They gave only $200 for trade in? I've never traded in a car, but that seems low, no?

I just bought a 2015 LX CVT in the GTA as well. Did not care for any of the accessories so haggled them down to $17950 sale price +Freight, PDI, Levies and Tax which is all standard, so $22,167 OTD. Salesman claimed they only made $200, so not sure there is much more room in it.

Looking forward. Finally rid of the TTC in winter!

 

I'm not looking forward to trade-in time either, for the value I'll get. I check yesterday and KBB suggests not to expect more than $400 for trade-in value. :-(

 

I purchased in 2009, and was checking out the new prices. In 2009, I paid Edmunds TMV, less doc fees. It you want to keep things simple, I believe that is an excellent strategy.

Since this was a cash for clunkers purchase, pricing on what everyone else paid is public. In the state's largest dealership, nobody paid less than I did. (A few people paid the same.)

Dealers made little money on the purchase of a new car. According to NADA, in 2013, the average net profit on a new car was $69. Even if you walk in and pay MSRP, the dealer isn't making much money. I've read Honda's holdback is 2% on base MSRP. The only entity making big money on the deal is the state from the sales tax.

They DO make their money on financing, warranties, add-ons, parts, and service. Avoid all that, and you're going to get a decent deal. If you want to see what it's like to sell new cars, this is a great program:

http://www.thisamericanlife.org/radi...e/513/129-cars

 

I've also read that the dealer and salesperson get a commission from corporate for each car sale. So although the dealer doesn't make much from the sticker price, they get "kickbacks" or "rebates" (for lack of a better word) for each sale.

 

The dealer would get holdback. (2% of msrp from corporate.)

If they make certain quotas, there's potential dealer cash on top of that. I think that's done more for domestics or slow moving cars.

TMV is supposed to take this all into account.

 

Even the dealer makes little money on the new car sale it's the trade-in they are banking on. They gave me $12k for my 2012 Civic Hybrid trade-in and later they posted it on their website selling it for around $15k. Even they sell the 2012 at $13k they will also try selling the extended warranty since it is a used car and the extra mileage is already out of warranty. Big bucks for them.

So it's the used car market they make the most money on. So the dealers try to build a relationship with you in hopes in the future you will bring the same car back and trade it in for another car. I've done this with one dealership two times already. I recently went to another dealership because it's closer to me (moved) and they took care of me.

I think most dealerships are pretty much the same. It depends on their situation with inventory and what deals / kickbacks they have with Honda.

 

Looking at a past NADA report:

http://www.nada.org/NR/rdonlyres/1B5...ata_102113.pdf

The used car net profit in 2012 was $194/vehicle! Like you mention the profit centers will be finance, warranties, etc.

Pretty fascinating, I always assumed the dealers were raking it in everywhere.

 

The service department is the big profit maker for a lot of dealers. The car sales pretty much just provide a steady stream of service customers because people tend to get their car serviced where they bought it.

On that note I finally got one reserved with an agreed upon price: Blue EX CVT for $20668 OTD in Austin TX, with LLumar ATR tint thrown in. Seems reasonable enough.

 

We actually haggled $400 for our 2001 Honda Civic which was pretty good since it had to be towed to the dealer. For some reason, our receipt only said $200 but the final otd price was the same.

 

Is there a minimum acceptable trade in value as a buyer? I remember a long time ago, maybe early '90s when my dad was looking to trade in a car, I think it was the insurance company that said any running car should be worth at least $500. Have things changed since then? I sure hope I can get more than $200 when I trade in my car. It runs alright, but I think it's getting to the point where it's going to nickel and dime me at every opportunity.

Last year when we bought our '13 Fit, we got $900 trade in value for our '03 Forester with 186K mi. Our last 3 trade in vehicles have gotten received a bit less each time. I suppose when I get less than $900 with my Corolla, I can only receive a higher trade in price in the future. :-)

 

I've known some car salesman over the years....they hate it when they are forced to sell new cars. The real money for them is in the used cars sales. They make waaaay more doing that then new car sales. In both cases they always try to profit on financing, warranties... But as far as sales alone - new cars suck for them.

 

I think it sounds like a great deal for DFW. I am in Dayton, OH which might make some difference. It is going to suck picking it up in 24 degree weather on the 19th.

I have a few addons but have been working 2 dealers for a couple of days. Our price for the 2015 Honda Fit EX CVT, including a splash guard set, all-season mats, and a cargo net is $17900.00. Our documentation fee is $250 and government fees are $34.50. So, the "out the door" total is $19500.38, $1.00 higher than your other quote.

Never hurts to ask. But if you are happy go for it. I have been working these 2 dealers for 20 years

Ask for his quote broken out in an email. Send it to some other dealers. See what happens. I usually go several rounds. Some pretend to get angry but it is our money. You are not going to save thousands of dollars like you would on an accord right now but we are entitled to any savings or options we can get. Good luck.

 

why accord so cheap and fit expensive

 

Supply and demand. Look at the lots and see how many accords they have to get rid of. Also less buffer on profit built into all the small cars.

 

Same with Civics. Every lot I've seen lately they have boat loads of em for sale.

Lucky to see maybe one or two Fits on the lot!

 

sigh... they need to get a surplus of fits so we can get great prices

 

I just walked into the dealership and walked out with a Fit. Paid MSRP. But they had lots to chose from. I had no idea they were hard to come by.

2015 EX 6MT

 

Congratulations Dandee! You got a great car and did it your way with no hassles I just love the process of haggling but it is not for everyone.

Is this your 1st Fit?

 

This is my first Fit and first Honda.

 

I enjoy the exclusivity of the model. Something people will notice but not 20 of them in the Mall lot.