Dealer Invoice Markup

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Old Nov 5, 2004 | 12:17 PM
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Manus99's Avatar
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From: South Plainfield, NJ
Dealer Invoice Markup

I was wondering what the dealer markup percentage from invoice would be on an '05 tl w/ navi. Is 4% an accurate markup? Please let me know, Thanks!
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Old Nov 5, 2004 | 12:33 PM
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Well, that depends--the invoice price and dealer price are MUCH different... Even if the deal sells the car to you $1 below factory invoice, doesn't mean they're losing $1. The factory will many times kick back $x to the dealer after so many days.

So, I think you're best approach is identify who on this board has bought in the NJ area and what they paid. You can at least determine what the best price was and negotiate from there.

Good luck.
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Old Nov 5, 2004 | 02:20 PM
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From: Morristown, NJ
31803 nav invoice
570 shipping
32373 subtotal
1942.38 NJ Tax
200 4 year registration/ tire tax approx
200 BS dealer charge for having you pick up plates at dealership could be negotiated
34715.38 total

I did not buy yet but this is the work sheet!
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Old Nov 5, 2004 | 03:05 PM
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On an 05? Are you CRAZY? In short... No, 4% MU would be unrealistic (too the EXTREME). Most dealers on such hot cars aren't going "up from invoice" as you might have hoped. Most are "off of MSRP" but then again $3,500 over invoice is similar to "$800 off MSRP". I guess it really depends on your point of view. Good luck either way! Street price is around $33,400 (According to KBB) so it looks like you are looking for another $1,000 additional off of that figure. May be possible for an '04 if the dealer has a few left on their lot but doubt you will find any '05's for that figure.
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Old Nov 5, 2004 | 03:57 PM
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You right, I’m am Crazy. I realize invoice is really not very probable, as in virtually zero, Yet, It just a matter of posture so when they say 33,000 you realize that’s still 700 over invoice and frankly I know a dealership can sell cars at invoice all day long and still make out just fine. Let’s get real this car is simple enough to be bought over the telephone.
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Old Nov 5, 2004 | 07:56 PM
  #6  
Rexorg's Avatar
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From: Washington DC
Originally Posted by Manus99
I was wondering what the dealer markup percentage from invoice would be on an '05 tl w/ navi. Is 4% an accurate markup? Please let me know, Thanks!

Acura sells cars to Acura dealers with a built in profit of several thousands of dollars. The dealer in turn can sell the car for $1 or $100,000. The MSRP is meaningless, as is dealer invoice. They are just there to give the consumer some idea of how much it finally is going to cost him or her in the end. No dealer pays Acura "dealer invoice". The actual cost is several thousand less in most cases. Theoretical Example:

'05 RL = MSRP $48,900; dealer "invoice" $43,900; dealer price $41,900; Acura cost to manufacture $31,900.
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Old Nov 5, 2004 | 10:39 PM
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ndabunka's Avatar
'06 750Li Sapphire/Creme
 
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From: Charlotte, NC
Originally Posted by Shoot2Thrill
You right, I’m am Crazy. I realize invoice is really not very probable, as in virtually zero, Yet, It just a matter of posture so when they say 33,000 you realize that’s still 700 over invoice and frankly I know a dealership can sell cars at invoice all day long and still make out just fine. Let’s get real this car is simple enough to be bought over the telephone.

Correct, they "can" sell cars at invoice and make money. It's called "dealer hold back" and a good dealer will even tell you what that amount is. However, no dealer is going to do that on this car. I know, I tried. If you ask "why not" then you need a few more economics classes (or maybe your first one). When products are "in demand" the price rises to meet the demand (e.g. Price of gas "could" be cost of around $1.50/gallon but it never WILL be). In fact, strong demand usually means that the suppliers are going to make MORE money then they probably SHOULD (i.e. See Exxon's recent 6billion dollar profit statement for the most recent quarter. That's the most ANY company has EVER profited from ANYTHING (including Microsoft) in any ONE quarter. They were able to do this because they just keep adding on profit to the already increasing #'s). Exxon was a VERY good stock to have bought just 3 short months ago if you had been paying attention and understood economics (nearly a 30% increase). Oops, got a little carried away there...

Point is that you CAN buy this car (or ANY car for that matter) over the phone. That fact does NOT make the car any less in demand. And therefore also does NOT make it any less expensive. You can all leave now...Class is over.
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Old Nov 6, 2004 | 09:45 AM
  #8  
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From: Morristown, NJ
The car sells well but nevertheless I still see 04's on the lot and cars do stay on the lot for maybe up to three months. It safe to say prices people actually pay are coming down.
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