Ask-A-Jeep-Dealer Thread

[ERIXJLUR]

Not only that, our sales tax on the vehicle is 13%!

Just a tad bit more than California, not much.

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[Redneck_Jedi]

Hi,

I have only financed a couple new vehicles, so this is a question purely out of curiosity.

Since dealership finance departments send hundreds if not thousands of loans to banks they work with, do they have some rate flexibility with the lender because of all the business they send?

So, this is purely a theoretic scenario...

1) Say a customer has excellent credit (815+ score), and is buying a Sport S.
2) Chrysler Finance offers 3.5% interest, 60 months, on the purchase of the Sport.
3) Customer offers to instead purchase a Rubicon instead of the Sport, if the dealer finance team can get a 0% interest rate (from a bank the dealership has a relationship with).
4) Customer gets a Rubicon for just a few dollars a month more than the Sport S, and the dealership sells a vehicle with a higher profit margin.

 

[JLWF Dealer Guy]

Hi,

I have only financed a couple new vehicles, so this is a question purely out of curiosity.

Since dealership finance departments send hundreds if not thousands of loans to banks they work with, do they have some rate flexibility with the lender because of all the business they send?

So, this is purely a theoretic scenario...

1) Say a customer has excellent credit (815+ score), and is buying a Sport S.
2) Chrysler Finance offers 3.5% interest, 60 months, on the purchase of the Sport.
3) Customer offers to instead purchase a Rubicon instead of the Sport, if the dealer finance team can get a 0% interest rate (from a bank the dealership has a relationship with).
4) Customer gets a Rubicon for just a few dollars a month more than the Sport S, and the dealership sells a vehicle with a higher profit margin.

There is no reason a bank would give someone 0% unless it was from the manufacturer. There is nothing in it for them, literally. The "profit margin" isn't what you think it is. They just want to sell a car, they give give a rats ass as to which one to be honest unless it is a large hit on the floor plan like a ACR viper or a Trackhawk or Demon, but those sell themselves.

 

[Redneck_Jedi]

There is no reason a bank would give someone 0% unless it was from the manufacturer. There is nothing in it for them, literally. The "profit margin" isn't what you think it is. They just want to sell a car, they give give a rats ass as to which one to be honest unless it is a large hit on the floor plan like a ACR viper or a Trackhawk or Demon, but those sell themselves.

Gotcha, Thanks!

 

[wanderer]

Well maybe when the system comes back up the tan top will be available

 

[Smarrtazz]

There is no reason a bank would give someone 0% unless it was from the manufacturer. There is nothing in it for them, literally. The "profit margin" isn't what you think it is. They just want to sell a car, they give give a rats ass as to which one to be honest unless it is a large hit on the floor plan like a ACR viper or a Trackhawk or Demon, but those sell themselves.

Not even if we have a sparkling personality?

 

[MacombRoger]

There hasn't been any new info yet...but based upon it's production date compared to ocean blues production date, I would estimate orders will open up for Mojito in about a week....

I just came out here this evening to inquire on a date. I wasn't sure if it was early March or early April. I am ready to go. Rubicon U with pretty much all options (I could skip a couple options, but that saves like a grand). I presume we'll hear it here first.

 

[dave.j.fisher]

Any truth to Rubicon ordering being on-hold? I was going to order Monday...

 

[JLWF Dealer Guy]

Any truth to Rubicon ordering being on-hold? I was going to order Monday...

You can still order. It's just at the end of the allocation cycle show it shows restricted. Sold orders are always taken.

 

[Sheepjeep]

I have a order with station that due to deliver in the next week or two, but one of their stipulations for the deal is that you must finance through them, their ad says needs to be minimum of six months payments before you can close the loan, but they have told others here only 3 months, and my sales rep told me there is no strings but I don't trust him as he was learning about their sale as he was dealing with me. As either way I am prepping for a negotiation fight with them.

I have 800+ credit, I can easily pay for a loan after my monthly expenses, and have more enough liquid cash to pay for the Jeep but plan on using that money to pay for a kitchen renovation come this summer hence why I want to go for a loan.


Now my questions:

1. Can the dealer stipulate in the loan some mechanism that forces to pay x months before I can refinance for a better possible rate? Basically what's stopping me after I drive off the lot fully signed from just paying off the loan right there?
2. Should I still being in my own competing rate quote to us as a bargaining chip?

 

[JLWF Dealer Guy]

I have a order with station that due to deliver in the next week or two, but one of their stipulations for the deal is that you must finance through them, their ad says needs to be minimum of six months payments before you can close the loan, but they have told others here only 3 months, and my sales rep told me there is no strings but I don't trust him as he was learning about their sale as he was dealing with me. As either way I am prepping for a negotiation fight with them.

I have 800+ credit, I can easily pay for a loan after my monthly expenses, and have more enough liquid cash to pay for the Jeep but plan on using that money to pay for a kitchen renovation come this summer hence why I want to go for a loan.


Now my questions:

1. Can the dealer stipulate in the loan some mechanism that forces to pay x months before I can refinance for a better possible rate? Basically what's stopping me after I drive off the lot fully signed from just paying off the loan right there?
2. Should I still being in my own competing rate quote to us as a bargaining chip?

I'm glad you brought this up. Federal regulations have closed the loophole on pre-pay penalties. They no longer exist. My advice is to play along. Take the deal and take their financing. You can pay it off as soon as you get the financing banks loan information or you can re-finance with whoever you like. If you want to put in some effort ahead of time, contact who you want to get your loan through and explain to them the situation and that you want to finance the amount through them and see what they say. Bringing your own competing rate to them may or may not help, but if you are a 800+ you should be able to get a good rate as long as everything else is in alignment. Not buried in a trade that throws of the LTV etc. The other factor you can use with them is the LTV. Put enough down to get under 80% of invoice. That is usually the cut off for the best rate.

 

[Sheepjeep]

I'm glad you brought this up. Federal regulations have closed the loophole on pre-pay penalties. They no longer exist. My advice is to play along. Take the deal and take their financing. You can pay it off as soon as you get the financing banks loan information or you can re-finance with whoever you like. If you want to put in some effort ahead of time, contact who you want to get your loan through and explain to them the situation and that you want to finance the amount through them and see what they say. Bringing your own competing rate to them may or may not help, but if you are a 800+ you should be able to get a good rate as long as everything else is in alignment. Not buried in a trade that throws of the LTV etc. The other factor you can use with them is the LTV. Put enough down to get under 80% of invoice. That is usually the cut off for the best rate.

perfect thank you! Sounds like they are just throwing in some scare tactics to make the deal better on their end.

I have no trade in my current dd is an 04 Duramax that I use to tow my off road only XJ and plan of selling them + trailer to help offset the down payment but none will get anything for trade in value and will take time to move private sale but I am not desperate to move.

The agreed price is 5% below invoice and my plan is to pay 20% of the agreed price plus taxes and fees in cash and finance the rest.

 

[swyman]

I ordered a JLUR and I want an extended warranty. I am a FCA employee so I don't know if that makes a difference on how much the dealer makes off of my purchase.. should I get a better deal on a extended warranty or should I be able to negotiate a reduced price I guess is what I'm asking? I see a lot of folks on here claim to get some crazy deals, some as good or better than employee pricing and claim warranties thrown in....what should I expect?

 

[FatBoy01]

I ordered a JLUR and I want an extended warranty. I am a FCA employee so I don't know if that makes a difference on how much the dealer makes off of my purchase.. should I get a better deal on a extended warranty or should I be able to negotiate a reduced price I guess is what I'm asking? I see a lot of folks on here claim to get some crazy deals, some as good or better than employee pricing and claim warranties thrown in....what should I expect?

You'll see forum people posting that they got 3-5% or more off invoice. What they don't tell you is info in regard to the lets call it the total picture... that they had a trade, dealer says financing through them is a must, inflated dealership set-up fee $, State fees, etc. (Example, dealer shows you below invoice and gives you a few thousand less on your trade then he should)

Anyway, when negotiating a deal the vehicle buyer needs to look at the total picture and not the dealer waving the 3-5% off invoice info scribbled on a piece of paper. Again, always look at the total picture and shop around.

In regard to Extended warranty.. Do know that you should absolutely shop around for the Extended Warranty just as you do for pricing on a vehicle! Do know that you can buy the manufacturer extended warranty after the vehicle purchase date and many times for many $ less.

You can buy your Jeep at one dealer and a month or so later buy the exact same extended warranty from another dealer, maybe even a dealer across the USA somewhere, that you deal with online/ by phone.... from a dealer that is selling say the same friggin Jeep warranty for hundreds of $ less.

Reality is no matter how how much you read on these forums that a particular dealer is so terrific and offering 3-5% off invoice and yada yada, that no dealership is your friend. Dealer is out to maximize the $ that you drop at his or her dealership. Dealer always makes $ on you. Your only hope is to minimize the $ they make off of you.

 

[MojitoJLUR]

I ordered a JLUR and I want an extended warranty. I am a FCA employee so I don't know if that makes a difference on how much the dealer makes off of my purchase.. should I get a better deal on a extended warranty or should I be able to negotiate a reduced price I guess is what I'm asking? I see a lot of folks on here claim to get some crazy deals, some as good or better than employee pricing and claim warranties thrown in....what should I expect?

Did you end up with getting anything off employee price on the jeep?
If you search on this forum there is a dealer in Kalamazoo that has the best pricing. I'm buying it thru him. His prices are listed on here too.

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