Posted on 12/13/2011 3:49:39 PM PST by decimon
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According to Automotive News, Honda has issued an ultimatum to its dealers: Stop selling cars below invoice price through these websites, or lose the per-car marketing spiffs that the factory gives dealers. Since Honda corporate turned the screws on its dealers in October, TrueCar says Honda sales through its service are down.
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(Excerpt) Read more at autoblog.com ...
bfl
I’m a Honda fan and currently drive a 2005 Pilot however their pricing is highly inflexible.
Do you have to register to see the prices?..or can you just “look around”?
the dealer model of selling cars is outdated and needs to go. It continues to be a deception based mode of sales.
You can just “look around.”
kewl
“the dealer model of selling cars is outdated and needs to go.”
It’s a means of financing the car company and of ensuring vehicles “move” to dealer lots. A dealer may be floating a 10 million dollar inventory. He sells 10 cars, he gets 10 more. Mostly, the dealer has no control over what models they get. In LA a Chevy dealer could probably prosper with just Corvettes, but he has to take x number of low end cars he can never sell. He’ll end up losing money on them.
The dealer usually makes little on a new car. They make all their money on repairs, service and used cars.
Yes, you’re right. The dealer model is bad for everybody except the manufacturer.
I took a look at truecars.com. I could choose a make and model and choose color and options. From that I got the lowest prices for my zip code and how far from my zip code those dealers are. For more than that I would have to give personal information.
Porsche tried to break the state franchise barriers but lost.
I came close to buying a Honda Accord in the early 80’s. The sumbitch dealer wanted to add a $750 “markup” just ‘cuz he could.
Never considered a Honda product again.
Was there a court case? When did Porsche challenge the state franchise laws?
Yeah, selling price has been a problem with the Japanese cars.
Truecar gives you an idea of what a certain model is selling for around your area. This service has helped many people know if they were getting a good deal, okay deal, or no deal at all. It gives you leverage with the dealers.
It is generally the same principle of calling up several dealers, and in each subsequent call, you ask the dealer if he can beat the price of the prior dealer. They hate that, but that’s how you get the best deal. They hate it because it works.
Salesmen aren’t dealers.
Dealers put a ton of pressure on their sales people to sell cars. Pressure that you or I would probably walk away from if the job wasn’t critical to us.
Someone posted a really good article here about an undercover guy working as a salesman forboth a high volume new car dealer and a lower volume used car dealer. Very insightful.
That's true. If they're accurate, anyway. I was hoping someone with personal experience would weigh in.
Someone posted a really good article here about an undercover guy working as a salesman forboth a high volume new car dealer and a lower volume used car dealer. Very insightful.
Edmunds had a link to that story a few yrs back IIRC.
The dealer makes money on holdbacks and factory incentives.
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