re: Ford dealership locally offering $16,000 off MSRP.

quote:

---

Consumers were bending over willingly 2 years ago. I went into Honda to get my daughter an Accord. They were charging $8k over MSRP and selling them before they even arrived. I walked out the door and the salesman didn’t even try to stop me

---

We bought a 2024 Accord for under MSRP in November. Not a lot under, like 1k.

if you're financing the vehicle, it makes no difference.

if you're note is 500.00 at 72 mos with a 2.9 and 10,000.00 off, it'll be 500.00 per month at 3.9 with 11,000.00 off. if it's 4.9 and 12,000.00 off, it'll be 500.00 per month. you get it?

so, if they want to take 20,000.00 off, they just need to bump your interest rate and you'll pay the same amount after 72 payments regardless. it's nice eye candy though.

quote:

---

We bought a 2024 Accord for under MSRP in November. Not a lot under, like 1k.

---

Local dealership had maybe a half dozen vehicles on the lot for a year. Everything was selling prior to arrival.

I recently bought a used 2023, I was surprised at how few options there were for vehicles here, still after this time.

I wanted a Jeep wrangler with 18k miles, it sold before I could call the dealership. I think it was listed for two hours.

quote:

---

Ol’ baw at the golf course the other day said he just got a loaded out 2500 AT4 for only $93,000.

It is never a good idea to laugh at the members. Just clean his clubs and go about your day.

---

quote:

---

We bought a 2024 Accord for under MSRP in November. Not a lot under, like 1k.

---

Yea I saw they have come down. Two years ago was wild times. Used accords with 60k miles were the price of brand new ones. New ones were over MSRP.

quote:

---

That’s a really good deal imo

---

I thought so too. Just has Tremor trim (exterior and interior), 18” rims with bigger tires (aggressive ATs) that look better than any of the F150 20” rims, sits higher, has dual exhaust and sounds better with the 5.0 imo. Basically a cheaper off-road package version of the Raptor. I lost cooled seats and heated steering wheel but I’ll get over it. Also, the non B&O system sounds just as good as the KR with B&O.

I also kept my bed cover that fits perfectly, kept my Amp steps that will work with a different OBD2 port harness, and the dealer is paying to spray the bed liner by the guy that is tinting my windows Thursday.

quote:

---

People are pretty much clueless about the car profit/loss process. It’s not all that uncommon for them to take a “loss” on individual sales. Sometimes that hits certain incentive bonuses from the manufacturer, sometimes it’s to balance inventory, etc etc

---

You are 100% right. Growing up my best friend's family owned several dealerships. There are a lot of hidden costs and profit centers for car dealers. Timing has a lot to do with what kind of deal you're going to get and there's no real obvious way to tell if your timing is good.

One big thing that goes unrecognized is that they have to factor the "floor-plan" costs . Dealers will do a lot to move cars before they hit the 60 day mark of having a car on the lot. Typical cost is about $85 dollars per unit if they have a car on the lot for more than 60 days. They get hit with another $85 for each unit every 30 days thereafter. On top of that there is an interest fee on top of the floor-plan cost. This isn't exact, but the numbers are usually around 25¢ for every $1000 floor-planned per day. A $50k car costs them $12.50 every day it's on the lot.

Once a dealer has a $50k vehicle on the lot for 60 days, they are close to $850 into that unit of their own money. They'll move mountains to not hit the next 30-60 day fee. They'll hope to make it up on the trade or the potential for service at that point and rely on any manufacturer incentive or support.

Being that we're in a high interest environment right now and that manufacturers have bloated the MSRP, dealers are feeling it. Dealers that sell Stellantis products may not make it out, they have piles of inventory right now and zero product velocity.