[sknobs]

Hey all.

I remember using a website that would cost out the car and all available options along side of their true dealership parts vs what they charge you(sticker).

What was that tool?
Do they have one for Chevy or other makes?
INlaws are looking and I am trying to get some ammo to help go into negotiations for them.

Thanks.

[Billfitz]

Use this:
https://www.kbb.com/new-cars/

The retail markup on cars isn't that much, maybe 10%. You might get a 5% discount. After covering overhead dealers really don't make money selling cars. They make money on financing, as they get a cut of the interest, and on service. The markup on parts is at least 40%, as is that on labor.

[deviantspeed]

Originally Posted by Billfitz

Use this:
https://www.kbb.com/new-cars/

The retail markup on cars isn't that much, maybe 10%. You might get a 5% discount. After covering overhead dealers really don't make money selling cars. They make money on financing, as they get a cut of the interest, and on service. The markup on parts is at least 40%, as is that on labor.

There's also dealer holdback which you didn't really mention. Depending on volume, the dealer gets extra money back per car.

It's why some 2017 vw's were up to $8,000 off on say a $32k loaded one. Yes, I did this.

I've heard that new bmw's are hard to get a good deal on, but a 1 year old or low mile lease return can be worked well.

[Billfitz]

Dealer hold back is usually part of their cut of the financing. When the loan is paid off they get that part of the finance charges that are 'held back' until then. If the loan isn't paid off, as would be the case when the car is repossessed, the dealer doesn't get the hold back. Finance companies do this to spread the risk. Manufacturer incentives are something else entirely. The VW deal was probably part of their efforts to reclaim market share after the emissions fraud debacle.

[deviantspeed]

Originally Posted by Billfitz

Dealer hold back is usually part of their cut of the financing. When the loan is paid off they get that part of the finance charges that are 'held back' until then. If the loan isn't paid off, as would be the case when the car is repossessed, the dealer doesn't get the hold back. Finance companies do this to spread the risk. Manufacturer incentives are something else entirely. The VW deal was probably part of their efforts to reclaim market share after the emissions fraud debacle.

Loan money is a kickback, not a holdback.

Usually the customer has to keep the loan for X amount of months, and the loan company kicks back some money.

Might be different with BMW Finance, but you did not specify that. Most Loan companies operate like I described. For example, I asked about this specifically at the dealership, but the rate was too high with BMW over my credit union. Even with some kickback help, it was way too expensive.

But to each their own, every deal and discount is going to be different. Always good to know the right questions to ask. I believe there's a loan/finance/buy section here, too.

Good discussion, sir!

[Billfitz]

All I can relate is my experience from when I was an assistant branch manager at Ford Motor Credit.

[tex2670]

Edmonds? True Car?

[BEAR-AvHistory]

Originally Posted by tex2670

Edmonds? True Car?

True Car used to then they got bought & don't list it anymore. Understand they get a fee to steer people to the dealership with a fixed price coupon.

Get someone to get a coupon for the dealer you want to use for their number then negotiate down from there on your own.

If you can pick up your ordered car at the PCD in Greer SC shop nationwide for the best price. Bought 5 BMW's that way, only two from the local dealers.

[tex2670]

Originally Posted by BEAR-AvHistory

True Car used to then they got bought & don't list it anymore. Understand they get a fee to steer people to the dealership with a fixed price coupon.

Get someone to get a coupon for the dealer you want to use for their number then negotiate down from there on your own.

If you can pick up your ordered car at the PCD in Greer SC shop nationwide for the best price. Bought 5 BMW's that way, only two from the local dealers.

Wow. You're right, they really ruined the True Car site. Shame. Of course, right before I'm in the market for a new car.

But they do still display the bell curve that labels the invoice price, FWIW.

[Billfitz]

KBB has that bell curve as well. It's no better than True Car as far as steering you goes. The only dealer it shows inventory for in my area is 70 miles away, when there are two others closer. I guess they haven't ponied up to get listed by KBB. True Car is just as bad, insisting on getting your email address so they can bombard you with spam.

[IK6SPEED]

Originally Posted by deviantspeed

Loan money is a kickback, not a holdback.

Usually the customer has to keep the loan for X amount of months, and the loan company kicks back some money.

Might be different with BMW Finance, but you did not specify that. Most Loan companies operate like I described. For example, I asked about this specifically at the dealership, but the rate was too high with BMW over my credit union. Even with some kickback help, it was way too expensive.

But to each their own, every deal and discount is going to be different. Always good to know the right questions to ask. I believe there's a loan/finance/buy section here, too.

Correct.

There is so much behind the scenes funny money in new car sales now it’s ridiculous. There are Dealers that concentrate on that instead pricing in their marketing. You will notice them by not advertising a car for an exact amount with all the small print required by law.

Generally speaking in this Decade, loan origination payment is very low. 1% of loan amount.

In other words if you lease or finance a car for $60k, the originator makes $600. Of course, like everything, sometimes there are incentives etc.

In leasing, residual is also a key that can be played with.