Yellow Cake Kid
Well-Known Member
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Numerous Jeep buyers report that they have made deals at 5% or more below the published invoice prices.
My question; are you more or less forced to use dealer secured financing to get those kinds of deals?
I have saved up to buy our new Rubicon and want to pay cash, and have found that the easy to work with dealers simply say "it's an extra $2000 to self finance or pay cash", while other dealers try to avoid talking about anything but dealer finance as if that is the only possible way to buy a car, and decline to quote a discount below invoice for a cash sale.
I am finding all the claims made here of great discount deals distracting, because very few people seem willing to mention all the costs.
For example; one well known western states discount dealer explicitly advertises that their published price does not includes an additional $2000 up charge if you self finance, and they only let you put $10,000 down on their finance package for a $50,000 Rubicon. So let's say you buy the Rubicon with the $10,000 down payment. Tax, tag, title and fees gets you up to $57k +/-. You finance $47,000 at 4% to get the great price, and over the next 5 years you pay nearly $5,000 in interest. The dealer gets half of that interest as the finance reserve, and the bank it partnered with gets the base buy rate. The dealer will only go below invoice if you dealer finance. They give up profit on the sale to make a similar if not greater profit on the financing. Now, if you were absolutely, definitely, no doubt about it, going to rent money to pay for your Jeep it may not matter who you rent money from. It may just be a given that you are going to pay the interest rate and suck it up. However, if you prefer to pay cash in full, the difference in deals that are available seems palpable. In other words, a deal where you save $2500 only because you are willing to pay an extra $5000 doesn't seem like an actual savings. It seems like you are getting 5% discount if you are willing to kick back 10% as interest payments.
For example; I spoke with another dealer who published a 5% below invoice price and said he would sell at the price but was very clear that they charge a non negotiable $999 dealer fee. I appreciated the transparency, and their strategy, but also have to consider that this is not really a 5% below invoice deal.
The dealers that make it easy to see how they make their money are easy to talk to and work with. Many dealers seem to want to obscure the actual cost of a purchase. Those guys are a pain to deal with.
Because of the current market conditions, where supply is limited, I am finding myself speaking with dealers that I would not normally deal with simply because they have one of the very few in stock vehicles I am interested in. Normally, I order my cars and find a dealer that is willing to make an easy extra windfall sale, but in the current market it seems like dealers that have a vehicle that is actually in demand want to hold out and make the maximum profit they can make. More power to them, but I want to get the car I want and get a good deal too.
I would find it helpful to better understand if some of the buyers who are getting 5% off invoice deals are able to self finance or if these deals are more or less made exclusively to people who use dealer financing.
I would like to understand what the actual cost of outright ownership for a new Jeep is rather than equate it to some invoice figure that is likely more than the dealer actually pays for the car, and less than the purchaser actually ends up paying for the car.
Can you help? Will you describe the details of your 5% or better deal?
Thank you!
My question; are you more or less forced to use dealer secured financing to get those kinds of deals?
I have saved up to buy our new Rubicon and want to pay cash, and have found that the easy to work with dealers simply say "it's an extra $2000 to self finance or pay cash", while other dealers try to avoid talking about anything but dealer finance as if that is the only possible way to buy a car, and decline to quote a discount below invoice for a cash sale.
I am finding all the claims made here of great discount deals distracting, because very few people seem willing to mention all the costs.
For example; one well known western states discount dealer explicitly advertises that their published price does not includes an additional $2000 up charge if you self finance, and they only let you put $10,000 down on their finance package for a $50,000 Rubicon. So let's say you buy the Rubicon with the $10,000 down payment. Tax, tag, title and fees gets you up to $57k +/-. You finance $47,000 at 4% to get the great price, and over the next 5 years you pay nearly $5,000 in interest. The dealer gets half of that interest as the finance reserve, and the bank it partnered with gets the base buy rate. The dealer will only go below invoice if you dealer finance. They give up profit on the sale to make a similar if not greater profit on the financing. Now, if you were absolutely, definitely, no doubt about it, going to rent money to pay for your Jeep it may not matter who you rent money from. It may just be a given that you are going to pay the interest rate and suck it up. However, if you prefer to pay cash in full, the difference in deals that are available seems palpable. In other words, a deal where you save $2500 only because you are willing to pay an extra $5000 doesn't seem like an actual savings. It seems like you are getting 5% discount if you are willing to kick back 10% as interest payments.
For example; I spoke with another dealer who published a 5% below invoice price and said he would sell at the price but was very clear that they charge a non negotiable $999 dealer fee. I appreciated the transparency, and their strategy, but also have to consider that this is not really a 5% below invoice deal.
The dealers that make it easy to see how they make their money are easy to talk to and work with. Many dealers seem to want to obscure the actual cost of a purchase. Those guys are a pain to deal with.
Because of the current market conditions, where supply is limited, I am finding myself speaking with dealers that I would not normally deal with simply because they have one of the very few in stock vehicles I am interested in. Normally, I order my cars and find a dealer that is willing to make an easy extra windfall sale, but in the current market it seems like dealers that have a vehicle that is actually in demand want to hold out and make the maximum profit they can make. More power to them, but I want to get the car I want and get a good deal too.
I would find it helpful to better understand if some of the buyers who are getting 5% off invoice deals are able to self finance or if these deals are more or less made exclusively to people who use dealer financing.
I would like to understand what the actual cost of outright ownership for a new Jeep is rather than equate it to some invoice figure that is likely more than the dealer actually pays for the car, and less than the purchaser actually ends up paying for the car.
Can you help? Will you describe the details of your 5% or better deal?
Thank you!
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