How is this price so low?

Grahamers · #1 (**permalink**) 08-12-2009, 07:38 PM

Working with a dealer on getting a 2009 Fit Sport AT with Nav. Before asking for his bottom line price I did the following math:

MSRP = $18,960
Destination = $710

Total MSRP + Destination = $19,670

Invoice cost = $18,277
Invoice + Destination = $18,947

Now I know that Honda dealer holdback is 2% of the base price. I am not sure if "base price" includes the nav package or not, but being generous to them, I assumed that it did. That means holdback would be $379.20. Subtracting the holdback from their invoice price means that the car cost the dealer a total of:

$18,567.80

So if I bought at MSRP, they would make a profit of $1,102.20 or 5.94%.

The price I was quoted is the following:

$18,277 Selling price
$670 Freight
$99 Processing fee
$19,046 Total selling price less tax and tags.

I was shocked that they came in over $600 UNDER MSRP as thier first quote. This means only about a 2.4% profit.

Is this right? Is there an unanounced sale on that I don't know about? Are they just unloading cars before the 2010s come in?

Thanks!

JDMchris.com · #2 (**permalink**) 08-12-2009, 08:25 PM

You can pull invoice on it easy. When I was still selling cars I was selling the GEs 500 below net cost at 1 point.

Yes, I Vtec · #3 (**permalink**) 08-12-2009, 08:52 PM

ya that's higher than what i was quoted

Ando · #4 (**permalink**) 08-12-2009, 10:38 PM

For Hondas, dealer holdback is 3%, not 2%. That amounts to $568.90. Subtracting that from invoice gives you an actual dealer cost of $17,708.10 (excluding destination). So, if they're selling it to you at $18,277, they're making about a 3.2% profit. That's very good. According to carbuyingtips.com, dealers should be willing to make between 3% and 5% profit over their actual cost. When I bought my AT Sport Nav, I got it for $19,100 (including destination), or a dealer profit of 4.2%. It sounds like your dealer is willing to take less profit to clear an '09 before the '10s come in. (Since dealer holdback is 3%, anyone who pays MSRP is actually giving the dealer a whopping 7% + profit!)

Grahamers · #5 (**permalink**) 08-12-2009, 11:24 PM

Quote:

Originally Posted by Ando

For Hondas, dealer holdback is 3%, not 2%.

Thanks for spotting that. My spreadsheet copied the 2% from my Toyta Prius column! Still, over $600 under MSRP as a first offer is still impressive. I finally heard back from teh salesman and he said "We are having a sale on Fits. We have a ton of them and we need to get rid of them."

What a great experience! I get $4500 back from my clunker. The Fits are on sale. And I can take a income tax deduction on the sales tax due to the previously enacte stimulous package. It feels like a free car!

clicq · #6 (**permalink**) 08-13-2009, 12:48 AM

You might want to check the manufacture date on the car... at some point early 2009 (or maybe December 2008?), Honda raised the MSRP and destination charge due to the stronger yen (or something like that).

My car, which the dealer had on the lot since January, had the old MSRP of $18760 with the old destination charge of $670 on the window sticker. I'm guessing they were using these numbers instead of the new higher numbers when computing the price

.

You can find the manufacture date on a white sticker on near the bottom of the pillar between the front and rear doors (the b-pillar?).

fearlu · #7 (**permalink**) 08-13-2009, 01:29 AM

How does $16,330 sound for an '09 Sport/manual? A good deal in your view?

No_Skillz · #8 (**permalink**) 08-13-2009, 02:34 AM

Quote:

Originally Posted by fearlu

How does $16,330 sound for an '09 Sport/manual? A good deal in your view?

Got mine for 15,675. And free all weather floor mats, rear bumper applique, and one other option, don't remember what it was.

smaglik · #9 (**permalink**) 08-13-2009, 02:54 AM

19,000 for a fit sport at navi. deal done this past sunday

gs3boynyc · #10 (**permalink**) 08-13-2009, 04:26 AM

I got mine for $18847 (dest. included) end of July. Didn't get any freebie accessories though :-( Just added the armrest,carpet mats, body side moldings, and moonroof.

mike2100 · #11 (**permalink**) 08-13-2009, 11:20 AM

Wow you guys are getting good deals. I was about to pay MSRP on Tuesday, dealer said they'd call me back Wednesday when they found the exact trim I want and never called me! I guess they're hurting for Fit sales around here!
Now I'm tempted to wait for the C4C slowdown in sales and travel to the bay area to demand a deal. Oh well, more time to throw cash on the down payment pile.

smaglik · #12 (**permalink**) 08-13-2009, 11:26 AM

i think there was probably a couple hundred more out there, cause there were 4 dealers in the phoenix area that I had good quotes from, but I didnt press it too much. I despise bullshit as a rule, and as such, I absolutely *hate* dealing with car dealers.

ForceFit · #13 (**permalink**) 08-13-2009, 05:29 PM

Quote:

Originally Posted by No_Skillz

Got mine for 15,675. And free all weather floor mats, rear bumper applique, and one other option, don't remember what it was.

Nice price.

My dealer must have a bunch of buffoons in service who managed to mis-apply the rear bumper applique 3 times on another FIT and managment now makes them send it out to a detail shop for those. At least that's what I was told. Course, it is a car dealer, so who knows what the real truth is.

Same dealer's finance person told me they don't accept Honda Care warranties.

Grahamers · #14 (**permalink**) 08-13-2009, 06:33 PM

UPDATE:

I went back for yet another test drive and I checked on the numbers and they were the same for every FIT they had (10 of them that matched my requirements.) The only difference is that some were a little older and came with $670 destinationa nd the newer ones had $710 destination. Seems liek a great time to buy!

Final price for my Blackberry Pearl Fit Sport AT with Nav was $19,086 plus tax and tags. Thats about $600 below MSRP. After $4500 clunker rebate, I am paying $14,586 plus tax and tags.

Thanks for all the help!