Rairdon's Nissan of Auburn (WA) $100 below Dealer Invoice

[LEAFfan]

Rairdon is making the CASH. Congrats

Well not as much as others. Someone who sells Leaf MSRP is making twice the money Rairdon makes. If you leave out the costs it is even more.

I think of every extra dollar we give a dealership as subsidizing the gas guzzler sitting on that lot

Yes, but this is like the "Lemonade" game. If you price your lemonade at $1 a glass, you will make more on one glass than someone selling their lemonade for 50 cents, BUT you will sell a lot fewer glasses at a buck than at 50 cents, so the person selling their lemonade for 50 cents will profit much more. Yes, someone who sells at MSRP will make more money on the transaction, BUT how many will they get compared to someone selling below MSRP? So even though some dealers are selling below MSRP, I will guarantee you that they will make more Total money than the ones at MSRP because they will sell many more.
I played "Lemonade" on a comp when it came out (awhile ago) and the first time I tried selling it for 25 cents, I went out of business. I finally hit upon 10 cents and it became very profitable.

 

[evnow]

Yes, someone who sells at MSRP will make more money on the transaction, BUT how many will they get compared to someone selling below MSRP? So even though some dealers are selling below MSRP, I will guarantee you that they will make more Total money than the ones at MSRP because they will sell many more.

Since most leaf buyers do not visit this forum (we have 700 members here compared to 18000 reservations) - and the fact that most MSRP sellers are close to metro areas - I bet that they will sell more cars than far away discounters.

"free market" works only when you have perfect information.

Thats why other dealers are fighting hard to make sure discounters can't openly advertise ...

 

[Carlos]

It seems to me that they really aren't interested in making money off the Leaf model by selling under invoice. Maybe their strategy is longer term. This dealership has only been in business a few months as Rairdon's Nissan of Auburn. It was aquired recently from another auto group and rebranded. The Leaf distribution fell into their lap at the right time. On a marketing stand point they have little risk at selling under invoice and the potential for free media advertsiing is huge if they are successful in selling more than other dealers. Nissan factory is marketing the car, supplying dealers with sales prospects, delivering the cars and all the dealer has to do is price & paper the deal. They win with free advertising and factory kudos. If they can drive enough business to the dealership because of the limited availability of the Leaf they will sell other models simply because most new car buying is done on impusle. I'd love to be a fly on the wall at their sales strategy meetings.....

 

[evnow]

It seems to me that they really aren't interested in making money off the Leaf model by selling under invoice.

As I wrote earlier when selling at invoice a dealer makes some $1,000 in holdbacks. Holdbacks in the industry are supposed to pay for interest paid on cars sitting on the lot waiting to be sold. Leaf obviously doesn't have that cost ... you do the math.

 

[Carlos]

It seems to me that they really aren't interested in making money off the Leaf model by selling under invoice.

As I wrote earlier when selling at invoice a dealer makes some $1,000 in holdbacks. Holdbacks in the industry are supposed to pay for interest paid on cars sitting on the lot waiting to be sold. Leaf obviously doesn't have that cost ... you do the math.

So if a factory model (Leaf) is not designed to sit on the showroom floor but is essentially being produced as a pre sold unit how does the factory offer a holdback to the dealer?

I know this has been customary in the industry but I don't see how a factory can offer a holdback on this model. So if the holdback on Leaf was eliminated by the factory the dealer would lose on the deal or at least not make as much. Auto pricing has never been transparent.

 

[TLeaf]

Auto pricing has never been transparent.

Now that's an understatement! :lol:

I'd be willing to bet that, even though these initial cars may all be essentially sold straight from the factory, they would still have the holdback included in their MSRP. Otherwise, there would be a pretty marked increase in the price of the vehicle once it eventually transitions from pre-orders to showroom purchases. Not saying that its all that unusual for car model prices to vary from year to year, but it sounds like Nissan is hoping for the 2011 model year to make this transition so it would be harder for them to say "$32K if you pre-ordered, $33K otherwise".

A nice padding on the deal for the dealerships, to be sure, but also offset by the extra charging stations most will be installing..

 

[evnow]

A nice padding on the deal for the dealerships, to be sure, but also offset by the extra charging stations most will be installing..

Let us say dealerships invest 100K on chargers. Selling just 10 Leafs at invoice gets them 10% ROI ...

 

[indyflick]

Since most leaf buyers do not visit this forum (we have 700 members here compared to 18000 reservations)

I wonder though how many reservation holders use this site, but are not members. This site has received a lot of press over the last month so the reservation holders may be aware of it. Personally I found this site a critical resource during the purchasing process. I learned details about the car and the EV Project not available elsewhere, how the process would really work, when each phase of the process would actually happen, which dealers were offering what prices, and even the member alerts yesterday when the system was open ahead of the Nissan RAQ email alert by an hour! Knowledge is power! I pity those individuals who went into the process blind without the use of this forum as a tool.

 

[deetime7767]

A nice padding on the deal for the dealerships, to be sure, but also offset by the extra charging stations most will be installing..

Let us say dealerships invest 100K on chargers. Selling just 10 Leafs at invoice gets them 10% ROI ...

Thank you evnow for what you do! Not that you're on the side of the 'dealers' but rather, shedding some "correct" light on the matter as it were. Every penny that the dealer has to initially layout comes from his own pocket to become a "Certified Nissan LEAF Retailer". Nissan kicks in zero! That's how it works for the privilegde. Then to be for lack of use of a better word, 'competitive', they get provoked into a un-neccessary pricing duel cross city, cross county, cross state. It's ridiculous. Has any stopped to think and try and understand tat Nissan itself committed HALF A BILLION DOLLARS to the total launch of the LEAF?? Moreover, untold hundreds of millions they've already spent on 10yrs of R&D, just to get this achievment to the masses...unappreciative and all. I think that a genuine "thank you" is actually in order...to not only Nissan but, to the Dealer that you buy your LEAF at.

 

[evnow]

Has any stopped to think and try and understand tat Nissan itself committed HALF A BILLION DOLLARS to the total launch of the LEAF?? Moreover, untold hundreds of millions they've already spent on 10yrs of R&D, just to get this achievment to the masses...unappreciative and all.

I'm sure we are all very appreciate of Nissan bring Leaf at such great investment and risk ...

I think that a genuine "thank you" is actually in order...to not only Nissan but, to the Dealer that you buy your LEAF at.

We are also thankful to Mossy, Campbell, Rairdon and many others who have participated in this forum and given us a lot of information.

But the main thrust of my post is that even 10 Leaf orders sold at invoice will give dealers a very healthy10% ROI. Nothing to sneer at in this economic environment. Heck, I'll invest 100K today if I can so easily get 10% returns :lol:

 

[gregleach]

I not sure but $100 below invoice then paying $600 for shipping is not cheaper then $1,000 below MSRP with first 200 miles free? Or even 5% off MSRP

Its $100 below dealer Invoice and we will pay $450 in shipping cost sounds like a better deal than anywhere else call me and get a price quote before you order and see for yourself for sure the best price in the Northwest
Greg Leach
[email protected]
253-293-0564

 

[JPVLeaf]

Noticed this on Rairdon's website.

http://www.rairdon.com/blog/2010/september/1/number-one-nissan-leaf-de.htm

FWIW, as a data point, I was told by Greg that trucking cost to So Calif will be at or below the $450. And, if over, only 'slightly' so ... not the extra $300 as mentioned in this write-up, which I assume was written to be generic enough to apply to all 50 states.

It is worth at least a phone call. Spoke with Greg this morning. He is very straightforward and no-pressure. Seems to me they will be getting enough sales off this one. No hard-selling required ....

 

[Gonewild]

I not sure but $100 below invoice then paying $600 for shipping is not cheaper then $1,000 below MSRP with first 200 miles free? Or even 5% off MSRP

Its $100 below dealer Invoice and we will pay $450 in shipping cost sounds like a better deal than anywhere else call me and get a price quote before you order and see for yourself for sure the best price in the Northwest
Greg Leach
[email protected]
253-293-0564

I did call Greg. I have a White SL etec and floor mats on order now.

 

[sammy4410]

I love this car so much. Does anyone have any ideas for transport review companies? I'm shipping my leaf to my new home in California from Miami, FL. I'm currently on .... but I need some other websites to compare it to.

 

[NewLEAF]

Price reduction to all Nissan Leaf buyers Rairdon's Nissan of Auburn will be selling the Leaf @ $100 below dealer Invoice shipping available for around $600 anywhere in the US please contact Greg Leach @ Rairdon's Nissan of Auburn 253 833 4700 or e-mail me [email protected]

Hi Rairdon's,
Is this offer is valid? Please let me know my order is coming soon.

 

[NewLEAF]

I not sure but $100 below invoice then paying $600 for shipping is not cheaper then $1,000 below MSRP with first 200 miles free? Or even 5% off MSRP

Its $100 below dealer Invoice and we will pay $450 in shipping cost sounds like a better deal than anywhere else call me and get a price quote before you order and see for yourself for sure the best price in the Northwest
Greg Leach
[email protected]
253-293-0564

Hi Greg this is the offer I was asking for with the $450 credit where I pay what is left of the $600 or so.

 

[JasonT]

Has anyone had any luck talking with Todd via email? Because I had a number of questions and my Leaf isn't due to arrive until April I figured email would be the best way to get my questions answered. I sent him an email last Tuesday and have not heard from him yet.

 

[QueenBee]

Has anyone had any luck talking with Todd via email? Because I had a number of questions and my Leaf isn't due to arrive until April I figured email would be the best way to get my questions answered. I sent him an email last Tuesday and have not heard from him yet.

Try sending your email to [email protected]. He's busy so he may have someone else respond or you may have to call. I've talked to Rairdon for a couple hours and gotten all my questions answered. Still waiting on my date though :/

 

[Gonewild]

Has anyone had any luck talking with Todd via email? Because I had a number of questions and my Leaf isn't due to arrive until April I figured email would be the best way to get my questions answered. I sent him an email last Tuesday and have not heard from him yet.

Try sending your email to [email protected]. He's busy so he may have someone else respond or you may have to call. I've talked to Rairdon for a couple hours and gotten all my questions answered. Still waiting on my date though :/

He is not busy he in unemployed!

Todd is doing his job and rather poorly at bests. He will take a call if he does not have a costumer on the grounds he can sell something to he is not like Greg who would take all calls.

[email protected]

 

[QueenBee]

He is not busy he in unemployed!

Todd is doing his job and rather poorly at bests. He will take a call if he does not have a costumer on the grounds he can sell something to he is not like Greg who would take all calls.

Oh really?? That's too bad Greg seemed good from the emails and couple calls I had with him when I placed my order a few months ago.