Do we know yet what the dealer invoice is on the 05's? I'd rather work up from there than down from MSRP in negotiating the price.

 

Curious on this also.

 

in what i know about Toyota (Acura is about the same), depending on dealer overhead and sales attitude:

(conservative)
Sticker - (4% * MSRP) - $3k = invoice

or

(agressive)
Sticker - (4% * MSRP) - $4k = invoice

it may be possible to negotiate out the destination charge.

 

Considering the MSRP difference between the 04 and 05 is 250 dollars. I think its fair to add 250 to the Invoice for 05. That's what I'm going by. Maybe 250 + 5% is a fair offer.

 

Looking at past invoice price increases, I would guess that the 2005 Invoice price increases by $91 (could be as much as $120) plus the Destination increase of $25.

 

There is more gross in the navigation TL than base. Our hold back is 3%. Right now destination is up to 570. Our invoice for a base 04 TL is $29,345. MSRP is $33,220. For example our HB for this car is 996.60. So invoice on KBB or Edmunds will say it is $30,341. So there is $2,879 worth of profit.
Get the deals on the 04 while you can because we are not doing 05's for invoice.

 

Just wondering, what do you anticipate on discounts of 05 TSX's, TL's, and RL's?

 

if this is truely the #'s then my #'s are off.

 

Let's be honest here folks, the mentality and attitude of Acura dealers is surely profit-minded. Kind of like we have the car, either you like and buy it or we will sell it to someone else. Doesn't hurt to negoiate however, don't expect to get a GREAT deal. Not sure why their attitudes in my opinion, suck for lack of a better adjective however, they seem to be profit oriented and NOT customer service oriented from my experiences. Just an FYI folks.

 

,
i just wished they would see some value in getting a few deals inked at a lower price than to get just 1 or 2 at MSRP. dealers look better if they can move volumes of cars (their banks like that too). making up some money along the way is a fiscal year process, plenty of time to make the business work.

they've been doing what they do for years, it's hard to "make the horse drink"...

 

Revhi-- is the 3% holdback on the 04's only or also on the 05's? Could make a difference in the deal that a dealer would accept.

 

Discounts on 05 TL's and TSX's are not going to be much, probably around 1000. RL's are goping for sticker. We are only getting 10 a month for the next few months.

Those are the true TL numbers for 04.

The main objective for a dealer is to make money like every other business on the planet. Our one job is to sell cars though. There is a fine line between the two.

The 3% HB is true for all our vehicles 04 or 05.

 

How does a holdback work? If the dealer invoice is, for example, $30,000, and the holdback is 3%, does that mean that the actual price for the dealer is 97% of $30,000 or $29,100 so that even if they were to sell the car at invoice + 1000, they would still make a $1900 profit on the car?

 

I think you're going to have an incredibly hard time getting anywhere close to invoice unless you are from Florida or NYC. Don't know why, but that's the trend.

md mdx, I believe that's how it works. According to rehvi's calculations, it looks like the holdback is taken from the MSRP, not the invoice price though.

 

exactly

 

There is not a dealer that will sell for dead invoice( - 3%HB) All the best prices are cost plus HB. The company makes money no matter what. On the other hand, us salesman make 15% of profit minus HB. For example we are making $25.00 flat fee on TL's right now because they are selling for so cheap. Not really worth our time to sell them, so personally I just give our best price right away becasue I'm making nothing for the extra aggravation of negotiating a few hundred dollars.