Accessory/Options - What's the Dealer's COST?

7075 Views 5 Replies 5 Participants Last post by supamann, May 15, 2003

TheLusciousHellcat

Discussion Starter · May 14, 2003

I've got an offer of $500 to $1500 under MSRP for the car and one offer of $500 off MSRP *and* Dealer's COST on accessories/options.

Let's set aside these car prices for the moment. It's not that sweet a deal. I don't like thinking in terms of "under MSRP" but rather "over invoice." I do understand that holdback is included in the invoice, so dealing close to that is my goal.

So, let's focus on the little extra doodahs that I want - foglights (and I still may go with a 3rd party vendor like Hella or Piaa), front/rear bumper trim, side steps, splash guards, leather wheel, etc.

Now, is the dealer going to tell me their cost is something like 99% of the MSRP on these items? If so, I will kind of shake my head, dig in my purse, get my cell phone, and make a call to H-and-A right in front of them. :roll:

So what's their cost on these items as a percentage of Honda's MSRP? Oh and btw, I've seen some dealers price their options above Honda's MSRP too! :evil:

I'd like to $ave money but there is also a certain value in not messing with delivery and my subsequent installation (which might be pretty scary!).

This info will help me run some numbers and rule out some dealers. I'm getting close to the day I deal. Besides, every day I wait, I keep on thinking of even more doodahs I want to do on the car - such as the Fiamm El Grande horn, or Xenon headlights. Knowing myself, however, I know that the shock and awe of writing a $20K plus check will stop any further notions of spending money and I'll feel like eating beans and rice for a month just to be frugal. Buying sooner will save me money. :lol:

Any thoughts? Will? Supamann? Anyone? :wink:

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hambone

· #2 · May 15, 2003

hi tlhc,

the perspetive i used was to decide on the vehicle i wanted, the accessories i wanted and then without compromise calculate the cost ( you can even do this on honda's web-site ).

from here i went around to the different dealers in the area and said "how much?". after going around to the dealers again i picked the one with the best price...

when i first tried this they wouldn't quote me a price. after i did manage to get one price, however, the rest were more anxious for my business...

good luck with your purchase !!!! ( was that a clutch of flowers, a box of chocolate, and an equiped 'e' that was required for a HellCat upgrade ?

)

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supamann

· #3 · May 15, 2003

Hellcat, not certain the average markup on parts/accessories with labor at most dealers, but our average markup is 30%. Our sales dept. pays the same as the customer (Honda's MSRP), so to offer you parts at OUR cost, would be Honda's retail (DOH)

I think that is about the average though. From cost to retail should be around 30%. So if you buy $1000 worth of accessories, you might save $300 approximately.

I know many people use H & A and many other services for accessories, but for me if the cost difference is minimal and can be negotiated close to the price you could do it yourself, I think you'd be crazy not to use the dealer. That's just my opinion though.

When I bought my big screen TV (paid like $2700 with tax and all) I debated for 10 minutes on whether or not to get a truck (free), get a friend to help load and unload and drive it 30 minutes to home, risk breaking something and the delivery fee was only $90 to come in a covered "wagon" with professionals that would set it up. The sales guy looked at me and said are you serious? After further thought, I said yes, that would be a little crazy and paid the $90.

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Staggie

· #4 · May 15, 2003

Supaman,

Thanks for the post, but I have to question stating your dealership's accounting policy of charging the sales department MSRP and suggesting it reflects cost. The dealership doesn't pay msrp for the accessories. And in this area, they post a much greater than 30% markup on parts (fog lights for $899, keyless for $450!). As to buying from handa-accessories or hondacuraworld, they're 30-35% less than the msrp with no negotiation or haggling; a floormat is exactly the same whether I buy it from a dealer or not.

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isketerol

· #5 · May 15, 2003

I got accesories at basically 50% of list through a client whose wife works at Honda Canada. That was her employee price.

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supamann

· #6 · May 15, 2003

[quote:30a5b9769f="Staggie"]Supaman,

Thanks for the post, but I have to question stating your dealership's accounting policy of charging the sales department MSRP and suggesting it reflects cost. The dealership doesn't pay msrp for the accessories. And in this area, they post a much greater than 30% markup on parts (fog lights for $899, keyless for $450!). As to buying from handa-accessories or hondacuraworld, they're 30-35% less than the msrp with no negotiation or haggling; a floormat is exactly the same whether I buy it from a dealer or not.[/quote:30a5b9769f]

Staggie, I can only speak for our dealership. Our parts/service is making money on US, no doubt (approximately 30%). Our sales dept. makes nothing off the sale of accessories (they do give spiffs to the sales dept). We charge by the book, the recommended price by Honda w/installation and labor also set by Honda. Good deal for our service guys and overall it makes it simpler for our customers/salespeople too. We have accessory guides all around the dealership that match Honda's site. The price is the price, you want it you get it. No haggle, no gouging, fair enough?

BTW, our price for foglights and keyless, genuine Honda w/installation:

Foglights = $565
Keyless = $530
Floormats = $148 and $158 (and yes, there is no difference if you install them yourself).

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