Showing posts with label Cars. Show all posts
Showing posts with label Cars. Show all posts

Wednesday, November 3, 2010

What Exactly Is Dealer Invoice?

My first answer to that would be… who really knows? It's a very elusive term thrown around by about all the car manufacturers' and car dealer's marketing departments. You know after many years in the business, I'm not sure I could tell you precisely what true dealer invoice or what is termed 'dead cost' is on any particular vehicle. I'm sure the owner or the ownership group could somehow calculate this elusive dollar figure but most of us humans will continue to search for the ever elusive animal we refer to as dealer invoice.

To say this term is a bit misunderstood is a rather large understatement. Maybe that's why it works so good for the folks in the marketing department. Many potential car buyers assume that what they uncover on the internet is the car dealer's invoice price. Well, not really. It's certainly one heck of a lot closer than checking the MSRP of a give vehicle, but it probably isn't going to be 'dead cost'.

You hear it all the time. In fact right here where I'm at there is a local dealer that says all you'll ever pay is $50 over factory dealer cost; and they have been selling cars this way since day one oh so many years ago. I guess it shouldn't, but it really baffles me how this works on the consumer. Just do the simple math; if this dealer sold 300 cars a month (about 10 cars a day!) times $50 over factory cost (the inference here is that you are paying $50 over what the dealer gets the car for) this dealer would be grossing $15,000 per month on new car sales. I can unequivocally tell you that this would never cut the mustard! Think about it $15,000 a month and this dealer hasn't even paid rent, utilities, insurance, salaries, benefits, and on and on. So, $50 over factory invoice… not hardly.

So what is it then… this thing car dealers call cost or invoice? Well, it's a bunch of numbers being added – subtracted – multiplied – and divided before anyone knows the dead cost of the car for the dealer.

What's a consumer to do?

Getting out on the internet and doing your homework is a very good start. The exercise of comparing the information you gather is a good one and is to your advantage if you want to start your negotiations at 'invoice' price. Which, by the way, you NEVER negotiate from the sticker price down.

While doing your research on dealer invoice prices it's important to make certain you are comparing exact features and option packages to one another. This will at least give you baseline comparisons with which to work. All car dealers receive different incentives from the manufacturer; factory to dealer – marketing incentives – dealer holdback, and on and on. The fact that much of this is not disclosed is why it is very difficult to come up with dead cost for the car dealer.

For instance, in the case of dealer hold back; the dealer doesn't even get this money until after the car is actually sold.

There are other expenses that the dealer has that are applied to the overall cost of a particular car, including how long a particular car has been sitting on the lot. You see the dealership finances their inventory and as such pays interest on this financing so a car that has been sitting on the lot for some time has cost the dealer more than the ones that they are just unloading from the truck.

As you can see, there are too many variables to any particular car at any particular dealership to know exactly what the dealer has put into a car in terms of cost. However, as we talked earlier, doing your research on the 'invoice price' is a good place to start. Just don't stop there thinking you have all you need and don't need to do any further negotiating on the selling price.

Purchasing cars and negotiating is almost synonymous. Getting a good feel for the invoice price is just a starting point. Now it's time to roll up your sleeves and work on getting the best possible price you can.

Monday, November 1, 2010

The Upcoming Buick LaCrosse Super Sport

Edmunds and several leading automotive blogs are theorizing that Buick will finally go ahead and build a sport version of its popular LaCrosse midsize sedan. Unlike the original model, the proposed car will be a true roadster as Buick seeks to inject some youthfulness into its aging model line. This is big news for Buick, which hasn't built a true youth oriented car since stopping production of the hot-rod Regal Grand National during the 1980s. Will the Super Sport be enough to help Buick recapture a lost segment of the marketplace? That remains open to debate, so let's see what Buick is planning with the Super Sport and then you can decide for yourself.

For the past several years, Buick has been near the top in most customer satisfaction and quality surveys. After years of languishing much further down the list, Buick decided to truly emphasize quality and that move has paid off. However, quality cars are one thing while exciting cars are another. Quite simply, Buick hasn't been building cars that are high on the "wow" factor list. Sales have remained flat as the age level of its buyers continued to rise. Anyone who understands the business of cars will tell you that you must continually appeal to a younger audience in order to grow and prosper. Let's just say that even younger AARP drivers haven't been heavily drawn to the current Buick model line up.

As far as the Super Sport goes, the car is based on the concept Velite a car that has been appearing at auto shows over the past few years. Much like the Lexus SC430, the Super Sport will be targeting upscale buyers attracted to a combination of luxury, performance, and premium styling. While drive train information hasn't been finalized, reports of a 300 hp V8 being offered has been circulating. Likely, this engine will be mated to a six speed automatic. A 3.6L twin turbo producing more than 400 hp has also been rumored for the Super Sport, but that engine choice might be scratched if gas prices remain historically high.

Information about specific Super Sport features is rather limited, but if the car holds true to the Velite concept, buyers can expect the following with the Super Sport:

  • Heritage styling based on a late 1930s Buick boat tail design. Buick's recognizable waterfall grille design coupled with decorative side portholes are also expected to appear on the Super Sport.
  • 20 inch front wheels and 21 inch rear wheels; rear wheel drive.
  • Leather 2 plus 2 seating.
  • A retractable hood that will fit snugly into the trunk.
  • Full cabin amenities including OnStar and XM satellite radio switches integrated into the dashboard.

Beyond what has been listed, the rest is speculation including possible build and release dates for the Super Sport. GM's current financial woes will impact the final decision on whether to build this car, but if approval is given a 2008 or 2009 release is possible.

Yes, Buick needs a car of this caliper to breathe new life into a rather uninspiring line up. Prices for the Super Sport will likely exceed $40,000 limiting the car's appeal to those with significant means. Still, if Buick is able to pull it off the Super Sport it may pave the way for additional model changes, perhaps even opening the door for a Regal-inspired car to rejoin the line up. Now that would be great news for a brand that sorely needs a fresh youth injection.

Tuesday, October 19, 2010

Oldsmobile Achieva, the American Compact Car

Manufactured by General Motors, the Achieva has been marketed and sold under this vehicle manufacturer's Oldsmobile division. The Oldsmobile Achieva has been making its rounds on the streets and roads since 1992, the year of its introduction, and has continued to do so for six years. Come the year 1998, General Motors has then decided to discontinue and entirely halt the production and manufacturing of this vehicle. The Oldsmobile Achieva actually replaced the spot and niche that the Oldsmobile Cutlass Calais vacated when the company has decided to discontinue its production. When the Oldsmobile Achieva's production was halted, it was the Oldsmobile Alero that took the spot of the latter vehicle.

The Oldsmobile Achieva is a compact car. It has been made available in two body styles. These body styles include the coupe with two doors and the sedan with four doors. It was built on the FF N body platform and is greatly related to the Buick Skylark, the Chevrolet Malibu, the Oldsmobile Cutlass, and the Pontiac Grand Am because of this. It has been said that one of its major competition was the Mercury Tracer. The very reason why the Oldsmobile Achieva was designed and manufactured to be such was because General Motors targeted this vehicle to be one of the great competitions of Japanese compact cars that has been entering the American automobile market during the time of its introduction.

The Oldsmobile Achieva was introduced back in the year 1992. Although it was mounted and built on the FF N body platform, the basis for the car was the GM N platform. This vehicle was also made available in four trim levels which comprise of the S, the SC, the SL, and the SCX. The engines that were mounted on the Oldsmobile Achieva through the years that it was being manufactured included the high output version of the 2.3 L Quad 4 LD9, as well as the 3.1 L V6 engine.

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