Are Fit Buyers paying too much?

Here are the latest pricing for two models of Honda. Notice that the smaller Honda Fit is priced higher than the larger Accord. What gives? Supply and demand. Because some people can’t wait to get their hands on a Fit (we won’t mention any names here) Honda can get a better profit margin on the Fit. For those people who got to have one, must have it at any price I think Honda can raise the price even higher and they will still buy.


2007 Honda Fit 4dr Front-wheel Drive Hatchback Sport
MSRP Price:
$15,082
Invoice Price:
$16,320
CarsDirect Price: $16,320
Pricing as of 06/23/06


2006 Honda Accord 4dr Sedan 2.4 VP
MSRP Price:
$17,032
Invoice Price:
$15,682
CarsDirect Price: $15,682
Pricing as of 06/23/06

 

How much for the 3.0L Accord?

 

The price is higher because of supply and demand. More Accord's out there. I definitely would not pay more than MSRP for the Fit. Any higher and I would consider other cars. You also have the MSRP and Invoice price for the Fit reversed.

 

The reason for this price difference is that the Accord referenced is a Value Package. Honda recently started this VP term, and had one for the 2005 Civic as well. VP basically means a stripped down car, equivalent, or in some cases lower than a DX model. Basically, you get air conditioning and a few other "popular" addons. So, this Accord is reasonably priced.

I agree also with supply and demand, but in this case the lessened demand for Accords results from Civic interest, not as much Fit interest. I would also guess that some buyers became interested in the Fit also due to high demand/pricing on the Civic.

 

Honda's website says the Accord VP is $18,225 MSRP (that's for the manual, which is $800 less than the auto). That's without destination.

 

How could the invoice price for the Fit be more than the MSRP????????

 

That's what was posted on their webb site. The price quoted includes destination charges. Is you can find a lower price they will match it.

 

Regardless of how they came up with the pricing structure, Honda is still making a nice profit on the Accord and an even nicer profit on the Fit. The Accord is priced for the value shopper.

 

Yes, Honda web site always quote the suggested MSRP. But that won't stop car dealers from sell for less depending on market conditions.

 

first off, supply and demand.
except classis, engine and comfort, there is no difference b/w accord and fit in features.
Fit is made in Japan, Accord is made in US.
In fact, Accord is costing more in $$.
if you think accord is a better buy and i think alot of people thinks so as well. then you and other buyers are in for accord. you will buy accord.
people who will choose fit will buy fit.
MSRP is a fair price between dealers and consumers, market demand will set the price. dealerships make your money, called ripped off? you don't let dealer make your money, you rip dealers off? think again.

 

Sure, but where did you get this data? If you have the wrong MSRP perhaps you have the wrong invoice as well.

 

I got the prices from the web site. Prices are updated base on market conditions. I did a 'Copy and Paste' of their info as is and posted it on this forum. So the numbers I posted is exactly the same as the original web site.
For more info on car prices go to 'Carsdirect.com'

 

Yes they are definitely paying too much. Especially those paying over MSRP.

Early apopters always jack up the price because the majority of them are superficial and image conscious and just "have to have it" right away so they can be seen by others on the road before anyone else has one.

I would never pay MSRP for any car that isn't an exotic. Invoice is all anyone should pay for any car if they know how to buy a car in the first place and have attained the art of negotiation.

 

I have to agree with the Fit Pricing. The price of the Fit is so close to the price of the new Civic. I have an idea about this. The new Civic is made in Ontario. The delivery cost is no more than a 150km trip by an 18 wheeler. By contrast, the Fit has to be shipped from overseas. The Fit is very popular everywhere overseas. As a result, all the Honda dealers are overflowing with the new Civic and I can't get a Fit to test drive(I've tried several times and was sad to find that there was none available). I'm thinking that this will change in in about 2 years as Honda is set to build the Fit out of London, Ontario(locally). Its set to coincide with the reported Fit Hybrid due out that year. I'll bet the Fit Hybrid will come out of London Ontario for the NA market and will be priced better than we're seeing right now in NA. With the current pricing, there's such a small difference that I'm leaning towards the new Civic. Bigger & more power with only a 2% penalty on fuel consumption. Anybody else have any thoughts on this?????

 

I must agree that all us Fit owners are STUPIDS and maybe Dumbs and Superficials.



On second thought, maybe I won't feed the troll.

Did any other Fit owners weigh the cost to benefits of consuming less fuel (and it's environmental impact) vs. paying a little over invioce?

("ART of negotiation"? Please...you're selling the art world a little short.)

 

There's really no need to try and put words in my mouth. Nowhere did I imply anyone was "stupid".

Yes there is an art to negotiation. It's called having patience and possessing the ability to walk out of a dealership without convincing yourself that buying at MSRP is a good deal. It's also having the ability to not get overwhelmed with, what they refer to on that show "King of Cars", the ether of buying a new car. Since most people don't buy a new car but once every few years they simply just do not know how to do it. They don't do their research to find out what they should be paying (Invoice) and many of those that do just don't stick to their guns when it comes to closing the deal because they just "have to have it" right away.

If you make the decision to pay MSRP because you have to have the car now, that is fine and up to you; however, there is no doubt that by doing that you are literally giving money away.

 

So you got your Fit at invoice or are you just here trolling?

When MSRP - Invoice is around 600-700 there's much less of the negotiating 'art' than if you are buying a $40k Lexus. Besides you can wait but you may be waiting until the next model year comes around. Supply is very limited on these cars. If they get 5 a month they aren't going to sell it to Mr. Knows A Deal for invoice. You are thinking of cars like the Accord which sit on the lots for weeks or months.

Paying MSRP may be dumb when you can walk out of the dealership and go to the next one and get a good deal, but in the case of the Fit you are not going to get invoice unless you have some kind of connection.

 

I think the Fit is worth MSRP but no more. I like the car a lot. If Honda made a $25K version with a bigger engine with more HP/TQ, better interior, bigger wheels/tires, improved suspension and brakes, etc. I would buy it.

 

I refused to pay OVER MSRP.

It brings the price into the price range of the Civic.

Dealers need to understand that the Fit is AN ENTRY LEVEL CAR!

So I walked out of deals with dealers that marked up their Fits and went to one that did not.

If the Fit were marked up everywhere, I wouldn't have bought the Fit. It's a nice car and all, but the Civic is a better car (well, not the interior) overall, most noteably in fuel economy and safety.

But the Fit "fits" my family much better, but only with the price "fits" too.

-Ed

 

Actually, it just happened to be the car I wanted. People who feel obligated to wait must be in a financial position to where it would matter whether they paid MSRP or whether they paid invoice.

Do you ever buy a coke out of a coke machine subtle? I bet you do. But you know those cost at least double what they do out of a 12 pack at your local grocery. But you think big deal, its only 20-30 cents more.

That's exactly what I think about the extra 700 or so spread between invoice and MSRP. I want the car now.. not 1 year from now and $700 one way or the other wont effect my life to even notice the difference. $700 must be a lot to you to cause you to actually wait months for the car. you want.

You in kind need to learn the art of Economics 101. Some of us are of the means to have now, others, like you, get to wait and while you do so, you pretend its because you're a better negotiatior, not because $700 is a lot to you.

Azanon