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Dealers in Atlanta are price fixing

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Old 02-22-2004, 06:54 PM
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Angry Dealers in Atlanta are price fixing

A few weeks ago, I posted when my 2000 TL wsa broadsided. The repairs should be done this week (even though I really wanted the car totaled). Shortly after the accident, I sent out about 12 quote requests for a 2004/AT/Navi. Of the 12 I sent, only 2 were substantially below MSRP. Those 2 were in Ocala, FL, and Ashville, NC. I will be purchasing at one of those. The rest were either at or just below MSRP (the 2 mentioned basically split the difference in MSRP and Invoice). Both have also followed up repeatedly with me.

Just a week before the accident, I had visited all 4 local Atlanta dealers, and the the story was the same everywhere. No cars to be had, and MSRP. The only dealer "close" to Atlanta I did not visit was in Athens, about 30 miles away (and 100 from me, as I am 30 miles south of the city). I requested a quote from them and they replied stating initially that the car would be MSRP, but they were willing to match a price from another dealer. I happened to be in Athens yesterday for a ball game and thought I would stop by. I told them I had e-mailed, and talked to the net-manager who replied to me. Told them I was within a week of my car being done, and was close to buying. Reminded her of the quote to me, and asked if they would still match the price. She started to dance on the question, and eventually called in one of the managers, the owners son. They gave me a song and dance that they had only discounted one TL so far, for a several time repeat customer, and then only came off to the mid-34K range. I was pressing for the mid-33K range that I had seen on here and from the 2 dealers I listed above. I do want to make clear I was not price shopping to reduce even further the prices I had received from the 2 mentioned. But, given the choice of having the selling dealer 90 minutes away, or 6 hours away crossed my mind. They then told me on the car they did discount, they received a call from the largest dealer in town, blessing (that's cursing for you non-southern types) for discounting at all. They said that ALL the metro dealers were "sticking" to MSRP. Stated that the other dealer was livid that they had "de-valued" the cars they had just sold. And I thought just driving them off the lot did that. They then suggested I buy in NC or FL, or go to a dealer outside the Metro Atlanta area that did not have to deal with the pricing pressure. At that point I had had enough. I walked, but remained civil about it. So, moral of the story is that there are NO discounts to be had in Atlanta for a 2004 TL/AT/Navi, as they are all in bed together, so to speak. Bad enough I work for a Swiss company, and sometimes see socialism at work. Now I get to see it here in the good old USA. NC or FL, here I come.
Old 02-22-2004, 07:39 PM
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Hey,

I have run into the same problem. All the quotes are pretty much MSRP and it's pretty frustrating. I think the Acura dealership in NC is probably your best bet. I am trying to get in touch with somebody who purchased a TL there but have had no luck. It might be good to either wait a while or try harder to get a deal. If something works out for you, let me know so maybe I can get a similar deal.
Old 02-22-2004, 07:46 PM
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I had the same problem here in SoCal when I got mine. No Navi's...anywhere. The waiting list at Tustin Acura was 2 pages long just with just one salesman and they don't take deposits so you just have to "fly standby" and be prepared to run over with wallet in hand. The first avail Navi was 2 weeks out and white...and 4 people on the list wanted white...so I was out of luck. 4 other area dealers were the same way, no Navi's.

Which is why I have a non-Navi but even then I didn't get a big discount off sticker ($31,995 including nose mask, splash guards and wheel locks thrown in).

Now it's supposedly getting better here but of all the TL's I've gotten to see the interior of (about 12 so far), none have been Navis.
Old 02-22-2004, 09:06 PM
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What's the distance worth to you? If you were to shop in NJ or NY (where i just bought a 6spd, no-nav), you'd find non-navis being discounted $2-3k, with navis getting about a $1-2 break from MSRP. I suspect as you move down south and across the Mason Dixon line, you find less wiggle room from MSRP, particularly a nav unit. How far will you travel for $3k?
Old 02-22-2004, 09:22 PM
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Doug,

I just bought a 2004 5T Navi for $34095..1100 dollars of MSRP from Southern Motors Acura here in SAV. You might want to try them. It's only a 4 hour drive from where you are.
Old 02-22-2004, 09:28 PM
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Re: Dealers in Atlanta are price fixing

Originally posted by Doug Goss
Bad enough I work for a Swiss company, and sometimes see socialism at work. Now I get to see it here in the good old USA. NC or FL, here I come.
Actually, what you described is pure capitalism in its bad collusive form. Under socialist system all the prices would be fixed by the central authority and NO ONE could sell lower or higher.

But of course, this is all worthless theorizing and does not in any way aleviate your pain. Sorry to hear you couldn't get th as*holes to come down in price!
Old 02-22-2004, 11:36 PM
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Whether it's legal or not, they will get away with it as long as they can sell the cars. And if they can do that, why NOT sell at MSRP? (Would you sell at a discount if you didn't have to, basically giving away money?) When and if their inventories become bloated due to high prices, their prices will come down. The TL is still a new model, and the high Spring and Summer sales season isn't even here yet.
Old 02-23-2004, 11:53 AM
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I would agree that *all* of the Atlanta dealers were quoting MSRP for Navi cars back in November when I was shopping, but I don't know if it's pricing fixing ....

At the time I bought my car, there were none on the lot!
So it was hard to argue ...

I'd personally be real interested to know what the Atlanta dealers are quoting for Non-Navi cars. If they haven't budged off MSRP for them, then I'd be getting pretty suspicious!!!
Old 02-24-2004, 06:53 AM
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Hi Doug,

What did Ashville quote you? Maybe we can get a quote together if we go through the same salesperson. Let me know. I live in Atlanta too.
Old 02-24-2004, 07:12 AM
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Why not buy the car on the East Coast where all these other forum members are getting great prices and have the thing truck shipped to you in ATL? All paperwork could be done via overnight carrier as long as you have it notarized.

If you could save $2K-3K by getting the car out East, that would more than pay for any shipping fees. How much to truck ship a TL from the East Coast to ATL?? More than a grand? I have no idea but just throwing this out as an option.
Old 02-24-2004, 12:36 PM
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Sorry to hear about your problem...

However, I would say they are NOT price fixing (even though to you it results in the same thing). Price fixing is when they get together and agree among themselves to have one price. If they do it independently then it is not price fixing.

Think of it with the airlines. If one airline offers a price and all other airlines match that price within a few minute it is not price fixing. If the airline executives get in a room and say 'lets all charge X $ for this flight' it is price fixing.

You are still stuck with the price it is being sold, but one is illegal and one is not....
Old 02-24-2004, 12:54 PM
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It all comes down to supply and demand....

Like Hybrid stated, why would you sell for less than MSRP if you didn't have to. I too was "disappointed" when my dealer was asking (and getting) MSRP for Navi TL's. I actually despise all car dealers, but them wanting and getting MSRP for the TL isn't one of the reasons.... I had folks standing behind me at the dealer waiting to jump if I remotely argued/hesitated about the cost... I'll admit, the dealer was very professional, but stated the fact: "Sorry, that’s the price - if you don't, in less than an hour someone will"....

It is a point of contention though, when you hear others on the forum getting $1000-$3000 dollar discounts.

Good luck
Old 02-24-2004, 01:08 PM
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Lightbulb Try Leith Acura in Cary, NC Also...

Send an e-mail to Mike Mitchell at Leith Acura in Cary, NC. I purchased my car from them back in October. Although I did pay MSRP, unlike the local dealers (I'm in the Triad area), Leith Acura did not charge the document fee (well they subtracted it from the price of the car whereas several other dealers did not even want to do that) and included the floor mats, wheel locks, splash guards, and trunk tray at no additional charge. I was also offered a complimentary pinstripe, but I declined. They may be offering a better deal now.
Old 02-24-2004, 01:11 PM
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Originally posted by KJSmitty
It all comes down to supply and demand....

Like Hybrid stated, why would you sell for less than MSRP if you didn't have to. I too was "disappointed" when my dealer was asking (and getting) MSRP for Navi TL's. I actually despise all car dealers, but them wanting and getting MSRP for the TL isn't one of the reasons.... I had folks standing behind me at the dealer waiting to jump if I remotely argued/hesitated about the cost... I'll admit, the dealer was very professional, but stated the fact: "Sorry, that’s the price - if you don't, in less than an hour someone will"....

It is a point of contention though, when you hear others on the forum getting $1000-$3000 dollar discounts.

Good luck
No it doesn't...in this case it has to do with 'new model, identified as 'hot', emotional buyer...you get the picture, $$$$ for Honda!
Old 02-24-2004, 01:58 PM
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Originally posted by garylee55
No it doesn't...in this case it has to do with 'new model, identified as 'hot', emotional buyer...you get the picture, $$$$ for Honda!
????????

As mentioned, Supply and demand....

The benefit to Honda is only realized through number of sales. The dealer makes the money depending on how much over invoice is paid, not to mention incentives and kickbacks. The car isn't actually a "hot" seller, nor are most of the buyers emotional and willing to pay top price. Non nav TL's are a dime a dozen and discounts are abundant. navi TL,s w/without 6sp are currently in "low supply and high demand". Dealers have every navi TL allocated to a customer well before arrival, other than that you have special order allocations.
It comes down to some dealers willing to take less than MSRP for a navi and others not having to.... When I purchased in Dec, $500 of MSRP for a nav was the best available - but at a dealer 4 times as far for me to commute. So for me, I paid $500 extra to use the dealer I was more comfortable with...

This is totally a Dealers dream car when it comes to nav models. People want navi's and the dealers don't have to compromise on price because someone else is coming in the door or on the phone looking for the same thing....

"Supply and Demand" and as they say: "Thats business"
Old 02-24-2004, 02:13 PM
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I live in Atlanta (well Lilburn) and got $1000 off list with a 6 speed Navi in December. I made the offer and initially the sales guy said he couldn't do that given the rarity of that combo. Fine. I had my '99 in for an oil change and said that I'm not kicking tires, but I could wait and find a dealer who needed a better allocation.

He came back and we made the deal. Heck, he ushered me far away from another couple talking to another sales guy. I believe that money in their face talks louder than getting internet quotes.

Good luck!

rw
Old 02-24-2004, 05:19 PM
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Mr Goss,

No, I can't say I feel your pain! As far as I see it, "You Pay to Play" and M.S.R. P. is more than a fair price for this vehicle! As stated above this vehicle is in high demand. Numerous publications have put this car in the top of its class for value as well as affordable luxury. This car could have been priced thousands higher and still been a great buy! I would also think about the service issue, might put you in the back of the bus behind their loyal customers. Was it is worth it for a few hundred bucks? Might want to look at an Accord which is also a great car but a little cheaper and a whole lot more common! Sorry about your current car and good luck with the purchase of your new one whatever and werever it may be!
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