[roadsterrage]

Just talked to the sales manager and he just got back from the wholesale auction in Nashville. Figured he could pick up some base Skys at MSRP. Said there were 15 units for sale and they all ended up going for about $1500 over MSRP at wholesale. He passed, but there were dealers buying them at that price. Ahhhhh, if only it would stay that way.

 

[skyfan]

I wish I would have seen this before I traded my Sky on a RL back to the dealer for what I paid for it.

 

[CdnSkyGuy]

Just talked to the sales manager and he just got back from the wholesale auction in Nashville. Figured he could pick up some base Skys at MSRP. Said there were 15 units for sale and they all ended up going for about $1500 over MSRP at wholesale. He passed, but there were dealers buying them at that price. Ahhhhh, if only it would stay that way.

I call BS...he just told you that to make you feel good about getting a Sky.

Think about it man...where the hell would the dealer auction get a Sky from??? Any dealer who wanted to blow out a Sky at $1500 over msrp could do it no problem...they do not need to send it to the dealer auctions. Sky's won't be at dealer auctions for a LONG time.

I just re-read your post...15 Skys there???!!! now it is an insult...does he think we are stupid?

 

[[email protected]]

Wholesale Auction

15 units, from where?:lol: :skep: :agree: :agree: :agree:

 

[CdnSkyGuy]

15 units, from where?:lol: :skep: :agree: :agree: :agree:

Maybe they were Budget Rent-A-Car's Florida fleet.


If you don't have enough money for a nice rental you get a Solstice.

 

[skyguy10066]

I call BS...he just told you that to make you feel good about getting a Sky.

Think about it man...where the hell would the dealer auction get a Sky from??? Any dealer who wanted to blow out a Sky at $1500 over msrp could do it no problem...they do not need to send it to the dealer auctions. Sky's won't be at dealer auctions for a LONG time.

I just re-read your post...15 Skys there???!!! now it is an insult...does he think we are stupid?

Company vehicles operations does this quite often in MI

 

[CdnSkyGuy]

Company vehicles operations does this quite often in MI

Dealer auctions are for rental car returns/fleet vehicle returns/lease returns that the company does not want to buy/new units with lot damage/or just plain old stock that a dealership wishes to blow out because it is not selling.

there is NO company in the world with a whole FLEET of Skys.

without pictures or the auction run list I will never believe it.

 

[skyguy10066]

Dealer auctions are for rental car returns/fleet vehicle returns/lease returns that the company does not want to buy/new units with lot damage/or just plain old stock that a dealership wishes to blow out because it is not selling.

there is NO company in the world with a whole FLEET of Skys.

without pictures or the auction run list I will never believe it.

Well it is called the PEP program in the states and YES it does happen I have seen them. It was just a suggestion not neccessarily the case this time.

 

[roadsterrage]

Just passing on what the man said. Found it hard to believe too that any dealer would try to wholesale one when it would be so easy to retail them. If they where program cars of some sort, either rentals, event cars or GM company cars then possibly. Surely a car salesman wouldn't lie to me. Say it isn't true.

 

[Skystar]

I got a call from my son-in-law last week attending a dealer auction in Fla. He said there was a white Sky getting ready to run through. I don't know any details, preice, options, etc.

It was the first one he had seen, really impressed.

 

[TOY4TWO]

can someone explain to me how dealers sell cars for UNDER MSRP, for instance the new 07 Honda S2000 sells for $3000 under MSRP, how does that work. If the car invoices for a certain amount of money does a dealer get a "kick back" from the parent company like GM for the difference. I don't understand how cars late in their model year often sell for below MSRP, I assume the dealer isn't losing money on them, or am I wrong?

 

[Rick Tinley Park]

can someone explain to me how dealers sell cars for UNDER MSRP, for instance the new 07 Honda S2000 sells for $3000 under MSRP, how does that work. If the car invoices for a certain amount of money does a dealer get a "kick back" from the parent company like GM for the difference. I don't understand how cars late in their model year often sell for below MSRP, I assume the dealer isn't losing money on them, or am I wrong?

With many cars the MSRP is the starting point and you deal down. There is a TON of profit in there. The actual "invoice" price is what the dealer pays and the MSRP is exactly that: The Manufacturers SUGGESTED Retail Price
MSRP with Saturn works differently. The Sticker price is the best price with the profit built in, but at a low mark up.
I read somewhere that the Infinity comes with nearly an extra $6,000 built into the MSRP.
Here is an example
When I first looked at Saturn the SC2 and Mitsu Eclipse were damn near the same thing (a little more in the Eclipse). The Eclipse price after an hour or more of dickering was still almost 1100 bucks more than the SC2 sticker, but no hassle - no bargaining -- I bought the Saturn and never looked back (My SKY is #4)

 

[skyguy10066]

With many cars the MSRP is the starting point and you deal down. There is a TON of profit in there. The actual "invoice" price is what the dealer pays and the MSRP is exactly that: The Manufacturers SUGGESTED Retail Price
MSRP with Saturn works differently. The Sticker price is the best price with the profit built in, but at a low mark up.
I read somewhere that the Infinity comes with nearly an extra $6,000 built into the MSRP.
Here is an example
When I first looked at Saturn the SC2 and Mitsu Eclipse were damn near the same thing (a little more in the Eclipse). The Eclipse price after an hour or more of dickering was still almost 1100 bucks more than the SC2 sticker, but no hassle - no bargaining -- I bought the Saturn and never looked back (My SKY is #4)

Great explanation! You should see the mark up in a Caddy:lol:

 

[the sky guy]

I picked up my Sky today and noticed the dealer had a green one there. They said the bought it at the auction with 4,000 miles. They paid $2000 over MSRP. They claim they wanted to have one that people could test drive. BTW i thought the green looked good

 

[snaponbob]

Well, some here appear to know what they are talking about, and others clearly don't.

1) ANYBODY can poke around with Google and get "invoice cost" on any new car.
2) Without checking, I recall seeing the profit margin on Skys at about 6-7%.
3) Mention was made about the profit on a Cadillac. Base unit cost is about 11-13% and 15% on factory options.
4) Addition margins are built into invoices on domestic cars (called "holdback") of about 3%. Out of this can come local/regional factory advertising fees and other charges.
5) End of year rebates are made to dealers to help clear inventory.
6) My dealership (pne of three Saturn group) recently purchased 8 Skys at local auction. There were more. All wholesaled over msrp. All sold at their used car lots, and they won't be doing again. Too much, now margin. They have no clue where they are coming from.
7) GM "captured fleet" numbers are far too low to account for the numbers showing up at auction nationally.

Why is it that when there is an absence of information people assume that any stories must be lies/fiction? Skys and Solstice ARE showing up at auctions! Saturns have low markup. Dealers get end of year rebates. Look, stuff happens. Some of it is actually true!!

 

[CdnSkyGuy]

Well, some here appear to know what they are talking about, and others clearly don't.

1) ANYBODY can poke around with Google and get "invoice cost" on any new car.
2) Without checking, I recall seeing the profit margin on Skys at about 6-7%.
3) Mention was made about the profit on a Cadillac. Base unit cost is about 11-13% and 15% on factory options.
4) Addition margins are built into invoices on domestic cars (called "holdback") of about 3%. Out of this can come local/regional factory advertising fees and other charges.
5) End of year rebates are made to dealers to help clear inventory.
6) My dealership (pne of three Saturn group) recently purchased 8 Skys at local auction. There were more. All wholesaled over msrp. All sold at their used car lots, and they won't be doing again. Too much, now margin. They have no clue where they are coming from.
7) GM "captured fleet" numbers are far too low to account for the numbers showing up at auction nationally.

Why is it that when there is an absence of information people assume that any stories must be lies/fiction? Skys and Solstice ARE showing up at auctions! Saturns have low markup. Dealers get end of year rebates. Look, stuff happens. Some of it is actually true!!

I still don't believe it Bob. Of course it could happen, but it just does not add up. 8 skys at an auction that very easily could have been retailed at the dealership. Not only does the Sky bring good cash right now...it also brings lots of people into the showroom so we can hammer them into something else in their price range. On one hand we have stories of dealerships with base Skys priced at 40,000 intentionally so they don't sell and on the other we are hearing of 15 units being wholesaled. It just doesn't work out right in my head. Please don't assume I do not have a clue. I am the second highest paid saturn sales rep in Canada. I have seen many many dealer auctions. Heck there is hardly ever a Sol there...nevermind a Sky.

Maybe they do things different in the USofA but I say the sales manager who sends a Sky out to be wholesaled is just lazy or stupid.

 

[JohnWR]

CdnSkyGuy: Maybe they do things different in the USofA but I say the sales manager who sends a Sky out to be wholesaled is just lazy or stupid.

Or, the Sky was traded to a non-Saturn dealer that thought $2k over new MSRP for a used car at auction was easier than trying to retail a "foreign marque" car.

 

[snaponbob]

JRinKY certainly does have one scenario. CdnSkyGuy, here are more -

1) Lemon law cars. Example; Skys HAVE been bought back due to rear end problems. They get re-marketed.
2) Buyer remorse. Examples; no trunk space, lack of utilitarian value, totalled cars that DO get repaired, etc.
3) "Pre-traded" non-RLs can be "turned" for a handsome profit with no saleman commission.
4) Cancelled unit. The dealer can sell it for more than list and still not go outside the Saturn business model.
5) Summer is over and people may be taking advantage of a timing/value situation by trading in for something else and the dealership is going for a fast buck.

All of the above can be true. The automobile business is not nearly as two dimensional (buy - sell) as many people think it is.