Honda Ridgeline Owners Club Forums banner

641 - 660 of 1437 Posts

·
Registered
Joined
·
554 Posts
Discussion Starter #641
We are paying $500 over invoice, $39,718.83, for our RTL-E through Costco's auto buying program, which uses Costco-negotiated preset pricing.
I noted that another poster argued that this was $500 too much.

I don't know what RTL-E's are selling for in your area right now, but like all new vehicles (and for that matter homes), the real value is a function of what people are willing to pay for it at the time you buy. It may very well be that these vehicles are typically selling for $1,000 over invoice in your area right now. I don't know.

Having used the Costco service for my G1 purchase, I'm intrigued that they will offer to negotiate in cases where the vehicles go for a premium over invoice. In my case, I didn't use the Costco buying service in the end, but used it to negotiate a deal (that I thought was a little better when my trade-in was included - hard to know for sure) elsewhere. But with the apparent shortage of new RTL-E's out there and the litany of outstanding reviews, $500 over invoice may be a great deal in some areas. I don't know.

I also agree with your point in a post below that your time is valuable and spending lots of time on negotiations may, in the end, cost you.
 

·
Registered
Joined
·
173 Posts
OTD price $41980 using USAA car buying service. RTL-E Deep Scarlet Pearl, Beige interior, no dealer add on accessories. No trade, no financing.
 

·
Registered
Joined
·
242 Posts
I noted that another poster argued that this was $500 too much.

... $500 over invoice may be a great deal in some areas. I don't know.

I also agree with your point in a post below that your time is valuable and spending lots of time on negotiations may, in the end, cost you.
Since you referred to me twice.

Yes, IMO... anything over invoice is overpaying. Absolutely. Always. No matter the area. West coast. East coast. They can sell them below invoice and make money. They can sell them at wholesale and make money. (My wife's 2016 CR-V was a left over... paid $2,000 under invoice).

But yes, you will pay whatever the specific dealer will allow.

In my RL buying experience...

Me:
"Hi, I'm calling in regard to the white RTL-T Ridgeline you have. I'll be up in 15 min. to buy it if I can have it at invoice"

Salesman:
"I'll confirm it's available and pricing, I'll be right back"

(2min hold time).

"Yes, it's available. Price is OK. You'll be up in 15 min then?"

Me:
"Yes. Great. See you soon"

That's was 5 min duration... (call it negotiating if you may)

You're buying a new Honda. Not a used car that varies based on numerous factors. New massed produced cars are like buying appliances. Should not be hard (dealers manipulate and take advantage of uneducated consumers. Its disgusting)
 

·
Registered
Joined
·
1,069 Posts
Should not be hard (dealers manipulate and take advantage of uneducated consumers. Its disgusting)
Yes... that part always leaves a bad taste in my mouth about car dealers. We had one just up and lie saying they were the only ones who had them in... while we were sitting in a different lot 20 minutes south looking at 4 or 6 of them.

That said... when we got our AWD RTL, we just threw out "32k" to get out of there because the sticker was mid 36k something, and they took it... It ended up being 36k even OTD, with us saying, this is the check, you guys figure out the pricing break down on your end.
 

·
Registered
Joined
·
554 Posts
Discussion Starter #645 (Edited)
Yes, IMO... anything over invoice is overpaying. Absolutely. Always. No matter the area. West coast. East coast. They can sell them below invoice and make money. They can sell them at wholesale and make money. (My wife's 2016 CR-V was a left over... paid $2,000 under invoice).
As Edmunds notes in the following article, "When cars are new in the marketplace, such as the Mini Clubman, they often command over-sticker prices." There are plenty of historical examples of this. You can insist on paying no more than sticker price, but then someone else may get it instead of you.

Automobiles are a commodity and as such command prices dictated, in part, by the marketplace. You can certainly take a position that you will never pay over sticker price, and you won't, but if there is only one car available in the configuration you want, when you want it, and others are willing to pay more, the car dealer is likely to sell to the highest bidder. So you won't pay over sticker, but you won't get the car. This is no different really than real estate. Someone lists a home for a given amount of money, but people who really want it will often offer more.

I'll use myself as an example: I wanted to buy an RTL-E right when it came out in June. I found one dealer (and only one) within 500 miles with an RTL-E that was silver (the color I wanted). I was offering cash and no trade. I was willing to pay sticker. They insisted on various (mostly useless and all undesired) add-ons for about $1,500. They would not sell without. Thus I could not buy the car from them. A second dealer had an RTL-E in metalic grey (my second choice), but would not sell it without $500 in add-ons. I was about to buy it (I was in a time crunch), but while driving to the dealer literally saw an RTL-E in forest mist being unloaded from a transport truck at another dealer. There was also a black edition that had pre-sold. I compromised on the color (I'm quite happy with it now) and paid list. Nice! But, the only way to get an RTL-E in the color I wanted was to pay above sticker.

Whether it's a good idea to pay above sticker is a philosophical argument and related to your personal financial circumstances and views. It's sometimes necessary though, to get the vehicle you want, when you want it.

https://www.edmunds.com/car-buying/pricing-basics-for-new-car-buying.html
 

·
Registered
Joined
·
22 Posts
i can't seem to get much money off MSRP pricing here in Canada, Manitoba. How are you guys getting invoice!!

Teach me how to wheel and deal ;)
 

·
Registered
Joined
·
554 Posts
Discussion Starter #648
Me not paying more than invoice pricing is one thing.

Paying sticker price for a Honda is another... CRAZY
I suppose part of this is an issue of the relative desirability of the RTL-T (which it appears you bought), especially in your area. I agree with the general approach that making a firm, take it or leave it cash offer is a useful bargaining tool and can avoid messy negotiations, but as you've noted, it only works if the dealer thinks its in their best interest to take it (i.e. thinks it will be hard or take a long time to sell it for more). The RTL-E's seem to have been a hot commodity initially, maybe still, in most places. I don't think I've read here about anyone getting them at invoice, but I may have missed something. The RTL-T's I don't know. I have not noticed if others in this thread have found great deals on them.
 

·
Registered
Joined
·
242 Posts
I suppose part of this is an issue of the relative desirability of the RTL-T (which it appears you bought), especially in your area. I agree with the general approach that making a firm, take it or leave it cash offer is a useful bargaining tool and can avoid messy negotiations, but as you've noted, it only works if the dealer thinks its in their best interest to take it (i.e. thinks it will be hard or take a long time to sell it for more). The RTL-E's seem to have been a hot commodity initially, maybe still, in most places. I don't think I've read here about anyone getting them at invoice, but I may have missed something. The RTL-T's I don't know. I have not noticed if others in this thread have found great deals on them.
I didn't even want the RTL-T, I wanted the RTL. The RTL was the tough thing to find (100+ mi away). RTL-E and BE were plentiful as well.

Essentially, whatever trim level I wanted I was getting at invoice at either dealership I was buying from. Availability was the issue....white w/black leather was my main requirements. I just bit the bullet and took the RTL-T sitting on the lot 4mi from my house. Was not desiring the features or price of the RTL-E and the BE is black (hell no).

Didn't pay cash (I don't really think that matters). I financed. The bank/credit union is paying the dealership just the same as a personal check from me would.
 

·
Registered
Joined
·
173 Posts
Anybody pay all or part by credit card?
I put $1000 deposit on mine with a credit card. Had to go to dealer about 100 miles from home to get the one I wanted and it was being built when I found out which dealer had it ordered. The deposit was done over the phone to be sure to hold the truck for me and went toward the cash purchase I did when I picked it up.
 

·
Registered
Joined
·
1,069 Posts
As several have pointed out...

1) The price you can get for a particular vehicle is dictated by the local demand and desire for dealers to move that vehicle that day.
2) What one is willing to pay depends on how much they want what they want, when they want it.
 

·
Registered
Joined
·
784 Posts

·
Registered
Joined
·
242 Posts

·
Registered
Joined
·
13 Posts
New member here. Getting close to my purchase. Thought I would share what I have found so far on pricing, specifically Costco pricing.

No participating dealers in the St. Louis area. We do have Toyota dealers participating. So I called them and they expanded their search and found the closest participating dealer in Peoria, IL. That's about three hours away, but also where my in-laws live so not out of the question to purchase there.

They followed up and stated that the Costco pricing is $2,000 over invoice. Not the same as the $500 over invoice I thought I read in this thread from another dealer. I'm sure it varies around the country.

So for the RTL-E, they quoted me a price of $40,839 which does include the destination. Works out to $1,571 below MSRP when you include destination.

I'd really love to negotiate for $500 over dealer cost. When I figure in holdback, I come up with dealer cost of just about $39,000, so would love to get for $39,500.

Willing to wait a bit and check in with the dealers around town right at the end of each month and see who is willing to deal.

Looking forward to getting a new vehicle. Moving up from a 2005 Tacoma Sport Prerunner (2WD).

John
 

·
Registered
Joined
·
554 Posts
Discussion Starter #656 (Edited)
Here are some promotions from one of our local dealerships:

https://www.hondaoftysonscorner.com/new-inventory/index.htm?search=ridgeline&saveFacetState=true&lastFacetInteracted=

These are pretty typical of the prices I see routinely advertised around here. Typically, 10% off msrp is their starting price for mid-trims.
That gives an idea of why there are better deals available (e.g. invoice pricing) on the lower trim levels. Seems like the RTL-E is still in high demand (per this dealer's pricing), but that there are great deals on lower trim levels.
 

·
Registered
Joined
·
242 Posts
New member here. Getting close to my purchase. Thought I would share what I have found so far on pricing, specifically Costco pricing.

No participating dealers in the St. Louis area. We do have Toyota dealers participating. So I called them and they expanded their search and found the closest participating dealer in Peoria, IL. That's about three hours away, but also where my in-laws live so not out of the question to purchase there.

They followed up and stated that the Costco pricing is $2,000 over invoice. Not the same as the $500 over invoice I thought I read in this thread from another dealer. I'm sure it varies around the country.

So for the RTL-E, they quoted me a price of $40,839 which does include the destination. Works out to $1,571 below MSRP when you include destination.

I'd really love to negotiate for $500 over dealer cost. When I figure in holdback, I come up with dealer cost of just about $39,000, so would love to get for $39,500.

Willing to wait a bit and check in with the dealers around town right at the end of each month and see who is willing to deal.

Looking forward to getting a new vehicle. Moving up from a 2005 Tacoma Sport Prerunner (2WD).

John
Invoice is not what your St. Louis dealership paid Honda to acquire the truck.

Invoice on an AWD RTL-E is $38,839 with destination. That should be your goal

New 2017 Honda Ridgeline RTL-E 4x4 Crew Cab 5.3' Bed MSRP Prices - NADAguides

"Dealer cost" is below that $38,839, which is wholesale price.

Their "holdback" is a guaranteed % of the Base MSRP on the AWD RTL-E $41,470.

This says Honda's holdback is 2% (circa 2013):
https://www.edmunds.com/car-buying/dealer-holdback/

So 2% of $41,470 is going straight dealer's pockets; $829

So they're making the margin between wholesale and invoice price and that 2% holdback. Plus all their BS dealership processing fees... THEY'RE MAKING MONEY on the sale

That gives an idea of why there are better deals available (e.g. invoice pricing) on the lower trim levels. Seems like the RTL-E is still in high demand (per this dealer's pricing), but that there are great deals on lower trim levels.
Dealerships love this mentality... the consumer already convinced themselves there is no better deal available. Their marketing scheme worked as designed.. consumer thinks the lower trim levels are "more plentiful" and less desirable. Then the higher trim levels are few and far between and are more desirable. More margin. More sales revenue. GREAT

Reality is: the same discounts are plausible across all trims.
 

·
Registered
Joined
·
13 Posts
Makes sense. $38.839 is their invoice including destination.

That includes their 2% hold back profit along with any other incentives they may get from Honda.

All that make a great theory. Supply and demand is another time proven theory.

I'll take my time, check inventories, walk out of dealers, and see what happens.
 

·
Registered
Joined
·
554 Posts
Discussion Starter #659
Reality is: the same discounts are plausible across all trims.
Maybe. Until someone shows that it's possible, we won't know. You have made some fairly bold claims here, but the reality is that the ad suggests that for one dealer, the RTL-T (which you bought) is being heavily discounted, whereas the RTL-E is not.

https://www.hondaoftysonscorner.com/new-inventory/index.htm?search=ridgeline&saveFacetState=true&lastFacetInteracted=

You could be right and a very savvy bargainer. Or you could be a beneficiary of the relative popularity (or not) of different trim lines.
 

·
Registered
Joined
·
242 Posts
Maybe. Until someone shows that it's possible, we won't know. You have made some fairly bold claims here, but the reality is that the ad suggests that for one dealer, the RTL-T (which you bought) is being heavily discounted, whereas the RTL-E is not.

https://www.hondaoftysonscorner.com/new-inventory/index.htm?search=ridgeline&saveFacetState=true&lastFacetInteracted=

You could be right and a very savvy bargainer. Or you could be a beneficiary of the relative popularity (or not) of different trim lines.
I had invoice pricing available to me for RTL-E and the BE sitting on their lot too... whatever I wanted, "choose" they said.
 
641 - 660 of 1437 Posts
Top