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Age Group vs. Price Survey

3K views 42 replies 20 participants last post by  Trizz 
#1 ·
From observation, it appears to me most of you who are overly willing/eager to pay msrp for the car are of the younger age group; those who completely buy-in the (premature, dare I say) assumption or salemen's claim that everyone will fight for the car. The older age group in general take a more wait-and-see approach.
Not to disrespect the younger age group in general, but I have seen too many kids getting "jilt" by car salemen because they are gullible and inexperience in negotiation.
What I like to do here is to determine our willingness to pay msrp by age group. The purpose? Well, for example if only the 20 - 25 age group (which represent very small % of the target audience) are willing to pay msrp and most of the older age groups (represent majority of target audience) will only buy the car at below msrp, then we may have greater leverage to negotiate because dealers will have to sell most of their IS at below msrp, right?

Here the format:
Age group?
20-24
25-29
30-34
35-39
40-44
45+

Willingness to buy at msrp?
A. Willing, cus I got $ coming out of my Wazoo.
B. Willing, but only I have exhausted all negotiation efforts.
C. Maybe, but will consider other cars.
D. Will only buy at below msrp, at __ %
over invoice. Go w/ another car otherwise.
E. Other_______

Hopefully I can get enough responses (especially from the older age group) to form a sufficient sample.

Here's my demographic:
Age group: 25-29
Willingness: D, 5% above invoice, will buy the S4 otherwise.
 
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#2 ·
I will try my best to get it under MSRP. Because I already told a BMW dealer that "I might be back". I'll see how the payments are first before I make my decision. If I can swing financing it, I may do that too...but not likely. But like I said before, if the dealer isn't selling it under MSRP, and I can still afford the car, I'm not going to throw a fit over it.
 
#5 ·
Age 35 (old for this forum)

C - may consider car at MSRP but will look at other vehicles.

I have already checked out BMW 328i, Acura 3.2 CL-s, Audi A6 2.7t, MB CLK 320 and GS300.

May need to look at Audi S4 although shape is getting old. GS400/300 should have been my first choice except I never liked the shape.

My budget for my next car is fairly flexible but I need to feel I'm getting value for money. I intend to lease so all I care about is monthly cost versus amount of car.
 
#6 ·
Benster, ditto your response. Right on the money! I'm 29.
 
#8 ·
Kim, I go thru a different decision-making process than yours. I can swing the $, but what's important to me is whether the price is fair or justified. I am too hard-headed to allow those greedy salemen to take the upper hand. I'd rather get another car instead before I let that happen. As I once mentioned before, I had gotten the S2000 already if it wasn't priced unreasonably by the dealers. I'll wait until end of Aug to try to get the price I am willing to pay, then I'll shift my target to the S4 instead.
To me, my decision is not based on whether I can afford or not, its based on whether if I get the value / bang for the buck.
 
#9 ·
I am 23 years old and Im willing to pays MSRP because that is the price set for the car, Ill try to talk the price down but if I cant oh well, if I really want the car. One thing that you people seem to forget is that salespeople make their living from selling you cars. Its not like car salesmen are a big affluent group of people. I dont understand when it comes to Cars and Electronics people refuse to pay the price on the sticker. These companies are out to stay in business not to give their product out to the public for a little over what it costs them to make. These salesmen have bills to pay and families to provide for, what makes the end consumer so special that they shouldnt have to pay sticker price. Maybe because I spent a great deal of time in sales(not selling cars) that I have a sore spot for people that feel that it is their right to bargain down a price, that they shouldnt pay sticker price. When you go to buy shoes, clothes or food do you try to bargain down the price, probably not but that stuff is probably marked up more than anything. I have more to say but Ill cut it there. I just think the mentality that it is acceptable to bargain a price down simply becaus of what it is, is wrong.
 
#10 ·
Good point Quez. I never tried to bargain down food at the grocery store. I go to The Wiz for electronics sometimes, and I've never bargained with the salespeople. I just looked for things on sale or things that I felt was worth the money. But I guess it's some people's nature to try to get the lowest price possible no matter what it is they're buying.
 
#11 ·
Quez, I agree w/ you completely but one thing. The MSRP price was set to be negotiated, much like most large purchase items (i.e. house, boat etc.). If it wasn't, I don't think the MSRP would be set so high above the invoice. If they can present me a reasonable and honest price, believe me I like to save myself the hassle of haggling.
The dealers and their salemen are in the business to make $, I understand and respect that. But at the same time, I have to look after my own interest. I don't believe I intent to demonize car salemen. Thru out, I have use the term "negotiate" to get the price I am willing to pay, I didn't say I will bash the salemen's head until they agree to my price.
 
#12 ·
Thats a respectable answer. I kept my job at the Wiz, which is an electronics store, (KIM I work at the one in Paramus, garden state plaza, stop in and say HI)for like three days a week. You wouldnt believe the nerve of some of these customers, wanting you to go below cost and give things for free, and they get mad when you cant do it. I just thought you were one of those types, and since Ive always wanted to go off like that on one of them Ive never been able to, not good customer service. So I figured Id take advantage of the situation. But I would like people to think about that the next time they go shopping for something.
 
#13 ·
Quez and Kim, don't make a fool out of yourself by making poor analogy w/ food and cloths. Ask yourself if it is economically significant to talkdown 50 cents from grocery or few dollars from clothes. Then ask youself if you would post the lowest acceptable price if you were to sell your car or house. Lastly, humor me by naming a (non-customized) commercial product that has a margin of over 1500 and price not subject to negotiation. Grow up!
 
#15 ·
Benster, the POINT is bargaining down a set price NO MATTER what the item is. If a dealer is selling a car at MSRP and is NOT selling it for less, for whatever reason, then that's the price. Take it or leave it. Just like with anything else. Like Quez said, lots of things we buy are marked up from what the dealer or store or whatever paid for it. THAT IS HOW THEY MAKE THEIR MONEY. Quez is saying what's the difference if you go into a store and want to purchase a stereo or a jacket, or FOOD, or WHATEVER. How often do you negotiate price for those items? You look on the sticker or tag and that's the price, take it or leave it. I don't understand either why some people think they have to have everything BELOW sticker price. By all means, negotiate if you want, and the dealer may or may not give it to you for what you ask for. But if a dealer wants to sell a car at MSRP, I don't see anything wrong with it. If I don't like the price....see ya!
 
#16 ·
Benster, I know you don't mean to disrespect the younger crowd, but when it comes down to it, it depends on the person buying. I have bought 1 new car and helped 3 others buy new cars. All of them paid invoice or less, which includes paying invoice for their options. It just depends on whether you do your homework before going to the dealer and knowing the demand. I am 26, and will go with option C. I want the car and will negotiate the best price i can, but if its msrp then i will have to live with it. I'll call around and see and be aware of the deals around, but if you really want it you'll have to pay the asking price. Remember they don't discount MBZ's, Bimmers that much either, unlike Toyota's, Ford's, Acura's etc.
 
#17 ·
Whoa, Kim good lookin out.

From my calculations the mark up on this car is about 13.14% which is not that high of a mark up. A cig lighter adapter for your sell phone that you buy for 19.99, costs the store 5.50 thats a mark up of over 72% and belive me the mark up on clothes and shoes is well above the 13% mark up on this lexus. As for your point about buying a house, it isnt even in the same ball park as buying a car because there are so many intangible fators affecting the cost of a home and thus it is easily negotiable. Im sure if you were planning to sell your house you wouldnt calculate the cost it took to build the house, figure out a fair percentage to mark it up and thus set price. No you take proprty value of the area the house is in into consideration which is affected by so many factors that have no set dollar value, such as location to schools, education value of area, location to transportation and shopping, etc. There I think is your main different. I dont think There is any need to grow up, I think I have a good grip on reality.
as for attempting to give you an example of something marked up over 1500 that is non negotiable, im sure it may not exist because Im sure you will always be able to find someone willing to discount, but the one thing that I can think of that comes to mind would be some medical procedures. Very expensive I would like you to bargain with a doctor.
 
#20 ·
I don't believe the hogwash I am reading in here. Let's go over some elementary economics. Shall we?
1. <$ products = >% margins
2. >$ products = <% margins
Have some of you heard of this concept? We're not in Playa Del Carmen or Puerto Rico or the flea market, guys. Come on, the grocery store is the grocery store and the Wiz is the Wiz. You like the price, buy it. You don't like the price, don't buy it. But if anyone feels good about giving Lexus north of 20% for their margins go for it. You are simply wasting money...UNLESS you have fallen in love with this car and have to own it.
 
#21 ·
By the way - it seems like maybe we got
some bum info on the base invoice price.

Timothy Coln had written (in another topic):
>> here are the prices at what the dealers get
>> IS300 $25,520...
>> Yes, that price is true.
>> It was the dealer invoice ...
>> But yes, they are marking up the
>> prices at about 20%.

But then Edmunds.com recently reported
IS300 invoice at $26,492 which makes
markup (MSRP=$30,500) more like 15%...
 
#22 ·
Hey brad your gonna have to play the role of the economics teacher because Im not following what your trying to say, at least not the way your presenting it. What does Puerto Rico have to do with anything? I got a Finance degree and you got me scratching my head. Then again I might have missed that lesson due to a party the night before or something like that.
 
#24 ·
Quez, First I realize the tone I used in the previous post was a little strong -- I apologize. Second, medical service is not a commercial product, but I am sure hospitals do negotiate when they purchase expensive hospital equipments. Third, the point I am trying to make is car's msrp (not to be confused w/ beef or Nike shoes) is subject to negotiation, as thus houses. I think you and Kim put too much merit on car's (and just car's) msrp. I've never haggle over stereo or grocery because I understand their sticker prices are fixed. Yet I paid $500 over invoice for both Honda and Acura, and $1000 for a BMW3. What is so wrong w/ trying to reach a price that is mutually acceptable by both parties? Why do you get the image of me twisting the salesman's arm to get what I want? Kim, you better get more familar the term "negotiation" if you want to be successful in business or if you want a big raise in your next review.
 
#25 ·
TEG,
I am actually a Financial Analyst for a brokerage firm. I just want to do my homework, like you do, before I set foot to the dealer's showroom.

I'll summarize the result once adequate # of response is reached.

Believe it or not, even broker's high-roller clients negotiate commision rates too.

[From TEG:
Maybe you can answer this then-
If I get too many options on my IS300
will I get a margin call? 8^) ]


[This message has been edited by TEG (edited May 19, 2000).]
 
#26 ·
Well, all I mean is lower priced items typically demand a much higher % margin unless you have reached massive economies of scale and distribution. Obviously, higher priced items will typically be sold in lower numbers and lower % margins. Now, as far as the Puerto Rico comment, all I mean is that we don't have a ton of one man shows on the corner selling cd's or groceries. If we did you can bet your ass we would all negotiate.
 
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