rb4580

2004 ACURA TSX

Total Purchase Price - $28,990 (MSRP)
3% VA Sales Tax - $880.17
Dealer's Business License Tax -$57.98
Processing Fee -$349.00
License Fee -$30.50
Title Fee -$10.00

TOTAL CASH DELIVERED PRICE - $30,317.65

The only extra I recieved was the Wood steering wheel (399$)MSRP

I can't believe I paid MSRP but man I loved this car... I definatley shouldn't have paid that processing fee considering I financed thru my credit union and brought them a check, they might have did 10 minutes of work.......... These Acura dealers are making a KILLING of all of us paying MSRP..... oh well, it's a great car!!!

dabuda

Congratulations! what color combo did you get?

AlexTheMan

$349.00 processing fee!! Ouch

rb4580

I got the Nighthawk black with Parchment interior, bought at Riddle Acura in Cheasepeake, VA... I bought it May 30th.. I now have 4,300 miles on it......

rzee

omfg, now that's bs man.. you really shouldn't have to pay that "processing fee".

mcourt83

I would have walked out the door on seeing the processing fee. I felt like a sucker for paying the $100ish processing/doc fee at the dealership I bought through.

ySL

alot of ppl paid and will pay MSRP so don't sweat it...but think about the money you saved compared to others with that 3% tax

rb4580

I hear that VA has a low tax (3%)........ What's the norm???

mcourt83

Massachusetts 5%
New Hampshire 0%

BaltoTSX

MD 5%

Brad

Ouch, but congratulations on your new car!!! That's the important thing. That Processing Fee of $349.00 is pure rip-off/extortion.

Question: Were there no other Acura dealers in your area to compare prices with?

AlexTheMan

TX - 6.25%

rb4580

There was one other one but they only had 2 TSX's and they weren't moving from MSRP either...

kurt_bradley

We're making a killing on these? There's only about 2 thousand in total gross on the car from invoice to MSRP. With the limited availability on these, we're not able to make any money in any volume either. The cars are less in production now then they were in April and May. For example, we were getting 8-10/month for the first 2 months and now it's down to about 5/month. They had more out there initially to meet the demand, but now it has quieted down on the numbers being produced. Many stores that used to promote discounts aren't going to have any cars in to offer it on. It's rediculous for some off these dealers that advertise specials on cars they don't have. Those of you that have already bought one, feel lucky. Those of you that are on waiting lists, you're sort of lucky. Those of you that are holding out thinking that the marketability will improve...best of luck. It's not going to be pretty. Especially once the new TL comes out in October. It's going to attract more attention to dealers and have people considering the alternative that Acura has to offer.

Sorry to ramble on like that. I didn't notice how long that really was until it was too late.

rb4580

Kurt_Bradley.... So have much would a dealer ACTUALLY take home to pay the bills and feed the kids after somebody who bought the TSX at MSRP?? I'm not talking about the dealer, I'm talking about the Salesman....

kurt_bradley

It all depends on the comission pay plan of the salesperson. Some get payed differently (whether they get all % or salary plus %). To be completely honest when it comes to what I get payed, I don't take home that much at all on a TSX (and this is a car that people pay sticker for). I have the highest pay structure of all the salespeople on our floor ( I'm not going to explain the justification or the details of my pay), and I only make about $300 or so on the car itself when I sell a TSX. There is not much to make on it when it comes to accessories either. And yes, I do sell them all for sticker. So if there's a concern that you're having your pants pulled down when buying a TSX, take this information into consideration. These are not the cars that I sell that keep me fed and keep a roof over my head. Don't be fooled that dealers/salespeople are making a killing on these cars.

rb4580

Good Insight

dez

Kurt, that's VERRRRRRY interesting .. considering a buddy of mine who sells Acuras told me he sold a TSX W/Navi + lots of extras for around $30k ... he DID sell it at sticker, and he told me his commission was only like $130 or so .. I'm like HOW is that possible ???

For the base TSX, sticker is $26990, and invoice is $24647 .. less the holdback of around $800, for a what SHOULD be a gross profit of around $3000, correct ???

So, how are sales people NOT making good commissions on these cars ??

And, from what I've been told, the 'meal ticket' is selling an MDX .. a touring one that stickers for $38,800 and has an invoice of $35,002 less the holdback of around $1100 leaves a GROSS profit of around $4900 !!! That's a NICE chunk, considering THESE sell at sticker as well !!

So, what's the deal ???

AlexTheMan

So, does this mean that my salesman didn't make a penny when I got my TSX??????

I got mine 3 weeks for $25,200 - brand new with 25 miles on the odometer, PWP/AT/no navi. I did not pay for any accessories. Just added taxes, title and license plus the $50 or so mandated Texas documentation fees.

kurt_bradley

I think we have a misunderstanding when it comes to holdback. This is not money that is in the gross of a deal. It is money paid to the dealer by the manufacturer that is to cover operational costs (keeping the lights/AC on, paying the title clerks, etc.). This amount is usually calculated at 3% of the invoice of a car. A salesperson is NOT PAID out of holdback. Trust me. There is nothing involved with holdback when it comes to the gross of a deal. Comissionable gross is where the salesperson is paid. This is calculated when you take the sales price, deduct dealer cost (which is higher than the web-listed invoices...dealer prep, make ready, etc.), then deduct dealer pack (which varies dealer to dealer and car to car), and then you have the commissionable gross. From this point you do the percentage for comission, and then you have what the salesperson makes. There are always what are referred to as "mini" deals additionally. This is what a dealer will pay to the salesperson if a deal doesn't make a certain amount of gross to where the sales commission will pay enough. For instance, my minis are $250. If you have a deal that doesn't have a comissionable net gross over $1000, I get paid a flat $250. This is because at 25%, I would still make $250 if we grossed $1000. Another example is when I sell a TSX/6sp/Non at sticker, the commissionable gross is about $1200 after dealer pack and cost, and I get paid about $300.

As for how you wonder why we make nothing on the cars, it's quite simple. There is little gross on the TSX in the first place, leaving little to have in the commissionable gross.

On an MDX Touring (186), I get paid about $700 when I sell it for sticker (which we sell them at). I hope this sums up a lot of things for you guys.

rzee

How about we do this, you sell it to me for $1000 under MSRP, I will hand you $500 cash under the table??

In this case, you make $250 from for comission + the $500 from me = $750!

finalheaven

ROFL

pollofrito21

Damn I must be working at the wrong dealership. I work at a toyota dealership in NJ and our flats are $50... THATS IT!!! Imagine spending 3 hours with one of you penny pinching internet geeks and only makin $50. Then you have the guys talkin invoice this holdback that. You think you got it bad sellin tsx's with over 2500 worth of markup....try sellin corollas with only $600 worth of markup and makin $50. Our big pay days are the new siennas...the xle's and xle limiteds are about 900 my way!!! Guess thats the difference selling highline and not sellin highline

dez

great thread everyone ! I was thinking into going into the car selling business at one point, since I have been getting a lot of information on the workings of dealerships in the past few years, and now I got even MORE information.

Wow Kurt -- your mini's are $250 .. not bad! Most people I know 'in the business' work in either Philly or Jersey and they always tell me that their mini's or 'flats' .. are $100 standard on a new car -- that DOES kinda suck, as pollofrito put it --

Dealerships HATE when I go in there -- since I'm armed with all the information that they DON'T want you to know. But I always tip (when they let me) the salesman after the fact, or do something (gift certificate) to show my appreciation for getting the deal. I've heard at SOME dealerships, they frown on stuff like that.

rzee, that idea is GREAT ! I LOVE IT !!! Makes EVERYONE happy !!! Has this ever happened to any salesmen ? I mean, to spend all that time with a customer and ONLY get $50 to $100 out of it seems kinda worthless. Dealerships KNOW they're not gonna sell most cars at sticker, so, what incentive do they give to their salespeople ??? Perhaps bonuses for units, I guess -- every dealer is different, I'm sure.

Kurt, I'm still a little confused though ... you should be making more $$$ on the TSX, and even a little more on the MDX in my opinion .. I know the sales managers get a kickback from Honda Finance as well, and well as some other hidden $$$ .. or so I've been told. But, I guess you're doing better than a lot of the 'green peas' out there anyway, like my buddy who has only been selling Acuras for a few months now.

Great thread -- let's keep it going !

pollofrito21

[QUOTE]Originally posted by dez
[B]

Dealerships HATE when I go in there -- since I'm armed with all the information that they DON'T want you to know. But I always tip (when they let me) the salesman after the fact, or do something (gift certificate) to show my appreciation for getting the deal. I've heard at SOME dealerships, they frown on stuff like that.[B]

See I dont mind selling to invoice geeks (as we call them). Becuz you know what your going to pay and you have all the info, i really dont need to "sell" persay. Its a quick sale, a sold unit in about 35-45 minutes is how I see it. Its those internet guys that say yeah im gonna buy at invoice I show them invoice and then they want me to break off another 400-600 dollars, and then bitch about the fees. You guys have to remember the fees and holdback are seen by no one in the dealership, not even the GM. That money is straight to the owners pocket, straight gross. So dont argue about paying them, cuz theyre usually non negotiable (almost always) 98%

[B]
rzee, that idea is GREAT ! I LOVE IT !!! Makes EVERYONE happy !!! Has this ever happened to any salesmen ? I mean, to spend all that time with a customer and ONLY get $50 to $100 out of it seems kinda worthless. Dealerships KNOW they're not gonna sell most cars at sticker, so, what incentive do they give to their salespeople ??? Perhaps bonuses for units, I guess -- every dealer is different, I'm sure.[B]

Let a dealer find out your giving cars away and taking money under the table and see how long you'll last. I spend hours with customers all the time to make $50. And those customers are the ones that give you the most grief. Theyre the ones that call you every week with a new problem like the stitching in there floormats is coming out. You do get bonuses but not much.

[B]
Kurt, I'm still a little confused though ... you should be making more $$$ on the TSX, and even a little more on the MDX in my opinion .. I know the sales managers get a kickback from Honda Finance as well, and well as some other hidden $$$ .. or so I've been told. But, I guess you're doing better than a lot of the 'green peas' out there anyway, like my buddy who has only been selling Acuras for a few months now.[B]

You have to remember that sales managers and managers get paid salary (a nice one at that) plus a percentage of the bottom line, so they're eating no matter what. Its the salesman that has to bend over and...well you know the rest. Salesman are not really the scumbags theyre made out to be (well some anyway) theyre just trying to make a living like you. So remember all that the next time you r pennypinching for that few hundred dollars and such.

[QUOTE]