QuestionQUESTION: Hi! I saw there are still a lot of 07 new cars in the dealer’s parking lot on September 30. Is it possible to ask the dealer sell the 07 new car below the invoice price? If so, how much below will be reasonable, $1000, $2000, $50000 or the dealer never sells the new car below the invoice price? I do not know how the dealer will deal with those 07 new cars if they are hard to sell, just let them stay there or cut the price below the invoice price eventually?
ANSWER: As of a certain date, most dealers of American-made cars will probably get some incentives from the manufacturer to help move the leftover models. The dealer can pocket the money, or use it to lower the price of the car. This allows the dealers to sell "below invoice," but they're not necessarily losing money on the car. Some dealers will want to move these cars fast, while a few will actually sit on them until they get the price they want. I've seen small-town dealers with 2 and 3 year-old "brand new" cars on their lot, because they refuse to budge on their price, and are hoping a dumb customer will come and think they're getting a deal.
Which manufacturers are offering these incentives, and how much are they? They may or may not be publicized, but your best bet is to check out websites like Edmunds or CarsDirect.com. When using their new-car pricing features, they sometimes will show factory-to-dealer incentives in the final pricing.
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QUESTION: Thank you for your answer. I am interested in the Honda Odyssey Minivan. The lower level model such as LX has been sold out. But the high level EX is still in the dealer’s parking lot in October while the 08 model has already come. The dealer told me the invoice price of the 07 Honda Odyssey EX is $28800. They can sell it to me plus the tax. I do not know whether the invoice price is accurate. Second, since the 08 model has already come, why should I not buy the 08 model? The invoice price between the 07 and 08 should have no much difference, right? Third, since there are still approximate ten 07 Honda Odyssey EX model in the dealer’s parking lot, will the dealer eventually cut the price bellow the invoice price as they said or it is unlikely? BTW, where can I find the most accurate invoice price for the Honda Odyssey and Toyota Sienna Minivan?
ANSWER: Price out the Honda and Toyota using CarsDirect.com; it's easy, and their invoice pricing is incredibly accurate. As for buying the '07 versus the '08, it depends on how long you plan on keeping the vehicle. If you tend to trade every 4-5 years (or less), then I'd buy the '08. Whatever you save by buying the '07 now would be more than lost in 4-5 years because of the extra year of the '07s depreciation. It may be new to you, but it's already a one-year-old vehicle as far as dealerships are concerned. On the other hand, if you keep your vehicles forever, then the '07 may be the better deal. If you keep 'em a long time, then the difference in value between a 12 year-old vehicle and a 13 year-old one is negligible; you'd be better off saving the money upfront.
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QUESTION: Thank you for your answer. The car invoice price on the CarsDirect.com is not the lowest. For example, yahoo.com auto shows the lower invoice price than the CarsDirect.com. Since there are so many car info web sites, do you know what web site provides the lowest invoice price or where I can get the lowest car invoice price?
AnswerYou don't want the LOWEST invoice price, you want the most ACCURATE invoice price. When I was selling Fords, CarsDirect.com provided the most accurate invoice pricing on Ford products, and I assumed it was the same for everyone else. I could start a website that states the invoice price on a new Honda Odyssey is $4.98- what good is that? You want accuracy, not a bogus low figure. You need credibility when negotiating with the dealer. Edmunds.com also has very accurate pricing (they were the first to disclose invoice pricing in the '70s, with books you bought at the local book store); compare theirs with Yahoo! and CarsDirect, and see which two agree.
