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Old 12-23-2004, 11:59 AM   #1 (permalink)
ekool
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SRT-8, $39,995 confirmed?

Just picked up Motor Trend's 2005 New Car Guide.... they have the SRT-8 listed in there as a "confirmed" $39,995 sticker price.

I have heard this number before from a source as well.... lets hope its true!
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Old 12-23-2004, 12:02 PM   #2 (permalink)
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I would expect a $10,000.00 dealer mark up for the SRT-8.
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Old 12-23-2004, 02:28 PM   #3 (permalink)
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Price sounds about right to me. $7k more than 300c base.

Doubt we will ever find many on the dealer lots.
From my experience looking for a Cadillac STS V8 to test drive, dealers might have one on the lot to test drive.
And I agree with Fatchance, the one on the lot will have a huge markup.
The V8 Cadillacs on the lots all had $8k-$10k markups.
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Old 12-24-2004, 01:21 AM   #4 (permalink)
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I'm #1 on the list at one dealer and #21 at another. If they confirm the price with dealers I should hear soon - will post ASAP after I hear when I do hear...

-dq

p.s. I'm not paying $.01 over MSRP whatever it is. If I get the first one in I'll have a second car that I'll likely try to flip into the used market with 0 miles from me.

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Old 12-24-2004, 12:36 PM   #5 (permalink)
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You should be able to pick it up at MSRP at a number of dealers... I dont think its going to be 'rare enough' that dealers will be able to get away with a gigantic markup on it. After all, DCX isnt specifying a limit to the number of cars... so I think they will be able to accomodate demand.

I wont pay over MSRP either.
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Old 12-24-2004, 12:51 PM   #6 (permalink)
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Quote:
Originally Posted by joey
Price sounds about right to me. $7k more than 300c base.

Doubt we will ever find many on the dealer lots.
From my experience looking for a Cadillac STS V8 to test drive, dealers might have one on the lot to test drive.
And I agree with Fatchance, the one on the lot will have a huge markup.
The V8 Cadillacs on the lots all had $8k-$10k markups.
I'm confused by this behavior of the dealers. Are they retarded or something?

Most car manufacturers allocate based on prior sales. Most consumers (with a pulse and an IQ > 70) can access a computer or the library and get the invoice price of the car and options and use this as a starting point for negotiations. With this information free and readily available why would any consumer ever pay over MSRP?

There are so many dealers in the country for ever make and model of car that is sold (with the exclusion of Aston Martin, Ferrari, Lamborghini, Lotus, Panoz, and the super exotics that are not imported through a regular dealer network like Zonda, etc.) that you can just go down the street until you find a dealer willing to be rational and sell between invoice and MSRP. The dealers listing outrageous second stickers and not wiling to sell <MSRP loose business every day to some other dealer in a market where the car in question is not as hot.

I've had 12 cars in 7 years including some very hot (at the time) vehicles - like a 2003 MINI Cooper S (delivered in Oct/2002, 13 month wait list at the time but I had been on the list since Jan 2001), a 2001 Mercedes C-240 6-speed (first manual offered in the states on a mercedes since before 1990), 2005 Mercedes E-320cdi (first diesel offered since 1998 uses the new common rail diesel injected technology - 20k+ psi in there and starts with no spark plugs/glow plugs), etc. I've never paid over MSRP.

Why do dealers still attempt this practice? I just find it distasteful and I'm willing to wait a little while (couple months) and travel as far as need be to get any car I want at a reasionable price.

If there are any dealers reading this - I'd love them to comment - what is it that a dealership provides that you feel is worth a premium over the manufacturer's suggested retail price on a car?
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Old 12-24-2004, 12:52 PM   #7 (permalink)
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Quote:
Originally Posted by ekool
Just picked up Motor Trend's 2005 New Car Guide.... they have the SRT-8 listed in there as a "confirmed" $39,995 sticker price.

I have heard this number before from a source as well.... lets hope its true!
That number is close to my guesstimate all along.

Probably will not include Destination Charge of $625. So Base may be $40,620.

The only cost added options will probably be:

DVD Nav $1795
Sound Group II $635
Cold Weather Group $40
Smokers Group $30
Sirius $195
UConnect $275

No cost option will be:

Color - Silver or Black.
All Season Tires 245/45/20 front and rear.

Of course there will be a Gas Guzzler Tax (GGT). My guess between $1,800 and $2k.
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Old 12-24-2004, 03:35 PM   #8 (permalink)
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Quote:
Originally Posted by davequick
I'm confused by this behavior of the dealers. Are they retarded or something?

Most car manufacturers allocate based on prior sales. Most consumers (with a pulse and an IQ > 70) can access a computer or the library and get the invoice price of the car and options and use this as a starting point for negotiations. With this information free and readily available why would any consumer ever pay over MSRP?

There are so many dealers in the country for ever make and model of car that is sold (with the exclusion of Aston Martin, Ferrari, Lamborghini, Lotus, Panoz, and the super exotics that are not imported through a regular dealer network like Zonda, etc.) that you can just go down the street until you find a dealer willing to be rational and sell between invoice and MSRP. The dealers listing outrageous second stickers and not wiling to sell <MSRP loose business every day to some other dealer in a market where the car in question is not as hot.

I've had 12 cars in 7 years including some very hot (at the time) vehicles - like a 2003 MINI Cooper S (delivered in Oct/2002, 13 month wait list at the time but I had been on the list since Jan 2001), a 2001 Mercedes C-240 6-speed (first manual offered in the states on a mercedes since before 1990), 2005 Mercedes E-320cdi (first diesel offered since 1998 uses the new common rail diesel injected technology - 20k+ psi in there and starts with no spark plugs/glow plugs), etc. I've never paid over MSRP.

Why do dealers still attempt this practice? I just find it distasteful and I'm willing to wait a little while (couple months) and travel as far as need be to get any car I want at a reasionable price.

If there are any dealers reading this - I'd love them to comment - what is it that a dealership provides that you feel is worth a premium over the manufacturer's suggested retail price on a car?

The reason the dealers do this is because there are people who will pay over MSRP. As even a handful of folk on this great fourm have done.
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Old 12-24-2004, 04:49 PM   #9 (permalink)
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In the San Francisco bay area, dealers were all adding $3k to $10k on MSRP back in May when I was looking for a car.
My view on this.
By adding a mark-up on MSRP, the dealer is telling us that they are not going to take less than MSRP on a factory order. If I want the car on the lot, then I will have to pay a premium to avoid the long wait. By adding an enormous $10K mark-up on a $40k-$45k car, they are clearly telegraphing that they want something more than MSRP for the car. There is no way we are going to drive off the lot with their car at MSRP or less.
In most cases they only have one, maybe two, of these premium hard to get cars. Selling for cheap makes it difficult to sell more if they never have one on the lot.
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Old 12-25-2004, 05:27 PM   #10 (permalink)
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Quote:
Originally Posted by joey
In most cases they only have one, maybe two, of these premium hard to get cars. Selling for cheap makes it difficult to sell more if they never have one on the lot.
If a dealer refuses to sell the car at even MSRP:
1) they have to sit on the car longer waiting for the "right" type of buyer (i.e. impatient and not motivated in the least to keep their money for themselves)

2) they have to pay for the cost of the loan on the car that sits on their showroom/parking lot (flooring)

3) they endanger future allocaion since it is based on sell through

4) they enter into a danger zone if the car sits on their lot too long that even if they sell the car at $1k or $2k OVER MSRP they don't even cover their flooring cost

5) they anger rational buyers that know that somewhere in the country they can get the car a heck of a lot cheaper

6) they perpetuate "the game" that I would argue a majority of buyers disklike.. the dickering, the "I'll check with my manager" and run to the back room 3+ times... idocy that is all show that is meant to play up the drama of how great a "deal" you're negotiating.

7) THe opportunity cost of losing a new car sale to a serious customer is very high. Remember the dealers make a majority of their profit on parts, service, and used car sales... not new cars... alienating someone that is looking at the upper end of what you sell is a bad way to establish a relationship with someone that you're attempting to suck into your dealership vs. the 4 other chrysler dealerships that are within equal distance for them. (at least in this area - Redmond, WA)



I guess they all count on all the dealerships in your area being broken ion the same way - whether it is a formal or informal agreement for the dealers in the area. Just seems none of it is healthy for the consumer or for the dealers... I mean Chrysler marketing/product manager have put a lot of time and effort into defining pricing that allows it's dealers to succeed and that will continue to grow chrysler (insert any other brand for chrsysler here as well).


Enough of that - At least I got to vent for a couple minutes - now I think I'm done. ;-)

-dq
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