Automotive News Says Honda Upset Over Selling Below Invoice

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Automotive News Says Honda Upset Over Selling Below Invoice

Let's face it, nobody pays MSRP anymore. In fact, the most savvy car buyers among us don't even pay invoice price. Thanks to Internet pricing sites like TrueCar, it doesn't take negotiating skills or friends in the business to get dealers to sell you cars at deep discount. And that fact has Honda ticked off.

According to Automotive News, Honda has issued an ultimatum to its dealers: Stop selling cars below invoice price through these websites, or lose the per-car marketing spiffs that the factory gives dealers. Since Honda corporate turned the screws on its dealers in October, TrueCar says Honda sales through its service are down.

While many dealers do opt to play ball with TrueCar, offering guaranteed discounted prices up front and hoping to make more money on other aspects of their business, some are not thrilled with TrueCar. AutoNation CEO Mike Jackson has called TrueCar's pricing transparency a "death spiral" for dealers, according to AN.
 
Hmmm, that attitude even with Hyundai snapping at their heels. :scratches:

I've seen this with Harley-Davidson, and their dealers have steadily been dropping like flies the last few years.
 
or lose the per-car marketing spiffs that the factory gives dealers.
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I guess they can sell them as cheap as they want, but they won't get "spiffs" for selling?

harley dealers were selling cheap, and are now being closed around you?
 
I'm sorry, the H-D dealers were hanging tough on sticker price, and going out of business.

thought it said spliffs at first. :giggle: I don't know what a spiff is.
 
from wikipedia -
A spiff or spiv is an immediate bonus for a sale. Typically, "spiffs" are paid, either by a manufacturer or employer, directly to a salesperson for selling a specific product.

I guess the same as a kickback or incentives for selling a car. Sell a car for 300 under invoice to move it because you know you're getting a 750 incentive check for moving it?
 
also called "holdbacks" I have heard? Yeah I understand where they are coming from but everyone tries to get everything cheaper and almost always does online. How many brick and mortar stores are up against the wall trying to compete with amazon or whoever? Small town bookstore?

I worked in a bike shop for about 10 years and in the last few it really turned into people coming in to pick the sales guy's brain and knowledge, get sized and then buy online, bring it in to have it built and tuned. We still got a cut but were just getting killed overall.
 
People do it in bestbuy etc all the time. Play with the stuff, get the model info - write it down, leave. Then go to ebay/amazon etc to buy the item they want. I can't quite imagine doing that with a bike, but I guess you can pretty much have anything shipped
 
i tried using truecar.com to get my si and one dealer told they wouldnt honor it because it was the civic si a limited editon car :shadycorn: I know its hard to find in the first place but to say they are limited edtions?? they also told me that there werent any si's in my area at all....when in fact there were 4 si available :pat: never called them and got my si the next day at a different dealer...lol...i guess people are getting smarter in getting the best price possible....
 
limited in the sense that you can't find 10 sitting at dealerships lol.
 
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