Invoice information?

[kags1969]

I was just wondering about what percentage markup they have in these Smart Cars? 15% ?

I also wonder how much under MSRP people in countries where the new has worn off? Any English browsers? Is there a English version of Edmunds or KBB?

[jwight]

We'll know more about this once people meet with dealers to finalize their deals. Bottom line is invoice isn't a player now - we're all paying MSRP. But I will ask for a copy of the invoice just to know what the numbers are. Based on the dollar/Euro exchange rate we are getting a good deal; I think prices on these cars will go up quite a bit once smart does their inevitable price adjustment.

John

[dancote]

Originally Posted by kags1969

I also wonder how much under MSRP people in countries where the new has worn off? Any English browsers? Is there a English version of Edmunds or KBB?

People in England pay much more for cars than we do here - including cars built in U.K. (Example: Jaguar XJ starts at $65,400 here - In England the least expensive XJ model not even available in the U.S. starts at 45,452 GBP ($88922)) When I worked there in the late 90s, it was not unusual for Brits to buy their cars from dealers on the Continent to save money.

[jwight]

That's changed a bit now that Britain is in the EU; there were several legal proceedings about the disparity in pricing and cars in the UK are not as overpriced compared to the rest of Europe as they've been in the past.

The other point is that a unit of currency in one country is seen exactly as a unit of currency in another country. Brits look at a pound the same way we do a dollar. So they see the 45K pound Jag as the same value we'd see a $45K car, not an $88K car. Hope that's not as confusing as it seems to be when I read it.

John

[Fredvon4]

You have to factor the difference in our state sales tax versus their (Value Added Tax) VAT and I assure you the prices stated for comparison above have the VAT added--- VAT is significantly higher % then our state sales tax is

Back to the original question... I know in Germany and England a customer can NEGOTIATE the price just like we do for most cars.... The Army COL who let me drive his 2005 fortwo said that he paid 16,500+/- Euro against a 19K Euro asking price at the Kaiserslautern MB Smart dealer... He did not pay the VAT via the MWR VAT relief program for DoD status of forces members (All soldiers, some civilians, but no Military retirees)

First year hot cars always sell for top dollar and it astounds me how many here at SCOA think PAG is doing us a favor with MSRP...

Sure, the history of Mata's, Minis, PT Cruiser and some other hot ticket cars shows that we are not going to be screwed AS MUCH--- but folks--- in the automobile market---- MSRP is ALWAYS too much.

I can only dream that I can get a 2009 at invoice + 3%~5% like I usually negotiate for.... 3%~5% is a fair profit for any product IMO..... the way the 2008 is starting out I suspect I will have to wait until 2010 for a negotiated deal on a Smart car.

For most cars or trucks in America, the MSRP is usually invoice +10~15% and some brands it approaches 23% ---according to Edmund's

I also know that you can not trust what INVOICE says either... in the case of FoMoCo there is a thing called Dealer Hold Back to consider...this basically is a Fraud FoMoCo and the Dealer pull on the customer... The Invoice in NOT what the dealer actually pays for the vehicle...Dealer Hold Back is a rebate FoMoCo pays back to the dealer the the amount they get back is based on how fast they move the unit

Other manufactures have similar creative book keeping processes that in essence are a fraud to the consumer...IMO

[saronian]

Originally Posted by kags1969

I was just wondering about what percentage markup they have in these Smart Cars? 15% ?

At the dealer introduction Roger Penske said the discount structure was 7% plus a 2% marketing bonus for selling within your primary marketing area.

This was from the Business Model video at autonetwork.com