Dealer Selling Stinger Under Invoice?

[namja]

I know that dealers can still make money even when they discount the Stinger under invoice by a few methods:

1) Holdback at 3%?
2) Unit sales
3) Selling add-ons/warranty

Today, I came across a reddit post and saw this comment:



I'm wondering how true that statement is.
Also, are there other ways a dealer can afford to sell under invoice and/or cost?

On the other side of the equation, from what I understand, dealers finance each car they put on their lot, and the longer it stays on said lot, the more money they lose. How come some dealers don't budge on pricing?

I'd really appreciate some insight, particularly from the dealers that peruse this forum (not sure who is still active).

 

[ShannonC]

Just about every dealer would be on a factory sales incentive so most likely the statement is true (particularly towards end of month).
Very few dealers can afford to own their stock so it's financed according to vehicle value. High volume dealers can get their finance charges to near zero by selling customers a finance package, it's called offset.

 

[Michael Weitzhandler]

I believe my recent purchase may have been below dealer invoice because of rebates/ incentives;

Here is the deal I got at Ron Tonkin Kia in Portland Oregon on Dec14.;

Vehicle: 2019 Kia Stinger 2.0L RWD Turbo Automatic


MSRP: $34,625

Internet & Fleet Price: $30,237

-$3,250 Low APR Bonus Cash (Must finance through the KMF 506 Low APR Program)

-$2,000 Holiday Sticker Event Bonus Cash

*Total iPrice: $24,987 (after applicable factory incentives above)*.

W

I’m betting the dealership ordered far too many and is panicking trying to at least get their money back, before the 2020s show up of which I’m sure once again, they ordered too many. Also, the Black and White Stinger customers get an extra $3K off if financed through Kia right now. They did when I bought my Red one but I didn’t want a black or white one

The Stinger I purchased, as far as I can tell, was the 2nd to last 2019 RWD 2L base model available in Oregon or Washington. There was one other base model available in Seattle and I had an appointment to see it on Dec 15 if I didn’t purchase at the Tonkin dealership in Gladstone, Oregon. From what I’ve been reading, they haven’t been selling well in 2019 and maybe this is why Kia is offering end of year rebates & incentives. The only color available in the 2019 base model in Oregon/ Washington was red.