Buying Below MSRP

[Ste-Rex]

Anthony J. Boi
Order Specialist
Voice & Text: 337-429-2021

I think he is on this forum. Nice guy. Easy to work with. Very responsive. This is my first order from mark Dodge. Currently D1 status.

I can second that opinion about @AnthonyRI

He was super patient with me going back and forth between a WILLYS and Rubicon build. He's also very responsive which is why I try to leave him alone...lol.

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[Jackiemohro]

What is the difference between the discount based on MSRP and invoice?

Also, if I order and can get minus 7% (let’s say) , can I ask for the same if I buy a new car off the lot?

 

[rcadden]

What is the difference between the discount based on MSRP and invoice?

Also, if I order and can get minus 7% (let’s say) , can I ask for the same if i

MSRP is the sticker price.
Invoice is more or less what the dealer is paying for it.

Just two different starting points for the same conversation. I believe MSRP is usually ~3% higher than invoice, so "7% off invoice" is roughly the same as "10% off MSRP"

 

[Jackiemohro]

MSRP is the sticker price.
Invoice is more or less what the dealer is paying for it.

Just two different starting points for the same conversation. I believe MSRP is usually ~3% higher than invoice, so "7% off invoice" is roughly the same as "10% off MSRP"

Maybe it’s Andropov question: if the dealer pays invoice, why would they go even lower by let’s say 7%?

Can I also expect the same savings ( roughly 10% under MSRP) for a car on the lot (ready, 2024, brand new?)

 

[tomk62]

Can I also expect the same savings ( roughly 10% under MSRP) for a car on the lot (ready, 2024, brand new?)

Typically no, and the inventory on the lot will already include thousands of dollars of useless dealer add-ons that you will have to negotiate down on.

 

[rcadden]

Maybe it’s Andropov question: if the dealer pays invoice, why would they go even lower by let’s say 7%?

Can I also expect the same savings ( roughly 10% under MSRP) for a car on the lot (ready, 2024, brand new?)

The dealer isn't necessarily paying the invoice price. High-volume dealers get bigger discounts, or get a kickback as they reach additional tiers of selling. They might also be making the profits on other sales (fleet, off-the-lot, etc) and take a loss on the internet sales from forums like this as a way to pad their volumes.

I.e. a dealer buying 500 vehicles from STELLANTIS will get a better price than a dealer buying 100 vehicles.

A factory-ordered Jeep gets picked up usually within a week, and thus it doesn't incur a lot of the additional overhead of a sales team, insurance costs for it to be on the lot, etc.

Which comes to your next question. No, you typically cannot get the same pricing for an on-the-lot vehicle. When you place a custom order, it's a guaranteed sale, to you, for that amount. As the buyer, the fact that you're willing to wait gives you significant leverage in price negotiations.

Not all buyers are that savvy. The vast majority of people who show up at the dealership walk in with the idea of "I'm going to buy a car today", so they do not have that leverage in price negotiations. They're more willing to pay whatever the dealer is asking, or with minimal negotiation, than you are.

So the dealer knows that a car on the lot is "worth" more than a factory-ordered vehicle. Essentially (and a huge over-simplification), the poor saps who show up at the dealer with the intention of driving their new car home are paying full price, and are thus subsidizing the purchases that you and I make.

 

[Jackiemohro]

The dealer isn't necessarily paying the invoice price. High-volume dealers get bigger discounts, or get a kickback as they reach additional tiers of selling. They might also be making the profits on other sales (fleet, off-the-lot, etc) and take a loss on the internet sales from forums like this as a way to pad their volumes.

I.e. a dealer buying 500 vehicles from STELLANTIS will get a better price than a dealer buying 100 vehicles.

A factory-ordered Jeep gets picked up usually within a week, and thus it doesn't incur a lot of the additional overhead of a sales team, insurance costs for it to be on the lot, etc.

Which comes to your next question. No, you typically cannot get the same pricing for an on-the-lot vehicle. When you place a custom order, it's a guaranteed sale, to you, for that amount. As the buyer, the fact that you're willing to wait gives you significant leverage in price negotiations.

Not all buyers are that savvy. The vast majority of people who show up at the dealership walk in with the idea of "I'm going to buy a car today", so they do not have that leverage in price negotiations. They're more willing to pay whatever the dealer is asking, or with minimal negotiation, than you are.

So the dealer knows that a car on the lot is "worth" more than a factory-ordered vehicle. Essentially (and a huge over-simplification), the poor saps who show up at the dealer with the intention of driving their new car home are paying full price, and are thus subsidizing the purchases that you and I make.

Thank you. Very helpful. I know wranglers are expansive. I understand we all have to live but I also don’t want to overpay by a terrible amount. I still have to figure my head around ordering, or waiting for the existing ones on the lot to drop (or maybe they won’t…). Thanks again. I feel more educated now.

 

[rcadden]

Thank you. Very helpful. I know wranglers are expansive. I understand we all have to live but I also don’t want to overpay by a terrible amount. I still have to figure my head around ordering, or waiting for the existing ones on the lot to drop (or maybe they won’t…). Thanks again. I feel more educated now.

If you have the luxury of time, you're already well off.

1. Figure out what you want. Trim, features, etc. Build it online to start.
2. Review @Ratbert's spreadsheet and find a few dealers to send your build to.
   1. Ratbert's Dealers Below-Invoice Spreadsheet | Jeep Wrangler Forums (JL / JLU) - Rubicon, Sahara, Sport, 4xe, 392 - JLwranglerforums.com
3. Compare the options, taking into account any travel costs, doc fees, etc.
   1. For instance, each 1% of discount is roughly equivalent to $500. So if one dealer is offering you 3% off but you have to spend $1,000 to fly out there, pick up your Jeep, and drive it back, that's basically the same as a local dealer offering you a 1% discount.
4. Place your deposit and prepare to wait.

Unless you just absolutely need a Jeep like, TODAY, you are better off ordering exactly what you want. In most cases, it'll be significantly cheaper, as well.

UPDATE: I realize as someone coming into this, it's a bit mind-blowing to understand that placing a custom factory order could be cheaper than buying one that's already built on a lot somewhere, but there are likely hundreds of us on this forum who have done exactly that. I was in your place ~2 years ago. It absolutely works. I wound up paying $46K for a $54K Jeep when all was said and done. Bananas.

 

[Jackiemohro]

If you have the luxury of time, you're already well off.

1. Figure out what you want. Trim, features, etc. Build it online to start.
2. Review @Ratbert's spreadsheet and find a few dealers to send your build to.
   1. Ratbert's Dealers Below-Invoice Spreadsheet | Jeep Wrangler Forums (JL / JLU) - Rubicon, Sahara, Sport, 4xe, 392 - JLwranglerforums.com
3. Compare the options, taking into account any travel costs, doc fees, etc.
   1. For instance, each 1% of discount is roughly equivalent to $500. So if one dealer is offering you 3% off but you have to spend $1,000 to fly out there, pick up your Jeep, and drive it back, that's basically the same as a local dealer offering you a 1% discount.
4. Place your deposit and prepare to wait.

Unless you just absolutely need a Jeep like, TODAY, you are better off ordering exactly what you want. In most cases, it'll be significantly cheaper, as well.

Agree. And no i don’t need a Jeep right now. I found a dealer in Atlanta that gives 6% (7% if I fiance).

do you know what’s the deal with the 2.0 liter engine? He said no longer available.

 

[rcadden]

Agree. And no i don’t need a Jeep right now. I found a dealer in Atlanta that gives 6% (7% if I fiance).

do you know what’s the deal with the 2.0 liter engine? He said no longer available.

Various features/options come in and out of availability throughout the year as parts shortages/etc come in. Sometimes specific combinations aren't available - like maybe you can't get the 2.0L with a blue Jeep but you can get it if you go grey. There's no real rhyme or reason, it's just whatever is available when you order.

The Jeep.com builder tool should be used as a rough guideline - it's notoriously out of date. The dealer has direct access to the ordering system, so whatever he says is available, is available. Whatever he says isn't, isn't.

 

[Jackiemohro]

Various features/options come in and out of availability throughout the year as parts shortages/etc come in. Sometimes specific combinations aren't available - like maybe you can't get the 2.0L with a blue Jeep but you can get it if you go grey. There's no real rhyme or reason, it's just whatever is available when you order.

The Jeep.com builder tool should be used as a rough guideline - it's notoriously out of date. The dealer has direct access to the ordering system, so whatever he says is available, is available. Whatever he says isn't, isn't.

got it. Thank you!!!!!!!!!!

 

[Ratbert]

MSRP is the sticker price.
Just two different starting points for the same conversation. I believe MSRP is usually ~3% higher than invoice, so "7% off invoice" is roughly the same as "10% off MSRP"

The difference varies significantly based on the options chosen and how much each option is priced over invoice. My rig (a pretty well decked out 2022 JLURD) was 4.5% under invoice, which came out to about %10 under MSRP. I'm pretty sure they narrowed the gap between invoice and MSRP in subsequent years.

 

[Beachcomber72]

Okay thank you for your responses. I did pay 500 dollar deposit. But I don’t mind loosing 500 when I can save thousands. I am going to ask around dealers but inventory is low in my area and ask what’s the best they can do and go from there and see if my dealer can match it if I find a better deal.

There is zero federal law stating you can not get your $500 deposit back, regardless of what they say or what you signed off on. Period!!!

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