asethi16

As a newbie here, I am lookin at purchasing a 05 or 06 TSX.
I have found some helpful hints on here but also found a great site to help in negotiating price. The thing is though is that I dont how well this works with Acura Dealers. Here's What I found:

(in my own words)
"
To find a good negotiating price you must first find the cost of the car to dealer. This is done by taking the MSRP and multipling it by the Holdback %.
In this case Acura has a 3% Holdback percentage.
Holdback = (MSRP + Destination )*(.03)
Cost to Dealer = Invoice - Holdback
Negotiating Price - Cost to Dealer = Profit for Dealer

Usually 3.5% is the avg profit for a dealer.
Therefore Negotiating price = Cost to Dealer * (1.035)
"


This seemed very useful so I did it on the TSX:

TSX w/o NAV MSRP: 27,805
Invoice: (From dealer) = 25,399
Destination: 615
Holdback @ 3% = 852.60
Dealer Cost = 24,546.40

Negotiable Prices:
@3.5% -> 25,406
@4.0% ->25,528
@4.5% -> 25,651
@5.0% -> 25,774
@6.5% -> 25,142

THIS MEANS THAT IF A DEALER IS SELLING A CAR TO YOU AT 25,142 .... he is making a 6.5% profit.

GUYS DO YOU BELIEVE THESE NUMBERS THAT I HAVE CALCULATED. DO YOU THINK DEALERS COST IS LESS OR GREATER THAN POSTED PRICE.

The dealer of Ardmore Acura told me his Internet Price was 26,149. I am wondering how much I can bring that down. Note that the invoice price is at around 3.3% profit.

I dont know what to think of these calculations. Responses would be greatly appreciated. Also he's saying add 750 for an 06 TSX from the internet price given. I dont think 750 is that bad considering it is prob easy to bring that down to 500.

jplevine

I'm in the same situation as you - deciding between a 2005 or 2006. I'm curious to hear what the others say on your pricing strategy. Your logic seems appropriate to me. I also think the increase for the 2006 is reasonable considering if you added fog lights installed on a 2005, you would almost be paying that anyway.

asethi16

What do u think a reasonable profit is. I dont they will go below invoice even though they are making profit. DO you think dealer is giving the correct invoice price to me?

Bill Hook

4-5%

Try getting invoice from edmunds.com first before negotiating. Also, find holdback and incentives there as well.

nagidizy

Since you are a newbie, we'll be happy to give you the benefit of our experience, especially when it comes to buying a TSX. Although you've probably seen tips like these before, in the interest of helping out, might as well take a chance and repeat them. Many regulars on this forum used these very same "secret techniques" to cut a very sharp deal with their respective dealers.

I'll just list them in relative order of importance, and others can fill you in on the details if necessary.

1. When ready to buy, wear comfortable clothes that project an image of casual respectability, and do not wear stone-washed jeans with a cloth webbing belt.

2. Do your homework and know the price of the car. By price, we mean the MSRP (Median Saturation Ratio Potential). This is not the eventual price you want to pay; you'll want to target a price at least 25% higher.

3. Do not become infatuated with any particular car on the lot, especially to the point where your thinking is clouded by a desire to purchase it and "get things over with already, dammit." Pick a car you don't want, such as a used early 1980s Yugo in Pea Green, and use that as a beginning basis for negotiation. If you can get the dealer to accept $20,500 for the Yugo, along with your trade of a 2004 Mercedes SL65 AMG with 5000 miles, you're ready.

4. Don't discuss trading in any vehicle at the initial meeting. Save that for the second or third date, at least get a romantic dinner at a nicer restaurant. Also, do not discuss sports, politics, religion, current events, older events, ancient events, or automobiles with the dealer. Instead, compliment the dealer on how his shifty little pig eyes light up when you mention money.

5. Be prepared to wait out the salesperson, sales manager, fleet sales manager, Dealership owner, receptionist, lot attendant, wash bay technician, or parts counter staffer during your price negotiations. Bring a pup tent. Bring at least 2 gallons of water, per person, per day. Toilet paper rolls are very useful, and make a comfy pillow.

6. As you discuss invoice price, option pricing, dealer holdback, advertising fees, ADM or market adjustment fees, and/or wheat futures, scream at random intervals about the deadly poisonous spiders crawling on the inside of your eyelids. This will let them know you mean business, and are a shrewd bargainer. Show them the spider bites if they act suspicious, and offer to take them to Denny's.

7. If you settle on a final price, don't sign anything until you have read all the various documents in their entirety. Object loudly to anything that appears unseemly, such as the name of the dealership printed on the paperwork, and insist that all signatures be analyzed for "fakes produced by the robot army".

If you follow these basic guidelines, I'm sure you'll have a rewarding purchase experience. And good luck. We're here to help.

jlukja

^^^

So, nagidizy, what price were you able to get employing those tactics?

Wolf Howl

I just got two dealers in my area of NC down to $25,500 on new '05 TSX. I'll go with the one that's 30 minutes away versus 2+ hours on the other. I was trying to get mine to $26.5 out the door, so this should get me there or at least very close. Two or three local dealers could not match that price however. It does seem that geographical location plays a big part in the price as well.

foolioness

Wow you really did your homework. My advice is when you're at the dealer, you should know how much you want to spend on the car out the door minus $500 to start the negotiation. In my case, when I looked for my TSX I called and talked to the managers on duty and tell them the price that I want to spend on the car OTD. Surely enough, I got the the car that I wanted and the price that I wanted.
Hope this helps.

asethi16

My way of figuring out the nubmers is trying to determine what the dealers % profit its. It seems like 25, 500 is about a good of a deal you can get. Which is around 3.8 % profit i think. Im hopin that I might be able to use this same % on the 2006 TSX if it actually comes out!!! My dad's car is on the verge of breaking down. So must need it SOOOn.