Nissan 370Z Forum - View Single Post

edeeZee · 08-13-2009, 11:04 AM

HiTec: do you even know what "holdback" or "dealer cash" is for?

If not, it's in the event the dealer cannot sell the new unit above invoice, and it works as a "base salary" from the manufacturer, in this case, Nissan.

"And it's difficult to have sympathy for a salesman/manager who refuses an offer that nets them $1k in profit from holdback, not to mention what they'll make from financing, because it's not $150 over invoice like they wanted."--where'd you get the accounting from? I think you're arbitrarily making this up.

My friend who was the general manager of Peyton Cramer VW/Lincoln/Hyundai told me flooring costs about 1% the price of the car per month. So for a base 370 @ $30K it's 0.01 x $30K = $300/month. I don't know where you got this 4% per year arbitrary figure, at 0.04 x $40K = 1,600/12= $133/month? Regardless of your perception of this cost, these cars DO NOT sit on the lot for FREE. Seriously, I doubt it only costs $133/month to floor a $40K 370. A GTR from my understanding is $90K x 0.01 = $900/month to keep that unit on the lot, not $900 for 3 months. There's more than flooring that entail the expenses of a dealer; there's the lease on the property i.e. land & improvements and the seperate lots that hold the excess inventory, electricity (the lights are on literally 24/7 inside and outside the store), phone bills are crazy high; salaries/commissions of workers in the dealer and service/parts dept; advertisement (I've seen invoices of $20,000 to run Fri,Sat, &Sun in the L.A. Times) and so forth. If I remember correctly, my friend said it was about $400,000 a month to run that SMALL VW/Hyundai/Lincoln store. It ain't cheap bottom line, but you make it sound like dealers are making killings off the "poor little" consumers.

Fusz: you're in St. Louis, the rest of the country is different in how they work prices or get allocation from Nissan. I do believe you that you sell @ invoice, never doubted it. I'm well aware of concepts of inventory and cost control. I studied operations management/finance in college. But thank you, I don't doubt your word.

It was 2001 when I mentioned my Vette anecdote. I'm pretty sure the bad economy changed that in today's times. But even around here in S. Cali, Nissan stores are reluctant to let you steal a Z near invoice. I know, I tried at 3 different dealers. The one I ultimately dealt with, the F&I guy tried every trick up his sleeve to get me to buy extended warranties and accessories.

I'm all for people getting deals. But when people come up with their "entitlement attitude" of dealers owing them 370's at or below invoice, this is ridiculous. Not all dealers will do this, as a matter of fact, many will turn you away if you lowball like this. If Fusz Nissan will sell to you @ invoice, so be it. Go over to St. Louis and get your 370 there. Go do VPP if you know someone who can hook it up.

Just my 2 cents.

08-13-2009, 11:04 AM	#26 (permalink)
edeeZee Track Member Join Date: May 2009 Location: s. cali, los angeles Posts: 627 Drives: 09 370z plat 6 speed Rep Power: 266	HiTec: do you even know what "holdback" or "dealer cash" is for? If not, it's in the event the dealer cannot sell the new unit above invoice, and it works as a "base salary" from the manufacturer, in this case, Nissan. "And it's difficult to have sympathy for a salesman/manager who refuses an offer that nets them $1k in profit from holdback, not to mention what they'll make from financing, because it's not $150 over invoice like they wanted."--where'd you get the accounting from? I think you're arbitrarily making this up. My friend who was the general manager of Peyton Cramer VW/Lincoln/Hyundai told me flooring costs about 1% the price of the car per month. So for a base 370 @ $30K it's 0.01 x $30K = $300/month. I don't know where you got this 4% per year arbitrary figure, at 0.04 x $40K = 1,600/12= $133/month? Regardless of your perception of this cost, these cars DO NOT sit on the lot for FREE. Seriously, I doubt it only costs $133/month to floor a $40K 370. A GTR from my understanding is $90K x 0.01 = $900/month to keep that unit on the lot, not $900 for 3 months. There's more than flooring that entail the expenses of a dealer; there's the lease on the property i.e. land & improvements and the seperate lots that hold the excess inventory, electricity (the lights are on literally 24/7 inside and outside the store), phone bills are crazy high; salaries/commissions of workers in the dealer and service/parts dept; advertisement (I've seen invoices of $20,000 to run Fri,Sat, &Sun in the L.A. Times) and so forth. If I remember correctly, my friend said it was about $400,000 a month to run that SMALL VW/Hyundai/Lincoln store. It ain't cheap bottom line, but you make it sound like dealers are making killings off the "poor little" consumers. Fusz: you're in St. Louis, the rest of the country is different in how they work prices or get allocation from Nissan. I do believe you that you sell @ invoice, never doubted it. I'm well aware of concepts of inventory and cost control. I studied operations management/finance in college. But thank you, I don't doubt your word. It was 2001 when I mentioned my Vette anecdote. I'm pretty sure the bad economy changed that in today's times. But even around here in S. Cali, Nissan stores are reluctant to let you steal a Z near invoice. I know, I tried at 3 different dealers. The one I ultimately dealt with, the F&I guy tried every trick up his sleeve to get me to buy extended warranties and accessories. I'm all for people getting deals. But when people come up with their "entitlement attitude" of dealers owing them 370's at or below invoice, this is ridiculous. Not all dealers will do this, as a matter of fact, many will turn you away if you lowball like this. If Fusz Nissan will sell to you @ invoice, so be it. Go over to St. Louis and get your 370 there. Go do VPP if you know someone who can hook it up. Just my 2 cents.