Non-BMW Auto Purchase ?

[Mg299kkps@xxxxxxx]

My girlfriend wants to buy a 1999 VW Jetta (save your groans, I still do love
her).  What I need advice on is how much should she pay? List for the auto is
$18,465, dealer invoice is $17,086. If I subtract the 2% holdback and the $500
factory to dealer incentive I come up with $16,217 as the dealer cost. I have
read that 3-5% over dealer cost is an acceptable profit, bringing purchase
price to $16,704 - $17,028. I respect that the dealer has to make a profit,
just not a huge one.

I thought that I was doing good when I got the dealer down to $17,400, that
was before I read the local newspaper today indicating that dealers get $500
back from the factory (not shown at Edmunds or Kelly's web site). And here I
was patting myself on the back for getting them to come close to my initial
offer of $17,200 with just 15 minutes of negotiating, I should have known.

 
I guess what I'm asking is if this formula seems reasonable? I know other
factors can set how low the dealer is willing to go, but am I on the right
track in determining how much me lady should pay? Thanks all.

Allen
1986 635

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