Is it in the right ballpark to assume that dealer invoice for a loaded G35 is about 9% or 10% of off MRSP? This is based on doing some random edmunds costing re dealer invoice.

Just trying to get some context here when we talk about 2-3% off MSRP in the early months of the introduction, and how much room they really have to play with.

G35-2-B
Toronto, Ontario

 

This is an estimate of what an Infiniti dealership will make on each 2007 Infiniti G35 sold:

2007 Infiniti G35 Base MSRP ( w/o Options or Destination ) * 1% = ?
2007 Infiniti G35 Invoice ( w/o Options or Destination ) - ? = ETDC

* ?: Dealer Holdback
* ETDC: Estimated True Dealer Cost

i.e. 2006 Infiniti G35

$31,450 * 1% = $314.50
$28,930 - $314.50 = $28,615.50

There are other discounts offered to the dealer from the manufacturer and they might make the ETDC a little lower, but this is a good estimate of how much money the dealer makes even if they sell you a car at invoice. So even if you get a 2006 Infiniti G35 at invoice, the dealer is still making around $314.50 on the deal. Almost all dealerships consider holdback money sacred and are unwilling to share any portion of it with the consumer. Don't push the issue. Your best strategy is to avoid mentioning the holdback during negotiations. Mention holdback only if the dealer gives you some song-and-dance about not making any money on the proposed deal when you know that isn't true.

 

So using those numbers:

MSRP=$31,450
Dealer Cost = 28,615.50

Dealer cost expressed as a percentage discount = 9.1% ....so I was in the ballpark.

 

Because the car is so new, if we were to bargain with dealerships in Nov/Dec, will they only go down to 2-3% from MSRP? Or will the 9% be realistic? Too bad VPP won't be accepted for 6 months.

 

If you are looking to deal in Nov/Dec, I think getting a 9% discount is completely unrealistic. IMO, 2-3% is more realistic during the first while once it hits showrooms.

 

Agree that 9% discount is completely unrealistic. That wasnt the point of arriving at the number.

Only reason I asked about dealer cost as a percentage of MSRP was that if in Dec/Jan one was to try for say a 5% discount, I wanted some sense that dealer could not come back with a story about how that type of discount is below their cost.