2017 Ford Focus
: invoice 22,514, retail 23,575 - a 4.5% gross profit.
2017 Honda HRV
: invoice 25,406, retail 26,140 - a 2.8% gross profit.
2017 GMC Acadia AWD
: invoice 44,574, retail 46,920 - a 5.0% gross profit.
2017 Hyundai Elantra
: invoice 21,311, retail 22,350 - a 4.6% gross profit.
2017 BMW 3-Series Sedan
: invoice 46,905, retail 49,900 - a 6.0% gross profit.
2017 Jeep Cherokee
: invoice 36,564, retail 37,695 - a 3.0% gross profit.
2017 Lexus ES Sedan
: invoice 36,438, retail 38,900 - a 6.3% gross profit.
This shocker illustrates just how incredibly gullible the auto industry thinks we are:
2017 Chrysler Pacific Hybrid Minivan
: invoice 44,895, retail 44,995!
And that's if you pay the full sticker price! Who does that? The guy who thinks Taco Bell is a Mexican phone company.
Add the fact that every dealership has an overhead expense of 12% to 15% of its revenue, and you'd have to be brain dead to believe the invoice price is any new car's real cost.
Yet all the info and advice on those auto websites is based on our swallowing - hook, line and sinker - the preposterous notion that for decades, automakers have been telling everyone what their dealers pay for their cars. If that were true, dealers would go ballistic. But they don't, and they never did, even before the Internet arrived.
"I never did give anybody hell.
I just told the truth, and they thought it was hell.
- Harry Truman
The inside story of the discovery of that game-changing fact is told in our book, "Letting The Cat Out Of The Bag: How The Auto Industry 'Redesigned' The Dealer invoice Price When The Internet Arrived," available in paperback and Kindle format at Amazon. To read the back cover copy, Preface, Table of Contents and the first four chapters, click here. If you'd like a author-signed copy ($14.95 including postage), you can add that to your order for the Fighting Chance information package.
Here's Bragg's Take On Those Consumer Auto Pricing Sites
Those sites are: (a) pitching the range of what other clueless shoppers have paid as the "holy grail" of transaction prices, (b) using rebates (which everyone gets) and a comparison of their prices to the full sticker price (which almost no one pays) to inflate their claims of "savings" from using their services, and (c) sending you on a 'milk run' to a small number of dealers in their "networks," who relish the thought of selling you a car at those prices and reward those "conduit sites" handsomely with the advertising and/or "finder's fee" dollars that come out of your pocket.
Question: When you're thinking about getting a new car, are you sitting there saying, "Gee, I hope I get a price that's close to what everyone else is paying?"
"The truth is incontrovertible. Malice may attack it.
Ignorance may deride it, but in the end, there it is.
- Winston Churchill
This Transaction Report Is An Eye-Opener
"Using your method, I got a great deal on a Kia Optima EX with Premium and Technology packages. The total invoice price (including the regional advertising fee) was $28,521. My price was $27,535, $986 below the invoice. And that was BEFORE subtracting Kia's $2,000 rebate!."
"I checked TrueCar.com, and their best estimated price was $27,521, which at first seemed impressive. But when I read further, I learned that their price INCLUDED that $2,000 rebate! MY PRICE BEAT THEIRS BY $1,986! So in reality TrueCar is worthless to anyone who wants the best price."
B.C., Wade, NC. (Here's a cornucopia of great testimonials).
These Are The Facts About How Most Dealer Incentive Programs Work Today
It's 2017, not 1994, and that world isn't flat anymore, it's round.
90% of the bucks spent on "dealer cash" are in multi-month programs based on total sales targets, NOT sales of specific vehicles. The rewards can be six-and seven-figure bonuses. Some are "stair-step" promotions, in which per-vehicle bonuses increase as dealers reach higher volume thresholds. And no one can tell you any dealership's target or performance level, or when these programs start and end.
So reaching month-end goals along the way is crucially important. There's a lot of seasonality in the business, and dealers can't go into the last month 15% behind where they should have been based on that seasonal pattern. That keeps steady sales pressure on, month after month. Dealers trailing their monthly targets near month-end will sell for much less, and that's likely to be different dealers each month.
What Can Fighting Chance Do For You That All The Others Can't
1. You'll have in us the only independent, unbiased source of truthful information and powerful negotiating advice on the Internet.
2. In the package's "centerpiece," How The Phone+Email Attack Can Get You The Best Deal, Saving You Time, Money and Aggravation, you'll learn exactly what to do and say each step of the way as you conduct a competitive bidding process from your home or office. Ideally, you'll enlist 9 or 10 dealers that you choose to make price proposals, and you'll go with the winner. We also tell you the best day of the month to start the process.
It's not unusual to have a $1,000 to $2,000+ difference between the high and low bidders on even a mid-priced vehicle. And this month's high bidder may be next month's low bidder, depending on where a dealership stands vs. its hidden targets. (Check our long list of testimonials here. Note there how far off the mark those auto info websites "target prices" can be!) This is why it's nuts to aim for any "target price." That puts a floor under your price, when some dealer might sell for less, maybe a lot less.
3. YOU'LL HAVE US AS YOUR COACHES as you go through the process. Got a question? Call us. Want to run the numbers before you sign a lease? Call us. There's no such thing as a "silly question" here. We've been at this for over 20 years, and much of our knowledge has come from our customers' feedback.
4. You'll receive our signature "Big Picture" analysis of how the brand(s) and the specific vehicle(s) you're interested in have been doing in the market. Are sales up or down so far this year? Does the average dealer sell 2 per month or 22? This piece also reveals the current "holdback" information for brands that use it (several don't).
5. You will, of course, get the complete current sticker/MSRP and dealer invoice pricing data for the vehicle(s) you're considering, covering all trim levels and equipment packages. Here's a current list of model pricing available.
Our unique $39.95 package includes all the information you need to negotiate the best price on for any one vehicle. Additional vehicles are $15 each. You may place an order here on a secure, encrypted order form at any time.
You'll Also Get All These Other Insightful Car Buying Facts And Tips
"Can You Get The Vehicle Configuration You Want?"
"How We abandoned Our Inborn Common Sense About New-Car Pricing."
"Things To Consider About Placing a Factory Order."
"Have You Chosen A Crashworthy Vehicle?"
"Thoughts On Buying A Demo or Last Year's Leftover Model."
"How The Industry Has Turned The Invoice Price Into A Bloated Imposter
By Continually Raising It By More Than The MSRP For Over Two Decades"
"Dealing With A Trade-In." (If you tell us you have one.)
"How To Avoid The Big Leasing Rip-Off." (If you tell us you're leasing or undecided.)
"Here's The Information We Need To Analyze Your 'Best-Offer' Lease Numbers With You." (If you tell us you're leasing or undecided.)
"What I've Learned About 'Below-The-Line' Dealer Cash Programs, Facts No One Else Is Telling You."
"Today Incentives Often Differ From Market To Market. Here's How To Check The Offers Where You Are."
"The Crucial Financial Importance Of A Dealership's Customer Satisfaction Rating."
"The Myth Of Vehicle-Specific Dealer Cash Incentives."
"Should You Buy An Extended Warranty?"
Check Out The Quality Of These Two Pieces Under "Smart (Free)
Advice For New-Car Shoppers" In The Upper Left Column Of This Page .
"Learn How To Get The Beat Pricing When Leasing A New Car," the clearest explanation you'll find of what leasing's all about.
"Test Driving 101 - How To Test Drive Without Buying," telling you how to handle that important process without getting into a price negotiation.
Special Message To Previous Customers
The Fighting Chance package is always changing to reflect new knowledge and the best ways to deal with the changing realities in the retail car business. Sometimes the changes are dramatic. For example, the method for getting competitive bids differs substantially from the arms-length "fax attack" process we recommended just a few years ago. At other times the changes are small, but represent worthwhile improvements. The suggested wording in the note you'll send dealers is fine-tuned often. The package you'd receive today will typically include several insightful changes compared to the one you ordered years ago.
The Cost Of This Unique Package
$39.95 (Includes all the information you need for any one vehicle.)