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Do we know what the holdback percentage is on a Ridgeline? Why is the destination fee the same in Alabama as I is in California or Maine?


I've never known a destination fee to vary based on location (except maybe Alaska and Hawaii). The cost is averaged out across all dealers.


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Discussion Starter #42
Trading is worse because they screw you twice instead of once.

Trading also clouds the useful meaning of all numbers involved because they often reduce one and add to the other for various reasons.
The sweetest option to avoid all this is to go to Carmax and get a free purchase offer. They inspect the vehicle and give you a solid offer good for seven days. It's probably not as good as a private sale, if you want to go that route, but the great part is you get bargaining leverage.

Next step is to go to the dealer and negotiate without a trade-in and see what you get. Then say, well, this is too much. What would you give me if I decide to trade in? No point in mentioning Carmax. The dealer might offer more. If the dealer offers less, let them know the Carmax offer. They can match it, beat it, or reject it. In the latter case, you can still sell to Carmax. Worked great for me. Interestingly enough Carmax offered $6,500 and the dealer offered $7,000 (again this was after negotiations on the new truck).
 

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The sweetest option to avoid all this is to go to Carmax and get a free purchase offer. They inspect the vehicle and give you a solid offer good for seven days. It's probably not as good as a private sale, if you want to go that route, but the great part is you get bargaining leverage.

Next step is to go to the dealer and negotiate without a trade-in and see what you get. Then say, well, this is too much. What would you give me if I decide to trade in? No point in mentioning Carmax. The dealer might offer more. If the dealer offers less, let them know the Carmax offer. They can match it, beat it, or reject it. In the latter case, you can still sell to Carmax. Worked great for me. Interestingly enough Carmax offered $6,500 and the dealer offered $7,000 (again this was after negotiations on the new truck).
I did the same thing and Carmax offered 1,000 more than the dealer. It helped get them to offer more.
 

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Keep in mind that in some States you only pay tax on the difference between your trade-in and your new car. In other words, if you had a $20,000 trade-in, you might save $1200 or-so in taxes (depending on your States's sales tax rate) if you go through the dealer rather than Carmax or a private sale.

On the other hand, we have a couple of dealers who will offer $500- $750 more than Carmax. It actually worked. I sold a car to one of these dealers and got the $$$.
 

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Do we know what the holdback percentage is on a Ridgeline?
Holdback for all Hondas is 2% of MSRP (excluding destination and dealer add-ons). Many dealers won't negotiate holdback and I don't blame them. They've got to make some profit - it's not fair for them to give away vehicles.

So, even you paid cash for a new Ridgeline Black Edition at "invoice", the dealer will still make at least $857.40 on it (more than fair profit). If the dealer can't pay the bills on this amount of profit, then there is too much overhead and you need go to the next dealer.

For those paying MSRP, you just gave the dealer (NOT Honda) at least $4,550.40! That's simply too much profit for a mass-produced vehicle. Period. No matter what. The dealer pays Honda the same for their first Ridgeline as for those they will receive this time next year. The only difference is that more people (such as early adopters) will be paying thousands more than they should.

If you trade in a vehicle for a new Ridgeline and pay MSRP and let the dealer handle the financing, it wouldn't be unrealistic for them to make almost $7,000-$8,000 profit. That's robbery and greed at its finest. But, that's how the game works - as long as there are customers willing or able to overpay, dealers will continue gladly taking their money. Not this boy! No, sir-ee.
 

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Comes back to say, we can't waive the $900, but good news, we are going to add a number of things to the car (e.g. door edge guards, special tires and wheels, nitrogen in the tires, etc., etc.). That will be $2,600 on top of MSRP and delivery charge.
they offered to charge you 2600 dollars more as a consolation for not dropping the 900 dollar fee? wow that is super awesome of them. Internet salesman you say? I would have driven down to the dealer just to laugh in his face. what a POS.
 

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Holdback for all Hondas is 2% of MSRP (excluding destination and dealer add-ons). Many dealers won't negotiate holdback and I don't blame them. They've got to make some profit - it's not fair for them to give away vehicles.

So, even you paid cash for a new Ridgeline Black Edition at "invoice", the dealer will still make at least $857.40 on it (more than fair profit). If the dealer can't pay the bills on this amount of profit, then there is too much overhead and you need go to the next dealer.

For those paying MSRP, you just gave the dealer (NOT Honda) at least $4,550.40! That's simply too much profit for a mass-produced vehicle. Period. No matter what. The dealer pays Honda the same for their first Ridgeline as for those they will receive this time next year. The only difference is that more people (such as early adopters) will be paying thousands more than they should.

If you trade in a vehicle for a new Ridgeline and pay MSRP and let the dealer handle the financing, it wouldn't be unrealistic for them to make almost $7,000-$8,000 profit. That's robbery and greed at its finest. But, that's how the game works - as long as there are customers willing or able to overpay, dealers will continue gladly taking their money. Not this boy! No, sir-ee.
The holdback total is 3.5% of MSRP not including the $900 destination. So MSRP-900 x 3.5% gives you the net cost of the truck.
 

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The holdback total is 3.5% of MSRP not including the $900 destination. So MSRP-900 x 3.5% gives you the net cost of the truck.
Source?

Edmunds says 2% for Honda. So does TTAC. So does TRUECar. They don't show any manufacturer with more than a 3% holdback.

If Honda have increased their holdback to 3.5% (which I can't confirm and is very unlikely), then that's even more reason not to pay MSRP and the dealer will make almost $1,300 by selling the vehicle at invoice.
 

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All of this negotiation/holdback/invoice conversation is useless right now. This is a brand new vehicle (still not even on the website as of today) there is no bargaining power right now. And for those felling superior because you are going to wait a couple months and get a super deal over what others are paying now........get over yourself, not going to happen. There have never been tons of Ridgelines at liquidation prices sitting on a lot. With today's lean manufacturing methods there wont be any soon either. You wanna get the best negotiated price on a truck, go buy some used piece of **** nobody wants. Other than that we are all going to pay roughly the same price now, next month, next year....


(sorry, woke up a little pissed about Warriors Game 7 loss, haha)
 

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All of this negotiation/holdback/invoice conversation is useless right now. This is a brand new vehicle (still not even on the website as of today) there is no bargaining power right now. And for those felling superior because you are going to wait a couple months and get a super deal over what others are paying now........get over yourself, not going to happen. There have never been tons of Ridgelines at liquidation prices sitting on a lot. With today's lean manufacturing methods there wont be any soon either. You wanna get the best negotiated price on a truck, go buy some used piece of **** nobody wants. Other than that we are all going to pay roughly the same price now, next month, next year....
I hate to be the one to break the news, but you're precisely the type of buyer that car salesmen feast off of.
 

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OK master negotiator, i'll be on the lookout to see the details on your super negotiated purchase soon. By the way, i'm gonna guess you're a Black Friday shopper. Am i right?
 

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OK master negotiator, i'll be on the lookout to see the details on your super negotiated purchase soon. By the way, i'm gonna guess you're a Black Friday shopper. Am i right?
If I purchase a G2 (which is unlikely at the moment) I'll gladly share my numbers the way I always do.

No, I avoid Black Friday "deals" like the plague. They are often lower-quality or feature-reduced "Black Friday" versions of products - more so now than ever. If I'm in the market for a particular, normally-sold item that happens to be discounted on Black Friday and the deal can be had online without visiting a brick-and-mortar store, then I'll take advantage of it.
 

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All of this negotiation/holdback/invoice conversation is useless right now. This is a brand new vehicle (still not even on the website as of today) there is no bargaining power right now. And for those felling superior because you are going to wait a couple months and get a super deal over what others are paying now........get over yourself, not going to happen. There have never been tons of Ridgelines at liquidation prices sitting on a lot. With today's lean manufacturing methods there wont be any soon either. You wanna get the best negotiated price on a truck, go buy some used piece of **** nobody wants. Other than that we are all going to pay roughly the same price now, next month, next year....


(sorry, woke up a little pissed about Warriors Game 7 loss, haha)
I like your attitude. People like you are the reason dealerships can once and a while afford to give killer deals to people like me. Thanks!
 

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I spent some time this morning reading hundreds of posts from March 2005 forward. Most dealers were firm at MSRP for the all-new-at-the-time 2006 Ridgeline. Some wanted more than MSRP, but a few were willing to sell for a few hundred dollars below MSRP or throw in a few accessories. In a matter of days, hundreds off MSRP was being reported. Within two months after the Ridgeline was released, members were reporting $1,000 to $2,500 off MSRP.
 

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I got a $1000 off MSRP on my RTL-T purchased on 6/17/16, It was by luck that I got the deal though :)

I believe i was first person in my state to own one too :p
 

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I spent some time this morning reading hundreds of posts from March 2005 forward. Most dealers were firm at MSRP for the all-new-at-the-time 2006 Ridgeline. Some wanted more than MSRP, but a few were willing to sell for a few hundred dollars below MSRP or throw in a few accessories. In a matter of days, hundreds off MSRP was being reported. Within two months after the Ridgeline was released, members were reporting $1,000 to $2,500 off MSRP.
The same for most vehicles out there. If you are a little patient, after a new release, you'll save yourself thousands. If you are impatient, have to have it immediately then most likely you'll pay for the privilege. This isn't just the RL, any vehicle out there. It's like some have never bought a new release before. Their emotions or wants taking over their financial intelligence. It's like this for most fmc's. The initial feeding frenzy is never the time to buy and get a deal.
What was true when the Gen 1 came out is the same today. Be patient.

I got my 2006 in December 2005, at the end of the month for invoice. They didn't want to do it so I walked out. They called a day or two later with a "meet in the middle" offer to which I declined. I reminded them I had bought my S2000 a year earlier (also for invoice) from them and to not call or bother me again unless my terms were met. No more in the middle offers and even $1 over invoice I wouldn't pay so don't waste your time and quit wasting mine. The guy said something like "We can't sell you a vehicle for free, we have to make, something." I then informed him that he knows full well they get holdback $ so even if they sell at invoice, they profit. He then went on about how did I know this, etc, like its some super secret information and I started laughing. I let him know that I had been buying vehicles longer than he had been selling them. Another day or so went by, they caved. Silver RTL w/Nav, invoice + TTL.

Some people, who are always willing to walk, say no, and not in a hurry, are good at negotiation, and get a good price. The people who have to have it now, are impatient, well the sales guy sees this a mile away. Spring and summer are never the best times to score great deals on vehicles, December is. If you are willing to have two color choices, even better. If you want one of these trucks for a good price wait until fall, and December is best. And don't let it rain hard for a couple of days in a row. There is nothing new under the sun with new vehicle buying. The RL gen 2 is no different than any other vehicle when it comes to negotiation. It's brand new to the dealer network so go kick tires, drive it, offer what you are willing to pay, leave your contact information, and walk. Make them come to you. They want to sell, sell, sell, so you'll get your best price making them work for you and not the other way around. Right now people are tripping all over themselves to get one so why in the hell would you want to be in that initial crowd of suckers? And MSRP is for suckers.
 

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I wouldn't say MSRP is for suckers, I'll just say it would be a rare day that I would pay MSRP for a vehicle. I just negotiated a deal on a new 2016 RDX AWD with Advance package. When negotiations became serious (I had 2 dealers involved), I offered a price of xx,500 to dealer 1 who turned it down and tried to get me to commit to a price of xx,9xx. I wasn't very comfy with that and told him I'd think about it.

Shortly thereafter, I got a price under xx,500 from dealer 2 and planned to take it. I contacted dealer 1 and thanked him for the effort and told him I had an offer under xx,500 that I planned to take.

Within a short time, I had an offer of xx,000 from dealer 1 ($500 under what he'd earlier declined.) I took that deal. ;) (and thanked dealer 2 for his time).

There was a trade involved. It was interesting to see the value of the trade increase from $6500 to over $10,000 in the process. ;)
 

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There are too many unknowns when trading in a vehicle which is why I pay no attention to what someone "paid" for a new vehicle if a trade was involved.

NEW - TRADE = DIFFERENCE
40,000 - 25,000 = 15,000
45,000 - 30,000 = 15,000
35,000 - 20,000 = 15,000

You can't know what the trade is truly worth at the time of trade because it hasn't sold yet. Even after it sells, it still doesn't mean anything because its selling price will be affected by the buyer's trade, financing, negotiating skills, credit, etc. The value of one vehicle is affected by its associated trade and what it sells for and so on until someone comes in without a trade at which point this "rolling train of value" stops. A trade transaction can roll through several generations of sales before it finally stops.

A person presenting evidence that they paid $XX,XXX cash out the door for a 2017 Honda Ridgeline RTL-E is very useful and is the only meaningful scenario since the dealer's cost is known. Telling someone how much they paid for a new car when trading in their old car has little to no value.

SELLING PRICE - COST = PROFIT

Every time a dealer buys your trade, they are taking a risk. They must take reasonable steps to ensure a profit. They can use information from recent sales, auction reports, etc. then add a huge safety margin to help minimize the risk.
 
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