Be careful now. That may have been true 20 years ago, but now it's debatable. The Fusion is built in Mexico and does better in reliability than camry or Accord.
Honda dealers - profit margin vs. fair offer. Are dealers being greedy???
- Last Updated:
- Mar 13th, 2012 8:27 am
Tags:
- SCORE
- mr_raider
- Deal Expert
- Feb 29, 2008
- 30106 posts
- 5547 upvotes
- Montreal
Be careful now. That may have been true 20 years ago, but now it's debatable. The Fusion is built in Mexico and does better in reliability than camry or Accord.
- jakemtl [OP]
- Deal Addict
- Jun 29, 2003
- 2092 posts
- 1942 upvotes
I wanted to provide an update. It is possible to buy a Honda at 3% over invoice. Montreal area (and Toronto as well from what I hear) dealers are in collusion. You have to go outside the city or to another city to buy your car.
- Rainne
- Deal Addict
- Jul 11, 2010
- 2959 posts
- 139 upvotes
Honda/Toyota = order takers, not salespeople
- knapper
- Deal Addict
- Jun 22, 2004
- 3048 posts
- 944 upvotes
I love the use of 'apparent markup'. I think dealers are loving CCC and APA, manufacture a 'cost' that ensures a profit and anything above that is gravy - and buyers feel they got a deal.
Does 'cheaper' consider the difference in financing rates? Just wondering as traditionally Honda has higher rates than Hyundai.
- tjayl
- Deal Addict
- Nov 21, 2007
- 1213 posts
- 91 upvotes
- Kitchener
No, as mentioned in this thread multiple times it's that they have a lineup of people happy to pay 6%+ so they don't need to go any lower.
- liorsyncro
- Deal Addict
- Oct 30, 2008
- 2120 posts
- 59 upvotes
- Toronto
Why would they want to match Hyundai's prices? After a few years, a Honda typically retains its value much better than a Hyundai. That comes at a premium. Yes, over the last few years Hyundai has produced good cars (as a result of giving a blank cheque to a German designer as the Koreans on their own still can't design a car for **** and this is reflected with older Hyundai/Kia/Daewoo looks and reliability). And Honda also has a long history of reliability that Hyundai doesn't. So that's why people pay more for a Honda. When they go and sell it, as long as it has been pretty well maintained, they are literally guaranteed to get more money than someone selling a comparable Hyundai model.spike1128 wrote: ↑There is some demand for Honda vehicles, but Hyundai has been bleeding them dry for the past year. I know some people who went from Honda to Hyundai, because Hyundai agrees to pay the last few months of the Honda lease just to get the people into Hyundai vehicle. Honda will need to match Hyundai's prices or risk getting destroyed. I for one used to drive a Acura base model and it's still going strong after 10 years still in the family. I still believe in Honda quality, but I prefer to drive something else.
I for one don't want a Hyundai over a Honda, because I don't think Hyundai is good enough to replace a Toyota or a Honda for that matter. The general public seem to want to go buy whichever give them the best value and hence you see more new Hyundais being driven around.
I also don't believe that Honda can operate like the old days, because of services like CCC and others giving people more knowledge on how to buy a car for a more fair price.
My 2 cents.
Lior Hershkovitz
Broker at Mortgage Edge, specializes in construction financing and private lending
Construction rates start p+2.5%, 2nd mortgage start 5.99%, private financing start 7% max. 95% LTV
Broker at Mortgage Edge, specializes in construction financing and private lending
Construction rates start p+2.5%, 2nd mortgage start 5.99%, private financing start 7% max. 95% LTV
- FrogPrince
- Deal Addict
- Mar 8, 2010
- 3553 posts
- 87 upvotes
Too many sheep driving the price of hondas up.
RFD OT: Serious answers to stupid questions.
RFD Definition of 'troll': Someone whose opinion you don't like.
RFD Definition of 'troll': Someone whose opinion you don't like.
- liorsyncro
- Deal Addict
- Oct 30, 2008
- 2120 posts
- 59 upvotes
- Toronto
I just financed a 2012 Civic last week at 2%. Don't know how much Hyundai is offering right now but even if it's zero percent financing, I still wouldn't buy one because down the road I can recuperate the savings through the Honda having the better resale value.knapper wrote: ↑I love the use of 'apparent markup'. I think dealers are loving CCC and APA, manufacture a 'cost' that ensures a profit and anything above that is gravy - and buyers feel they got a deal.
Does 'cheaper' consider the difference in financing rates? Just wondering as traditionally Honda has higher rates than Hyundai.
Lior Hershkovitz
Broker at Mortgage Edge, specializes in construction financing and private lending
Construction rates start p+2.5%, 2nd mortgage start 5.99%, private financing start 7% max. 95% LTV
Broker at Mortgage Edge, specializes in construction financing and private lending
Construction rates start p+2.5%, 2nd mortgage start 5.99%, private financing start 7% max. 95% LTV
- Zac1978
- Jr. Member
- Jul 16, 2011
- 122 posts
- 29 upvotes
- MISSISSAUGA
poedua wrote: ↑And that seems to be the pervasive attitude of many on RFD...that the cheapest price is synonymous with getting the best deal or value.
It's not always the case IMO, sometimes paying a higher price for something does in fact represent the ' best value ' for your money....in other words the cheapest price doesn't always represent the best value.
Price is simply what you pay,,....value is what you get.
Very well said!!
Sean Chaudhry
Town + Country BMW
(416) 875 0931
sean.chaudhry@tcbmw.com for rates, residuals and current rebates on all New and Pre Owned CPO BMW's
Town + Country BMW
(416) 875 0931
sean.chaudhry@tcbmw.com for rates, residuals and current rebates on all New and Pre Owned CPO BMW's
- Kursor17
- Deal Addict
- Dec 16, 2001
- 1864 posts
- 838 upvotes
- Oakville
My dad bought his new 2010 CR-V at ~$300 (~1%) over invoice in Scarborough. Dealers in Mississauga, Downtown, etc were willing to pricematch the Scarborough.
We found the dealers in the smaller cities weren't willing to sell below 3% over invoice.
You can go through the many posts of people using the CCC report, ~1% over invoice or even lower is not unheard of. It all comes down to negotiating and your dealer location.
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