Difference MSRP and dealer invoice

[SMYYOB]

Rebates are disclosed in a sales transaction and not retainable by the dealers. They must be passed along to the consumer, listed on the buyers order and not something a dealer can get back for themselves. Yes, this is in addition to the holdback, which is designated as “HB” on the second page of that sheet. Many dealers advertise on a loss for their cars to drive volume in order to meet sales goals, Retain business in the service department and repeat business. The internet has taken the money out of new car transactions and Used for the most part as people can make a informed decision based on availability, price and ease of transaction.

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[SMYYOB]

I guess I’m saying the dealers aren’t as scummy as most people think they are. It’s not a easy job, the hours are long and honestly, there a lot of other professions out there that don’t get the scrutiny and the bad omen car dealerships get. Doctors? Lawyers? Real estate agents? Dentists? Do we barter price with them while they bill out insurance ( that we pay thousands a year for and maybe never use ) triple10 times what they bill us? Buy a nice shirt or TV lately? Did you haggle? Is this Mexico? I rant because I can and possibly had a few drinks at this point. And with that, have a great night and remember that the guy selling you a new car is most likely making $150 for putting up with your shit for 4 hours - 2 weeks. What do you get paid for your time at work? Give him a break and a good survey when FCA send it or he put up with your shit for practice.

 

[SMYYOB]

Rebates are not reimbursed to the dealer. If they were, why wouldn't they put rebates on everything? or, the same across the board? why would there be special rebates for qualifiers like low credit score rebates, realtors, affiliates, funeral directors, etc? I'm speaking from the inside and if you happen to be a dealer and are getting reimbursed on the rebates, please PM me and tell me how.

Now, I'm done.

 

[Craigy]

Lol @ the dealer defending dealers. :cwl:

I've done accounting and taxes for numerous dealerships spanning many manufacturers. Yeah, invoice is essentially a meaningless number. There's invoice, holdback, manufacturer incentives/rebates to the dealer, to the consumer, finance incentives to both parties, bonuses, penalties, carrying cost, you name it. Tons and tons of margin in these cars. Sure there's probably about fifty bucks of room in a Chevy Spark but on something like a Rubicon there's thousands beyond "invoice."

Personally I don't think the dealer deserves to make anything on my deal. The whole dealer experience is an impediment to my buying a car. I know more about the product I'm buying than the salesman does, and the salesman only exists to squeeze more money out of my pocket. I come in, I know exactly what I want , I don't need anybody to show me anything, I don't need a test drive, I don't need to go over the options, I don't need anything, but I have to endure the process nevertheless. I'm a marginal extra sale with zero effort on the dealership's part, and they only spend as much time on me as they decide to waste.

If you shop around you will find dealers that tell you with a straight face that the dealer buys cars for invoice and that's it. If they sell a car for under invoice, they're losing money. It's all BS. Don't believe a word of it.

 

[jeppesen.io]

It varies state by state. Tesla sells directly to consumers but they have lots of workarounds for various sates. And you can't even buy one in others. Arizona won't even let you get your Tesla repaired in-state.

This history is rather interesting

...
And, historically, the automakers were not good partners. In 1920, for instance, the U.S. economy went into a deep recession. But Henry Ford kept his factories running at full tilt, and forced thousands of Ford dealers around the country to buy new cars that they had little chance of selling. The dealers knew that if they said no they’d never see a Model T again, so they ate the inventory. A decade later, when the Great Depression hit, Ford and G.M. used the same strategy to help keep the production lines going. They turned their dealers into a cushion against hard times.

In the long term, this was a disastrous tactic, because it inspired mistrustful dealers to look to the government for help. (The first franchise law was passed in 1937.) Dealers recognized that much about their businesses was always going to be out of their control—automakers not only decide what cars get made but also dictate sales strategies and incentive plans. So they decided to protect what they could, using laws to insulate themselves from competition and from the risk of being dropped by the manufacturer. And that’s what has made life so hard for the automakers today.

The irony in all this is that G.M. and Ford adopted the dealer system because they thought it would make their lives easier.
...

from: https://www.newyorker.com/magazine/2006/09/04/dealers-choice-2

 

[BaldEagle]

There likely won’t be much of that on brand new JLs ? Or maybe there will be to try to pitch it as such a success right away... feel it could go either way.

Dealer claimed on new Jll rubicon’s no discount off MSRP please advise I custom ordered it . Should I walk away
how much should we pay off MSRP on ne Jl Rubicon 2018

 

[Chicago]

Maybe a stupid question, but what's a realistic difference between sticker price and dealer invoice price
Looking at the Tread Lightly program and made me curious how much of a discount it actually is and are dealer open showing you the invoice price?

Invoice is 6% below sticker I was able to get another 6% below invoice with thread lightly

 

[ThirtyOne]

Dealer claimed on new Jll rubicon’s no discount off MSRP please advise I custom ordered it . Should I walk away

how much should we pay off MSRP on ne Jl Rubicon 2018

The absolute most you should pay is 1% below invoice with the tread lightly membership. You can search the forum for it. If your dealer won't go for that i would walk away.

There are group buy dealers listed on this site who are around 5-6% below invoice without haggling. That is about as good as you can expect. You may have to travel for it or you can use it to try and get your local dealers down.

You can find invoice prices on this site as well.

 

[Redneck_Jedi]

So, roughly 10% off the sticker price, would be about 4-5% under invoice?

 

[Chicago]

So, roughly 10% off the sticker price, would be about 4-5% under invoice?[/QUOTE I paid 12.5 % below MSRP Which was 6% below invoice

 

[ThirtyOne]

So, roughly 10% off the sticker price, would be about 4-5% under invoice?

It's just not that simple. It depends on which trim and how many options. You are making a $40,000+ purchase. Go ahead and calculate the invoice price. it takes like 10 minutes.

You can use this thread or the order guide:

https://www.jlwranglerforums.com/fo...-price-w-invoice-sport-s-sahara-rubicon.2388/

And if you just post your configuration I'll do it for you.

 

[guarnibl]

Dealer claimed on new Jll rubicon’s no discount off MSRP please advise I custom ordered it . Should I walk away

how much should we pay off MSRP on ne Jl Rubicon 2018

Yes, you should walk away. This is not a limited production vehicle. I would not pay over this $ figure --- 1% under invoice.

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