Just got my TSX Navi (5spd AT) in CGP/Ebony. LOVE IT!

Thoughts on the overall deal I got?

$29.2 deal price for the car (incl destination)
Less $9K trade-in on a 2001 Accord EX (4 cyl) with almost 74K miles - On a KBB questionnaire, the condition of the car is "good" but not "excellent"
Sales tax on the net $20.2K and DMV fees wraps up the deal.

My own belief is that the $29.2 is a bit high, but the trade-in value I got is also high.

How good a deal is the $20.2K net? (I really don't care how the numbers were allocated - I'm sure the dealer shifted the savings to the trade-in to avoid putting "too low" a sales price on the invoice)

 

I'm going to assume you got the navi with that price. Don't consider the 20.2k net, unfortunatly that's a really good way for the dealer to make you feel good with the fact that you paid $1500 over invoice for the car. $300-$500 over invoice would have been more reasonable.

I have no idea what the value of your trade in is, but I'll assume he padded you a little bit higher than KBB trade-in value, which is already depressed. You certainly didn't get a very good deal on the base price for the car (check the owner sign in thread -- and sign in yourself pls!) but don't let that take away from the great experience the TSX will afford you. Most of all, enjoy your new car, and welcome to the boards.

BTW.. same colors I got, love it

 

Maybe the real question I need to be flushing out is how good a deal I got on the trade. The KBB value on the car (with my condition, mileage) is $7745 - dealer gave me $9000.

If a dealer charges $29.2 for the new car and gives $9 for the trade-in, the economics are identical as if it was $28.2 for the new and only $8 for the trade-in (particularly since sales tax is on the difference only).

As a customer, while I had numbers for each (new car and trade-in) in mind, at the end of the day, the net is what matters. What I'm wondering is... does it matter to the dealer? Does it change the $ the salesperson gets?

 

I wonder this as well. When I was negotiating on my TSX yesterday, the price of the car never came down, but the trade in allowance kept going up. In fact on the contract, the selling price of the car is shown as MSRP.

It makes no difference to me where they want to move the money around to, but I wonder if there is some incentive for the dealer to show the selling price as being high.

 

I think I've got it figured out... Here's my guess...

Here are the things the dealer wants from your deal...

1) To sell you a car at a profit
2) To have you sufficiently satisfied with your purchase to refer others
3) To sell more cars - at a profit - to those referrals

Let's assume that the NET $20.2K the dealer wanted from me - after trade in - represented a "good deal" where the dealer still made some money. What happens is that (1) he sells me a car, and (2) I'm satisfied with the transaction. What will happen when I talk about the good deal I got from the dealer and my referral(s) walk through the door? They'll go in with the thought that they'll be treated fairly, but won't be able to point to a low "sales price."

I think that what the dealer did was to shift the "savings" into the subjective part of the sale. If I got $29.2K less $9K, anybody I send in there (if they ask what I paid) will have the $29.2 as a starting point. If he sells it to me for $28.5K less $8.3K, I pay exactly the same, but my referral goes in expecting a lower starting point.

The customer only cares about their own sale. The dealer has to think about the next one, as well.


So, in a nutshell..
I bought the car
I'm extremely satisfied
Whatever the next guy pays, that's his/her deal to make

 

Where's Diggs when you need him... prolly closing some mini deals on Explorers.

I imagine if you basicaly got a price of 28.2 (good) and then put a grand on that and gave you a grand extra on your trade in, the salesman gets to report a higher sale price for the car, and prolly get a little extra $$ for himself. You have to pay MORE tax in the end, some x% of 29.2 instead of 28.2

So, you're happy with the net, and he's happy with his larger commission, and you paid extra tax to make it all possible. I think its a fine deal but the salesman may have padded his pocket at your tax expense.

 

Actually, not so... The sales tax (at least here in NJ) is on the NET between the purchase price and the trade-in. (The amount of tax I paid - $1212 - is 6% of the $20.2K)