Best Honda Dealer in NEO (Columbus, Cleveland: sales, 2015, insurance)

[deskjockey]

Forumers, recommend a honda dealer for purchase of a new CR-V please.

[ECBeastor]

IMO, if you are buying brand new, where you buy it from makes little difference, particularly for a stalwart import brand like Honda of Toyota that are usually high volume/low margin. Where you take it for service is what matters. And for service, dealerships are usually 3x as expensive as independent shops.

Most import brands are well spread out as to not have significant competition nearby, particularly for service. They make the bulk of their money in service and finance and insurance products. The stuff the Finance Manager tries to sell you when you're wrapping up the paper work. (Extended service packages they try to sell you, your bank loan that they qualify you for at the dealership). The bulk of the Honda stores around Cleveland probably have a Service Absorption Ratio of like 90%, meaning they cover 90% of their overhead expenses with just service sales. They basically don't have to sell a single new car to make money. A Honda dealer makes about 2% to 3% gross margin (profit/sales) on new vehicles, 8% to 10% on used cars and 40% to 50% on Service and Parts, 100% on F&I products (F&I is all gravy since they are selling the product for some other company - the bank, extended service company - and taking points off the top). Of the total gross dollars, 65% are service (eg if they have 5 million in gross profit, 65% of that is from service) even though about 15% of their total sales dollars are from service.

As for your question, I'd go to one of the high volume stores like Jay Honda in Bedford which sells over 50% more than any other dealer in Cuyahoga County and 30% more than any dealer in the surrounding counties (Summit, Lake, Portage, Lorain, Geauga, Medina, Stark). Simply because it is likely the best deal on price because it's the highest volume.

[WRnative]

Originally Posted by deskjockey

Forumers, recommend a honda dealer for purchase of a new CR-V please.

Are you a Costco member? If so, perhaps check out their auto purchasing service.

Also, you might get a better price from a dealer in another market, such as Akron, or even Columbus and Toledo. You can call any dealer and ask for a quote by telephone.

I know a few persons who have discovered that dealers for some brands act as an oligopoly in their local markets, but will offer a great deal for someone from a market in which they don't compete. I know someone who saved $1500 over the best quote from a local dealer, by calling dealers in another market.

Make certain you know any manufacturer incentive programs currently in effect. Specifcially ask! Some dealers don't disclose them, especially non-advertised dealer incentives, in an effort to make a significantly higher sales margin. I don't know if you can find out by checking manufacturer websites such as for Honda. Again, a dealer in another market more likely will disclose these incentives and pass some of the savings along to you.

Please let us know your experience.

[1watertiger]

Buy American

[deskjockey]

Originally Posted by WRnative

Are you a Costco member? If so, perhaps check out their auto purchasing service.

Also, you might get a better price from a dealer in another market, such as Akron, or even Columbus and Toledo. You can call any dealer and ask for a quote by telephone.

I know a few persons who have discovered that dealers for some brands act as an oligopoly in their local markets, but will offer a great deal for someone from a market in which they don't compete. I know someone who saved $1500 over the best quote from a local dealer, by calling dealers in another market.

Make certain you know any manufacturer incentive programs currently in effect. Specifcially ask! Some dealers don't disclose them, especially non-advertised dealer incentives, in an effort to make a significantly higher sales margin. I don't know if you can find out by checking manufacturer websites such as for Honda. Again, a dealer in another market more likely will disclose these incentives and pass some of the savings along to you.

Please let us know your experience.

!!!!! Thank you, WRnative, for the tips. I am not in a hurry to purchase, so I will report back in several days or a few weeks.

[deskjockey]

Originally Posted by ECBeastor

The bulk of the Honda stores around Cleveland probably have a Service Absorption Ratio of like 90%, meaning they cover 90% of their overhead expenses with just service sales. They basically don't have to sell a single new car to make money. A Honda dealer makes about 2% to 3% gross margin (profit/sales) on new vehicles, 8% to 10% on used cars and 40% to 50% on Service and Parts, 100% on F&I products (F&I is all gravy since they are selling the product for some other company - the bank, extended service company - and taking points off the top). Of the total gross dollars, 65% are service (eg if they have 5 million in gross profit, 65% of that is from service) even though about 15% of their total sales dollars are from service.

As for your question, I'd go to one of the high volume stores like Jay Honda in Bedford which sells over 50% more than any other dealer in Cuyahoga County and 30% more than any dealer in the surrounding counties (Summit, Lake, Portage, Lorain, Geauga, Medina, Stark). Simply because it is likely the best deal on price because it's the highest volume.

Thank you ECBeastor for the numbers. Excellent info. Jay Honda has very few vehicles in stock and I am looking for a specific color.

[WRnative]

Originally Posted by deskjockey

Thank you ECBeastor for the numbers. Excellent info. Jay Honda has very few vehicles in stock and I am looking for a specific color.

Most dealers can get you any car you want, often in an exchange with dealers up to a hundred miles a way. Focus on price, not car specifics.

[deskjockey]

Called the General Manager of Motorcars Honda on Mayfield Road and left a message. Dude's name is Trevor. Wanted his recommendation on a salesperson. Apparently he does not return phone calls. Hmm.

[SquareBetterThanAll]

Originally Posted by WRnative

You can call any dealer and ask for a quote by telephone.

In 2015 going the internet route would be the more time and potentially cost effective way to go. And you can deal with the Internet Sales Manager (or whatever their sales title happens to be) and cut out a lot of the BS when dealing with the regular sales people.

I vote Mike Pruitt Honda. Tell them you want an autograph.

[WRnative]

Originally Posted by SquareBetterThanAll

In 2015 going the internet route would be the more time and potentially cost effective way to go. And you can deal with the Internet Sales Manager (or whatever their sales title happens to be) and cut out a lot of the BS when dealing with the regular sales people.

I vote Mike Pruitt Honda. Tell them you want an autograph.

Good point about the internet, but, as I said, I know some persons who had good luck with phone calls within the last two years. You likely get a sales rep with a different quota and perhaps even a different sales manager, and that perhaps makes a difference. Maybe they also think someone calling is more serious than an internet shopper.