Car Sales 101- Everything you ever wanted to know....

you'll probably need a local dealership to quote you. There doesn't seem to be any regional lease deals on the SI.

they're listing this for the LX coupe-

$179.00 per month for 36 months. $1,999.00 total due at signing.​
Includes down payments with no security deposit. Excludes taxes, titles and dealer fees. For well qualified lessees.
Closed end lease for 2012 Civic Coupe 5 Speed Automatic LX (FG3B5CEW) available from July 10, 2012 through September 4, 2012, to well-qualified lessees approved by Honda Financial Services. Not all lessees will qualify. Higher lease rates apply for lessees with lower credit ratings. MSRP $19,395.00 (includes destination, excludes tax, license, title, registration, documentation fees, options, insurance and the like). Actual net capitalized cost $16,912.64. Net capitalized cost includes $595 acquisition fee. Dealer contribution may vary and could affect actual lease payment. Total monthly payments $6,444.00. Option to purchase at lease end $11,249.10. Must take new retail delivery on vehicle from dealer stock by September 4, 2012. Lessee responsible for maintenance, excessive wear/tear and 15¢/mile over 12,000 miles/year for vehicles with MSRP less than $30,000, and 20¢/mile over 12,000 miles/year for vehicles with MSRP of $30,000 or more. See your Honda dealer for complete details.
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a civic lx coupe - automatic is listed at MSRP $19,395.00 with destination.
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compare it to their Accord lease listed -
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$0 first months payment, $250.00 per month for 35 months​
$0 down payment, $0 security deposit. For well-qualified lessees.
FEATURED SPECIAL LEASE: Closed end lease for 2012 Accord Sedan 5 Speed Automatic LX (CP2F3CEW) available from July 10, 2012 through September 4, 2012, to well-qualified lessees approved by Honda Financial Services. Not all lessees will qualify. Higher lease rates apply for lessees with lower credit ratings. MSRP $23,070.00 (includes destination, excludes tax, license, title fees, registration, documentation fees, options, insurance and the like). Actual net capitalized cost $21,473.65. Net capitalized cost includes $595 acquisition fee. Dealer contribution may vary and could affect actual lease payment. Total monthly payments $8,750.00. Option to purchase at lease end $12,919.20. Must take new retail delivery on vehicle from dealer stock by September 4, 2012. Lessee responsible for maintenance, excessive wear/tear and 15¢/mile over 12,000 miles/year for vehicles with MSRP less than $30,000, and 20¢/mile over 12,000 miles/year for vehicles with MSRP of $30,000 or more. See your Honda dealer for complete details.
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accord sedan lx auto is listed at MSRP $23,070.00
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Si coupe - msrp = $23,145
pretty close to the accord cost, so I would wager that the payments would be very close.
 
the si has a terrible residual...was quoted 370-ish for 15k, 36 months, tier 1 credit, 1250 down...going for the ilx instead.
 
.15/mile for 3k additional miles alters it by $450.00. Seems way out of line. Payments/down payment are like $14,6xx for 36 months. You'd do better buying it/reselling it yourself. The car isn't going to depreciate 15k in 3yrs. I did a search for 09 civic SI models on autotrader. Depending on mileage, they're around 16-17k. That's for a car that ran ~$21k msrp.

Buy it, call another dealer, or look at another car
 
Are you going to ask another dealer for lease pricing?
 
^yea, it'd have to be a real compelling number though, because the ilx is 330 / month with $500 down, first months payment waved, 10k miles, 39 months. Wouldn't mind spending an extra 20-30 for an ilx over an si
 
wrx is $299/month lease if that interests you. It's like that basically every month.
 
Tried that route, get better rates (based on credit) through honda finance, insurance costs less, and less money is spent on gas. Honda/Acura is my only option if I decide to move into something else.
 
Tim Brzozowski said:
I just leased my Si and my payments are $184/mo. With $2000 out of pocket. 36mo 12k.
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That is an amazing deal! They must be heavily discounting the Si's as well. I feel I got a great deal, but I leased in January and the dealer was getting an Si every 1.5 months.
 
Anyone know what a salesperson is looking to make on car? Ex. If a car priced at $20 000, is the sales person trying to make $1000 for his/her pocket? So you pay $21 000. ?
What would be the lowest "profit" for the salesperson? $500???

The reason I ask is, I am wondering if it would be a good strategy to not waste anyone's time and just directly say....I want this car and I will sign the papers immediately if you give me the lowest price you can on it and you put $500 (or whatever is the minimum reasonable salesperson profit) in your pocket. What do you think?

BTW...I do appreciate the OP first post that is enlightening on the dealership's perspective, however I don't really care about if a salesperson is unhappy or not. Don't get me wrong I will be respectful and honest, but I have no problem "wasting a sales person's time" and walking out the door and then going to another dealer to see what their lowest price is. Unfortunately, the game is not fair and the dealership holds all the cards so the customer cannot trust that they are getting a fair deal and must be vigilant or risk being taken to the cleaners. Hopefully, the internet will do away with haggling because more and more people research bottom line prices and know before they go into the dealership making haggling unnecessary. Wouldn't it be great if the price was written on the car and it was already the lowest possible price with no possibility of lowering it?
 
It's funny, I work at a well known dealership in Boston, and i have to admit I do not agree with some of the points of our "teacher" has made in this class. I think a rebuttal is neccessary, as they're are quite a number of good people who do care about their job, have a passion for it, and do make good money....More to follow as my customer just arrived....
 
Pauly99to17 said:
Anyone know what a salesperson is looking to make on car? Ex. If a car priced at $20 000, is the sales person trying to make $1000 for his/her pocket? So you pay $21 000. ?
What would be the lowest "profit" for the salesperson? $500???

The reason I ask is, I am wondering if it would be a good strategy to not waste anyone's time and just directly say....I want this car and I will sign the papers immediately if you give me the lowest price you can on it and you put $500 (or whatever is the minimum reasonable salesperson profit) in your pocket. What do you think?

BTW...I do appreciate the OP first post that is enlightening on the dealership's perspective, however I don't really care about if a salesperson is unhappy or not. Don't get me wrong I will be respectful and honest, but I have no problem "wasting a sales person's time" and walking out the door and then going to another dealer to see what their lowest price is. Unfortunately, the game is not fair and the dealership holds all the cards so the customer cannot trust that they are getting a fair deal and must be vigilant or risk being taken to the cleaners. Hopefully, the internet will do away with haggling because more and more people research bottom line prices and know before they go into the dealership making haggling unnecessary. Wouldn't it be great if the price was written on the car and it was already the lowest possible price with no possibility of lowering it?
Click to expand...


The salesperson gets a commission based on a percentage. If you want a rep to make $500, typically your are paying $2000 over invoice (25% for most sales).....so in essence you probably arent geting the deal you want with that scenario....

As far a "wasting time", you should never feel pressured to do your research and drive cars, and let someone know you are still shopping, when it's time to break the checkbook out though, you can accomplish what you want by simply calling a few dealerships, and saving money on gas. This will make it as quick and easy as possible once your in the door.

Lastly, many one-price companies and dealerships have been around, and a great many of them have failed. The reason (according to studies/research) has a lot to do with culture, and the idea of negotiating. Remember, the perceived notion of a great deal is typically what makes a buying decision for someone, and that can be tied to any number of factors. In just about anything we as consumers buy. People don't think of the 300% mark-up in Big Macs, or payin $200 for Jordans made for $3.50 in a Gautemalan sweat shop, yet we routinely barter on things we've been conditioned to do so. This is why one-price doesn't prove as successful in practice as theory.
 
Sales people make next to nothing on a new car. They make money on taking in trades and selling the used cars. Many people would come in with invoice pricing and try to negotiate as close as they could to that. On deals close to invoice, the sales person may walk away with $50-100 in their pocket. Some dealerships work on an hourly basis & commission structure.

Example being -
say worker makes $8/hr for an hourly rate
say they makes $500/week from hourly....

now commission -
example 1 -say the person pulls in $600 from commission sales.
example 2 - say you made $498 in commission sales...

They take the higher of the 2, and that's what you see for your paycheck.
example 1 - The dealership forfeits your $500 hourly check and you get a check for your $600 commissions. You get no hourly check.
example 2 - You had $498 in commissions for the week. You'd get a check for $500 in hourly wages, and receive nothing from your commissions.
 
Thanks guys...this is getting a lot clearer for me now.

I guess the ideal price to pay (for me anyway) would be $400 over invoice. That way the salesperson gets 25% = $100 and will hopefully be okay with that if its a quick sale.
 
Every dealer commission is setup differently from what I've heard. Some get a flat fee on new cars if they'd sell it for under invoice, or whatever. I know of one dealer that paid $100 on all new sales (if it was under a commission threshold). So they could sell at invoice all day and it was $100.
 
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