HELP! New Car Question - pricing

well, since theis is a liquidation type sale, they just want to cover the ammount they spent on the vehicle...if they make $1, they are happy because it means they aren't loosing money by hanging on to a vehicle they can't sell....sometimes they'd even be happy to lose a couple hundred if it means they aren't losing a couple thousand....I'd start by offering them a $200 loss, the worst they can say is no, and it's not like they will turn you away for making such an offer.

what it comes down to j, they need to clear inventory before the first of the year as to avoid huge tax penalties and consignment fees. offer them something outrageously low and work up from there. your sales guy is getting commision either way, the loss in profit is being absorbed by the dealer itself and by kia, but it saves them money by selling a car at a loss.

what auto said is good stuff. I would not go higher then 500 over invoice.

www.edmunds.com

Their \"costs\" are often buried because of a number of factors, and are almost always higher than what they paid. I don't know any figures as it would probably depend on the dealership, but just like any inventory business, they will have their purchase cost + their holding costs which will include a number of variables.\r \r As was said, offer them substantially less than invoice and let them work up. There are a lot of games dealerships play and the \"as long as we make money\" is one of them. You usually can't beleive what they said they paid, nor their \"proof\" that they offer to show you.\r \r I can't remember the site I read last but it was a good one about the myths of car pricing. Google something like \"How to get the lowest car price\" or something and you should get a lot of hits.\r \r I always internet shop now because it will almost be the lowest price, and you can play multiple dealerships against each other.

I meant \"lower than what they paid\" above, meaning that what they say they paid is usually not the truth.

$500 over invoice is PLENTY of profit, because invoice is basically a lie. Use Edmonds or KBB.com to find out what others are paying for the vehicle and then offer a few hundred less. Stick to your guns. Walt out. Play the game. Get some online quotes from other dealers. When I bought the van I had two dealers bidding against each other. Took a bunch of calls and about 6 hours, but the price came down $2000 and ended up at what the online sites said it should sell for.

http://www.autonews.com/assets/PDF/CA680111222.PDF\r \r As a former partner in an automotive group. Please make no mistake about it. Whatever the dealer loses it is absorbed by the dealer. Not by the manufacturer. The only long term loss to a dealer by sitting on a car is floor plan interest and the fact they cannot do something else with the money they have tied up. There is a couple of other small things but, not enough room to post. I agree with auto ! Offer what you feel is right. If you have the stone's for it ...Ask to see the invoice. Offer a couple bucks less. They do get about 3-4% of MSRP as holdback. So they still make a little. If you do pay invoice or a little less be sure to tip the salesman. He is only paid a flat fee. Which is usually around a 100.00 as a commish. And he will never forget ya. Comes in handy if you ever need something.\r \r \r \r

Listen to Doc. He's the hottest car salesman on the planet. Twoot twoot!

Kia is a little different on how the dealer makes money. The mfg pays them based on volume, not so much what they make on each car. They can afford to let a car go at invoice, they'll make it up at year's end if they meet a quota.