I'm seeing a ton of posts from people here about the prices they paid. There's a several
thousand dollar margin between what people are paying for the exact same model (nonetheless - everyone "got a deal"
). Thought it was worth while to post some information on pricing for our future Insight owner brethren.
First, some terms to be familiar with:
MSRP = Manufacturer's Suggested Retail Price. WAY too high, don't pay this!
Invoice = What the dealer paid for the car. Still too high! See "dealer holdback" for more info.
Destination Fee = What the manufacturer charges the dealer to get the car to the lot. This is the only *real* honest to goodness fee, set by the manufacturer.
Dealer Holdback = AFTER a car is sold, the manufacturer (Honda) gives more money to the dealer. Why? So the dealer can say "We paid $X for the car, couldn't possibly charge less than that or we lose money!", when they actually make several hundred dollars. This comes as a percentage of MSRP. For Honda Insight, reported value is
2%. (It was 3% when the car was first released, but 2% is Honda's normal rate.)
Documentation Fee = A garbage charge dealers made up to get more money. Officially - they have to keep records for some number of years, and they want to charge you hundreds of dollars for that. Unofficially - keeping those records costs them pennies, this is a total sham!
Advertisement Fee = A garbage charge dealers made up to get more money. I've had people try to pull this one on me - charging me a fee for their advertising. Sheesh!
Ambiguously Named Fee You've Never Heard Of Before = Probably made up by the dealer to take more money from your pockets!
Tax = Government tax. No avoiding or haggling these!
Title = Government fees. No avoiding or haggling these! Costs a few bucks extra if you need new plates.
Rebates = Manufacturer rebates will eventually be issued, which essentially cuts the cost of the car. They'll do this shortly before the 2011 models come out most likely, or if they face stiff competition from others.
True Dealer Cost = Invoice Price + Destination Fee - Dealer Holdback. It's that easy.
OTD Price = Out-the-door price. The absolute final value you will pay. This is Car Price + Tax + Title/State Fees.
Margin = Money the dealer makes on a car sale.
For pricing on the 2010 Honda Insight models, see these links:
LX -
Edmunds.com - 2010 Honda Insight Car Pricing Guide
EX -
Edmunds.com - 2010 Honda Insight Car Pricing Guide
EXN -
Edmunds.com - 2010 Honda Insight Car Pricing Guide
CURRENT VALUES AS OF 11/24/2009:
Code:
Model LX EX EX+N
MSRP $19,800 $21,300 $23,100 (Number obtained from Edmunds.com)
Invoice $18,688 $20,098 $21,790 (Number obtained from Edmunds.com)
Destination $670 $670 $670 (Number obtained from Edmunds.com, appears to be constant, even in Alaska/Hawaii)
Holdback $396 $426 $462 (This is MSRP * 0.02)
True Invoice $18,962 $20,342 $21,998 (This is Invoice + Destination - Holdback)
True Invoice + Tax@4% $19,720 $21,155 $22,877 (True Invoice * 1.04)
True Invoice + Tax@5% $19,910 $21,359 $23,097 (True Invoice * 1.05)
True Invoice + Tax@6% $20,099 $21,562 $23,317 (True Invoice * 1.06)
True Invoice + Tax@7% $20,289 $21,765 $23,537 (True Invoice * 1.07)
True Invoice + Tax@8% $20,478 $21,969 $23,757 (True Invoice * 1.08)
True Invoice + Tax@9% $20,668 $22,172 $23,977 (True Invoice * 1.09)
True Invoice + Tax@10% $20,858 $22,376 $24,197 (True Invoice * 1.10)
State Fees ~$104 ~$104 ~$104 (This is what it is in Massachusetts, your state will vary)
When you buy a car, you pay the manufacturer (Honda), the state (Massachusetts, etc), and the dealer (Joe's Hondas). You can't negotiate with the manufacturer or the state, so your only opportunity to save is to cut the dealers margin as much as possible. Your goal should thus be as close to True Invoice + Tax + State Fees as possible.
For example, my personal experience:
Honda Insight EX with 5% Massachusetts sales tax: $21,135 (note, Honda had 3% holdback originally, now it's 2%, this is why the number is different from above)
State Fees: $104
Minimum price a dealer would possibly accept: $21,239
My Offer: $21,400 OTD, inclusive of ALL taxes and fees (which is a $161 margin for the dealer - if you're not in a rush, try pushing this $50-100 lower!)
Here's the steps that I follow which have repeatedly given me success:
(1) Test drive the vehicle at any dealer to make sure you like it. Walk away - DO NOT negotiate or talk prices with them!!!
(2) Do the math as described above!
(3) Dig up some cash, or arrange your own financing. Do NOT use the dealer's financing! (I'm not an expert on financing, but plenty of guides on the Internet on this.)
(4) Send an e-mail to every Honda dealer within 50 miles. Do NOT give them your phone number, you don't want these people calling you. The e-mail should go something like this:
Quote:
I am looking for a new 2010 Honda Insight EX, exterior color COLOR/COLOR/COLOR, interior COLOR. The price I am willing to pay is $YOUR_PRICE_HERE OTD, all tax/tags/fees included. I have my own plates that I will transfer. Will play cash, no financing.
If this deal is acceptable, please let me know, I will purchase this week. Please contact me by e-mail at YOUR_ADDRESS_HERE. No counter-offers, please.
Thanks,
YOUR_NAME
|
(5) Wait for responses! Usually you'll get one or two dealers willing to accept your offer, a few that won't respond, and a few that will try to negotiate. DO NOT NEGOTIATE! You've done your math, you know what the car should cost, and you're willing to give a real easy sale to anyone who just says "yes" - some dealers will get this, some won't.
(6) When you get an affirmative, double-confirm ALL numbers, models, colors before going to the dealer. Print out the agreement and all specs so nobody trys to pull a fast one on you.
(7) Go buy your car! You'll find when you walk into a dealer having already negotiated all the numbers, the whole process is a smooth and friendly business transaction.
Anyway - I hope this formula and this math is helpful to somebody and gets you a good deal. Good luck!
How much to pay for your 2010 Insight
