[QUOTE]Originally posted by SanDogDewey
[B]I can't believe dealers are asking over MSRP for used 2000 models.

 

As an accountant, I have to respond. (note I don't sell cars). A 13% profit is a gross profit just considering the cost of the car. Where does the dealer put it? Showroom, right? Doesn't he have to pay for land, buildings, salaries etc etc etc? His NET profit won't be anywhere near 13%. That being said, I agree nobody should pay over MSRP and if you get it for less, more power to you.

 

My father isn't an accountant, He's a CPA. from working in his office for years I have gathered more than a small amount of business knowledge.
don't look at the profit in %, look at in actual amout of dollars.
Here the actual amount in dollars is over $4500. This all for keeping a car at the dealership for almost certainly less than a week. There is no possible way that this sort of PRICE GOUGING is necessary.
another issue is the simple fact that the dealers are making literally 3 to 7 times as much on S2000's as on ANY other honda car. and all this without any increased variable costs.

 

I think some people are VERY confused...


If you guys don't think the car is worth what they're asking for it, then don't buy the damn thing! If you think the profit margin on this car is too much for the dealer, you are lost...end of story. This car is worth way more than we pay for it, get your story straight. Consider yourselves lucky.

A word about car dealerships...



Car dealerships work on a system of checks and balances, use your brains.

If you go to a Honda dealership and buy a Civic, you know you can get it $2-500 over invoice, same goes for Accords. The profit margin is thin, and so it the holdback. Ever stop to think how the hell that translates to REAL profit for the dealer? Remember, the dealer already paid Honda it's profit, they own the car (floorplanned), so the profit gain or loss is theirs. You are ALL sorely mistaken if you think a salesperson can live on "mini's" ($100), which is what they make most of the time (this is also why most of the time they try to "mouse" your trade-in).

Most salespeople make 20% less the "pack" (which is a dealer thing I won't get into here), so let's just do the math...shall we?

Accord/Civic: Salesperson's take = $100 (90% of the time)
Odyssey: $3,500 app. profit -400 pack = 3,100 X 20% = $620
S2000: $4,000 app. profit -400 pack = $3,600 X 20% = $720

The average car salesperson sells 10 cars a month. At a Honda dealership you can expect most of those 10 to be Accords and Civic's, maybe 1 Odyssey in a month, maybe 2 S2000's in a YEAR!

Do the math on it.

You guys are the VERY REASON we have to pay MSRP! If people would pay a decent profit on Civic's and Accords it wouldn't be so hard to deal, nor would they always try to mouse your trade-in to find some extra profit.


One more thing, if you think Honda themselves is making profit on this car, you're even more lost. They had a goal, the goal included a price. Notice that there is at least 1K worth of changes on the new S2K, but the price only went up $100.


Sorry if this sounds "flameish", but it makes me mad. I agree that price gouging is unfair, but what choice do we give them? Faced with little profit in other areas, they have to change their strategy to survive. The sick thing is that most you make WAY more than the salespeople you criticize, hell, many of you probably make more than the dealership owners!

(off of soapbox now)

Andrew

 

Dear Jason

Recently you submitted a purchase
request through AutoWeb for the
Honda S2000.

Anderson Honda now has 7 2001
S2000`s in stock all at a special
price through Sunday of only
$32740! That`s right NO
ADDITIONAL DEALER MARK-UP!!!
This price does not include
applicable taxes or registration fees.

Don`t miss your chance to buy the car Consumer Reports chose as the
Sports Car Most Fun to Drive, and one of the TOP 10 CARS according to
Car & Driver.

If the price for a new S2000 is too much to bear, perhaps you`d be
interested in a demonstrator S2000. We now have one available for only
$30988. Call us today to arrange a test drive in one of these amazing
vehicles.

Call now! We`ve never offered a price this low on America`s
most-wanted Roadster. These cars are sure to sell and are price to
move at only $32740!

Thank you for selecting Anderson Honda. Your S2000 headquarters!


Hmm, i dunno, its not that bad for the bay area so if nebody is interested, Anderson honda is selling 01' for MSRP. But i'm gonna wait till december for the 02'. but they do say u can test drive, so who going down there to mess w/ their demonstrator? me!!!!! btw, i don't think ne body should by the demonstrator, cause they don't call it a demonstrator for nothing

 

First of all: I come in peace.
now, let me retort.
Honda isn't making more or less on s2000's when they are sold over invoice.
The dealer is.
Hence logic simply tells us that the dealers basically suck.
True some suck less by selling at msrp, yet they still are being a bit greedy in the minds of many many of us HUMANS.
I don't doubt that the car is "worth" what they are charging, however I don't appreciate the fact that the selling of S2000's is soo very different from all other cars in general.
I did not mean to upset anyone, and quite honestly i can't see quite how my wanting equal treatment for all car buyers would upset anyone who wasn't a dealer.
That's all I was saying.
I fully intend on paying the ohh so painful MSRP and won't second guess the amount paid once i have done so. However in the mean time, I am trying to not have to live off ramen noodles for a year by trying to same some money.
May i ask, did you purcahse an s2000? and if so, for how much?

 

[QUOTE]Originally posted by S2Kguy
I think some people are VERY confused...[QUOTE]

I beg to differ, I don't think I'm confused at all.

[QUOTE]If you guys don't think the car is worth what they're asking for it, then don't buy the damn thing! If you think the profit margin on this car is too much for the dealer, you are lost...end of story. This car is worth way more than we pay for it, get your story straight. Consider yourselves lucky.[QUOTE]

Obviously I don't think the car is worth what they're asking for it or I would be complaining. I do believe the car is worth the invoice price plus 5% for the dealer.

[QUOTE]You guys are the VERY REASON we have to pay MSRP! If people would pay a decent profit on Civic's and Accords it wouldn't be so hard to deal, nor would they always try to mouse your trade-in to find some extra profit.[QUOTE]

For every one smart car shopper out there, there are nine other getting screwed paying too much or signing leases they don't understand. Believe me the dealers don't need anyone grandstanding for them. If they weren't making enough profit they would sell them for higher prices or go out of business.

[QUOTE]They had a goal, the goal included a price. Notice that there is at least 1K worth of changes on the new S2K, but the price only went up $100.[QUOTE]

Obviously they were able to absorb this cost. More than likely it was cheaper than replacing parts under warranty (plastic windows and transmissions). Is all about profit margin.

[QUOTE]Sorry if this sounds "flameish", but it makes me mad. I agree that price gouging is unfair, but what choice do we give them? Faced with little profit in other areas, they have to change their strategy to survive. The sick thing is that most you make WAY more than the salespeople you criticize, hell, many of you probably make more than the dealership owners![QUOTE]

They are capitalizing on the hype. Believe me, even if I could go and plop $40K down and drive away, I wouldn't. I'm definitely not one of those making "WAY" more than the salespeople. Which, by the way, there were two of the salesmen at the last dealership I visited who owned s2000s. I would like to see what they paid for them.

I've owned Hondas for over 20 years. I paid too much for a CRX Si back in '86 and I learn from my mistakes. This is a beautiful car and I'd love to own one, but I'm willing to wait.

 

i am very glad to see someone other than myself can sift through the BS and use common sense.

 

not sure where to exude my anger...
BUT HOW COME EVEN KENTUCKY GETS THE NEW 2002'S BEFORE SOUTH FLORIDA DOES... WTF MAN!!!!!!!
AND WE AREN'T EVEN GETTIN OURS IT TWO WEEKS... MORE LIKE A MONTH!!!!!!!

 

My dealer in Palm Bay swears mine will be here Monday. I am not holding my breath.