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I believe the 3's MSRP is about 7% above invoice. What kind of profit you leave them with will depend on many things, including how firm you are and how desperate they are for the sale. You *can* get them at invoice or slightly above, depending on the market that you're buying in. *Don't* ever feel guilty about leaving them with "too little" profit. They won't sell it if it's of no benefit to them. *Do* make sure you're realistic about what you're asking, though. For example, if you go in tomorrow and insist on paying invoice despite the fact that they already sold 10 last week at 5% above invoice then your chances of getting it for your desired price are pretty slim. If it's the end of the month, sales have been slow or slower than expected, and their trying to pretty up their sales figures, though...Do your research, make it obvious to them that you've done your research, make it obvious to them that you are serious about purchasing soon and that you are also serious about getting a good deal. Shop around. If there are 5 dealerships in your area and getting the best deal possible is that important to you then visit all 5.
 

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Always be one step ahead of the dealer. The more you know, they cant take advantage of you. Definately take your time and shop around. Always remember, the invoice price you see on the net (www.edmunds.com) and what the dealer shows you invoice price.. isnt the price they pay. Keep in mind that the dealership doesnt own the car, they display it for the manufacturer.

Therefore, if you could get the car a invoice or a few hundred above (general rule of thumb, never pay more than $500 above invoice) then your doing great.

My friend, did a quick analysis on what the dealer makes off the car. I paid less than $300 above invoice. He estimates Mazda will pay the dealer about $800 for the car they sold.
 

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Mine actually wrote down its invoice price on the 3 while we were negociating; they make about CAN$1640 off of each MZ3 when they sell it at MSRP.

I managed to split that in half, personnally. I negociated mostly on accessories and add-ons (winter tires, etc.). I probably could have done better by annoying the heck out of my rep for longer.
 

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Discussion Starter #6
fleecy said:
Mine actually wrote down its invoice price on the 3 while we were negociating; they make about CAN$1640 off of each MZ3 when they sell it at MSRP.

I managed to split that in half, personnally. I negociated mostly on accessories and add-ons (winter tires, etc.). I probably could have done better by annoying the heck out of my rep for longer.
Just wondering, when the dealer say 1640, is that calculated by MSRP-invoice? or does it also include factory rebates/hold backs etc..?
 

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the way i figure it is go to edmunds.com,like already listed here, get the invoice for the car and options you want and start at $5-600 under invoice,gives you room to barging, but dont pay no more then $500 over invoice.
 

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MSRP is about 7-8% above the Invoice for the 3 depending on trim level. The same is true for the RX-8 and Mazda6. On top of that, the MSRP markup on accessories is 25% above invoice, same as the 6, and Protege prior.

In addition, Mazda has a holdback, which is 3% of retail, meaning built into the MSRP is automatic dealer profit that Mazda just "allows them to keep" if a car is sold.

So, even though I actually paid $250 BELOW invoice, the dealer still gets $500 from the Loyalty Program account of Mazda Int'l and the holdback. They still make money and I still paid less and Mazda Int'l footed the bill. Not a bad arrangement so long as Mazda Int'l doesn't go under with all the rebates they're handing out.
 

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So how's the best way to gauge what price you should pay?

Someone told me (I can't remember who you are. Sorry! I'm just really tired right now...) that a good price to pay is ...93-95% of MSRP?
 

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dugrant153 said:
So how's the best way to gauge what price you should pay?

Someone told me (I can't remember who you are. Sorry! I'm just really tired right now...) that a good price to pay is ...93-95% of MSRP?
Bingo. Or find out invoice and pay no more than $500 over that.
 

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Discussion Starter #12
rpc180 said:
MSRP is about 7-8% above the Invoice for the 3 depending on trim level. The same is true for the RX-8 and Mazda6. On top of that, the MSRP markup on accessories is 25% above invoice, same as the 6, and Protege prior.

In addition, Mazda has a holdback, which is 3% of retail, meaning built into the MSRP is automatic dealer profit that Mazda just "allows them to keep" if a car is sold.

So, even though I actually paid $250 BELOW invoice, the dealer still gets $500 from the Loyalty Program account of Mazda Int'l and the holdback. They still make money and I still paid less and Mazda Int'l footed the bill. Not a bad arrangement so long as Mazda Int'l doesn't go under with all the rebates they're handing out.
You paid $250 below invoice? How did you manage to do that? I tried to offer invoice price but got rejected right away.
 

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You have to keep in mind how rebates work: The dealership redeems the rebate through Mazda Int'l. The dealers actually get the money that they didn't charge you.

When I did my dealing, I went to 3 dealerships, quoted each price to each of them and asked if they could do better. With rebates, one place gave me 17,750. Then the other place said, if they can do it at 17,500 with the rebate, would I take it. I did.

I end up paying 250 below invoice for my car with the options I had, but the dealership actually gets the $500 back when they send the form into Mazda. So, they make $250 over invoice, plus any holdback that was made (which was like another $250). They got $500 for selling the car as profit and I still got the car for below invoice.
 

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wow...
I guess our question is more like how did you wheel and deal the dealership to do so? (in terms of how you talked to each one).

Like, did you just offer your price to 3 different dealerships and see which one would fold?

Just curious, that's all :)
 

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My dad had bougth a Miata from a dealership, so I started there. All other Mazda places didn't want to talk to me until they had finalized pricing sheets. She was willing to bend since they had already sold my dad a car (though he did a terrible job negotiating and ended up paying through the nose, probably thought I'd be the same). On top of it all, I wanted a car that's not usual for the area (3S Ti Sedan, Manual, ABS, Sunroof, and nothing else, most of the cars here are Automatic and anything that has a moonroof usually had the other luxary things).

Anyway, they gave me an initial quote of $300 off MSRP. I held at that price for 2 months, set a deposit (that's a mistake). Then I heard 3's were showing up so I went around. I went to another dealership and told them directly that I was in the market for one and if they'd like to quote me a price. They told me theirs, if its lower, I said thank you and I'll think about it, if it wasn't, I'd quote the other place they'd be forced to match or beat. Most beat.

Then just go around and around until your satisfied and always be ready to walk out. You can always go back cause you have the money (theoretically) and they're the sellers. It also helps to help out the dealers. Rebates mean they still get money cause they draw from the corporate account. So by mentioning them you provide an out for both of you to do well.

Tips that worked
1) Always be ready to walk out
2) Have proof you did your research, have edmunds invoice pricing, options package pricing, basically know your trim inside and out. Bring the folder wtih you to the dealer, you don't even have to say what it is, just pull it out and read things in front of them. When you show the dealer you know your stuff they realize they can't pull something over on you.
3) Get hard copies of other dealer's quotes, many times if the quote seems too low, the next dealer will want proof you're not trying to cheat them out.
4) Rebates are good. They save you money and they cost the dealer nothing. Pulling them you can always say you're both making money and you're trying to help them out with a fair deal.
5) Be polite if you catch them pulling one over on you, don't lose your cool.

There's alot more at the carbuying guide mentioned in another thread. It talks about initial visits, credit checks (always good to have a copy of your current one if you're trying to get the best APR, that way you don't go into the finance office scared), and other things.
 

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7% profit is what the sites say (edmonds, etc). That's about 1600 Canadian. Dealer said it was 1100 profit when I was buying. Not sure who is right, but you have to decide how much money "playing the game" is worth to you. At some point, it's a good deal for you AND the dealer, and you buy, no?
 

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what if the dealers dont trust edmunds.com invoice pricing? should we immediately walk out? if they havent even heard of that?
 

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Most dealers were more than happy to show me invoice pricing once they saw I had print outs of edmunds, spreadsheets, credit reports, etc. Intimidation works both ways mainly cause they knew they weren't going to gain anything by lying to someone who knew what they were doing and was serious about buying that car soon. If they still refuse, they're not going to be reasonable down the line and you should just leave and maybe try back with another salesperson. Otherwise find another dealership.

Edmunds pricing was exactly right, at least for the base trims without options. From what I figured, the option packages are marked up 25% from invoice, which is why most people can get deals on options vs. deals on the actual car. And even here edmunds pricing for equiped cars was "good enough" by dealers.

They get breakdowns of pricing too, and if they have your model with your options on the floor, ask to see the invoice sheet for the car, it'll have the dealer prices on it so you can cross-reference. Just be straight up about it and they'll let you see it. For now, until demands really ramps up, they'll still be thinking that making a deal is better than no deal.

That line that the car is "in high demand and can't be gotten for less than MSRP" has got to be bull. Once I showed them a quote of $300 less from another dealer, they immediately started to drop their price. The circle went round for 3 dealerships. So much for MSRP![/i]
 

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what if they dont want to show you the invoice sheet and stuff? like...why do u need to see that blah blah lol..u know all that BS they say...sorry this is first time buying a car :(
 

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Just ask them to show you the price sheet on the car... it has it on it, and I've never seen a dealer refuse.

If you want a "reason" just say you want to see the price breakdown.
 
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