How do you justify your purchase strategy?

[CarDealerGuy]

I have seen multiple forum users here saying they will wait until they can get 5+K under invoice on this vehicle ... my question is how do you justify that pricing? Is that just the number you would pay or is there any logic to the number?

As a salesman at a large volume dealer who does discount under invoice, I can say with certainty that I've never seen a new vehicle discounted more than hold back.

Expect for the first 6 months to pay MSRP or a few hundred under!

 

[critrider]

I have seen multiple forum users here saying they will wait until they can get 5+K under invoice on this vehicle ... my question is how do you justify that pricing? Is that just the number you would pay or is there any logic to the number?

As a salesman at a large volume dealer who does discount under invoice, I can say with certainty that I've never seen a new vehicle discounted more than hold back.

Expect for the first 6 months to pay MSRP or a few hundred under!

yea...no one is thinking 5K under involve. More like 4 or 5K off MSRP. Willing to take a reasonable bet you will be at few hundred under invoice by mid summer when there are 25 or 30 on your lot. It probably sucks but discounting is expected now and the Telluride will not be exempt, there is too much competition.

 

[Bruce_wayne8887]

I have seen multiple forum users here saying they will wait until they can get 5+K under invoice on this vehicle ... my question is how do you justify that pricing? Is that just the number you would pay or is there any logic to the number?

As a salesman at a large volume dealer who does discount under invoice, I can say with certainty that I've never seen a new vehicle discounted more than hold back.

Expect for the first 6 months to pay MSRP or a few hundred under!

Well I mean theres already $2,500 in rebates available. 4 different rebates. $1,000 competitive rebate, $1,000 kia loyalty rebate, $1,500 KMF rebate, and a $400 Military Discount. at the most in rebates you can get $2,900.

 

[zhelder]

Might have read one of my posts... 6K UNDER INVOICE BEFORE INCENTIVES OR NO DEAL!!!

OK, seriously...

2019 Pilot Elites are going for as low as around $1500 under invoice, and it’s a pretty popular model from a pretty popular manufacturer that just underwent a (totally meh) “refreshing”. While Kiundai has come a long way from the “A Hyundai is Still Better than a Yugo” days, the names Kia and Hyundai still don’t quite carry the cachet of the Toyota or Honda names (although the Telluride/Palisade may change that).

So, taking that into consideration, my realistic (?) goal (and I know it’s not happening right now) would be around $2,000 under invoice for an SX Prestige. What does that work out to? Well, according to NADA, retail for the SX Prestige is $46,535 including destination, and invoice is $44,211. I’m shooting for a price of $42,000 (six months to a year from now). Prorate that number for the almost definitely more expensive top-of-the-line Palisade ($43,000 maybe).

I don’t know whether it will happen, but we shall see!

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[Lexi_GA]

I have seen multiple forum users here saying they will wait until they can get 5+K under invoice on this vehicle ... my question is how do you justify that pricing? Is that just the number you would pay or is there any logic to the number?

As a salesman at a large volume dealer who does discount under invoice, I can say with certainty that I've never seen a new vehicle discounted more than hold back.

Expect for the first 6 months to pay MSRP or a few hundred under!

I’ve seen more about wanting discounting from MSRP. $5K under invoice would be a bit ridiculous this early HOWEVER.....I think honestly it’s more up to the dealer and manufacturer to justify the purchase price to the buyer than it is for the buyer justify the discount. Car manufacturers deal with high volume and will still profit at the end of the day. Most consumers are engaging in a one time decision they will be stuck with for years. I know it’s new....but it’s NEW. Lol meaning it has no history regarding reliability and depreciation. Kia and Hyundai are going through massive recalls right now for some pretty serious issues on some of their models. There are manufacturers with way more of a name for themselves with regard to reliability and safety that have competitive vehicles. There are several redesigns coming out this year for 2020 models and by then the Telluride will still be new but the first wave of admirers will have more options that will likely be discounted.

And Kia should want to get a wave of these visible and on the road. I’m in GA in the Atlanta area and there are a million Kia dealerships around with inventory and I haven’t spotted one on the road yet. While I know they are here, so are a million other commuters. No one I know has seen this vehicle in action yet or knows someone who had bought one. And to top it off the average dealership experience in general and service experiences with Kia seem to leave much to be desired. While there are some good dealerships it seems like they are the exception not the rule. Kia has some serious training to do with regards customer service. So while traditionally vehicles aren’t discounted so early, i think there are other ways to capitalize off of the hype of the new release that could actually benefit both the consumer and the dealer. Just my opinion and believe me I looooove this vehicle, but there are so many options to choose from that for every person who buys at MSRP there are ten more who want to buy but will either wait or end up moving on to another vehicle.

 

[syadasti]

Pricing must reflect the reality of the dealership network and brand reputation.

You can’t price higher than everyone else if you’re not delivering the full experience. Even when you doing well it has to be earned with a consistent track record - a good model or two doesn’t change your past overnight.

Also this segment must accept the highly competitive market as it is - Telluride, Ascent, Palisade, Pilot, Traverse, CX9, Atlas, Highlander, Explorer, Durango, etc, etc.

See also the current top three row pricing, 2% under invoice from the start:

Telluride Founder's Club

Hyundai operates differently although they are sister companies. I'm only going to see what lease incentives and rebates Kia may offer.

tellurideforum.org

 

[CarDealerGuy]

Might have read one of my posts... 6K UNDER INVOICE BEFORE INCENTIVES OR NO DEAL!!!

OK, seriously...

2019 Pilot Elites are going for as low as around $1500 under novice, and it’s a pretty popular model from a pretty popular manufacturer that just underwent a (totally meh) “refreshing”. While Kiundai has come a long way from the “A Hyundai is Still Better than a Yugo” days, the names Kia and Hyundai still don’t quite carry the cachet of the Toyota or Honda names (although the Telluride/Palisade may change that).

So, taking that into consideration, my realistic (?) goal (and I know it’s not happening right now) would be around $2,000 under invoice for an SX Prestige. What does that work out to? Well, according to NADA, retail for the SX Prestige is $46,535 including destination, and invoice is $44,211. I’m shooting for a price of $42,000 (six months to a year from now). Prorate that number for the almost definitely more expensive top-of-the-line Palisade ($43,000 maybe).

I don’t know whether it will happen, but we shall see!

Just so you know, invoice to MSRP on the SX Prestige is less than $2000. 2 under invoice is more reasonable, but still not attainable unless you're the last deal of the month that nets a dealer bonus.

 

[mrmac]

Pricing must reflect the reality of the dealership network and brand reputation.

You can’t price higher than everyone else if you’re not delivering the full experience. Even when you doing well it has to be earned with a consistent track record - a good model or two doesn’t change your past overnight.

Also this segment must accept the highly competitive market as it is - Telluride, Ascent, Palisade, Pilot, Traverse, CX9, Atlas, Highlander, Explorer, Durango, etc, etc.

See also the current top three row pricing, 2% under invoice from the start:

Telluride Founder's Club

Hyundai operates differently although they are sister companies. I'm only going to see what lease incentives and rebates Kia may offer.

tellurideforum.org

You are most humorous!

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[syadasti]

You are most humorous!

Like the resale value of Kias. That historical reality is still a major hurtle for dreaming of keeping the sale pricing higher.

 

[MrLatte]

Are they allowing the Loyalty rebate and the Competitive rebate together?

 

[Bruce_wayne8887]

Are they allowing the Loyalty rebate and the Competitive rebate together?

No its one or the other.