General discounts when ordering? - Acura MDX Forum : Acura MDX SUV Forums
 
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post #1 of 6 (permalink) Old 01-29-2019 Thread Starter
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General discounts when ordering?

I just purchased a 2019 Jeep and was able to start my price discussion at 1% under invoice by being a member of an organization that had a FCA discount. My wife is talking about ordering a 2020 MDX when they come out. Is there any organization that we might join that offers "employee" type discounts?


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post #2 of 6 (permalink) Old 01-30-2019
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Nothing out there IMO that the general public can join without a true employee or supplier connection. Just out of curiosity, what was the organization that you joined and how far under invoice did you end up?

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post #3 of 6 (permalink) Old 01-30-2019 Thread Starter
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Nothing out there IMO that the general public can join without a true employee or supplier connection. Just out of curiosity, what was the organization that you joined and how far under invoice did you end up?
Tread Lightly, a FCA affiliate. They start you at 1% under invoice. I was able to go 2% more for a total of 3% under invoice. I was happy but I've heard of other that got as much as 5% under invoice. I have no idea what to expect when starting to get "serious" with the MDX. Guess we'll have to wait and see when they are announced and what the prices will be.

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post #4 of 6 (permalink) Old 01-31-2019
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I think you'll find Acura to be fairly similar when ordering depending on your timing with the new model. Quite frankly, as you discovered, your affiliation really didn't do anything other than give you a base point. These kinds of "buying programs" whether it's the one you used or a more recognizable one such as Sam's Club or Costco, are really meant for people who aren't good negotiators or simply dislike the negotiating process. Of course if there is a trade involved those people often end up forgetting that side of the transaction. In the end all you need are the two most aggressive dealers near you, and in many cases you don't even need the 2nd dealer. TrueCar is probably the most useful tool these days and they use your zip code as dealer incentives are specific to the buyers zip code. In other words, just because the price would be better 3 states away doesn't mean you can buy there and get the local incentive unless you have a legit address there to use.

Now on to the issue of ordering. The landscape has changed significantly in recent years and the benchmark for a "great" deal has changed. It is far more volatile today and where incentives that impacted the deal may only change by $500 from one month to another it's now not unusual to see $1,000 or even $2,000 swings. The manufacturers are so dialed in with not only their planned model year production quantity, but the model mix within that total. Then incentives, in many cases now on the back end (dealer incentive) rather than on the front end (consumer incentive). They are typically on a 30 day cycle ending in the first few days of any given month and once that date passes there is no taking the earlier deal. On top of that there are frequently volume related dealer incentives, either model specific or total new product, that can be significant. Think $20,000 significant. So in rare cases you will encounter a dealer in the last days of a cycle with his target just out of reach unless he makes some "magic" do a deal that is $2,000 below his normal price point. That's because by losing $2,000 on an individual deal he collects the $20,000 bonus, still a net of $18,000 for his new car department. That can be the difference between the new car department making or losing money or getting the sales manager to his next bonus level, so you can understand the motivation.

I give you all that info not only to help others here figure out how to get their best deal, but to help explain why ordering will make sure you get the color and option group you want, but also takes away significant negotiating power. It's not uncommon, even without the scenario I painted coming into play, for price points to drop into the 8-10% under invoice range. If you order though, the dealer has no clue what back end monies or volume bonuses will be impacted when the car delivers. It's a total crap shoot for him. Obviously the early 2020's will command a premium because of the redesign, though I wouldn't expect dealers to stick to list or anything crazy like that, but likely at invoice or $500 above and early orders will likely be treated the same. The better discounts should start to flow around December 2020 and depending on the model mix sell rate those that have been selling slower than expected will be bumped up. If you have some flexibility in your purchase time you could try to buy from stock in December and then order if you can't find a combo that suits you.

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post #5 of 6 (permalink) Old 01-31-2019 Thread Starter
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I gather from your post and your sig, that you are/were in the automotive industry :-) I'm one of those people that buy new and keep that vehicle for a long time. My last Jeep was a 2007 that just turned 100k. I sold it to a friend before ordering the 2019. I would have kept it but I liked the remodel of the 2018-2019 Jeep. They have features that almost made it a "car" :-) I tend to order from the factory to get exactly what I want. The Jeep I ordered and received Christmas Eve is a fully loaded Mojito 2 door Wrangler Rubicon. I did do one thing that was completely new for me. I ordered an automatic. All my vehicles have been sticks.

My wife's vehicle is a 2004 MDX that is immaculate, 93k and literally two little scratches. It is not worth near as much as the Jeep was so not really sure what we'll do with it when we buy. My wife is definitely getting the itch for a new vehicle. She has looked at a number of vehicles and narrowed it down to BMW, Volvo and Acura. Now she is leaning very heavily toward the MDX - possibly a hybrid this time. Any idea when Acura will announce the 2020 year?

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post #6 of 6 (permalink) Old 01-31-2019
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Honda has a history of being very tight with new model info and the 2020 MDX is no different. Right now they are expected on the lots in the typical time frame of around September 2019, but on occasion they have even bumped it by a year when they feel they aren't ready. That happened for the MDX for 2013 and the Odyssey for the 2017 model year. Those should have been new model years based on their usual cycle of 3 years, mid-cycle refresh for the next 3 years, then another new model.

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