Buying a Low Supply Hight Demand Car

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LifeIsGood
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Buying a Low Supply Hight Demand Car

Post by LifeIsGood »

I'm looking to purchase a 2015 Honda CRV Touring. I live in a large metro. area and find there are very few in stock and only 1 in the color I want. I haven't tested the waters yet concerning price but based on postings at Edmunds, I suspect most dealers will be asking Suggested Retail for this car.
Does anyone have any tips for dealing with a situation like this?
The Wizard
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Re: Buying a Low Supply Hight Demand Car

Post by The Wizard »

You're learning what Supply and Demand means first hand.
I even recall certain models being offered for a few thousand over MSRP a few years back. ADM it said on the window sticker. (Additional Dealer Markup...)
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livesoft
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Re: Buying a Low Supply Hight Demand Car

Post by livesoft »

I would suggest extending the range of your search to a 1,000 mile radius from your location.
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jimmyq
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Re: Buying a Low Supply Hight Demand Car

Post by jimmyq »

I'll state a few obvious options. Either wait another 6 months for supply to catch up, or bite the bullet and pay the premium.
asterix0
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Re: Buying a Low Supply Hight Demand Car

Post by asterix0 »

Look at least 50 miles outside the metro area to get out of the Atlanta advertising pool. Use truecar.com (or one of its clones) to get comparitive price quote but be ready for a lot of calls from dealers.
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Re: Buying a Low Supply Hight Demand Car

Post by Jack FFR1846 »

Use tru car to get an idea on cost

Call dealers and ask them what their doc fee is

Using this info email the dealer with the car in the color you want and give him an offer (exclude the doc fee)

If you don't see an agreement to your price, ask about placing an order


These are manufactured in East Liberty, Ohio, (plus Mexico and Canada) so there is no reason why one could not be ordered and received reasonably soon (3 months)
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runner9
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Re: Buying a Low Supply Hight Demand Car

Post by runner9 »

You could e-mail several dealers, see if they'll compete. Especially if you can wait a few months for an order to come in.

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cheese_breath
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Re: Buying a Low Supply Hight Demand Car

Post by cheese_breath »

jimmyq wrote:I'll state a few obvious options. Either wait another 6 months for supply to catch up, or bite the bullet and pay the premium.
Or buy a different car.
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hand
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Re: Buying a Low Supply Hight Demand Car

Post by hand »

This seems like a good situation to try to find an affinity discount (perhaps your employer has a relationship with the manufacturer) or a volume buying service (Costco?) that offers a standard percentage off MSRP.
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Re: Buying a Low Supply Hight Demand Car

Post by ThankYouJack »

livesoft wrote:I would suggest extending the range of your search to a 1,000 mile radius from your location.
+1. I ordered a 2015 Subaru Outback (a very high demand model) from a dealer that is almost 800 miles away. I got a price that was thousands less than any other regional dealer would come close to. So I figure the flight up (~$100 plane ticket) and drive back (~$100 in gas) is worth a couple thousand to me especially since I can see family and friends on the return trip back.
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midareff
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Re: Buying a Low Supply Hight Demand Car

Post by midareff »

LifeIsGood wrote:I'm looking to purchase a 2015 Honda CRV Touring. I live in a large metro. area and find there are very few in stock and only 1 in the color I want. I haven't tested the waters yet concerning price but based on postings at Edmunds, I suspect most dealers will be asking Suggested Retail for this car.
Does anyone have any tips for dealing with a situation like this?

Sure... be willing to wait a few weeks and place your order the way you want it. Also watch for Xmas discounts and buy near the end of the month/year. Puts you in a much better situation if you have a color or option list that narrows down the available vehicles. Getting one from another dealer usually involves two dealers making some money and if a dealer has the only one you want due to options the desire to negotiate is limited. .
Boglegrappler
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Re: Buying a Low Supply Hight Demand Car

Post by Boglegrappler »

If there is high demand, and not many in stock, then it must be the case that there is constant turnover at a rapid rate, and there will be more stock coming. There can't be really high demand (i.e., popularity) and scarcity at the same time.

Use the online services and don't be afraid to buy from someone not close by. My experience is that local dealers don't give you the best deal. You only get it from someone at a distance who knows the only thing he has to work with for you, is the price.

Email them with a price somewhat below what you think is a great price and they'll let you know quickly whether they are open to making a deal.
DFrank
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Re: Buying a Low Supply Hight Demand Car

Post by DFrank »

Boglegrappler wrote:If there is high demand, and not many in stock, then it must be the case that there is constant turnover at a rapid rate, and there will be more stock coming. There can't be really high demand (i.e., popularity) and scarcity at the same time.
I agree with this. We've bought in similar situations in the past and were able to get a reasonable price, but we ended up waiting for a vehicle that was in the dealer's order pipeline.
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Re: Buying a Low Supply Hight Demand Car

Post by scooterdog »

From the 2012 thread linked to above, I used fighting chance a few years ago with great results.

You need to be willing to invest a combination of time and effort into the exercise, including expanding the radius to as far as you are willing to train/plane there and drive back. In my case 200 miles wasn't that bad at all, and know that I got a great deal.

It is amazing what other geographies may have (and offer to you) that locally you know you couldn't ask for. IMHO it's totally worth the effort.
georgewall42
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Re: Buying a Low Supply Hight Demand Car

Post by georgewall42 »

If you expand you're search radius enough, there's a chance that you'll find a car sitting on a dealer lot for a couple of weeks. I stumbled upon one a number of years ago when I wanted a hot sports car in an earlier life. Cars of this model were selling at or above list; I went to one dealer (who wasn't even that far away) a few times, saw the same car on the lot each time, and offered $2K below list to "get it off your lot". The salesman told me I had a "fat chance of getting that deal", but he had to take all good faith offers to his boss. I went home, got a call the next day saying my offer was accepted.

Patience is the key; a car sitting on a dealer's lot is costing them money every day it goes unsold.
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LifeIsGood
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Re: Buying a Low Supply Hight Demand Car

Post by LifeIsGood »

Thanks so much for all the responses. I've considered True Car but really don't want to deal with dealers calling me. The last car I purchased was done strictly via email and it was heaven!
I've also considered Costco for this situation. I'm using Edmunds vehicle search feature and it will only show vehicles within a 200 mi radius. Oddly enough, the only dealer with the color I want is 10 mi away. I also may have to consider another color since there is only 1 available. I'll probably wait another week to send out feelers and see if I can take advantage of the end-of-quarter, end-of-year "frenzy".
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runner9
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Re: Buying a Low Supply Hight Demand Car

Post by runner9 »

Or try another site like cars.com that will expand a search more than 200 miles, or narrow it, etc.
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Toons
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Re: Buying a Low Supply Hight Demand Car

Post by Toons »

Be prepared,do your homework online,,,
add the options you want :happy

http://www.kbb.com/honda/cr-v/2015-hond ... 57982|true
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livesoft
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Re: Buying a Low Supply Hight Demand Car

Post by livesoft »

When I used various web sites to search for a vehicle, I noticed that each web site did not show some of the cars that other web sites showed. And the dealer web sites did not put some of their cars on external web sites, so that one had to also look at the dealer web sites, too. Or perhaps a place like Edmunds or kbb or whatever don't scrape other web sites as completely as one would like.
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runner9
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Re: Buying a Low Supply Hight Demand Car

Post by runner9 »

livesoft wrote:When I used various web sites to search for a vehicle, I noticed that each web site did not show some of the cars that other web sites showed. And the dealer web sites did not put some of their cars on external web sites, so that one had to also look at the dealer web sites, too. Or perhaps a place like Edmunds or kbb or whatever don't scrape other web sites as completely as one would like.
I think this is another reason to do an e-mail out to several dealers. Let them say "here's a serious customer, let me try to find that car" and then use their resources and time to do so instead of the other way around.
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Toons
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Re: Buying a Low Supply Hight Demand Car

Post by Toons »

I recently purchased a 2015 CRV EX-L.
Worked with a couple dealerships online
I walked into the dealership met with the salesman,we met the sales manager.
I showed him Kelly blue book,Edmunds pricing numbers ,along with other data I had accumulated in entered into a spreadsheet.
We worked with the numbers about 5 minutes
Done deal.I was pleased.
Like I said earlier,do your homework with a couple dealerships.
"Arm"yourself with knowledge,knowledge being "numbers" :happy
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Toons
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Re: Buying a Low Supply Hight Demand Car

Post by Toons »

Delete :happy
Last edited by Toons on Tue Dec 09, 2014 9:42 am, edited 1 time in total.
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EnjoyIt
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Re: Buying a Low Supply Hight Demand Car

Post by EnjoyIt »

I am not sure if Honda does this, but can't you spec out your car, have it built and delivered.

I did this with my last new car purchase and got the best price since dealers have nothing to loose cutting the price as you can easily go somewhere else to make the order.
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LifeIsGood
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Re: Buying a Low Supply Hight Demand Car

Post by LifeIsGood »

I decided to give Costco a try to get some sort of a baseline number. It turns out there are no participating dealers for this model. I guess that tells me something.
denovo
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Re: Buying a Low Supply Hight Demand Car

Post by denovo »

The Wizard wrote:You're learning what Supply and Demand means first hand.
I even recall certain models being offered for a few thousand over MSRP a few years back. ADM it said on the window sticker. (Additional Dealer Markup...)

Still happens.
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denovo
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Re: Buying a Low Supply Hight Demand Car

Post by denovo »

LifeIsGood wrote:I decided to give Costco a try to get some sort of a baseline number. It turns out there are no participating dealers for this model. I guess that tells me something.
http://www.bogleheads.org/forum/viewtopic.php?t=124638

Check this link . Also, glancing Wikipedia, it looks like the 2015 model was a major revision that just went on sale in October. To put it bluntly, you're not going to get a deal. Maybe a bit flexible on the color and wait a few months.
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Boglegrappler
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Re: Buying a Low Supply Hight Demand Car

Post by Boglegrappler »

Some years back I bought an FJ Cruiser for full sticker at a time when the dealers were asking for premiums. I was reading a message board and saw someone say that he had only paid sticker, and give some information that caused me to believe he was in my area. I PM'd him and asked about his transaction and he gave me the name of the dealer, about 25 miles away. I called salesman and asked if they'd sell at sticker with no mark up, which they agreed to quickly, and I had my deal. Its the only time I've ever paid the sticker price.

It's really a question of online "legwork" and patience, and you'll be able to eventually find what you want.

Since then I've bought several cars. I tried true car once , but abandoned the process when I had dealers claim they didn't have the car. Life's too short to get involved with people who insist on jerking you around.
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