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To: Paul Senior who wrote (54758)1/8/2015 3:22:31 AM
From: Elroy  Respond to of 78632
 
We talking the Monroney (window sticker price) or the dealer invoice price?

Well, the deal your described gave the buyer $25 off a $100k dealer invoice.

If the starting price for the 0.4% discount is materially below what you would normally pay, then it might make sense. But it's also impossible to measure since we don't know what a normal customer would pay for a "$100k dealer invoice price" car.

I just used $100k to keep the math simple. If the car price is more like $30,000, then 0.4% discount is only $120. If you have to pay $275 fee and $100 fee you'd actually lose money relative to just buying it.

It's hard to start with savings of only 0.4%, and have it be worthwhile in the end.



To: Paul Senior who wrote (54758)1/8/2015 11:10:50 AM
From: Raptech1 Recommendation

Recommended By
smaycs4

  Read Replies (1) | Respond to of 78632
 
The much publicized "invoice price" is a marketing gimmick that many customers believe is the bottom line price. Dealers actually receive many kickbacks and rebates from the manufacturer lowering their actual cost below the invoice. Buying autos over a lifetime I have always been able to negotiate a price below the "dealer invoice." Even at that one is never sure they got the best price as buying an auto continues to be somewhat of a blind challenge. The dealer has the advantage as he knows his costs. Timing is most important where buying towards the end of a model year will usually get the best deal, especially about every 2-3 years when models change. Like many things once you buy it's a done deal and don't look back.