This Is An Update To A Previous Question

Question From Kelly:  Thank you for your input.  BTW, did I post on autobragblog properly? or was my post improperly posted?  I’d like to know, so I’m don’t or do, do it again.  Thanks.  The numbers are interesting.  But how would one price a “used” 08?  Do you know?  Where should I go to find out?  Any suggestions?  On the new  car thread, MrBlack suggested a used “new” care might have a 3-5k margin built in to the $14.2 pxing..  What is your thinking?

We are also looking at the scion tc  because a “local” dealer (in MD, about 25 miles from me)  is offering a new 08 scion for 16,800 plus TTL.  For virginia, this would be 17.3 + tags.  or about 17.5.  So 22k+change asking  seems extremely high for an accord..  Why is it that the honda is so much more than a scion with essentially the same equipment?  Reputation? Demand?  I know the scion is “true valuer pricing” vs mkt for honda.

I really appreciate your help.

 I’ve connected with seveal people on FW..  If you ever need finance info, please let me know.  Several of us on FW  have sort of formed an alliance, and help each other out about new deals which cannot be posted until given permission from the bank/cu/etc.  For instance, I’m sure you know about the AAFCU Reward  Checking accoutnt (6% up to 25k, but can open multiple memberships/max accounts),. some NWFCU 5.25% CDs,.

Thanks, again.
Kelly

CarFinanceGuru: Hi Kelly.  When it comes to pricing “used” new cars the most accurate way is to see how much the car wholesales for.  However, sometimes there is the possibility that there is not of volume on the wholesale side thus making the pricing harder.  For new cars the average gross margin for dealerships is around the 8%-10% range for standard vehicles.

You make an interesting point about the Scion being less expensive than what a comparable Honda sells for.  When it comes to pricing…the branding and reputation translates into higher or lower prices.  It is why Toyota has the Lexus brand, Nissan has Infiniti, Honda has Acura, and VW has Audi.  Car manufacturers leverage their supply chain to produce premium brands that can achieve higher margins.  Mercedes Benz dealers enjoy double digit gross margins to the tune of 12%-15%.  Does MB make a better car?  Or is it about the image and prestige?

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