TSXhopefull

So let's say that you sell your M45's for $10,000 below MSRP, are you making any profit. Or is Infiniti forcing you to take a $8,000 hit

justinjsw

In the case of the M45 there is a what is called a dealer incentive from the factory in the form of dealer cash rebate which means it lowers the invoice by the sum of the amount the dealer is given by the factory. (Its not the same as customer rebate.) So the factory is absorbing the loss. Example net profit(invoice to MSRP) for M45 is 5K, factory gives dealer an additional 5k incentive to sell the M45. Which means now the net profit is 10K instead of 5k. So the dealer can sell the M45 say 9k back of MSRP and still have a net profit of 1k or they can sell it at 10k back of MSRP and not make it dollar. But thats ok because remember for every 2 M45s you make nothing on you get 20 G35s which are not selling at a loss.

larchmont

Justin, I doubt that very many people understand this. I certainly don't.

What is "flooring"? It's not a word that is widely known, I don't think. And, about "cost of running factory ads," it doesn't seem that this would be a cost to the dealer in the first place, so why would there need to be any "offset" of this for the dealer?

Just thought you might want to know that your point here doesn't come across.

justinjsw

Flooring...Expenses a dealer occurs while the car is unsold. Insurances being the main cost. The longer the car sits...the more flooring costs it racks up.

There are ads called co-op ads which are run by the dealerships. Example...the ads you see in your local newspaper or on your local TV networks are not paid for by the factory. The national ads like the ones we see during prime time or during ballgames are paid by the factory. Local dealer runs an ad in print with factory lease specials in the local paper are paid 50/50 by dealer and factory. Dealer runs an ad in print about a special dealer give-away are paid 100% by that dealer. Where do the dealers get the money to pay for the ads? Holdback.

Larch is that somewhat clear enough???

larchmont

Thank you, yeah. As with many things (see "limited-production vehicle" ), it's a thing of words and meanings.

The trouble is, it was confusing to refer to that stuff as "factory ads." From among the things that you explained, I think most people would regard the dealer's ad costs as being "dealer ads," not factory ads. The "factory ad" stuff, from what you say, was paid by the factory; the factory also paid for part of the dealer ads, but the dealer didn't pay for ANYTHING except "dealer ads." In any event, it's now clear what you mean, though. (Really wasn't before.)

TSXhopefull

thanks for clearing everything up Justin. I have one last question though. has acura ever offered factory rebates, or discounts. I have yet to see it.

justinjsw

Its offered all the time. Current Acura offers...03CLs, 04RLs

qacman

For anyone who is considering buying a TSX I have a suggestion that worked, and I used to sell Fords in another lifetime. First get a hold of the dealers cost numbers through a variety of publications. To save time: there is roughly a $3000.00 profit margin without Navigation. The cars are selling before they hit the lot here in the Northeast (about a 4 week wait for a car), and three dealerships told me the car sells at sticker (or $500.00 off if it was still unsold on the lot) but I still got $1500.00 off MSRP by just being reasonable and patient and offering to split the difference with the dealership (list from cost). I walked in (no internet shopping) with this deal and said if they would not do it I would just go to the other dealerships around and find one that would take it. The car sold in 10 minutes with no haggling at all... but they made me wait for the answer and I am sure they were watching to see if I was fidgety or calm.

I have not regretted the purchase for a minute. BTW when the car was not quite ready when it was supposed to be, the dealership threw in wheel locks and mud flaps. Now I think they do that for everyone, but since they did it for me I will give them credit for making me think they did it only for me.

Good luck.

7or8

Hi gacman, what dealership did you get it it. I'm not far from Boston.

cgull

Well, I have had my TSX for a week and so far so good. My only complaint is that the head rests do not pivet. It is amazing how much power they squeezed out of the 4 cyl engine.

TSX Hokie

Another factor that controls how much off MSRP you can get is the transmission: My salesperson said he couldn't give me more than $500 off MSRP for a 6MT, but he would sell me a 5AT for up to $1000 off. Apparently Honda underestimated the demand for the manual transmission TSX. You would think it would be the other way around, since most car companies charge you EXTRA to get an automatic, and the two transmissions cost the same for the TSX. However, the TSX 6-speed is one of the sweetest transmissions I have encountered to date, so I couldn't resist. It made the 5-speed on the Mazda6 (the other car I was shopping for at the time) feel like rowing through pudding.

I ordered my car in Sept, and it didn't come in for about 5 weeks. However, when I went to pick it up, the salesman offered me $200 to walk out the door. He said demand had picked up so much that he could sell my car for MSRP+Protection Package ($1000 of pure profit for the dealer). All that did was reinforce my decision to take the car though. I declined the rip-off package and bought the flaps, locks, and tray online for like $150 total.

pollofrito21

Wow he offered you 200 to just leave. He must have had Mr. and Mrs. Weekspay in the dealership earlier that day. Thats happened to me. I had a $10,000 in house deposit on a fully loaded sienna ($4500 profit). Guy had waited 3 months for this thing. The day it came in was my day off. I came in thursday to prep it and realized it wasnt there. I went to my gsm, he told me that they had a couple come in last night who they meatcleaved on a lease on my van for like a 6g profit. I was pissed at first cuz that was more than a $1000 loss for me personally as the salesman, but another van came in just like it 3 weeks later so i made it back. But this happens all the time.

Intrigued

If you're looking to buy a new car this site should be quite helpful.

Just thought I'd share it with you.

http://www.carbuyingtips.com

mcourt83

The dealership I purchased my TSX from had a $2000 credit card limit. I charged the max (to get the frequent flyer miles).