppose that dealer make more money after the sale then buy from the one at which you intend to have your car serviced. Buy from the sales guy you like the most and the dealership that is most convenient if they all have identical cars and pricing.

Why does everyone get so bent out of shape about giving away $200? Buyers remorse is one thing but if you plan on financing is it worth driving all over Chicago for $1 per month?

Please find some joy in buying this new car. I really feel the internet and exposed invoices and such has really taken the joy and emotion out of buying a new vehicle.

[MalibuMaxxSS]

Originally Posted by unkillsam

Why would you expect to buy a very popular vehicle only in it's second year of production for under invoice?

Toyota and Honda dealers will not do this for you, why should GMC?
I mean come on, $1,000.00 under MSRP is a reasonable offer considering the turnover rate of these cars.

According to Edmunds, the average Acadia is selling for around $1,000 under MSRP so like i said the offer was reasonable.

kINDA WHAT i WAS THINKING....you could go see Yota or Honda and get a worse vehicle, with less features and options, and pay more and a higher interest rate, or drive all over gods green earth to save 500 bucks, is it worth it...time you waste and money spent driving..is it worth it for ya....then you have to fight for service from your local dealer caseu you have no loyality to them so why should they to you.

my 2 cents anyhow

and no negotiating starts at MSRP not invoice.....thats where your going all wrong....

[doh]

If a dealer looses money on every sale, well then what keeps the lights on?

I have sold vehicles for below what I truely had in them, but that is after they have sat stagnet on the lot, costing me 5% APR to have them there. I have seen a monthly Interest cheque exceed $11000, and we are a small dealership, no more that 70 units.

If you want the vehicle, go find your best deal. (Not below cost or otherwise)

I pay 1.07.9/liter (almost $4.50/US gallon) of gas, I can drive less than a mile and buy my gas for $2.90 a US gallon (3.82 liters) But you know what, I drive up to the pump and someone is there asking how much fuel I need, do I need my oil checked? and cleans my windows. Service has a value and I am willing to pay for that service.

[MalibuMaxxSS]

we were told striaght out 3 weeks ago...any Malibu leaving the lot will be full sticker no negotiating. popular models wont get discounts, these vehicles are as good and better then anyone else in the same catagory, so why should GM give them away, Honda wont, Toyota wont, Acura wont, test prove the Mailub and Acadia are better then these so again why shoud GM...everyone always said....' well Honda is better so therefor I will pay more.....fair enough anti up for a better GM now. or go buy a lesser import.

dont get me going on this

[BryceStrong]

Originally Posted by pawmjw

I really like the Acadia but I firmly believe that invoice price is where you start to negotiate, no matter how popular the car. I hate to haggle and negotiate and just want a fair price without any hidden costs. ... Be fair and honest with the customer at the sale and they will come back for service.

Why do you believe that invoice is the starting point for negotiation? And what's your basis for a "fair price"? If you want to get a better deal than MSRP, you ought to have some good reasoning for it. And your distaste for negotiating does not make those dealers unfair or dishonest.

If you want some good suggestions, I think you should answer those questions first.

[fastdriver]

Originally Posted by doh

If a dealer looses money on every sale, well then what keeps the lights on?

How about used car sales and your service/parts department? That's where most of a dealer's money is made and not from new car sales. Fact?

[MalibuMaxxSS]

Originally Posted by fastdriver

How about used car sales and your service/parts department? That's where most of a dealer's money is made and not from new car sales. Fact?

have you seen teh markup in buy backs.....500 bucks..give me a break.

and you work for which dealership.....

this thread is going to turn into a gong show I can see that, but anyhow the money is really made in the finance end of things mostly, the amount of good will in the service department off set any big money they may make...

extendend warranties, paint protections packages, doc fees, tire and wheel warranties, that kinda of **** is what makes the $$$

either way it does not mean a dealer has to under invoice.....

other side of it is as a salesman if I have to go to your level and thinking and sell a unit like that for under invoice, Im not making any $$ either so why bother with you...I will move on to someone who respects me and realizes a good deal when the see it and is fair....unlike yourself who seems to be looking more for a fight then a deal.

anyhow good luck in your search...curious when your done to add up all the phone calls, traveling expenses, inconvience of going to pcik it up and the service you will get from you local dealer and see if it was worth saving a few hundred bucks for you..

my time is money and I dont think spending a week on the phone and 2 days of travelling and all the other hassle, is worth saving a couple hundred bucks, and then I can get excellent service and courtesy cars from the local dealer cause I got it there as opposed to walking home when my car is in for service.

[FenwickHockey65]

At least they don't have toyota's sales tactics. My mom wanted to buy an '07 corolla (so cheaply built...plastic plastic plastic...) and the sticker price was something around $15,999. When they gave us the final price, they had added so many random charges and fees that it totaled close to $20,000.
Needless to say, my mom gave up and let us buy the Malibu instead.

[pawmjw]

I never said I wanted to buy this for under invoice...that would not be fair for the dealer. How many people walk in the door and just pay sticker, no questions asked? All of us, at some early age, are taught by our fathers that you never pay sticker for a car and when the salesman says " let me go talk with the manager", walk away and don't look back.

Some of you feel that MSRP is a starting point...then why does edmunds, consumer reports, cars.com, vehix, etc. all publish invoice pricing? If sticker price is fair, then why have those numbers out there? Why should the public have that information? I think that having this information levels the playing field and really gives consumers knowledge and security in knowing what "fair" is and that they are spending their money wisely.

I do think that the salesman is in the worst position...caught between a buyer who is squeezing him for the cheapest price and a dealer who wants bigger profit margins. Tough job that goes unappreciated.

Thanks for the suggestions...