From: dcd@se.houston.geoquest.slb.com (Dan Day)
Subject: Re: Car buying story, was: Christ, another dealer service scam...
Nntp-Posting-Host: mudd.se.houston.geoquest.slb.com
Organization: GeoQuest System, Inc. Houston
Distribution: usa
Lines: 27

In article <1993Apr16.162950.25849@newsgate.sps.mot.com> rapw20@email.sps.mot.com writes:
>
>before you go in. Find out the invoice prices of the car, add a reasonable  
>profit for the dealer ($200-$300??), offer them that price and stick to  
>it.

Whoa!  Watch your terminology.  "Dealer invoice" is *not* "dealer cost".
You'll hear lots of ads screaming "two dollars over dealer invoice!!!"
Sounds like a real deal, huh?  No.  You know what the "dealer invoice"
(also called factory invoice) is?  It's a piece of paper with numbers
on it that the factory sends the dealer.  What do the numbers
signify?  Absolutely nothing.  It's a marketing gimmick that the
salesman can wave in your face to impress you.  Note that nowhere
on the "invoice" does it claim to be the real price of the car, and
most ads which mention dealer invoice will end with a very fast,
low voice saying something like "invoice may not reflect actual
dealer cost".  Actually, I *guarantee* it does not reflect actual
dealer cost.

Also, the reasonable profit for dealer is usually around three percent.
Adjust according to the dealer cost of the car and any options that
you want.  Haggle like hell with the salesman over the cost of
"dealer prep" and "protection package" (i.e. a few squirts of
paint and fabric protectant).  While you're at it, ask the salesman
to toss in a thing or two that doesn't cost him any cash.  My 
wife and I got a joyride in a twin-turbo Mitsubishi 3000GT when
we bought our Mitsubishi mini-van.
