Quote:
Originally Posted by Brookside
They expect their dealers to break sales records every month. The customer may not be in a good bargaining position at the beginning of the 1-ers intro...but I'm betting it won't last long.
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Invoice isn't always the dealer's cost. Manufacturers will offer dealers incentives to hit certain sales targets. This scenario will let them sell below invoice.
You're absolutely correct that dealers have certain sales targets, but if their average sales price is consistently below cost (which again is not necessarily invoice) they will not be in business long. For every person getting a great deal there is probably another person who is paying MSRP.
And of course there are other factors beside the price of the car. Is there financing or a trade? And leasing is an entirely different wrinkle.
Obviously you want the best deal possible, but that said if someone wants something bad enough the price becomes less important. I worked with someone who payed double the MSRP of a Miata when they first came out just because he wanted to be one of the first to have one. I payed MSRP in '84 for a 325e because BMW's workers were on strike and no new cars were coming into the US. OTOH I've also payed below invoice.
Hopefully this board will help people get a good deal, but more importantly I hope that it just helps people enjoy their car more. I'm sure that we will have the requisite "I got a better deal than you did" thread and although helpful, it can get a little tedious at times.
Anyway to get back on topic I hope that a 135i M Sport comes in at $35K, which should get us an invoice closer to $32K.