Calculating % off MSRP correctly?

Berg Bua

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Depending on location you can probably do a little better without feeling like you are pushing the dealer too much.

Most people on here are talking about percentage off invoice.

6% off invoice for you is $44,171. Some dealers on here go all the way to 8 (you do have to look out for other fees though that could make that 8, closer to a 6).

6% can still be aggressive, but between 3%-4% should be able to be achieved, which saves you another $1,000 or so off your number.

At the end of the day, do what you are comfortable with and feel is fair. This is just my 2 cents as someone who is going through the process at the same time you are.

Good Luck.
So then is this offer just about 1% off invoice? Which would make it a bad initial offer?

This is their first initial offer with 0 push-back.

Right now I am trying to narrow down the dealerships in my area that are at least being reasonable with their first offer and then when I am ready to proceed (next 2-4 months), I will push back to get their best offers before ordering.
Depending on location you can probably do a little better without feeling like you are pushing the dealer too much.

Most people on here are talking about percentage off invoice.

6% off invoice for you is $44,171. Some dealers on here go all the way to 8 (you do have to look out for other fees though that could make that 8, closer to a 6).

6% can still be aggressive, but between 3%-4% should be able to be achieved, which saves you another $1,000 or so off your number.

At the end of the day, do what you are comfortable with and feel is fair. This is just my 2 cents as someone who is going through the process at the same time you are.

Good Luck.


I’m seeing a lot of great recommendations about 6-8 percent off invoice, etc..., but what discount is reasonable to ask for, given the dealer has to make money on the transaction?

 

Rouge

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I start at 8% off of invoice pricing b/c I have zero problems jumping on a plane then buying from Criswell/Leon in Maryland then enjoying my journey back home. Locally, instead of saying 8% under invoice, I'd have the multiplier figured out (simple math) then say or type, here's a 2020 JLU spec'd to my preferences, would you take $39711 out the door? (Understanding that state/local sales taxes are not included in the price and you'll still be responsible for paying them.)
 
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MikelMD

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So, I live in MD and I went to a local dealer and I was able to get 8% off of a new Rubi - and then I asked what if I decide to lease and his reply was this deal is only for a purchasing, if I want to lease, we have to work on the price. This took me by surprise. Is this normal?
 

CJ555

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So, I live in MD and I went to a local dealer and I was able to get 8% off of a new Rubi - and then I asked what if I decide to lease and his reply was this deal is only for a purchasing, if I want to lease, we have to work on the price. This took me by surprise. Is this normal?

I would like to know this too. I will keep searching and maybe start a new thread directed towards the 3-4 dealers I want to work with,....but figured I'd bump this 1st to see if I get a response.
This will most likely be on a new Willys build, not dealer stock, for whats it's worth!
 

ptoemmes

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I would like to know this too. I will keep searching and maybe start a new thread directed towards the 3-4 dealers I want to work with,....but figured I'd bump this 1st to see if I get a response.
This will most likely be on a new Willys build, not dealer stock, for whats it's worth!
A lease has more moving parts than a sale therefore more opportunity for the dealer to clip you. You cannot just focus on, for example, discounted sales price, down payment or trade, term, and finance rate.

The negotiated discounted selling price of the car should be the same regardless if it’s a sale or lease, but you will be told otherwise. The dollars to the dealer are the same though there may be kickbacks to the dealer for them sourcing the loan or lease.

if you do not know lease terminology or the math learn it from many places like this: http://www.realcartips.com/leasing/0050-auto-lease-terms.shtml

The dealer saying the best negotiated discounted selling price does not apply to a lease is a crock.

Pete
 


CJ555

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Yeah I have been racking my brains trying to understand how leases "really work" and I finally feel like I have it down to a science,...at least as good as ever will understand it! And I kind of figured the dealer will make the same money as a sale since they are "selling it" to the leasing company,....but it just seems like all these % off invoice deals most are getting are for purchases, not leases.I guess I am just curious if anybody is offering the same deals for leases? And if not,....why?
 

MikelMD

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A lease has more moving parts than a sale therefore more opportunity for the dealer to clip you. You cannot just focus on, for example, discounted sales price, down payment or trade, term, and finance rate.

The negotiated discounted selling price of the car should be the same regardless if it’s a sale or lease, but you will be told otherwise. The dollars to the dealer are the same though there may be kickbacks to the dealer for them sourcing the loan or lease.

if you do not know lease terminology or the math learn it from many places like this: http://www.realcartips.com/leasing/0050-auto-lease-terms.shtml

The dealer saying the best negotiated discounted selling price does not apply to a lease is a crock.

Pete
Thanks Pete, thats what I thought as well. I was rather surprised to hear that from the dealer (which is one of the deals in MD that "we" love to use. I am not calling them out - yet, for I may go back and try to negotiate. The challenge I have is my wife would like low monthly payments and I worry out the overall cost of the car w/ financing.

 

Mac Haik CDJR Georgetown
 
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