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Discussion Starter · #1 ·
All you recent 06 Murano buyers, can someone tell me if this is a good deal? I'm going through a broker, so that gets me out of any 'dealer fees'.

2006 Murano SL 2WD
*Platinum/Cafe Latte leather
*SL Touring pkg
*Vehicle Dynamic Control pkg
*Navigation pkg
*Splash guards
*Roof Rails
*Floor Mats
*Sunroof Wind Deflector
*Cargo Protector

All for $34,800 + tax/tag (Can I do better, or is this a decent deal??)

Opinions highly appreciated!!!!
 

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EOS Man-

The only way to know if you have a good deal is to compare it to the dealer's invoice. Check out edmunds.com or consumerreports.org. You can get the invoice data from either of those sites. Anything near invoice is pretty decent; at invoice is a very good deal; below invoice is an excellent deal.

-njjoe
 

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EOS Man said:
All you recent 06 Murano buyers, can someone tell me if this is a good deal? I'm going through a broker, so that gets me out of any 'dealer fees'.

2006 Murano SL 2WD
*Platinum/Cafe Latte leather
*SL Touring pkg
*Vehicle Dynamic Control pkg
*Navigation pkg
*Splash guards
*Roof Rails
*Floor Mats
*Sunroof Wind Deflector
*Cargo Protector

All for $34,800 + tax/tag (Can I do better, or is this a decent deal??)

Opinions highly appreciated!!!!

I got my '06 SL Touring (less VDC and nav) for 31,300 which was 400 under invoice. Not sure how valued VDC and Nav are but even Edmunds says you can get it for less (at least in my neck of the woods which is the south west).
 

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Just as a frame of reference, I got my 2006 SE AWD with the same equipment plus XM for right around $35,700 which was about $500 or so under invoice.

I don't think yours is a bad deal by any means, especially with going through a broker. The bottom line is that if it is the exact one you want and you are happy with it, give or take a few hundred bucks washes out immediately when you start enjoying it.
 

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Mr. 3 K, 3/3/5. 5K,10/5/7
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3 years from now

You will remember the dealers service and the vehicle, not the $300 one way or the other.
 

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Re: 3 years from now

GripperDon said:
You will remember the dealers service and the vehicle, not the $300 one way or the other.
This is sooooooo true...

i just got a new 06 MO about a month ago,
I traded in my 03 and leased the 06.

Well about a week ago i noticed a small tear in the leather in the passenger seat... now it is possible, tho unlikely, that my wife or my dad caused the rip when sitting in the front seat.
So i told the dealer, and they are gonna fix it next week, free of charge.

Now i know for a fact that the other dealer i could have gone to would not have done this for me...

Sometimes the little "sketchy" lookin dealers will give you a better deal. But the nicer ones will give great service.

You get what you pay for... IMO...

-Nerf
 

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Invoice on that car is $34,038, so I would say you can definitely do better. Shoot for $34,538.

Keep in mind that while you are not paying a dealer fee (which you never should) that broker is certainly being paid by someone (how do you think they make their money). I would go to the dealer that has this car in stock and speak with the internet manager. Offer them $500 over invoice and specify that you will not pay any dealer fee and see what they have to say.
 

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Nah, I frankly don't buy the fact that anyone has paid under invoice for a Murano this year. The either had a trade that was undervalued or they paid some other hidden fees or rate markups.

But, I guess it never hurts to go for the gusto and try to get it under invoice.
 

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Discussion Starter · #10 ·
GOT it at invoice...plus fee

OK...put a $500 deposit on the following:

2006 Murano SL 2WD
*Platinum/Cafe Latte leather
*SL Touring pkg
*Vehicle Dynamic Control pkg
*Navigation pkg
*Splash guards
*Roof Rails
*Floor Mats
*Sunroof Wind Deflector
*Cargo Protector

All for $34,038(at invoice) +$595 dealer fee. Im satisfied, $595 over invoice...not too bad right?

Should have the car tommorrow, they hae to get it from another deslership.

EOS Man
 

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Re: GOT it at invoice...plus fee

EOS Man said:
OK...put a $500 deposit on the following:

2006 Murano SL 2WD
*Platinum/Cafe Latte leather
*SL Touring pkg
*Vehicle Dynamic Control pkg
*Navigation pkg
*Splash guards
*Roof Rails
*Floor Mats
*Sunroof Wind Deflector
*Cargo Protector

All for $34,038(at invoice) +$595 dealer fee. Im satisfied, $595 over invoice...not too bad right?

Should have the car tommorrow, they hae to get it from another deslership.

EOS Man

What is this dealer fee people talk about? I did not have any dealer fee when I bought my car.
 

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Discussion Starter · #13 ·
Re: Re: GOT it at invoice...plus fee

Ctx said:



What is this dealer fee people talk about? I did not have any dealer fee when I bought my car.
Ctx,
I live in Florida, and ALL dealers have them. They are willing to lower the price in the car itself, but not touch the dealer fee. From my understanding different states have different laws and cannot charge a dealer fee, or mask it in the price of the car or other add ons.

I'm happy with what I'm getting for what I'll be paying after doing all my research. Looks like its going to be $36,383 out the door with everything basically fully loaded except AWD.

EOS
 

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The dealers would like you to believe the "Dealer's Fee" is some non-negotiable fee that is mandated somehow by some higher authority. The truth of the matter is the "fee" is nothing more than a self-imposed profit margin. It is negotiable when buying a new car.

-njjoe
 

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Discussion Starter · #15 ·
njjoe said:
The dealers would like you to believe the "Dealer's Fee" is some non-negotiable fee that is mandated somehow by some higher authority. The truth of the matter is the "fee" is nothing more than a self-imposed profit margin. It is negotiable when buying a new car.

-njjoe
njjoe,
I agree with you on what the dealer fee most likely is. However there was only TWO cars in the entire state of FL with the exact options I wanted, and I was happy to end up with $595 over invoice. I went through multiple dealers and an independent broker...all said best they could do was $800-1000 over invoice including fee.

Internet Sales Dept at dealers are the way to go. I did all my negotiating over the phone, just walk in and sign, no gimmicks. Was so funny at how my internet sales guy was giving me invoice price...talking real quiet lol...few tables over a lady was haggling with TWO salesmen about price...just walked in not doing any research on her own...they were taking her for a ride...

Bottom line go in prepared and get quotes from multiple sources.
 

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Judging by the dealer fee, sounds like you were at a Maroone dealership (Delray perhaps, I got mine there).

Dealer fees can be negotiated away, but keep in mind that the dealer wants to make a certain amount of money off of their car and whether it is invoice plus fees, or no dealer fee and $XXX over invoice, or invoice and they undervalue your trade by $XXX or they mark up the finance rate, the dealer will find a way to make what they want to make, or they will simply not make the deal.

One of the best ways to get around this issue when you are financing (or paying cash) is to talk in terms of an out-the-door price. Just figure the price you want to pay, add in your sales tax and a couple of hundred for tags and present this to the dealer, making sure to stipulate an OTD price. This way, they can't throw in any fees at the end.

Even though the dealer fee is pre-printed on the sales contract, it is easy enough to have them cross it out, if that is what the parties have agreed to.

As for the issue of the invoice price not being the true cost to the dealer, this is an area of confusion for most consumers. Most people who do their research on the net know what the invoice price is and they know the term "holdback" and even what that amount might be. What they don't realize is that money is more often than not already spent.

For example, my Murano had an MSRP of $37,387, an invoice price of $33,978 and a dealer net price of $32,540. The difference between the invoice price and the dealer net is the holdback amount ($1438). Most people think that even if the dealer sells the car at invoice, or even below invoice, they are still making a bunch of money. Well, this is not exactly the case.

First off, most dealers belong to regional advertising associations. They get charged a certain amount for every car they buy (and they do buy them, more on that below). While the amount can vary, it can be as much as 2% of the sticker price, or about $747 in the case of my car. There goes half of the holdback right there.

Next, when the car comes in, it must be prepped. This usually involves removing all shipping protection, final installation of some trim items, inspections, washing and gassing it up. Typically, this is done through the dealership's service department. Since most dealerships run the different parts of their stores (new, used, parts, service and finance) as separate profit centers, each one is accountable for their "billable" hours. The service department will usually charge the sales department 2-3 hours worth of labor. Depending on that dealership's labor charges, this can be as much as $50/hr, or another $150 off the holdback amount.

The dealership also has to pay their overhead, including mortgage, taxes, utilities and also paying that pesky salesperson (in addition to people like the receptionist, porters, file clerks, etc). Even on a mini-deal, most salespeople will make $100. The rest of the overhead charges are hard to put a number on, but I suspect it is at least $200.

So, out of the $1438 in holdback, we are left with about $241 in actual profit if the vehicle was sold at invoice.

But wait, you remember that I said the dealership buys the vehicle. This is true. Every new and used vehicle that a dealership gets is actually financed (the dealership borrows money from a lender). As with most things that are financed, interest must be paid. This interest begins to rack up from the day the car hits the lot. The faster a car is sold, the less interest the dealership has to pay on it and the more the remaining holdback can be put into the profit column of the balance sheet.

In the case of my car, I took delivery the day the car came in, so they paid little or no interest on the car, so the remaining holdback was added profit. However, if the car stays on the lot for days, weeks or months, the interest charges begin to add up, and this eats away at the remaining holdback.

This is not to say that you can't but a car at invoice, or less. My whole point is to show that the holdback amount that most people thing is always pure profit is usually far from it. Just something to keep in mind when you are negotiating and you want to talk intelligently to a dealer about their true invoice price.
 

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Discussion Starter · #17 ·
Shappy,
Thanks for the reply. You hit it right on...I'm picking the MO up at Maroone Nissan in Delray. There is no trade involved in the deal, just cash and a very small amount financed for 36 months. Sold my car outright last night for cash (just realized I left my Sunpass in the old car lol). They gave me right at invoice plus the $595...overall I think it was a fair price. They are supposed to transport the car from Wallace Nissan today.

EOS


shappy0869 said:
Judging by the dealer fee, sounds like you were at a Maroone dealership (Delray perhaps, I got mine there).

Dealer fees can be negotiated away, but keep in mind that the dealer wants to make a certain amount of money off of their car and whether it is invoice plus fees, or no dealer fee and $XXX over invoice, or invoice and they undervalue your trade by $XXX or they mark up the finance rate, the dealer will find a way to make what they want to make, or they will simply not make the deal.

One of the best ways to get around this issue when you are financing (or paying cash) is to talk in terms of an out-the-door price. Just figure the price you want to pay, add in your sales tax and a couple of hundred for tags and present this to the dealer, making sure to stipulate an OTD price. This way, they can't throw in any fees at the end.

Even though the dealer fee is pre-printed on the sales contract, it is easy enough to have them cross it out, if that is what the parties have agreed to.

As for the issue of the invoice price not being the true cost to the dealer, this is an area of confusion for most consumers. Most people who do their research on the net know what the invoice price is and they know the term "holdback" and even what that amount might be. What they don't realize is that money is more often than not already spent.

For example, my Murano had an MSRP of $37,387, an invoice price of $33,978 and a dealer net price of $32,540. The difference between the invoice price and the dealer net is the holdback amount ($1438). Most people think that even if the dealer sells the car at invoice, or even below invoice, they are still making a bunch of money. Well, this is not exactly the case.

First off, most dealers belong to regional advertising associations. They get charged a certain amount for every car they buy (and they do buy them, more on that below). While the amount can vary, it can be as much as 2% of the sticker price, or about $747 in the case of my car. There goes half of the holdback right there.

Next, when the car comes in, it must be prepped. This usually involves removing all shipping protection, final installation of some trim items, inspections, washing and gassing it up. Typically, this is done through the dealership's service department. Since most dealerships run the different parts of their stores (new, used, parts, service and finance) as separate profit centers, each one is accountable for their "billable" hours. The service department will usually charge the sales department 2-3 hours worth of labor. Depending on that dealership's labor charges, this can be as much as $50/hr, or another $150 off the holdback amount.

The dealership also has to pay their overhead, including mortgage, taxes, utilities and also paying that pesky salesperson (in addition to people like the receptionist, porters, file clerks, etc). Even on a mini-deal, most salespeople will make $100. The rest of the overhead charges are hard to put a number on, but I suspect it is at least $200.

So, out of the $1438 in holdback, we are left with about $241 in actual profit if the vehicle was sold at invoice.

But wait, you remember that I said the dealership buys the vehicle. This is true. Every new and used vehicle that a dealership gets is actually financed (the dealership borrows money from a lender). As with most things that are financed, interest must be paid. This interest begins to rack up from the day the car hits the lot. The faster a car is sold, the less interest the dealership has to pay on it and the more the remaining holdback can be put into the profit column of the balance sheet.

In the case of my car, I took delivery the day the car came in, so they paid little or no interest on the car, so the remaining holdback was added profit. However, if the car stays on the lot for days, weeks or months, the interest charges begin to add up, and this eats away at the remaining holdback.

This is not to say that you can't but a car at invoice, or less. My whole point is to show that the holdback amount that most people thing is always pure profit is usually far from it. Just something to keep in mind when you are negotiating and you want to talk intelligently to a dealer about their true invoice price.
 

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shappy0869-

:29:

Thanx for your (as per usual) great explanation on the financials behind dealer pricing.

-njjoe
 

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EOS Man said:
All you recent 06 Murano buyers, can someone tell me if this is a good deal? I'm going through a broker, so that gets me out of any 'dealer fees'.

2006 Murano SL 2WD
*Platinum/Cafe Latte leather
*SL Touring pkg
*Vehicle Dynamic Control pkg
*Navigation pkg
*Splash guards
*Roof Rails
*Floor Mats
*Sunroof Wind Deflector
*Cargo Protector

All for $34,800 + tax/tag (Can I do better, or is this a decent deal??)

Opinions highly appreciated!!!!
My MO is the same as yours, merlot, plus tire pressure monitor, wood trim, $32800+tax+fees. Bought on 4/26, 4% APR.
 

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I have seen you all talking about the price with and without some optional items,and I'm glad I bought a used04 SE AWD with all belts and whistles(nav,dvd,leather,sunroof) with 16,000miles on dec.05 and car was bought originally new on nov04,so was about 13 months old all for $25,000.
practically comparing to new maybe $10,000 to $12,000 under invoice.
I go for used ones in excellent conditions all the time.
 
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