Dealer profit on vehicle at invoice price question

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eugene

eugene

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yeah seems like it wasn't a deal. I went to that dealer through a referral of a very close friend who said I would get a fair deal from this person. Looks like he was trying to take advantage of me seeing this is a deal I can get almost anywhere. He also told me that even though the LED lights were on restricted ordering I would get my vehicle before October if I ordered Monday.
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Goin2drt

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yeah seems like it wasn't a deal. I went to that dealer through a referral of a very close friend who said I would get a fair deal from this person. Looks like he was trying to take advantage of me seeing this is a deal I can get almost anywhere. He also told me that even though the LED lights were on restricted ordering I would get my vehicle before October if I ordered Monday.
Ha ha. Well now he is lying to you. He has zero control of that. Some people get there cars within a few weeks, other months. Just look at those threads.
 
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trust me I have seen them. I have been a forum lurker here for many months lol.
 

Wanderingwheelz

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Yes FFP is 1% below but you can get that with Tread Lightly ALL DAY long.

For reference on my vehicle.
MSRP 53,970
Invoice or FWP 50,687
Hold Back 1,583
FFP 50,255
EP 48,353

and I got it for 48,153

Again trying to prove he is lying you will never be able to do unless he gives you full disclosure of his books. You really can only go by what is your MSRP and what is the best deal you can get by shopping around.

Good Luck
There’s lots of car dealers around. If you find yourself trying to confirm that you’ve been lied to I feel like it’s either: a) time to get more educated, or b) find a dealer who you feel is shooting straight with you. Likely both.

It’s my opinion that in today’s marketplace you’re doing well if your “out the door” price on the money that the dealer collects, not the state (“tax and tags”), is 4% under invoice on a JL Sport and maybe 5.5% under on a JL Sahara or JL Rubicon then you did well enough to make a purchase without any worry you overpaid. The dealer made a little, you saved a lot of it and you can go back sometime and they’re likely to want to earn your business again.
 
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18RubiJLU

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Long time reader and first time post here, awesome group of guys..have enjoyed it a lot reading thru various sections!
I'm ready to get a new JLUR but need little help. Can someone PM me their build contract with 5-6% below invoice price? I'm trying to negotiate with a local dealer for a JLUR that's on his lot and he is saying there is no way anyone can do that kind of pricing..he is saying that's a $1k loss to him. So just want to show him what other dealers are offering to your guys. I'll appreciate it. Thanks!
 

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Shame on him for telling you that he couldn't do more than 1% below invoice.
I've seen Jeeps on the lot listed for less than invoice.
 

LeaN69

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yeah seems like it wasn't a deal. I went to that dealer through a referral of a very close friend who said I would get a fair deal from this person. Looks like he was trying to take advantage of me seeing this is a deal I can get almost anywhere. He also told me that even though the LED lights were on restricted ordering I would get my vehicle before October if I ordered Monday.
Hes not lying to you and it is a fair straight forward offer. 1% + $900 is the Hold Back. so they're offering you part of their hold back. How much they really make on the back end is a variable number.

Yes you can do much better, but that doesn't mean your local dealer has to oblige. And since you have stated that you were on this forum for a while and are aware of deals people are getting and still willing to do the deal at FFP as long as your sales guy is transparent with you makes this kind of pointless IMO.
 

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I don't remember the exact numbers on mine, but the MSRP was $49.350. If I remember correctly the invoice was around $46,500. I got it for a little over $44K, which now that I do the math comes out to roughly 5% below invoice. The figures posted by Goin2drt also works out to roughly 5% below invoice. That's not to say EVERY dealer can do that on all trims. Mine is a Sahara with options, and Goin2drt is a Rubicon with options. These more expensive trims/options often have a little more wiggle room in the price due to the mark up to those packages. That said even the cheapest configuration possible should be able to get around the 1% mark as a minimum. If you get to that, you're doing okay. Maybe not great, or the best possible deal, but it's still a good price and you weren't taken advantage of.

On a side note, Tread Lightly isn't just a good way to get a discount, but also a great program. I joined years ago. Its focus is on enjoying the outdoors without destroying it in the process. Whether hiking, hunting, wheeling, etc. take only memories, leave only footprints.
 

RubiconRider

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Get a price quote from a dealership and then send that quote out to a bunch of other dealerships asking if they can beat that price.
Repeat the process until you stop getting replies.
 

Goin2drt

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Long time reader and first time post here, awesome group of guys..have enjoyed it a lot reading thru various sections!
I'm ready to get a new JLUR but need little help. Can someone PM me their build contract with 5-6% below invoice price? I'm trying to negotiate with a local dealer for a JLUR that's on his lot and he is saying there is no way anyone can do that kind of pricing..he is saying that's a $1k loss to him. So just want to show him what other dealers are offering to your guys. I'll appreciate it. Thanks!
Contact Dennis Dillon or Jim Marsh. they will send you a build sheet with the price. I also tried this approach. It didn't work in SoCal. Too many people with more money then sense so the dealers won't deal because they can sell them all day long. I ended up going to Jim Marsh. Well worth the drive and they were no nonsense and didn't have to deal with all the BS.
 
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This isn’t pointless I was trying to find out if the $900 thing was a lie or not. I appreciate your information and contribution as your comments have provided more light to the subject.
 

Saejin

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Well, he’s not lying to you, but like others have said there are different ways a dealer can make money from selling a Jeep, especially if it’s an order.

Have him produce the order sheet with ALL the numbers. Some dealers will blank out the invoice and other pricing. See what the holdback is.

If you take the invoice and subtract the holdback that’s what the dealer is paying for the Jeep. However, like I said they will make money in other ways either through volume which generate bonuses from FCA or by adding in a doc fee.
 

RubiconRider

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Forget all this stuff. Just ask the dealer for out the door pricing including taxes, title, and fees and use that when you shop around.
In the end that's all that matters.
 

Shots

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.... Too many people with more money then sense so the dealers won't deal because they can sell them all day long. .....
This is a very good point. The dealers will only be inclined to make less profit if they know they have to. With as quickly and easily as the JL is selling they're not going to cut profit too much.
That's one of the reasons I didn't wait for the truck that's coming out next spring (JT?). I know they're going to sell like crazy so you'll probably be lucky to get one below msrp when they first hit the market. I could be wrong, but it was a gamble to wait. I knew I could get a good price on the JL so I bought it. Funny thing is FCA increased the price on them in July, which tells me they're selling quick too. This will hinder your negotiations a bit, because the dealer will just wait for someone who is willing to pay more.

Forget all this stuff. Just ask the dealer for out the door pricing including taxes, title, and fees and use that when you shop around.
In the end that's all that matters.
That's exactly how I shop. I don't play the "what payment are you looking for" game, or worry about how much they make off me. I determine a value which I find acceptable, and go from there. I'll usually tell them my out the door price is a bit lower than I'm actually willing to do so I can either get a better deal, or have a little wiggle room to negotiate without actually going higher than I wanted to. Always negotiate the out the door price. It will save you from being blind sided by fees, taxes, etc. Plus by doing this you can get pre-approved for a loan from your bank, or another lender of your choosing. That way you can shop for the best interest rate too. Dealers get kick-backs from the banks for getting you to finance at higher interest rates. Don't play that game. There are a few easy steps to buying a car, and it's a LOT faster than dealing with their finance people.
  1. Find a lender with a good rate.
  2. Get pre-approved for a loan which will cover the vehicle you're looking at. This takes a matter of about 15 minutes, and they'll tell you what the payment will be if you finance the max amount. This means you'll know the payment is $X or less.
  3. Find a vehicle you like, and offer an out the door price you're happy with. (Don't exceed your pre-approval amount)
  4. Give the dealer a check from the lender or most commonly a letter of pre-approval.
  5. Sign about 3 papers to take ownership of the car you picked
  6. Contact the bank to finalize the loan. They'll need the VIN, total loan amount you'll be taking, and another signature or two.
  7. Contact your insurance company to let them know you bought a new car. This is often done by the dealer, but it's ultimately your responsibility, so make sure you verify they've been notified.
 

Wanderingwheelz

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Long time reader and first time post here, awesome group of guys..have enjoyed it a lot reading thru various sections!
I'm ready to get a new JLUR but need little help. Can someone PM me their build contract with 5-6% below invoice price? I'm trying to negotiate with a local dealer for a JLUR that's on his lot and he is saying there is no way anyone can do that kind of pricing..he is saying that's a $1k loss to him. So just want to show him what other dealers are offering to your guys. I'll appreciate it. Thanks!
I think Farrish Jeep in Fairfax, VA is running an ad on their website clearly showing their discount below invoice. That’s not even the best price they’d can give you, either. I know this to be a 100% fact. Just be sure to factor in their doc fee just as you would at any other dealership.
 
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