Car Biz: Must we negotiate? Round II

Here are the two e-mails that followed from the material transcribed in the previous Blog entry, entitled Must We Negotiate? and dated 1/6/09. The same editorial changes have been made to protect the customer's identity:

Hi Will,

The exchange we are currently having is delightful. Thank you for your time & civility. That's what sells cars!

For the last 30 years, it has been my responsibility to purchase the cars for our family due to my wife's aversion to negotiating. I don't like it either, but we need transportation. In preparation to making the offer for the 2009 Honda Civic LX 4 door automatic, I have read to the ends of the internet & logged lots of computer time. At your suggestion, I visited Edmunds once again & their invoice price for a 2009 Honda Civic LX 4 door automatic is $16,727, HCL: $16,618.49. It's my understanding that the cost per vehicle to each dealership is determined by the number of vehicles ordered; the larger the order the lower the cost basis so the invoice price is somewhat fluid.

Thank you for clarifying that the Civic is available with factory tinted windows. I didn't realize it's a standard feature of the vehicle so additional tinting is unnecessary. Our daughter owns a 3 year old Honda Accord which does not have tinted windows. Recently, we purchased for her a gift certificate for window tinting; cost: $160.00.

It's not my intention for you or your dealership to lose money, but I must seek the lowest price you are willing to accept. As you so clearly explained, negotiating will not be discontinued in the foreseeable future. So, before my wife & I will drive to Honda Clear Lake, let's reach a compromise on a drive out price.

When that's settled, we will bring a check for that amount.


Kindest regards,
Mark
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Hi Mark,

I'm enjoying corresponding with you, too, and I'm especially grateful for your appreciation--lots of people don't want the truth. In fact, reflecting on our correspondence helped me come to a further insight about the whole issue of negotiation--I'll transcribe it from my blog here:
[see Comment appended to Must We Negotiate?, recorded 1/6/09].

Thanks for focusing my attention on this whole sensitive subject, and helping me think about it more clearly. I take reconciliation even more seriously than selling cars (cf. 2 Corinthians 5:10-20).

Mark, as far as I know, every Honda dealer in the U.S. pays exactly the same for his/her Civic LX sedans with automatic transmission--there is no variation in price based on dealer volume or location. In fact, that's why the 'destination' charge is standard for every dealer, so that dealers near the factories or ports don't have an inordinate advantage over the more remote locations. My price list has $16,818.49 as the invoice for the LX, and it includes (what I was told is) a $200 increase over vehicles shipped before January 1. I have a lot of respect for Edmunds, so I'm also OK with their figure. Your daughter's three-year-old Accord did/does have factory tint--a light green tint that cuts down UV radiation, but does little for longer wavelengths of light. The darker tint helps a lot with vision, cooling, and the durability of a/c units in our area.

The lowest price I would accept is irrelevant--I'm paid a flat fee per sale, and I'd gladly provide you and each of my potential customers whatever y'all want at whatever figure you could muster. The lowest practical price is established by our General Sales Manager in all cases other than those the managing partner decides. I'll get their number for you, and send it shortly. But I have to repeat that whatever they offer, they are often willing to go lower when/if a customer is in our dealership and ready to take delivery if a price is agreed upon. No urban legend is harder to kill or to live with than the mythical 'best price.'

I can promise you that a purchase at HCL will also make available to you the services of the best sales and service staffs in this Honda-dealership-rich metro area. And I'd be blessed to meet you and Mrs. Folks. I will give you the most thorough and informative demonstration and test drive available, so even if you buy your Civic elsewhere, you'd be benefited by letting me show you the car before you make your final decision. And your check will always be welcome!

Blessings and best wishes,
Will Hensel, Honda of Clear Lake
281-217-4835 (Cell) 281-338-6666, ext. 1136 (Landline)