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Re: Reasonable Mark-up above Dealer Invoice (archive)

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Posted by Rick Houston on April 02, 1999 at 16:37:30:

In Reply to: Reasonable Mark-up above Dealer Invoice posted by Sam on April 02, 1999 at 15:15:21:

Sam, this is a good question, but one that has certain things answered first; first, it depends where you live--I can give you a price for a car here in Los Angeles that would sound wonderful in New York, but bad in, say, Omaha (or vice versa). Second, is it a car found on the dealer's lot, will he have to trade for it, or will it need to be ordered? It's always better to make a deal on something the dealer's paying storage on. Third, are you financing through the dealer--if he makes something on the "back-end" of the deal, he'll probably be more inclined to sacrifice on the front part. Fourth, what time of month is it? Managers will be more inclined to give better deals when they're forced to meet their sales quotas for the month (read: end of month=better deals); Fifth, have you bought a car from them in the past? If you're a repeat customer, a dealer would be nuts to encourage you to shop around (regardless what is happening with the internet, nothing beats a personal relationship with your dealer).
So, as you see, there's too many intangibles for you to receive a stock answer--but personally I think $1000 over isn't going to happen (I just talked to my manager, and he informed me that the great factory-to-dealer incentives on the Z3's are gone for this month).
Anyway, let me know if you have more questions--I'm always around :)
Take care,

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