Quick question about dealers
08-08-2002, 02:52 AM
#2
As far as I know, invoice is what the dealer pays the manufacturer for the car. In other words the place where you buy your car, buys it from Nissan for invoice price. There is something called a "dealer holdback" that the manufacturer pays the dealer for every car they sell (usually 1-2 per cent of the price of the car). So in essence, they (dealers) do get the car for a little less than invoice.
08-08-2002, 04:59 AM
#3
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The answer to your question is yes, dealers, dealership employees and Nissan employees get a discount off of dealer invoice, but (isn't there always a but!) in the case of the 350Z's, NNA is not permitting it at this time.
Down the road the 350Z will be added to Nissans VPP program and it's dealer program (sort of like the Ford A & X plans). This will only happen once the 350Z is not in limited supply, according to Nissan this might be as early as April '03, but I not holding out hope on that date.
Now for the discount amount, I can only speak to the VPP program that my company gets, and it is a complicated formula (at least to me)
Dealer Invoice - holdback - floorplanning - regional advertising + 2.5% delivery fee + destination charge.
The only unknowns in this equation are the floorplanning and regional advertising. Supposedly the Dealer must provide document numbers for both when someone is using the VPP program. So now you know.
My guess is that I could get a performance model (loaded) out the door (before trade/or down payment) for around $29K (including TT&T) saving around $3-4K.
Jim
Down the road the 350Z will be added to Nissans VPP program and it's dealer program (sort of like the Ford A & X plans). This will only happen once the 350Z is not in limited supply, according to Nissan this might be as early as April '03, but I not holding out hope on that date.
Now for the discount amount, I can only speak to the VPP program that my company gets, and it is a complicated formula (at least to me)
Dealer Invoice - holdback - floorplanning - regional advertising + 2.5% delivery fee + destination charge.
The only unknowns in this equation are the floorplanning and regional advertising. Supposedly the Dealer must provide document numbers for both when someone is using the VPP program. So now you know.
My guess is that I could get a performance model (loaded) out the door (before trade/or down payment) for around $29K (including TT&T) saving around $3-4K.
Jim
08-08-2002, 04:59 AM
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A few years back I talked to a dealer that sold cars at invoice. I asked him how he made his money. His response was he got a holdback on each car at 3% (holdback differs by manufacturer and this guy was a chevrolet dealer) He also said he was reimbursed the transportation costs to. This dealer did not keep much of an inventory and you basically factory ordered the car. His sales force was on salary. He didn't throw into the equation the most lucrative part of a new car purchase which is when you see the friendly Finance and Insurance guy. He is the one to watch out for....higher interest rates (he will charge you what ever you agree to ) then he puts the squeeze on you for extended warranty, rust proofing etc the cost of which is 85-90% profit to the dealer. If you go to Edmunds.com I think they will tell you the holdback for each model and make.
08-08-2002, 05:03 AM
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thats why I always lie and low-ball them when they ask what rate my credit union gave me. Twice I've had them beat the credit union. The game is much more fun and fair when you know the rules 
08-08-2002, 05:26 AM
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? Dealers
Originally posted by Dr Bonz
As far as I know, invoice is what the dealer pays the manufacturer for the car. In other words the place where you buy your car, buys it from Nissan for invoice price. There is something called a "dealer holdback" that the manufacturer pays the dealer for every car they sell (usually 1-2 per cent of the price of the car). So in essence, they (dealers) do get the car for a little less than invoice.
As far as I know, invoice is what the dealer pays the manufacturer for the car. In other words the place where you buy your car, buys it from Nissan for invoice price. There is something called a "dealer holdback" that the manufacturer pays the dealer for every car they sell (usually 1-2 per cent of the price of the car). So in essence, they (dealers) do get the car for a little less than invoice.
If they need to do that, they may fall into the category of poor sales and service and will seize any opportunity to maximize their profit on a popular car. Check with the Better Business Bureau when a dealer tries this crap, it might be enlightening and give you some leverage with the dealer(they may not need any more negative reports with the BBB).
Boomer--just a thought.
BR/FR/AT
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