In Reply to: I agree, in a way, but.... posted by Hmmmm... on April 18, 1999 at 19:55:48:
I wouldn't let $100 kill the deal, unless I really disliked the salesman and/or dealership. I ended up paying $350 more then I orginally targeted, but both the dealership and salesman were excellent. I really like a bargain, but I do try to place value on good service and convience.
As far as your example of the $28k 328i with $10k dealer profit in it- I know that it is intended as an extreame example (and I would love a $28k 328i!), but consider this...
At first the $28k 328i's are selling like hot cakes. In 2 to 3 years the supply has cought up to demand and dealers are selling them for $19k to $20k (still making $1-2k). You would have lost a lot of money due to depriciation. There are owners of Mazda Millenia and the previous generation of Acura TL that have recently gone through a simular experience.
: Would you be concerned about overpaying by $100.00 for a Big Mac? Of course! But it's the same $100. In other words, $100 is $100, no matter how you save it.
: But conversely, you only buy a car once every X years. If you buy a Big Mac (or equal) every week for 3 years and overpay by 75 cents each time, that's over $100. $100 spread over the lifetime of the car isn't a big deal, so overall, I side with the people who say "don't let $100 kill a car deal".
: Something else to think about. Let's say a person is about equally attracted to two car. He can get Car A for $35,000 and the dealer is making $1,500. He can get Car B for $31,000 and the dealer won't budge from a profit of $2,500. So, why is it that most people would reject car B? Why so much concern for the bottom line for the dealer and not as much concern for the bottom line for the buyer? Somehow, I think that if a 328i cost only $18,000 but $10,000 of that was dealer profit, there would be no takers. People would go down the street and pay twice as much in order to get that dealer profit down!