what is the invoice price of Integra Type S?

[vexingv]

In speaking with a dealership rep last week, I was told by this sales rep that the dealership invoice price for the ITS was something like $50K or $51K (he was going over numbers pretty quickly with me on the phone) -- he encouraged me to look it up on Edmonds or elsewhere online. I was a bit incredulous about this stated invoice price and thinking he was just blowing smoke as after all, when manufacturers price a vehicle, it includes some level of dealer profit. He then was almost apologetic when he said that the dealership had to "markup" the car in order to make any money on the sale. After which, he proceeded to tell me the markup price of ~$12K , but justified that as it included all the accessories and installation (so carbon trim, shifter, alcantara steering wheel, et al, but not the copper wheels) and saying it was really just a $6K markup given the value of the addons (OTD price close to $70-71K with taxes and fess).

In that conversation, he said the dealership makes more money selling an MDX, even with $4K discount below MSRP, than it does selling an Integra. That indeed may be true as SUV's and crossovers have higher profit margins and sell in higher volumes than sedans do, which is why the automotive industry in the US is the way it is right now. But while invoice pricing is just one component in car pricing and the dealership may actually pay less than "invoice" with volume discounts or incentives from manufacturers, I wonder what is the actual invoice price for the Integra Type S? (And thus, what is the fat profit these dealers may be making with the markups?)

 

[SierraOne]

Absolute BS. Dealers can absolutely make money on the MSRP price. Granted, some dealers with high overhead will make less, but that's mismanagement on their end and has nothing to do with you, the customer. While the actual "markup" may only be 6k, forcing you to buy accessories is another form of a markup. Granted, if you were going to buy those accessories anyways, mandatory accessories can be a good bargaining tool to get them to lower their ADMs. But still, shady af.

 

[ZeroGSR]

Point of sale is also just one way for them to make money. Acura providing a 2 year maintenance contract means those dealers have a steady cash flow from corporate paying them for services performed. Plus once you have gone to the dealer for 2 years, you are much more likely to continue to do so.

 

[Rdrcr]

It wouldn't surprise me if there is only $2K markup from Invoice to MSRP on the ITS. I've always been surprised with how little margin their is in new car sales in general. Typical margins for new car sales are 3-5%. Heck, on a new Chevrolet Bolt EUV, the dealer invoice and MSRP are the same. The dealer makes $0 on the sale. However, there is about $1K in hold back for the dealer and a couple additional incentives but, truly, there ain't much profit there. All the profit for the dealership is in larger trucks/suv's and/or in the back end product (warranty, gap, accessories, etc.). So who's making the money? Well, its the manufactures. They're typically making 20-40% margin. But, nobody likes talking about that.

Mike

 

[David123!!!]

Anyone ask to keep the original rims when they were switched out with the copper rims?

 

[sfedai0]

It wouldn't surprise me if there is only $2K markup from Invoice to MSRP on the ITS. I've always been surprised with how little margin their is in new car sales in general. Typical margins for new car sales are 3-5%. Heck, on a new Chevrolet Bolt EUV, the dealer invoice and MSRP are the same. The dealer makes $0 on the sale. However, there is about $1K in hold back for the dealer and a couple additional incentives but, truly, there ain't much profit there. All the profit for the dealership is in larger trucks/suv's and/or in the back end product (warranty, gap, accessories, etc.). So who's making the money? Well, its the manufactures. They're typically making 20-40% margin. But, nobody likes talking about that.

Mike

LMAO, oh yea lets all worry how much the stealerships are making. They get plenty of profit from their service and parts departments, as well as warranty work. Dealerships and car salesman are nothing but middleman that have no use at all.

 

[VtecBuddy]

It wouldn't surprise me if there is only $2K markup from Invoice to MSRP on the ITS. I've always been surprised with how little margin their is in new car sales in general. Typical margins for new car sales are 3-5%. Heck, on a new Chevrolet Bolt EUV, the dealer invoice and MSRP are the same. The dealer makes $0 on the sale. However, there is about $1K in hold back for the dealer and a couple additional incentives but, truly, there ain't much profit there. All the profit for the dealership is in larger trucks/suv's and/or in the back end product (warranty, gap, accessories, etc.). So who's making the money? Well, its the manufactures. They're typically making 20-40% margin. But, nobody likes talking about that.

Mike

The dealer's contribution is storing the car and completing paperwork when selling the car (and providing service later), while the manufacturer is the one that actually researches, designs, tests, and manufactures the car. The manufacturer has to cover wayyyyy more operating costs with the margin they make on each vehicle. After all those operating costs are paid for, if you look at the net profit margin of Honda, it's actually less than a big dealership chain like Autonation.

 

[RUNN1N]

Anyone ask to keep the original rims when they were switched out with the copper rims?

You shouldn't need to ask, the copper rims are an additional set, so both are yours.

 

[David123!!!]

You shouldn't need to ask, the copper rims are an additional set, so both are yours.

Thanks, that's what I thought but I wasn't 100% sure.

 

[Rdrcr]

LMAO, oh yea lets all worry how much the stealerships are making. They get plenty of profit from their service and parts departments, as well as warranty work. Dealerships and car salesman are nothing but middleman that have no use at all.

But, I thought we were discussing new car profit margins, lol

Mike

 

[Rdrcr]

The dealer's contribution is storing the car and completing paperwork when selling the car (and providing service later), while the manufacturer is the one that actually researches, designs, tests, and manufactures the car. The manufacturer has to cover wayyyyy more operating costs with the margin they make on each vehicle. After all those operating costs are paid for, if you look at the net profit margin of Honda, it's actually less than a big dealership chain like Autonation.

Sure, but once again, large corporate dealerships are making the majority of their profits off pre-owned vehicle sales and backend products, not new car sales.

Mike

 

[Ricochet48]

Interested in this too out of curiosity. I recall the invoice of the 06 RSX-S being about $21,800 and the MSRP just under $24,000. I paid $22,600 if I recall, as I wanted to be much closer to Invoice than MSRP. That was the lowest they would go as they let me walk out at $22,500 (which my buddy paid for his silver RSX-S a month prior). It was one of two VBP left in the state at the time, so the extra $100 was worth it.

18 years later and it's still wild that MSRP is considered a 'deal' for many cars.

 

[Xcfool]

It costs an astonishing amount for an auto company to bring a new car to market. Thats a significant reason why so few new companies are able to succeed. Most aren't making a large % on each car sold. The have to sell in huge volumes to be truly profitable. Tesla lost hundreds of millions for well over a decade and only first turned a yearly profit in like '21 but Wallstreet keeps them afloat.

 

[VtecBuddy]

It costs an astonishing amount for an auto company to bring a new car to market. Thats a significant reason why so few new companies are able to succeed. Most aren't making a large % on each car sold. The have to sell in huge volumes to be truly profitable. Tesla lost hundreds of millions for well over a decade and only first turned a yearly profit in like '21 but Wallstreet keeps them afloat.

Tesla has a cost advantage too since they've never made a 2nd gen car, and a lot of the tooling and R&D has already been paid for.

 

[Ricochet48]

It costs an astonishing amount for an auto company to bring a new car to market. Thats a significant reason why so few new companies are able to succeed. Most aren't making a large % on each car sold. The have to sell in huge volumes to be truly profitable.

This is actually one of the reasons many are upset about the pricing of the ITS. It's based off the R&D of the Civic, one of the highest volume cars in the world. The interior for instance looks almost identical (while my RSX one looked SO much better than the Civic's at that time).

Aside from some minor tweaks and a widebody kit, it's even more similar to the CTR, yet $7K more as Acura wanted to cash in on the ADM's being paid by the desperate.