Annoyed

[mazersteven]

Scion uses sales tools such as "Pure Price," innovative Internet advertisements, and monospec trim levels with a wide selection of aftermarket accessories. Extensive market research and testing with Generation Y consumers formed the basis of the Scion badge.

"Pure Price" means that the price posted, whether on the vehicle, in an advertisement, or on a menu display board in the dealership, is the price customers will pay. This includes vehicles, accessories, finance and insurance products. Pure Price is designed to ensure a shorter and simpler process, eliminating all negotiation. The concept aims to be open and consistent to all customers.

 

[jake5717]

No no not off MSRP but that much off the pimp out versions that the dealers carried. The only option I wanted on mine was a roof rack.

 

[jake5717]

Scion uses sales tools such as "Pure Price," innovative Internet advertisements, and monospec trim levels with a wide selection of aftermarket accessories. Extensive market research and testing with Generation Y consumers formed the basis of the Scion badge.

"Pure Price" means that the price posted, whether on the vehicle, in an advertisement, or on a menu display board in the dealership, is the price customers will pay. This includes vehicles, accessories, finance and insurance products. Pure Price is designed to ensure a shorter and simpler process, eliminating all negotiation. The concept aims to be open and consistent to all customers.

Means the only way a dealer is going to make a bunch of money off the sale is to throw on a ton of overpriced accessories.

 

[mazersteven]

No no not off MSRP but that much off the pimp out versions that the dealers carried. The only option I wanted on mine was a roof rack.

So you didn't get $7K off. You chose a $7K less unit. There is a difference.

 

[mazersteven]

Means the only way a dealer is going to make a bunch of money off the sale is to throw on a ton of overpriced accessories.

The Accessories are marked up by Scion. Not the independently owned dealer. But yes accessories do add to the profit for the dealer. Is profit a bad word?

 

[jake5717]

I didn't realize the complexity of my post when I was typing it.

Either way at the time they only way you could buy one was with all the goodies, not bare-bones.

 

[Adam]

So you didn't get $7K off. You choose a $7K less unit. There is a difference.

Mazer, take a breath, my friend. Are you rolling your eyes at yourself? I hope so. Jake never claimed that he got $7k off, just that he got the car that he wanted for $7k less than the dealer was asking for a car. Your misunderstanding is no reason to bash him.

 

[MDS]

That is not the reason. And do you think the dealer wants to sell a car at $1 over? Give me a break.

What's your point? Of course a dealer does not want to sell a car for $1 over invoice but they often advertise deals like that. Ideally they'd like to sell the car for thousands of dollars over invoice and sometimes they get away with that if the customer is unaware.

Are you a car dealer or have other information to dispute hold backs and dealer incentives? It seems to be pretty common knowledge and sites like Edmunds.com describe the practice pretty well.

The car I still own was bought from a top salesman that was a friend of my dad. He sold it to me at invoice price and yes I saw the invoice. He still made $500 on the deal. Magic? No - hold back.

 

[mazersteven]

Mazer, take a breath, my friend. Are you rolling your eyes at yourself? I hope so. Jake never claimed that he got $7k off, just that he got the car that he wanted for $7k less than the dealer was asking for a car. Your misunderstanding is no reason to bash him.

Adam,

That is why my original question to Jake had a question mark at the end.

"Are you saying you received $7K off MSRP on a Scion TC?"

 

[mazersteven]

What's your point? Of course a dealer does not want to sell a car for $1 over invoice but they often advertise deals like that. Ideally they'd like to sell the car for thousands of dollars over invoice and sometimes they get away with that if the customer is unaware.

Are you a car dealer or have other information to dispute hold backs and dealer incentives? It seems to be pretty common knowledge and sites like Edmunds.com describe the practice pretty well.

The car I still own was bought from a top salesman that was a friend of my dad. He sold it to me at invoice price and yes I saw the invoice. He still made $500 on the deal. Magic? No - hold back.

Some of you might remember back in the early 70, and before that. Dealerships had very limited inventories for consumers to choose from. Because the dealers had to pay cash for the cars from the manufacturer. Most dealers didn't have the cash to stock a large inventory.

Why you see dealers with the inventories you see today it is because of "Holdback". Today dealers inventories are financed (A very large percentage of the dealers I should say). Holdback is paid to the dealer when the car hits the lot and is paid in 3 month installments. It is generally 3% of the cost of the car. So a $20,000 car's Holdback would be $600 bucks. So the dealer will get $200 bucks a month for 3 months to offset the cost of interest paid to have an inventory to choose from. So after 3 months that car starts to cost the dealer as it sits on the lot.

 

[majorloser]

So, would there not be a good incentive to sell the car for a good price the moment it rolls off the truck?

 

[mazersteven]

So, would there not be a good incentive to sell the car for a good price the moment it rolls off the truck?

Of course there would. But what is a "Good Price"?

 

[highfihoney]

I understand you know the manager and all, but a price is a price. They're not at fault for NOT giving you a discount.

SheepStar

There is no such thing as a fixed price on anything anywhere,dealers are given special prices from the manufacturers based on sales volume & the length of time it takes them to pay their credit line,these incentives add up to very large percentages in the dealers pocket.

The dealer dont have to give a lower price but for them to act as if there is some kinda fixed prices is bull.

 

[highfihoney]

Strat,im with ya 100%,i'd of left too & i wouldnt go back but i would answer the managers call,the manager is obviously smart enough to know you spend money at his business,right now by calling you he's let you know he's ready to be bent over , and i dont mean that in a bad way.

I'd let the manager grovel to me over the phone & then tell him i'd think about it,then i'd ask him to call me back in a day or two in order for me to have a chance to think,if he calls back a 2nd time he's ready to make amends for his incompotent salesman's attitude with a hefty deal

 

[highfihoney]

This is a good reason that I will never buy another new car ever...
I'll buy one with 10,000 miles on it, and let someone else take it up the @SS...

Words to live by as far as im concerned,i own a ton of nice things,cars,motorcycles,hi end hifi,furniture ect & it was mostly bought used,i love letting the other guy take a huge loss

I just picked up a new/used bedroom set for my oldest son,the seller paid over $8,000 for it a little over a year ago then sold it to me for $1,000 because he wanted a new set,craigslist is our friend

 

[mazersteven]

dealers are given special prices from the manufacturers based on sales volume & the length of time it takes them to pay their credit line,these incentives add up to very large percentages in the dealers pocket.

This is total bologna.

Some manufacturers have a program that is called a "Stair-Step". Not all manufacturers do this, and not every month. Only a handful of manufacturers have this program every month for their dealers to participate.

What it is is a number that the manufacturer sets for the dealer to reach in sales. Example

50 units pays $250 a unit
75 units pays $500 a unit
100 units pays $1000 a unit

Sometimes this program is limited to certain units. Not every car qualifies.

But it is a dice roll for the dealer to hit. The manufacturers don't place levels that are easy obtainable for the dealer. The first level is generally just above where the dealer has averaged for the past few years for that month.

Other then a Stair-Step program the only incentive manufacturers give to certain dealers is inventory. It's called "Turn & Earn". You sell one you get another on return. If the dealer moves a lot of units it will get special treatment from the manufacturer in getting inventory. This is really an advantage to dealers for getting specialty cars (Like the Mustang Cobra).

 

[majorloser]

Of course there would. But what is a "Good Price"?

A price that doesn't require the application of Vasoline.

 

[highfihoney]

This is total bologna.

Uh think again my friend,yes manufacturers do offer discounts to businesses who pay their credit line up to date every billing cycle,they may call it some fancy/sneaky name but its all the same in the end,a large discount to the dealer.

 

[Adam]

Adam, That is why my original question to Jake had a question mark at the end.

Point taken!

A price that doesn't require the application of Vasoline.

I like to pre-lube before I hit the dealership. Saves time and, quite honestly, a lot of embarrassment (I'm fairly shy). I figure, the faster they can get that gimp mask on me and get it over with, the better.

 

[mazersteven]

Uh think again my friend,yes manufacturers do offer discounts to businesses who pay their credit line up to date every billing cycle,they may call it some fancy/sneaky name but its all the same in the end,a large discount to the dealer.

Well then I don't know what I have been doing for the past 16 years in the business.