'07 HHR LS for $13,900??
Senior Member
Joined: 08-20-2006
Posts: 21,640
From: Hillsdale, Michigan
The Mazda3 5 doors are nice. I've never sat in one but I would think they'd be a bit smaller than the HHR. I liked the Matrix went it initially came out but lost interest in it. The Xb was never on my radar to begin with. Shop around!!
Member
Joined: 02-13-2007
Posts: 84
From: Ticonderoga, NY
Actually, several dealers here in Arizona do sell their "in stock" HHR's for slightly less than "factory invoice". The "small print" states that all rebates and incentives are assigned back to the dealer, which makes it several hundred less (to you) than the invoice (a friend purchased a truck, this way).
Their "catch" is the financing that they arrrange. They get at least a 1/4 point for that. Another is the "documentation fees"....some as high as $400. Another is license plate fees, which we all pay. For instance, again here in Arizona, they write the amount of the plates into the contract and "bank it", giving you a temporary plate for 45 days. Just before the temporary expires, after 30 days maybe, they have the permanent plates issued. Dealers who do large monthly sales make nice interest on the plate money.....700 vehicles a month X $300 plate fees (average) = $210,000 @ 5% interest = $10,500 a month. Oh, this is all legal, by the way.
Also, many dealers recognize considerable revenue from parts and service....sometimes as much as 60%(as some on these forums have found out).
I know some dealers that indicate they make very little, if anything, on the sale of the vehicle (for real). They make their money on service and parts and aftermarket products. My dealer is one of them.
Oh, and I purchased a 2000 S-10 truck, from my dealer, under the advertised less than invoice price. It was approximately $300 less than my Employee Price.
One final thought....sometimes manufacturers offer special pricing(reductions)on carefully selected vehicles to certain areas of the country. This encourages market expansion in those areas.
BUT, the bottom line is beware of false, phony, misleading, embellished advertising....as well.
Their "catch" is the financing that they arrrange. They get at least a 1/4 point for that. Another is the "documentation fees"....some as high as $400. Another is license plate fees, which we all pay. For instance, again here in Arizona, they write the amount of the plates into the contract and "bank it", giving you a temporary plate for 45 days. Just before the temporary expires, after 30 days maybe, they have the permanent plates issued. Dealers who do large monthly sales make nice interest on the plate money.....700 vehicles a month X $300 plate fees (average) = $210,000 @ 5% interest = $10,500 a month. Oh, this is all legal, by the way.
Also, many dealers recognize considerable revenue from parts and service....sometimes as much as 60%(as some on these forums have found out).
I know some dealers that indicate they make very little, if anything, on the sale of the vehicle (for real). They make their money on service and parts and aftermarket products. My dealer is one of them.
Oh, and I purchased a 2000 S-10 truck, from my dealer, under the advertised less than invoice price. It was approximately $300 less than my Employee Price.
One final thought....sometimes manufacturers offer special pricing(reductions)on carefully selected vehicles to certain areas of the country. This encourages market expansion in those areas.
BUT, the bottom line is beware of false, phony, misleading, embellished advertising....as well.
First, your math is a bit faulty. Even IF they were banking 210K @ 5% that isn't $10,500 a month...it's a year, so $875 a month. Second, if they are selling for "invoice" and you have to give them back rebates and incentives, the dealer is making out VERY well. Last month there were incentives as much as $2750 on '06 models in some parts of the country. I got a $2250 incentive on mine. It isn't very hard to find out what the dealer paid for a vehicle...figure the holdback and advertising and you know. The dealer is NOT going to lose money. He can't. He has to pay for floor plan, inventory, sales people, electric, fuel, etc. etc. I agree dealers hope for service and accessory sales, financing revenue and sales of extended warranties, but they can't count on these things at the time of sale. There may be rare times when a dealer has to move a particular vehicle because floor plan is killing him or other reasons that will cause him to take a beating, but this will be very rare. My opinion and I'm sticking to it.
Platinum Member
Joined: 05-09-2006
Posts: 6,805
From: "Upland" Mesa, Arizona
GDZHHR....
You are correct...2 invoices. One is dealer invoice...that is the one the dealer is proud to show you. The second is factory invoice, that is the actual cost with the "hold back" calculated in. Also, the one they will NEVER show is the INCENTIVE invoice. That, of course, is the one that displays the special pricing for special marketing area incentives.
hhrmajesty......
I didn't miscalculate, just made some assumptions. For example, 700 vehicles SOLD EVER MONTH FOR 12 MONTHS = 8400 vehicles. 8400 vehicles x $300 = $2,520,000 x 5% = $126,000 annually. If you wish you can divide the ending number by 12 for the monthly amount.....it's the same. I know some dealers do this because of my previous association with them. Keeping track of the licensing procedure is easy with a well developed spreadsheet. They then send a "yard kid" into the MVD Dealers Desk, when necessary.
You are correct...2 invoices. One is dealer invoice...that is the one the dealer is proud to show you. The second is factory invoice, that is the actual cost with the "hold back" calculated in. Also, the one they will NEVER show is the INCENTIVE invoice. That, of course, is the one that displays the special pricing for special marketing area incentives.
hhrmajesty......
I didn't miscalculate, just made some assumptions. For example, 700 vehicles SOLD EVER MONTH FOR 12 MONTHS = 8400 vehicles. 8400 vehicles x $300 = $2,520,000 x 5% = $126,000 annually. If you wish you can divide the ending number by 12 for the monthly amount.....it's the same. I know some dealers do this because of my previous association with them. Keeping track of the licensing procedure is easy with a well developed spreadsheet. They then send a "yard kid" into the MVD Dealers Desk, when necessary.
Member
Joined: 02-13-2007
Posts: 84
From: Ticonderoga, NY
GDZHHR....
You are correct...2 invoices. One is dealer invoice...that is the one the dealer is proud to show you. The second is factory invoice, that is the actual cost with the "hold back" calculated in. Also, the one they will NEVER show is the INCENTIVE invoice. That, of course, is the one that displays the special pricing for special marketing area incentives.
hhrmajesty......
I didn't miscalculate, just made some assumptions. For example, 700 vehicles SOLD EVER MONTH FOR 12 MONTHS = 8400 vehicles. 8400 vehicles x $300 = $2,520,000 x 5% = $126,000 annually. If you wish you can divide the ending number by 12 for the monthly amount.....it's the same. I know some dealers do this because of my previous association with them. Keeping track of the licensing procedure is easy with a well developed spreadsheet. They then send a "yard kid" into the MVD Dealers Desk, when necessary.
You are correct...2 invoices. One is dealer invoice...that is the one the dealer is proud to show you. The second is factory invoice, that is the actual cost with the "hold back" calculated in. Also, the one they will NEVER show is the INCENTIVE invoice. That, of course, is the one that displays the special pricing for special marketing area incentives.
hhrmajesty......
I didn't miscalculate, just made some assumptions. For example, 700 vehicles SOLD EVER MONTH FOR 12 MONTHS = 8400 vehicles. 8400 vehicles x $300 = $2,520,000 x 5% = $126,000 annually. If you wish you can divide the ending number by 12 for the monthly amount.....it's the same. I know some dealers do this because of my previous association with them. Keeping track of the licensing procedure is easy with a well developed spreadsheet. They then send a "yard kid" into the MVD Dealers Desk, when necessary.
Platinum Member
Joined: 05-09-2006
Posts: 6,805
From: "Upland" Mesa, Arizona
Know of at least 2 Chevrolet dealers in that area. One Ford dealer was doing better than 800 a month. Bet some in larger areas, maybe Chi Town, LA, etc. even do better (might even be multi-brand dealerships). Again, as I said, I did make some assumptions.
