Are Dealerships Still Pricing Under Invoice?

RioRideNM

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Looking to by a Willys Sport 2dr (my potential first new 4 wheeled rig). Pretty basic with AC and hard top. Got my first quote at LHMiller Albuquerque, NM…. 11% above MSRP… I believe they mentioned this is the “Market Adjustment”… :headbang::headbang::headbang:

maybe I will stick to motorcycles haha jk I will be shopping around. Thanks for the good info here!
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Steve JLUR

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Yes, you can get one off the lot as long as it's new.
But…
TL only works, with any Jeep purchase, IF the dealer agrees to sell below invoice. If they do not, then TL does not apply. Check with your dealer before you enroll, unless you don’t care and want to support TL anyway.
 

Grits4Jim

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Since we live in Knoxville we drove over to Gupton's on Monday. Met with Walter Lee and ordered a JLUR. It was a pleasurable experience.
3.8, A8, Tow, Cold Weather, Hardtop, Headliner, Mats, 8.4 Radio, Hinge Gate Reinforcement, Gorilla Glass, Keyless Entry, LED Lights, Safety Group and Xtreme Recon 35" package.
MSRP $61,430, $53,761 or $53,324 if financing.
 
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Obispo325

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Since we live in Knoxville we drove over to Gupton's on Monday. Met with Walter Lee and ordered a JLUR. It was a pleasurable experience.
3.8, A8, Tow, Cold Weather, Hardtop, Headliner, Mats, 8.4 Radio, Hinge Gate Reinforcement, Gorilla Glass, Keyless Entry, LED Lights, Safety Group and Xtreme Recon 35" package.
MSRP $61,430, $53,761 or $53,324 if financing.
Hell yes. Thanks for the info!
 

csjlu

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Ordered 2021 JLR. Basically fully loaded with, Sky Touch and Xtreme Recon Pkg

$68160 – MSRP

$63827 – invoice

$61274 – 4% under invoice.

The deals are out there.
This is reassuring, since I was reading a WSJ article yesterday about some buyers paying MSRP+$10,000 for a Kia. Well done on your part. And a thank you to dealers and salespeople who opt for building long-term customer relationships over short term profits in a seller's market. When it comes time to buy again, I will do my best to give my business to the dealers and salespeople who treated buyers well today.
 

SirDapperDom

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This is reassuring, since I was reading a WSJ article yesterday about some buyers paying MSRP+$10,000 for a Kia. Well done on your part. And a thank you to dealers and salespeople who opt for building long-term customer relationships over short term profits in a seller's market. When it comes time to buy again, I will do my best to give my business to the dealers and salespeople who treated buyers well today.
Agreed. This is also the dealer I'm buying the *gasp* ~Bronco~ from when it gets delivered in 2023 (LOL). But, they are a solid dealer and have been nothing but on the up and up.

My buddy recently bought a 4 Runner TRD Pro for almost 18k over sticker and I was ready to physically fight him for that.
 

N8213

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Just ordered a 4xe rubicon from Tri city. With financing in house and an affiliated code it came out to 6% below invoice. Pretty straight forward.
 

SSWIM

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This is reassuring, since I was reading a WSJ article yesterday about some buyers paying MSRP+$10,000 for a Kia. Well done on your part. And a thank you to dealers and salespeople who opt for building long-term customer relationships over short term profits in a seller's market. When it comes time to buy again, I will do my best to give my business to the dealers and salespeople who treated buyers well today.

Ok, just a question. If you were trying to sell your vehicle, and you did research and discovered it was bringing over market value, would you still price it at market value or take advantage of the market and price it accordingly? Same as the housing market now. If someone offered you 50K more for your home than you had it listed would you say "no, I'm a good guy and don't want a premium for my goods"?

All this hate for dealers and such is really interesting. Why in the world would one not take advantage? It's called a "free market". If one does not like the price don't pay it. No reason to hate those who are capitalizing on the market now. I was offered and given $7K more for my 2020 Rubicon than I paid for it. No, I did not tell them no, I just want what I paid for it. Am I a scumbag for taking an inflated price for my Jeep? So be it if I am.

Not to be disrespectful, and I endorse your opinion to give your business to those who you choose. I just don't see the disdain all over the place right now towards those who are taking advantage of this "crazy" market.

Regards
Sam
 

csjlu

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Ok, just a question. If you were trying to sell your vehicle, and you did research and discovered it was bringing over market value, would you still price it at market value or take advantage of the market and price it accordingly? Same as the housing market now. If someone offered you 50K more for your home than you had it listed would you say "no, I'm a good guy and don't want a premium for my goods"?

All this hate for dealers and such is really interesting. Why in the world would one not take advantage? It's called a "free market". If one does not like the price don't pay it. No reason to hate those who are capitalizing on the market now. I was offered and given $7K more for my 2020 Rubicon than I paid for it. No, I did not tell them no, I just want what I paid for it. Am I a scumbag for taking an inflated price for my Jeep? So be it if I am.

Not to be disrespectful, and I endorse your opinion to give your business to those who you choose. I just don't see the disdain all over the place right now towards those who are taking advantage of this "crazy" market.

Regards
Sam
Dealers make money from several different angles. Generally speaking, when I am selling my vehicle in a private market transaction, I only make money (if any at all) from the transaction. I do not take in their trade in, nor do I offer financing, warranties, services, parts or mods to whomever buys my used ride. I also doubt I will ever see them again. Dealers, however, can benefit from investing in long term customer relationships; they can sell ancillary services, they can benefit from repeat purchases as well as word-of-mouth recommendations.

I understand the value of auctions, opportunity costs and supply/demand equilibria. I have two degrees in economics, and was a Milton Freedman adherent and a card-carrying registered Libertarian for two decades. I get it.

In my original post, I also said I sympathize with salespeople who are living off commission with a severely limited inventory. I didn't project hate towards anybody...that's from inside your head.
 

SSWIM

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Dealers make money from several different angles. Generally speaking, when I am selling my vehicle in a private market transaction, I only make money (if any at all) from the transaction. I do not take in their trade in, nor do I offer financing, warranties, services, parts or mods to whomever buys my used ride. I also doubt I will ever see them again. Dealers, however, can benefit from investing in long term customer relationships; they can sell ancillary services, they can benefit from repeat purchases as well as word-of-mouth recommendations.

I understand the value of auctions, opportunity costs and supply/demand equilibria. I have two degrees in economics, and was a Milton Freedman adherent and a card-carrying registered Libertarian for two decades. I get it.

In my original post, I also said I sympathize with salespeople who are living off commission with a severely limited inventory. I didn't project hate towards anybody...that's from inside your head.

I should have clarified in my post I was not directing it towards you. It was a general assertion directed at many posts regarding ADMs and such. Your post was just a stepping stone to my tirade.

Sam
 

RioRideNM

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Ok, just a question. If you were trying to sell your vehicle, and you did research and discovered it was bringing over market value, would you still price it at market value or take advantage of the market and price it accordingly? Same as the housing market now. If someone offered you 50K more for your home than you had it listed would you say "no, I'm a good guy and don't want a premium for my goods"?

All this hate for dealers and such is really interesting. Why in the world would one not take advantage? It's called a "free market". If one does not like the price don't pay it. No reason to hate those who are capitalizing on the market now. I was offered and given $7K more for my 2020 Rubicon than I paid for it. No, I did not tell them no, I just want what I paid for it. Am I a scumbag for taking an inflated price for my Jeep? So be it if I am.

Not to be disrespectful, and I endorse your opinion to give your business to those who you choose. I just don't see the disdain all over the place right now towards those who are taking advantage of this "crazy" market.

Regards
Sam
Sam,
I think this is a brilliant topic. In many cases, I agree with you. Market value is market value and that is to be expected. I recently sold a Subaru to start the process before I could even think about shopping for a Jeep and I certainly did not sell it to the first (and lowest) offer I had. That said, I sold just over book with accessories that were of interest to the buyer. Do I loath the dealer that gave me a base price quote 11% over MSRP? Absolutely not. That said, I feel I am simply not required to purchase at that price just because they think it is “market value”.

From my point of view, I think what bothers me the most is MSRP is listed and dealers go around that. If Jeep were to change MSRP based on cost to produce, market value, etc then that would be one thing because we all know a dealership is going to make money or not sell the car no matter what. So to me, and maybe only me, above MSRP a substantial amount, plus fees and crap seems slightly shady when done by a dealer whereas MSRP changing is *hopefully* driven by the manufacturer making a less rash decision.

This practiceof charging well over MSRP is not new to me. Happens in the Moto world lots. And that’s why I will buy from the same dealers for my motos. Someone focused on, as CSJLU states, relationships rather than short term gain. I just need to find the closest Jeep dealer that does that in the Albuquerque, NM area haha
 

MJKid88

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Just ordered a 4xe rubicon from Tri city. With financing in house and an affiliated code it came out to 6% below invoice. Pretty straight forward.
Nathan,

Can you share the contact info of the person you worked with at Tri-City? I'm ready to place an order.

Thanks, Rob
 
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