5% off invoice, but only if you kick back 10% of invoice in interest payments?

[oceanblue2019]

I don't know how Utah governs pay off penalties, but one dealer told me they require 7 payments before payoff is allowed, so in the case of $45k at 4% for 60 months $1k is paid in interest before you can cash out.

BMW/Audi used to do the same and to get the incentives you needed to finance as they want to prop up their financing department. The trick was to negotiate the best deal, agree to the financing, and a month into it pay it off. You need to be cautious that it's no penalty but most offer that.

But here in MD I got my JLUR for cheap, 14% under invoice. Lots of such deals. Negotiated the price as if was going to finance and at the end when they presented the finance deal I said "No, will pay cash"

They tried to raise price, I walked out, dealer manager called me 2 hours later saying "sorry for the misunderstanding" and I got the Jeep and price.

The Dealerships are dying right now so use that to your advantage. They also are offering 0$ down, 0$ payments for 90 days, and 0% finance for 48 months so perhaps actually cheaper to take that and put your money into a CD and earn a couple % and have it to pay off at end of the finance term.

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[GtX]

People screw up by discussing 3 transactions at one time when they are separate.

First, negotiate and agree on sale price.
Second, negotiate and agree on trade price.
Third, negotiate payment term.

Never discuss the next transaction until the current one is done.

 

[nerubi]

Are you talking about financing agencies that dealers have available for customers or FCA financing?

 

[Pingbling23]

Are you talking about financing agencies that dealers have available for customers or FCA financing?

it probably varies from dealer to dealer but mall of georgia used their network of lenders to get the lowest rate, not fca financing for my extra 1% off invoice.

 

[nerubi]

it probably varies from dealer to dealer but mall of georgia used their network of lenders to get the lowest rate, not fca financing for my extra 1% off invoice.

I wouldn't think FCA financing would alloiw that but local financing is a you rub my back I'll rub yours with dealers (although don't let the CDC know because of the 6 foot deal). I always buy everything with cash so I don't know what goes on in the financing arena.

 

[c2m2h3]

GtX,

While I get your suggestion/advice.....wouldn't dealers generally withhold some negotiation room (and not give you the best sale price) until they know that you will be financing and they stand to make more money from you in that category....same goes for the trade category .....

I get keep everything separate, but why in that order ?

 

[willyswheels]

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 wellCan you help? Will you describe the details of your 5% or better deal?

Thank you!

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!

Hey guys, I just purchased a new Willys in Fort Worth, Texas. They were great to work with. When I told them I had a credit union that would offer me a superior rate to pay the difference between my trade and the new Wrangler, they matched it (actually they beat it) and still included Family and all other incentives. It was one of the few times in my life I’ve walked out of a dealer and felt damn good about the deal!

Kevin

 

[Compression-Ignition]

That's pretty much what I had been expecting to do, but now I am looking at in stock vehicles because placing an order seems like signing up for a guessing game.

Similar to my thinking. Though we did end up placing our order locally. We settled for a fuzz under 3.5% below invoice. There were better deals to be had, but they all involved travel, the risk of finance shenanigans/extra tacked on fee's, and zero good will from the local dealer should we have an issue later.

Good for those that got a smoking deal, though in my mind I wonder, just how many are truly getting the deal they think they are.

 

[viper88]

Similar to my thinking. Though we did end up placing our order locally. We settled for a fuzz under 3.5% below invoice. There were better deals to be had, but they all involved travel, the risk of finance shenanigans/extra tacked on fee's, and zero good will from the local dealer should we have an issue later.

Good for those that got a smoking deal, though in my mind I wonder, just how many are truly getting the deal they think they are.

A lot of people really don't know. It's too difficult to calculate unless it's a cash deal without a trade with identical fees.

Dealers advertise 6%, 7%, 8% under invoice to lure in traffic. They all have different doc fees and other requirements like financing, back-end products, etc.

I think 6%-7% under invoice with Affiliate or TL is about the best you can do without additional "qualifiers" like direct marketing cash, military, factory incentives. There might be a dealer or two who will give a extra .05%-1% on occasion to make a quota or something but it's not the norm.

It is also possible FCA might offer extra incentives like extra cash back or financing to move select left over inventory. Deals like that are usually offered on select left over 2018 and 2019 models that have 1-2 years of depreciation. Even then the discounts really are not worth it unless you do not plan on selling or trading in a long time.

 

[Jimmysmith01]

What would stop you from making the big payment (all but the last 6 payments) first instead of last to reduce the interest paid.

Additionally, you could put down a sizable down payment and just finance 10-15K or whatever, then payoff the loan as soon as allowed without penalty.

 

[GtX]

GtX,

While I get your suggestion/advice.....wouldn't dealers generally withhold some negotiation room (and not give you the best sale price) until they know that you will be financing and they stand to make more money from you in that category....same goes for the trade category .....

I get keep everything separate, but why in that order ?

I'm there to buy a vehicle. So, that is the only transaction on the table at that time and the only one I care about. I come with the option to pay cash or to use pre arranged financing with my chosen lender.

I let them think I I'm going to finance with them and trade so they think they'll make up profit on the financing and trade in. I wear jeans, a t-shirt, and an old pair of boots. I let my beard grow out a few days. I show them I know everything about the vehicle and nothing about my trades value, financing, or finances in general.

Once we've agreed to the new car. I may offer to sell them mine if they are interested in it and I want to get rid of it. When I bought my JLURD I decided to keep my current DD.

Finally, talk about payment which involves pulling out a check for the agreed upon sales price.

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