Why are 2017 Cx-5 selling so close to msrp?

D

davco

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Indiana
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2017 CX-5
I'll be going to the dealer today for an overnight test drive with plans on sealing the deal tomorrow. I've spoken with him about a lower price and asked about memorial day sales and such. He always mentions "invoice price" and tells me that he can sell it for "close to invoice". This price is less than $1500 cheaper than MSRP.
I guess this is what happens when everyone wants to own a cx-5. There is no pressure to go much lower than MSRP.
 
Received an email saying Mazda is offering an additional $500 of to those on active duty, retired military or veterans. Same deal I got 3 years ago when I got my 2015 Grand Touring.

You usually get a little better deal when taking one already in inventory. Dealers have to take loans to have them sitting on the lot, waiting for their owners to come.
 
MSRP = Manufacturer Suggested Retail Price.

What you need to know before you go into any negotiations about a deal, is the Invoice Price the dealer pays for the vehicle. Once you know this price, keep in mind that the dealership has to make money too to cover their operational costs and make some profit.

The CX-5 is in high demand so Dealers don't need to sell below what they pay for it. They may need to compete with other dealerships selling more product that them.
 
7eregrine said:
"Invoice Price" is such a myth.

http://www.bankrate.com/auto/invoice-price-on-any-car-is-a-mythical-figure/

http://clark.com/cars/eye-opening-truth-about-dealer-invoice-price/

I read something last year that Mazda is trying to get away from offering big discounts in order to get resale value up. If the MSRP is $30 and you pay $29, your resale is going to improve, unlike Jeep that was giving $4K off last year (if you took the 4.9% interest).
Click to expand...

Yes, Mazda doesn't want to be Nissan or Dodge... selling vehicles for thousands below sticker. They'd rather sell fewer cars than play that stupid game.
 
banjos-n-beer said:
Yes, Mazda doesn't want to be Nissan or Dodge... selling vehicles for thousands below sticker. They'd rather sell fewer cars than play that stupid game.
Click to expand...

This I can understand. Having said that, though, it still annoys me when my sales guy brings up the "invoice price" like it's the floor and his hands are tied. I'd rather him just say "I'm not taking less than my asking price...someone else is willing to pay what I'm asking."
 
I'm going to have to stick up for dealers here. When more then half of the people that come through the door think they are going to PAY INVOICE and SCREW THE DEALER... they start playing right into that whole "Invoice Price" thing. I don't blame them at all.
 
davco said:
This I can understand. Having said that, though, it still annoys me when my sales guy brings up the "invoice price" like it's the floor and his hands are tied. I'd rather him just say "I'm not taking less than my asking price...someone else is willing to pay what I'm asking."
Click to expand...

Ive done ghat before, walked the invoice to the customer, said it would be 500 more. They declined, I shook their hand and went about my day. Invoice is a real number...and so is hold back and back of the house financing.
 
7eregrine said:
I'm going to have to stick up for dealers here. When more then half of the people that come through the door think they are going to PAY INVOICE and SCREW THE DEALER... they start playing right into that whole "Invoice Price" thing. I don't blame them at all.
Click to expand...

Don't get me wrong, I'm not looking to screw anyone. Your point is true, though. That is, society has created a auto buying culture that is an "us vs them" mentality. See words like "stealership".
I'm looking for a partner. My vehicle will be serviced by the dealer. I have never bought new and never thought I would but here I am. I am going to this dealer because I've known the sales guy for a while and consider him a friend (bought me MPV from him). To screw the dealer would be to screw him...not cool.
I just wish that we could buy a car without the game. That's all.
Unobtainium, are you a mazda sales representative?
 
davco said:
Don't get me wrong, I'm not looking to screw anyone. Your point is true, though. That is, society has created a auto buying culture that is an "us vs them" mentality. See words like "stealership".
I'm looking for a partner. My vehicle will be serviced by the dealer. I have never bought new and never thought I would but here I am. I am going to this dealer because I've known the sales guy for a while and consider him a friend (bought me MPV from him). To screw the dealer would be to screw him...not cool.
I just wish that we could buy a car without the game. That's all.
Unobtainium, are you a mazda sales representative?
Click to expand...

No, I used to work for Ford back when Mercury was also a thing. And you are right...people are crazy, and at least in the auto business, you could blow them out the door and go about your day with real customers. Just bring out the invoice and do-or-die, because you're Burning daylight haggling about stupid stuff.
 
It's for a few reasons.

1. Free market economy. Supply and demand.
2. Mazda is not big box automaker Honda or Nissan or something, their margins are much smaller and therefore they don't play the high sticker price and "oh ok here's $10k off sticker" game.
3. Your area.
4. The 2017 is still pretty new. Case in point, I bought my 2014 shortly after it came out and it was the first model year CX-5 with a 2.5L (2013's were all 2.0L). I got $1160 off MSRP on my 2014 when I bought it. It was too new and that was the best it was going to get at the time around here.

Until it's a model year headed out the door that they are trying to clear (look at some of the prices people were getting 2016.5's at when 2017's dropped), don't expect too much of a discount. There's some room to work, but, again it's not like Nissan or some other big box wally world brand.
 
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OP - what number are you looking for?
State the MSRP of exact trim / color / package car that you want.
State the Price you want to pay.

Then a lot of us can answer you in three words : Yes / No / Possible - understand that car buying is not such an important decision as people make it out.
 
7eregrine said:
"Invoice Price" is such a myth.

http://www.bankrate.com/auto/invoice-price-on-any-car-is-a-mythical-figure/

http://clark.com/cars/eye-opening-truth-about-dealer-invoice-price/

I read something last year that Mazda is trying to get away from offering big discounts in order to get resale value up. If the MSRP is $30 and you pay $29, your resale is going to improve, unlike Jeep that was giving $4K off last year (if you took the 4.9% interest).
Click to expand...

Precisely. Plus, the "holdback" on this model is currently around 1%.
It's BS when a dealer claims they can't make a profit at invoice and/or a bit under invoice - because, usually, they can.
 
davco said:
Don't get me wrong, I'm not looking to screw anyone. Your point is true, though. That is, society has created a auto buying culture that is an "us vs them" mentality. See words like "stealership".
I'm looking for a partner. My vehicle will be serviced by the dealer. I have never bought new and never thought I would but here I am. I am going to this dealer because I've known the sales guy for a while and consider him a friend (bought me MPV from him). To screw the dealer would be to screw him...not cool.
I just wish that we could buy a car without the game. That's all.
Unobtainium, are you a mazda sales representative?
Click to expand...

If you're on good terms with him and something about the way he's dealing with you is irking you that much kindly ask him to stop bringing it up or approach the deal from a different direction. They're humans too and if they're decent people they should be wanting to work to sell you a car the way you want to buy it. This is part of the reason why after one bad experience myself I am very up front, honest, respectful and realistic when I meet a sales guy and with every successful deal from there it was always reciprocated back to me. If it wasn't, I moved on.

I know it's difficult but I find stepping back and taking the emotion out of it overall makes it a much more pleasant / less stressful experience and in the end I'm happier and when there's mutual respect after sales service is much better in the event that you need it.

With regards to pricing near MSRP - as other's mention it's supply and demand and right now they're hot. If they're not hurting to move them they don't have any incentive to lower prices.
 
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I can also agree with the supply and demand. I just bought a red CX5 GT with Tech package and there are none in Ontario with the white leather and only one black leather (it's what we got as we have kids...)
and apparently it's on a train headed here.

Also, all I got out of the dealer is $1000 off the tech package option ($1600) and no charge for the red ($400)
 
We are looking at a 2017 GT in machine gray. No tech package. Lifetime warranty (3rd party after manufacturer's warranty). It's listed on the website for $30,100. MSRP is $30,600. Invoice is mid $29k.
I do find it a little humorous that we pinch pennies and try to get an extra $1000 off. I plan on keeping this at least 10 years (probably more)....that is $100/year of ownership. Not really a big deal.
 
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