Abandonhope16 Posted June 22, 2007 Share Posted June 22, 2007 We are looking at a 2.5i SE for my fiance. After fierce negotiations , we can get it for $21,350 (which includes tax, title, fees, etc). Comes with spoiler, armrest extension, and auto dimming compass mirror as extras. Price before delivery is $19,945. Invoice at $21,760. What are your thoughts? Thanks. Link to comment Share on other sites More sharing options...
Abandonhope16 Posted June 22, 2007 Author Share Posted June 22, 2007 Sorry 2008. Quartz Silver. Link to comment Share on other sites More sharing options...
stewartg Posted June 22, 2007 Share Posted June 22, 2007 2k under invoice sounds like a hell of a deal for an 08 they could sell to someone else at msrp. go for it, nice color too. Link to comment Share on other sites More sharing options...
2006Specb122 Posted June 23, 2007 Share Posted June 23, 2007 Can someone explain why people would say they got a car for "UNDER" invoice. If a dealership sells something "UNDER" invoice they loose money. Do they just have cars they cannot sell so they must give them away or eat the entire car? Doesn't make sense... I would say they might let it go for $500 over invoice...maybe $200 at the least.... unless the words we're using like "invoice" are not defined properly.... just doesn't make sense..... Even after I bought my car last year ..... I was trying to get them to throw in the subwoofer option or the STI short shrow shifter.. or the home link mirror... (three things I wanted that were not already installed on the car)...they cried like babies and told me that they were only making $400 on the car...... I said really...that is so sad... all I do is independent sales for a living... If a 30,000 dollar machine I sold only net me $400 I would get into a new business..... Unless they can sell 5 cars per hour? Seriously...if anyone knows the "CAR WORLD" or has worked in sales or management in this industry please explain.... The Subaru dealer in Sacramento only had two Spec B's in 2006...and they only made 800 total? WOW...that is sad.... Link to comment Share on other sites More sharing options...
FameMax Posted June 23, 2007 Share Posted June 23, 2007 Can someone explain why people would say they got a car for "UNDER" invoice. If a dealership sells something "UNDER" invoice they loose money. Do they just have cars they cannot sell so they must give them away or eat the entire car? Doesn't make sense... I would say they might let it go for $500 over invoice...maybe $200 at the least.... unless the words we're using like "invoice" are not defined properly.... just doesn't make sense..... Even after I bought my car last year ..... I was trying to get them to throw in the subwoofer option or the STI short shrow shifter.. or the home link mirror... (three things I wanted that were not already installed on the car)...they cried like babies and told me that they were only making $400 on the car...... I said really...that is so sad... all I do is independent sales for a living... If a 30,000 dollar machine I sold only net me $400 I would get into a new business..... Unless they can sell 5 cars per hour? Seriously...if anyone knows the "CAR WORLD" or has worked in sales or management in this industry please explain.... The Subaru dealer in Sacramento only had two Spec B's in 2006...and they only made 800 total? WOW...that is sad.... From a dealer's perspective, You are absolutly correct about loosing money. Depending on the dealership,some will sell new cars and lose money, depending on how competitive that market is. OF crouse this also depends how replacalbe the car is. Any 2008 is replacalbe right now. Legacy GTs are harder to replace, STis same deal. Just a Legacy Limited isn't bad. From month to month there are different incentives from Subaru to the dealership. Like sell X amount of Legacys and get $500 per car, something along those lines. Most stores make the majority of their profit in the service department, or pre-owned sales. Link to comment Share on other sites More sharing options...
hondas123 Posted June 23, 2007 Share Posted June 23, 2007 first off, invoice is often not what the dealer actually paid. secondly, there is cash back and other programs available to the dealer via holdback, which allows them to do ok. Don't feel so badly for the dealers. Amen. Dealers aren't loosing any $$$ at all when they sell a vehicle under invoice. - The Mortgage Man Link to comment Share on other sites More sharing options...
PhilT Posted June 23, 2007 Share Posted June 23, 2007 Do the dealers buy at a fixed price from SoA, or do they have to negotiate too ? Opie ? Double Award Winning Legacy GT Wagon Link to comment Share on other sites More sharing options...
2006Specb122 Posted June 23, 2007 Share Posted June 23, 2007 OK... well that was kind of the point I was looking for..... I have a software and machinery sales business.... If I sold the software or machinery for less than I paid for it then I would not stay in business. I'm thinking that the so called "invoice" isn't literally what the dealer paid so that is misleading. Also I agree there is probably other incentives adn things in the background. I've also heard that dealers make 80% on used cars and service department and 20% on new car sales. THat makes some sense. So in that case they could sell a car and make nearly nothing in hopes that they come to service their car in 30k miles and charge 700 like they just quoted me. I've also heard dealers sometimes are not anxious to sell the top of the line car...like a spec B because it draws people into the showroom to LOOK so then they can sell them another car. Link to comment Share on other sites More sharing options...
violhence Posted June 25, 2007 Share Posted June 25, 2007 DEALERS NEVER LOSE MONEY WHEN THEY SELL CARS UNDER INVOICE. Don't even kid yourself with that. Here is the reason why, so listen carefully Invoice : The price a dealership pays just to get the car out of the factory onto their lot Invoice price does not include any rebates are incentives that the bodyshop gets for selling that car, and all factories give those out these days. Just an example here: If the MSRVP is 23,000 Invoice is 21,500 The factory tells the shop this, "you can get this car for 21,500. we are going to hold the 500 until you sell it" ---this is what is refered to as a holdback. As soon as the dealership sells the car they get 500 bucks so now they only paid 21,000. Then the factory says "if you sell this car in 2 months or less, we can give you another 500 bucks back". Now the shop paid 20500. "And if you order another one just like it from the factory we take off anther 200". So now the actual price that the dealership paid is 20,300. now here comes mr 2006SPECB122 and he says "Go ahead and pay 500 above invoice. So the dealship paid 20,300 you give them 22,000. Given them 1800 bucks in profit. It is a proven fact the the average dealership in the USA survives off a profit of 3% above the price paid - not invoice SO DO NOT IN ANY CHANCE ALLOW YOURSELF TO THINK THAT YOU HAVE TO PAY INVOICE OR ABOVE. Invoice is meaningless - no dealership really pays that much when you think about all of the refunds and rewards they get. Link to comment Share on other sites More sharing options...
one69chev Posted June 25, 2007 Share Posted June 25, 2007 ^^^ +1 normally holdback will range from 3-6% depending on options and msrp, so even at a "below invoice extravaganza sale", the dealer is still making something. then add in financing, if you were to buy an extended warranty, if you trade a vehicle, buy accessories; those are all areas where the dealer will pad their profits. Link to comment Share on other sites More sharing options...
violhence Posted June 25, 2007 Share Posted June 25, 2007 I bought my 07 for about invoice if not a tiny little over and I overpaid way too much. I kinda got ripped off in a sense but i only did it because it was the only 07 limited edition legacy that I could find anywhere in my area within a radius of about 200 miles. But in General, always pay under invoice Link to comment Share on other sites More sharing options...
Abandonhope16 Posted June 25, 2007 Author Share Posted June 25, 2007 Despite whether they made a profit or not, we bought the car. Link to comment Share on other sites More sharing options...
violhence Posted June 25, 2007 Share Posted June 25, 2007 It is not a limmited edition is it? Oh I see SE..still good deal CONGRATS Link to comment Share on other sites More sharing options...
2006Specb122 Posted June 25, 2007 Share Posted June 25, 2007 DEALERS NEVER LOSE MONEY WHEN THEY SELL CARS UNDER INVOICE. Don't even kid yourself with that. Here is the reason why, so listen carefully Invoice : The price a dealership pays just to get the car out of the factory onto their lot Invoice price does not include any rebates are incentives that the bodyshop gets for selling that car, and all factories give those out these days. Just an example here: If the MSRVP is 23,000 Invoice is 21,500 The factory tells the shop this, "you can get this car for 21,500. we are going to hold the 500 until you sell it" ---this is what is refered to as a holdback. As soon as the dealership sells the car they get 500 bucks so now they only paid 21,000. Then the factory says "if you sell this car in 2 months or less, we can give you another 500 bucks back". Now the shop paid 20500. "And if you order another one just like it from the factory we take off anther 200". So now the actual price that the dealership paid is 20,300. now here comes mr 2006SPECB122 and he says "Go ahead and pay 500 above invoice. So the dealship paid 20,300 you give them 22,000. Given them 1800 bucks in profit. It is a proven fact the the average dealership in the USA survives off a profit of 3% above the price paid - not invoice SO DO NOT IN ANY CHANCE ALLOW YOURSELF TO THINK THAT YOU HAVE TO PAY INVOICE OR ABOVE. Invoice is meaningless - no dealership really pays that much when you think about all of the refunds and rewards they get. Hey now.... please don't MIS QUOTE me..... I never said give them 500 over invoice. .... I'm just asking questions.... dealer didn't make sense when they tell me they only made $400 off my sale... I didn't believe them then....don't believe them now.... but now I understand more of what goes on...so thanks for that info.. Link to comment Share on other sites More sharing options...
stewartg Posted June 26, 2007 Share Posted June 26, 2007 I was prepared to pay msrp for my car after seeing $4200 markup on two of the 3 remaining in all of oregon, washington and norcal. after 1 month of battling with 3 dealers I got it for $1k under invoice and a good interest rate. So on a 6 year loan after all is said and done I am like $150 under msrp. Link to comment Share on other sites More sharing options...
TPLGT Posted June 26, 2007 Share Posted June 26, 2007 PM me...I have a great buyer story to send you to...FYI I was 'screwed' on my 06 OBP and did alright on my 06 BSM..... Rehab is for quitters. Link to comment Share on other sites More sharing options...
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