Edmunds Answers

Answers

  • Stever@Edmunds 11/05/09 2:10 pm PST

    Edmunds TMV is indeed based on what other people are paying for a make/model in your zip code.

    I don't know why your local dealers are offering a price that's right at invoice. I guess they are hungry to sell cars.

    The invoice price is what Honda ostensibly charges the dealer. But that's not the true cost of the car to the dealer. If the Accord just got to the lot (or is in transit to the dealer), then the dealer's financing costs (holdback) are minimal.

    The dealer may still be trying to meet an October quota for a bonus (sometimes the months are "stretched" out for bonus purposes, but 5 days is a bit of a stretch). The dealer may have over-ordered a lot of Accords and needs to get rid of some before they all arrived. Or maybe if the dealer sells a lot of Accords this month, Honda will reward the owner with a cruise or other spiff. Maybe the dealers know the price trend for the Accord is down, so they are discounting early. Who knows.

    There's one more factor, from How We Calculate New TMV Prices:

    "When an all new or redesigned model is introduced, we display its estimated TMV® price, even though there may not have been any sales of that model. We do this because our visitors have expressly requested that we provide our "best estimate" of the transaction price as soon as the model is available for purchase. We update this TMV® price as soon as we start receiving statistically significant transaction data. "

    I don't know when the '10s hit the lots, but the data may still be a bit sparse. But it's really not "all new" or even much changed for '10 is it?

    Sounds like a great deal to jump on. Assuming Honda doesn't come out with any incentives to sweeten the deal, other than the current low APR. :-)

    Enjoy the new ride!

  • MrShift@Edmunds 11/05/09 5:30 pm PST

    Could be they'll add a destination charge, and perhaps a regional advertising fee. That might just equal up the numbers.

    So be on the lookout.

  • Stever@Edmunds 11/05/09 5:39 pm PST

    Oh, check the Accord Prices Paid CarSpace discussion too. May be some similar deals on '10s you can compare notes to.

  • isellhondas 11/07/09 2:05 pm PST

    But Steve,

    What I'll never know is how Edmunds finds out what people have actually paid.

    No store would ever disclose this and I would think if they were to contact a customer and ask the customer would say " That's none of your business"

    And, often there is a trade in involved. If it's a desirable trade, a store will often show a lower selling price on the new car in order to make the sale happen.


  • Stever@Edmunds 11/07/09 2:56 pm PST

    Maybe not in your store. Edmunds updates actual dealer sales data for cars sold all over the US using actual transaction price date. It's a little different from Kelley, that publishes asking prices. Further details are proprietary.

    Good point about trade-ins and how they can affect sales, but the original poster didn't mention anything about a trade.

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