Think before you sign....The $10,000 Mistake
 

Guys,

I am posting this information that you should already know but may help some of you from getting upside down on your Camaro deals.

I have posted the invoice and MSRP of a 2SS Camaro with RS package so you can see what these cars will be worth by year end.

By late fall and before Christmas these cars will be selling for invoice plus $500 and used ones will be selling below original invoice.

If you can wait a couple of months you will be able to buy a brand new 2SS with RS package for Invoice plus $500 for a total of $34,300. You will be able to pick up the same car used for around $32,000 to $33,000.
If you are signing for a loan on a similar car you can see how badly upside down you will be based on your loan amount and the projected value of $32,000 retail (not wholesale).

I have been thru a few of these boom and bust times on new model releases and just wanted to save a few people from some heartbreak later on. I know of people right now that wish they could go back and do it over on their Shelby GT500 purchase. Some of them owe way more than what the cars are worth and need to sell due to hardship.

Also if you happen to encounter financial problems or lose your job you will not be able to sell the car because you will owe more than it is worth.

Think before you sign,

War Eagle

You are so correct. I am now so glad I did'nt buy my GT500 when they first came out as I originally wanted to. The guy I just bought mine from took a $20,000 hit on it ! It certainly worked out for me though. Buying lightly used is the only way to go if you can find a car thats perfect enough. And I'd call less than 600 miles on it "perfect"...

Roger that, I paid invoice $43,012 for my new 2009 GT500 in December 2008 and have a friend that wrote a check for $73,000 including sales tax on a 2007 GT500 convertible when they first came out.

Steve

If you loose you job and you cannot get another one, I am sure most people would be more worried about their mortgage, let the bank take the car.......it becomes their problem.

In these times you cannot worry about these things otherwise you further slow the economy. With the mortgage's the way they are (especially if you bought in the past 6 years), you have a bigger problem when you go to sell your supposed "appreciating asset", why should an auto be any different. Plus Auto's are depreciating assets anyway. If you can afford to by it right now, and your job "appears" stabile you go for it, otherwise you wait.

The dealers are only making about $1200 on an SS, give or take, so you are saving $700 to get the car in the winter or next year........Maybe ok for southerners but not us northerners, we want our cars yesterday.

And do not forget you have the Supply and Demand Issue. If the demand is still hot and heavy at the end of the year, your $500 above invoice is out the window. Once these cars hit the road, the people that still never even knew it was coming out will be a new crop of buyers.

BUT A GOOD LESSON FOR ANYONE WILLING TO GO ABOVE STICKER ON ANY CAR, ANY TIME!!!

"Quote
The dealers are only making about $1200 on an SS, give or take, so you are saving $700 to get the car in the winter or next year........Maybe ok for southerners but not us northerners, we want our cars yesterday."

The Dealer will make around $2,800 when he sales the 2SS in my example for $500 over invoice not counting any additional GM Dealear incentives that may come up by year end. You also have to add in the Dealer Doc fees which run anywhere from $75 to $700.

ON the base car, it shows $1500, but I am not sure how accurate that number is. I do not know where you care getting $2800. Invoice is the dealers price.

Either way you missed my point. The Supply and Demand will drive the price. You are assuming supply will be up and demand will be down, good luck with that assumption. And if you are buying a fun car, most people do not care, it is not a financial move it is a passion driven purchase.

Cars are ALWAYS a depreciating asset unless by some miracle it becomes a classic. But in my opinion with all the plastics and rubber they use today, no cars will last for 20-30 years without half the car looking like crap. Have you ever seen a plastic headlight cover after 8 years, they turn all frosty and the bumpers paint cracks.

The profit margin would run from $1,400 on a straight cash sale with $75 doc fee to up to $2,800 with an inflated doc fee, dealer prep and commission on loan if the deal is financed. The invoice is not what the dealer pays you have to look at the "real" invoice not the one they show you.

That is partial the reason I am waiting.
The other reason is, I want all the "bugs" or "fixes" to be iron out by GM before I place an order.:headbang:

No matter what...

You will get a better deal if you wait, theres just no question. How much are they making now off these cars who knows, if you gotta be the first on the block your gonna pay and you should know that. You wanna save some dough and don't care about being first that's the way to go.

Being upside down is also dependent on how much you put down.

With $16,000 down I doubt I'll be upside down anytime soon.

Quote:

Originally Posted by War Eagle (Post 474008) The profit margin would run from $1,400 on a straight cash sale with $75 doc fee to up to $2,800 with an inflated doc fee, dealer prep and commission on loan if the deal is financed. The invoice is not what the dealer pays you have to look at the "real" invoice not the one they show you.

:thumbdown: :barf:

The one we show you is the "real" invoice. Invoice is invoice, no matter how you look at it. If you're attempting to reference "hold back", then call it that. Hold back is something the dealer principle gets as a kick back from GM for selling the car and most dealers believe that you as a customer are not entitled to it. GM believes the same and that's why it is the way it is. Here's the real profit a dealer makes on an MSRP deal...

MSRP: $35,185 (for this example)
Invoice: $34,235.25

The dealer makes:
$949.75 profit from invoice to MSRP
Hold back: $1,568.50
LMA: $343.70

They then pay commision to the sales guy: $250.00
Commission to the finance guy: $100.00 (just a round number)
Commission to the floor managers: $85.86 (assuming 3% of total gross)
The LMA money goes back into advertising: -$343.70

So the total gross profit to the dealership is $2,082.39 but $1,568.50 comes to the dealer for keeping their doors open in a quarterly bonus, so on the books, it's only $513.89 for the sale.

i'm getting mine for close to invoice so i'm happy.

What's with all the Ford owners on this site. Upside down or not, they must be getting ready to dump those Fords!

I am getting ready to buy a 2010 GT 500 and a 2SS Camaro later this year. I like a lot of different Muscle cars and haved owned different brands at the same time. I have never been one of thoes either Chevy or Ford Guys.