5% below invoice -- Buy now or later?

Jeepvkk

Well-Known Member
Joined
Dec 18, 2017
Messages
48
Reaction score
20
Location
Seattle, wa
Vehicle(s)
Subaru Impreza, Audi Q5
So, I've never owned a Jeep and the below invoice pricing is new to me. I'm wondering if the 5% below invoice will hold as the cars roll out and all the options/colors start trickling in. Is it normal to have those deals or is it because it's new and on preorder? I'm worried that if I wait I may miss out on the 5% pricing. Anyone with Jeep experience care to illuminate on this?
Advertisement

 

snelldogg

Well-Known Member
First Name
greg
Joined
Dec 10, 2017
Messages
303
Reaction score
187
Location
new jersey
Vehicle(s)
GC Sahara ETA 2/3
I don't think you have to worry about the price going up but I certainly couldn't say for sure.
 

TTEChris

Well-Known Member
First Name
Chris
Joined
May 17, 2017
Messages
2,089
Reaction score
4,831
Location
Houston, TX
Website
www.tankcustoms.com
Vehicle(s)
2021 JTD & 2021 4XE
Vehicle Showcase
5
I think getting one off the lot will be hard at 5% below invoice. With the JKs I always ended up with more options that I wanted, and still only 2% below invoice for Jeeps sitting on the dealer lot.
 

jaldeborgh

Well-Known Member
First Name
John
Joined
Jan 7, 2018
Messages
247
Reaction score
251
Location
Rowley, MA
Vehicle(s)
2019 Jeep Cherokee Trailhawk Elite, 2019 Jeep Grand Cherokee Summit, 2018 Jeep JL Wrangler Rubicon, 2017 Lotus Evora 400, 1949 Triumph 2000 (under restoration), 2004 Ducati Monster S4R, 2003 BMW K1200RS, and 4 Vespa scooters.
Occupation
Semiconductor Capital Equipment Sales Executive
I'm a fellow first time Jeep buyer and I am also surprised at the 5% below invoice, which appears to be correct, if you are willing to finance a portion of the car. At least to me, Jeeps have a reputation for holding their value, which would suggest that discounting on a new car should be minimal. Plus, the JL is a new model with what looks like significant buzz (excitement) and they are only just trickling into dealerships, which again suggests minimal discounting. My thinking is take advantage of the 5% below invoice as heavy demand, assuming it materializes, might reduce discounting. To me the interesting question is, what is the discounting on the JK Wranglers, as these are still being sold as 2018 cars. Of course this assumes you are interested in the JK now that the JL is starting to hit the dealerships.
 

1quick1

Moderator
Staff member
Moderator
Joined
Oct 16, 2017
Messages
1,555
Reaction score
1,918
Location
Colorado
Vehicle(s)
2018 JLUS
Vehicle Showcase
1
This 5% you guys are touting off will certainly not be honored by a large majority of dealers. These are just a handful of dealers which seem to be doing this.

Keep in mind 5% below invoice is employee pricing, as in my Dad is literally a team leader on the JL project since inception, and that's the best I can get.
 

jaldeborgh

Well-Known Member
First Name
John
Joined
Jan 7, 2018
Messages
247
Reaction score
251
Location
Rowley, MA
Vehicle(s)
2019 Jeep Cherokee Trailhawk Elite, 2019 Jeep Grand Cherokee Summit, 2018 Jeep JL Wrangler Rubicon, 2017 Lotus Evora 400, 1949 Triumph 2000 (under restoration), 2004 Ducati Monster S4R, 2003 BMW K1200RS, and 4 Vespa scooters.
Occupation
Semiconductor Capital Equipment Sales Executive
Thanks, now I feel good about my pricing. I'll just keep my fingers crossed that the car is delivered without something changing.
 

jloyva

Well-Known Member
First Name
Jim
Joined
Nov 30, 2017
Messages
165
Reaction score
258
Location
Savage, MN
Vehicle(s)
Sting-Gray Wrangler JL Sport S, Victory Touring Cruiser, Kia Sorento
Occupation
Project Manaager
I'm a fellow first time Jeep buyer and I am also surprised at the 5% below invoice, which appears to be correct, if you are willing to finance a portion of the car. At least to me, Jeeps have a reputation for holding their value, which would suggest that discounting on a new car should be minimal. Plus, the JL is a new model with what looks like significant buzz (excitement) and they are only just trickling into dealerships, which again suggests minimal discounting. My thinking is take advantage of the 5% below invoice as heavy demand, assuming it materializes, might reduce discounting. To me the interesting question is, what is the discounting on the JK Wranglers, as these are still being sold as 2018 cars. Of course this assumes you are interested in the JK now that the JL is starting to hit the dealerships.
It will be a while before you see big discounts on the JK. Still plenty of people out there that don't know there is such a thing as a JL. Even when the JLs start hitting the dealers in full force there will be plenty of people that just want a Wrangler and don't pay attention.
 

Jeepsterfreak

Well-Known Member
Joined
Jan 2, 2017
Messages
2,147
Reaction score
1,284
Location
USA
Vehicle(s)
Honda, Future JLU
I think some of the dealers offering 5% below invoice are using this as a tool to drum up incremental sales they would never see. They are placing special orders in addition to their normal lot orders.

I think it's great for us if we are willing to travel for a better deal. Even better for those who live near the dealer.

Walk into your local Jeep dealer and tell the sales manager you want to special order your JL for 5% below invoice. Tell us their reaction. At minimum we can use the 5% deal as a tool to negotiate with our local dealers. Tell them you can order a Jeep from ABC for 5% below invoice. Then ask "What can you do to get my business today?"

Can you get 5% below invoice on a JL that's already on the lot? Probably not, at least not right now while demand is high. Dealers would be throwing money away knowing darn well they can probably get full MSRP, especially with JKs still on the lot.
 

ThirtyOne

Well-Known Member
Joined
Apr 18, 2017
Messages
5,347
Reaction score
7,900
Location
Chapel Hill, NC
Website
www.jeepdoodles.com
Vehicle(s)
2021 JLU Rubicon, 2017 Chevy Tahoe
Build Thread
Link
The demand for the JL/U is higher right now and the supply is lower than it will ever be. There is no reason for the dealers to discount it. So if they are doing it now they will keep doing it. I know Koons has been doing it for 4 years. This 5% is the lowest they have done. The first year it was 10%.

These are the Walmarts of Jeep dealers. They can do pricing none else can because their scale gets them additional incentives and allocations from the factory. Your local dealer can't offer the same price the same way an independent store can't compete with Walmart prices. They can keep doing it because they have a different business model. And they do it on factory orders only because they only get so many Jeeps per month for the lot and they want to sell them at higher margins.
 

RussJeep1

Banned
Banned
Banned
Joined
Oct 12, 2016
Messages
2,545
Reaction score
1,940
Location
Westchester, NY
Vehicle(s)
JLU Sahara
So, I've never owned a Jeep and the below invoice pricing is new to me. I'm wondering if the 5% below invoice will hold as the cars roll out and all the options/colors start trickling in. Is it normal to have those deals or is it because it's new and on preorder? I'm worried that if I wait I may miss out on the 5% pricing. Anyone with Jeep experience care to illuminate on this?
Some of this has been touched upon above, some of it obvious.

* History and market forces suggest that it is unlikely that the current discounts being offered for Wranglers that are factory ordered will go away or be reduced. The JL is at the highest point of its novelty right now given its "newness factor," and short of some social trend nobody ever envisioned (e.g. celebrities start flocking to the JL in droves) prices are not likely to go up (or away) for factory orders, particularly from aforementioned volume sellers/discounters like Koons. Of course there's the extremely unlike reverse scenario where (God forbid) JLs start to "spontaneously explode," in which case great deals for buyers may be offered, as sure as they'll be few takers.

* What I just said doesn't apply to lot sales. This isn't to say that the price of these Wranglers won't come down/become more negotiable too with time but rather, they're more sensitive to market demand. Understandably, a dealer is not going to want discount the lot Wrangler to you that potentially "rich daddy" buys at top dollar because one of his loved ones wants "this" lot JL now....something a dealer need not worry about if he orders you one.

In short, history, economics and math would suggest that fear of not buying now (FONBN) for price reasons alone, all while FCA resolves any issues that may arise in release 1.0 of the JL, are best only measured by your desire to be in a Wrangler JL now, verses your willingness to wait on outlaying the funds to pay for it later rather than sooner.

===

As an aside, I'd be curious just how much of a discount JKs will be offered at considered that every Wrangler ever made has sold...albeit even if only after price dips somewhat for the final inventory left. The JK series is at the height of its battle tested defectless worthiness; the JL at its infancy. This reduced risk may come at premium that narrows the price gap between JK and JL.

Finally, I suspect that you realize that the 5% off FWP (factory wholesale price, a.k.a. invoice) fails to factor in some fixed costs the dealers charge after they've calculated this discount.

This may find your true discount on what you pay (IMHO the only true measure) somewhere above 3% and below 5%, that approaches 5% the fancier Wrangler you purchase.

The math is, among other places here: https://www.jlwranglerforums.com/forum/threads/the-real-koons-deal.2697/
 
Advertisement

Mac Haik CDJR Georgetown
 
Advertisement
Top