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Through an employee discount plan at my job, I am eligible to buy new cars from certain manufacturers at 4% or less above the dealer's cost. Can anyone give me some indication as to what the dealer's cost is on a vehicle?

2007-07-16 11:49:42 · 4 answers · asked by jafane5 1 in Cars & Transportation Buying & Selling

4 answers

Dealers cost is how much a dealer would pay to purchase a vehicle.

2007-07-16 11:57:02 · answer #1 · answered by mybuttstinks2001 5 · 0 0

Every so often someone comes along ans asks this question> The fact is, that this is a terrible idea for several reasons 1) When cars come from the factory, they are not showroom ready. There is a lot of prep that goes into making a car from the factory ready for resale. They are covered in protective film. The insides are typically dusty. There are accessories that come with the car that are not installed. There are a lot of things that need to be done. No one is going to pay for a car then have to do all that work to make it presentable 2) Logistics. Shipping a freight train of 400 cars to a distribution point, and from there to a dealer is logical. Imagine the logistics involved in getting one single car from a factory in California, to a person's doorstep in Maine. The costs of this would be outrageous. Not to mention the time it would take to get that car from point A to point B. Plan on 12-16 weeks from the time you "order" your car until it arrives. 3) People. We are an instant society. People ***** about waiting 10 days for a book from Amazon. That's a $20 purchase. Are you willing to pay $30,000 for something then wait 3 months for it to finally arrive? And when it does, what if there is an issue? Who will you go to 4) People v2.0 - When you buy a car, there is a delivery process and a support system in place. You have people at the dealership to show you how things work, where the spare is, how to program the radio. Trust me, after 30 years of dealing with the public, the general populous is not going to take time to sit down ADN read a manual and figure these things out. 5) Support (cont'd) - brand new cars come with warranties, and there are technicians specifically trained to work on specific models of cars. An Audi mechanic may be completely lost working on a Kia. When you need service, the dealer is the one that provides it free of charge during the warranty period. When it breaks down, you know exactly where to go and whom to call. If that network was gone, your support would be gone. 6) Finance. Car transactions can be simple if you pay cash. But what if you want to finance? Lease? What if you have a trade in? What if that trade in has a payoff? And old DMV debt? Do you have the first idea how to handle it? When you finance through a dealer, they have access to dozens of banks they routinely do business with. How many do you work with? 7) people v3.0 - people love to shop. They love to get in a car, test drive, compare, see all the options. They ask a million questions as they do so. How do you propose to show and test cars if they are just pictures on the computer? Sure, that new car may look great, and the reviews are good, but how does it feel to YOU to drive? That's why dealers don't just have one of each car on the lot. People love to test and compare. The feel of the wheel seals the deal I can go on and on about why this concept doesn't work. This is not a package that can be dropped in the mail like a CD. Its a complex, expensive purchase that needs a lot more interaction and guidance than you realize. Lastly, trust me, the markup on a car is not nearly what the general public thinks. For example, a brand new, fully loaded Chevy Malibu has about $1400 profit between dealer invoice and retail. less than 10% or MSRP. You pay 200% markup on a cheeseburger and never complain. Try looking at the gross profit margins on clothing, jewelry and all the things you spend money on every day. The profit margin on cars is negligible compared to those. And you give away more profits every year on those items than you do On he car purchase once every 3-5 years. So these are just a few reasons why you don't get to just buy from the factory.

2016-05-19 21:15:18 · answer #2 · answered by ? 3 · 0 0

Manufactures suggested retail price gives your sales man his commission and dealership about $4,000 on each unit they sell. There is tax title and license fees. Call your insurance company with the new car vin # as soon as you know the one your getting. Your 4% deal sounds great. I purchased my car GM employee price and that was $2,900 off of a 34,900 car. All these 0% year end offers are not available with other discounts. So do the math remember 6% per annum vs. 0% on a 34,000 car save X buyer plan at work or save more in interest charges by plan Y.... Or go in already approved by your bank. Don't let the CAR SHARKS smell money it causes a salesman frenzy!

2007-07-16 12:01:33 · answer #3 · answered by John Paul 7 · 0 0

Go to a dealer and ask to see the invoice on the car. If you are buying a Ford and you are using the A,Z,orX plans, then you just ask the salesperson and they will give you a copy or at least show you the invoice. The price you pay is already listed on the invoice with the different plans. So there is no haggling, unless you are trading in a car, then you can negotiate the trade in value. good luck..

2007-07-16 12:00:13 · answer #4 · answered by Fordman 7 · 1 0

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