[jl_ss]

According to Consumer Reports, for a '07 EX-L 4WD (No RES/No NAV) the invoice price is $30,530 and the holdback is $997, so the CR "bottom line price" is $29,533 + packages/options.

And Edmunds agrees. Honda also offers 4.9% for 24 and 60 month financing.

 

[samster]

Holdback is 3% of MSRP - that's about right, I don't have the numbers in front of me any more. If they are selling for invoice minus holdback already, then incentives can't be far behind.

So I've been wondering (having gotten what I thought was a great deal this summer, though others have done much better):

When dealers sell for invoice minus incentives (if any) minus holdback, what are they making? Is there enough in the "processing/documentation fee"? Do they just hope to make something on accessories, extended warranty, or future service business? Is it possible that they take a loss?

It seems like people have often gotten inexplicably good deals, even given all the information we knew (not necessarily on '07's yet, but certainly on '06's).

 

[jl_ss]

So I've been wondering (having gotten what I thought was a great deal this summer, though others have done much better):

When dealers sell for invoice minus incentives (if any) minus holdback, what are they making? Is there enough in the "processing/documentation fee"? Do they just hope to make something on accessories, extended warranty, or future service business? Is it possible that they take a loss?

It seems like people have often gotten inexplicably good deals, even given all the information we knew (not necessarily on '07's yet, but certainly on '06's).

There is an anonymous dealer on the MDX site who posted net costs of the 2006 MDXs. They were invoice minus the holdback minus the incentive.

So they are not making much at all. They hope to then talk you into the extended warranty/undercoating/etc. If that doesn't work, then they just try to make it up on the next uninformed customer (and there are many more uninformed people than there are informed people). If you finance through them, then they get to keep a small percentage. Their allocation is also based on what they sell, so sometimes they just need to move vehicles to keep their allocation. Dealers also finance the cars on the lot (holdback is supposed to cover that), so if a vehicle is on the lot for a long time, then finance costs can become greater than holdback reimbursement and they can start losing money on the vehicle.

 

[GreenMachine]

There is an anonymous dealer on the MDX site who posted net costs of the 2006 MDXs. They were invoice minus the holdback minus the incentive.

So they are not making much at all.

Our local Acura dealer is advertising on TV for new 2006 MDX's for $32,990. New 2006 TL's are going for $29,990. Both are very good prices.

 

[jl_ss]

Our local Acura dealer is advertising on TV for new 2006 MDX's for $32,990. New 2006 TL's are going for $29,990. Both are very good prices.

With the current $2500 rebate, MDX net costs are:

Net Cost on Premium-30465.64

Net Cost on Touring-32923.54

Net Cost Touring with DVD-35472.11

Net Cost Touring w/ Nav-35316.18

Net Cost Touring w/ NAv/DVD-36621.25

 

[NSXBill]

With the current $2500 rebate, MDX net costs are:

Net Cost on Premium-30465.64

Net Cost on Touring-32923.54

Net Cost Touring with DVD-35472.11

Net Cost Touring w/ Nav-35316.18

Net Cost Touring w/ NAv/DVD-36621.25

The problem for me is that the $2500 rebate ends on Oct 31. I need to do my deal in Jan and I doubt that there will be any 06 MDX's around. Also, residual for 06 MDX compared to 07 Pilot MAY lead to higher lease payment for MDX (haven't run any numbers, so don't know).

 

[jl_ss]

The problem for me is that the $2500 rebate ends on Oct 31. I need to do my deal in Jan and I doubt that there will be any 06 MDX's around. Also, residual for 06 MDX compared to 07 Pilot MAY lead to higher lease payment for MDX (haven't run any numbers, so don't know).

The rebate will probably get extended until all the 06s are gone but as you note, the selection gets significantly reduced as time goes on.

 

[clemsondave]

With the current $2500 rebate, MDX net costs are:

Net Cost on Premium-30465.64

Net Cost on Touring-32923.54

Net Cost Touring with DVD-35472.11

Net Cost Touring w/ Nav-35316.18

Net Cost Touring w/ NAv/DVD-36621.25

Are dealers actually selling at these prices??

 

[jl_ss]

Are dealers actually selling at these prices??

Some are and some aren't. It depends on the availabilty in your area and how picky you are about model and color. They are selling at invoice minus rebate though.

 

[GreenMachine]

With the current $2500 rebate, MDX net costs are:

Net Cost on Premium-30465.64

Net Cost on Touring-32923.54

Net Cost Touring with DVD-35472.11

Net Cost Touring w/ Nav-35316.18

Net Cost Touring w/ NAv/DVD-36621.25

I was not aware of the rebate, but I should have guessed there was one. I guess their advertised MDX price isn’t so good after all.

 

[onepeat]

'07 2WD EX-L w/ NAVI

Just purchased an '07 2WD Pilot EX-L w/ NAVI from Rusty Wallis Honda in Garland, TX.

Out-the-door price $33,443

---sell price $31,235 (invoice cost is $31,339...my actual quote was $30,835 + a $400 charge for the BS "dealer add-ons" -- mud flaps, cargo mat, paint stripe, paint and leather protection, etc...their original "reduced" quote on the add-ons was $800)
---tax $2,029
---fees $179

Also purchased the 5yr/100k HondaCare warranty for $795 (cost is supposedly $695 per the finance manager's cost book)

His first quote was $1895 for the 6yr/120k mile HondaCare warranty...funny.)

Hope this helps someone...

 

[Gav]

2007 exl awd w\nav 33007.00

Hi,
This is my first post. I hope I can contribute more to this site in the future.

I've read through all these price posts and I think I'm not getting as good of a deal as some of you. I'm probably going to purchase a pilot this weekend. I went through costco auto program, and carsdirect and got a quote from my local honda dealer for 33007.00 on a EXL/AWD/NAV. He said the costco was a better deal than carsdirect. The internet sales rep said their invoice is 32507 and he's only making $500 on it. What do you guys think? (They have no more 06's in stock).

thanks,

Gav

 

[onepeat]

Re: 2007 exl awd w\nav 33007.00

Hi,
This is my first post. I hope I can contribute more to this site in the future.

I've read through all these price posts and I think I'm not getting as good of a deal as some of you. I'm probably going to purchase a pilot this weekend. I went through costco auto program, and carsdirect and got a quote from my local honda dealer for 33007.00 on a EXL/AWD/NAV. He said the costco was a better deal than carsdirect. The internet sales rep said their invoice is 32507 and he's only making $500 on it. What do you guys think? (They have no more 06's in stock).

thanks,

Gav

I highly recommend following the steps (free) at www.carbuyingtips.com. I had the dealers literally begging me for the business on the final day. Just keep sending around "can you beat this quote" emails until you start getting the "that price is WAY too low" emails. That's when you know it's time to purchase. Good stuff.

 

[gpraceman]

Re: 2007 exl awd w\nav 33007.00

I went through costco auto program, and carsdirect and got a quote from my local honda dealer for 33007.00 on a EXL/AWD/NAV. He said the costco was a better deal than carsdirect. The internet sales rep said their invoice is 32507 and he's only making $500 on it.

Don't believe the dealer. Do some research. Edmunds lists the invoice price at $31,912. Is the price the dealer is quoting you include the destination charge and dealer fees? Also, invoice price is not necessarily what the dealer paid for the car. With dealer incentives or holdback, they are likely making more.

 

[Gav]

Yeah the destination charge is included in that. Edmunds lists the invoice plus destination at 32507.

Using that website, (carbuyingtips.com) I downloaded that spreadsheet. After filling in the blanks it came up with $32,695.47 as a reasonable price. It also said dealer holdback is around 750. (which I could use to negotiate more) I must be doing something wrong though as its still around the same price.

 

[samster]

Yeah the destination charge is included in that. Edmunds lists the invoice plus destination at 32507.

Using that website, (carbuyingtips.com) I downloaded that spreadsheet. After filling in the blanks it came up with $32,695.47 as a reasonable price. It also said dealer holdback is around 750. (which I could use to negotiate more) I must be doing something wrong though as its still around the same price.

I think holdback is usually quoted at 3%, though it isn't clear if that's 3% of invoice, invoice+destination, or MSRP (I've heard all three). In any case, I'm thinking something more like $960 unless things have changed.

 

[imminence]

Sorry for the dumb question, but what's RES?

 

[gpraceman]

Sorry for the dumb question, but what's RES?

Rear Entertainment System - The DVD player

 

[Jiaronnis]

I think holdback is usually quoted at 3%, though it isn't clear if that's 3% of invoice, invoice+destination, or MSRP (I've heard all three). In any case, I'm thinking something more like $960 unless things have changed.

Honda's holdback is 3% base MSRP: http://www.edmunds.com/advice/incentives/holdback/index.html
I believe that means to deduct 3% of the base MSRP from the invoice price will give you the dealer cost (not including any other incentives).

 

[NSXBill]

Bump

Seem to be a lot of new owners in the last month. Please post what deal you made per above. Break it down as much as possible.

Thanks