We began to prep for Negotiation Day when we got home Thursday night. What we found was not very promising.
The Odyssey was redesigned for 2005. In fact, it's the most popular redesign introduced this model year. One of the features new for '05 is Variable Cylinder Management, (St. Kate's eyes glaze over), which basically means three cylinders turn off when you coast, giving the Odyssey up to 28 mpg highway, the best mileage in a minivan.
Wake up Kate! It also has the highest horsepower engine in a minivan at 255, along with heated seats, two (!) glove boxes, in floor storage, power sliding doors and liftgate, moonroof, built in sun shades for the second row seats, 17 cup holders, parking sensors, 360 watt AM/FM/XM ready with 6 disc CD and subwoofer, and the feature I learned to love on my last van, (after first thinking it was hokey), steering wheel mounted stereo controls. (Some of these may only be on the touring model.)
This meant that we wouldn't be saving the depreciation by buying a 2004. (In fact, even though Chrysler, the market leader in minivans is throwing around money like crazy, Honda is so confident they have a gem there's no customer or dealer cash incentives being offered for the Odyssey.)
Ideally, I like to buy cars on or near the last day of the month. Even better would be the last day of the month at the end of the model year. Dealers are motivated to meet end of the month sales goals and to clear their lots of last year's models. We've managed to buy under dealer invoice in this situation.
You also have the advantage if you don't need a car right now and you can easily walk away from any deal you're offered. Since my van was toast, and "one vehicle family with two teenagers in the country" is not a role we adapt to well, we had a time-line. I needed to wrap this up and get back to the business of work, family, and world domination. (See how I sacrifice for my people?)
I began to search Honda dealer inventories: Duluth, Eau Claire, St. Cloud, the cities. More bad news. Each dealer had one, or maybe two, Odyssey's on their lots equipped as we wanted them.
A hugely popular model, no incentives, limited supply, and a deadline. It's only the first quarter and the opposing team has scored the only points in the game. Where's my ammo?
Meanwhile the PiC has been researching customer satisfaction and finds there's even multiple websites for fans of the "Ody", like this one.
Friday morning the phone calls to all the Honda dealers began. "We're going to buy an Odyssey or a Chrysler Town and Country today. I see you have a Touring in stock. Can you get back to me with your best price on this vehicle?"
I also call the Chrysler dealer and ask for their best price on an '05 Town and Country, (which I'd been excited about when they came out with the Stow and Go seats.) Ouch! They're practically giving these babies away.
The Town and Country is an excellent vehicle, and if you're in the market, this is definitely the time to buy. Here's my problem. I've owned two silver Town and Country vans. Both were totalled. I'm not a superstitious person, but it really felt like it was time for a change. They're not going to make it easy on me though with these rock bottom prices.
Of course I also call Sergey, whom I may have woken up since it was his day off. "Sergey! You did the work buddy and I'd like to see you get this sale, but I need you to have the best price. We'll choose between the Town and Country and the Odyssey today. I've got calls into all the Honda dealers to see where they're at." (By the way, used car internet prices can often be a grand below what they're marked on the lot. Word to the wise.)
By late morning I know what the standard discount is off of the sticker price for the Odyssey from dealer feedback. Time to call Sergey back. "O.K. Sergey. This is the standard discount. This (lower) price is the figure we're willing to pay. We expected to pay a premium for the Honda over the Town and Country, (higher resale value), but frankly this large of a gap is making it a hard decision."
Another thing to keep in mind when buying a vehicle. How many profit opportunities are you giving the dealer?
Buy the car - Profit one
Trade in your car - Profit two
Buy the warranty - Profit three
Finance through the dealer - Profit four
Every separate transaction with the dealer is a chance for him to make a profit. You always have a choice to buy any of these services from another provider. Usually, the experts will tell you to negotiate each transaction separately, keeping your options open. (For instance, you're always going to get more by selling your own used vehicle at retail rather than trading it in.)
In this case I told Sergey I would be giving him two separate profit opportunities, the purchase of the vehicle, and the purchase of a warranty. (Many will tell you it's not worth it, but with all the electronics on board, I want to be able to take it in at no cost if something goes wrong. The standard warranty is only going to cover me somewhat over a year.) Of course, I'd priced both dealer and third party warranties in my calls to dealers that morning, and I told Sergey what I was willing to pay for one.
They accepted our price. We considered going to take one more look at the Town and Country, for about 10 minutes. Then we called Sergey back and picked up the Odyssey on Friday afternoon.
Frankly, this was not my finest hour as far as negotiation goes. I fell into the "let's get this over with" trap. I'm disappointed in myself. I should have tried to cut deeper. There wasn't enough whining from the dealership. (I did get some measure of satisfaction by laughing when they suggested we should pay for the ashtrays.)
Picture in extended entry in case you're interested.