Dealer profit on vehicle at invoice price question

Mjmi69

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Look at some of my posts from last month, The dealers can sell the Jeep at 5-6% below INVOICE (11-12% below MSRP) and still make money.
Most of these Jeep dealers will lie to you and try to make you feel bad. Look at Dave Dennis in Dayton, Koons, Superior and tell me they are losing money, they would be out of business if that were the case.
Also if you join Tread Lightly for $100. It will also save you about $500.00
 

VNT

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Look at some of my posts from last month, The dealers can sell the Jeep at 5-6% below INVOICE (11-12% below MSRP) and still make money.
Most of these Jeep dealers will lie to you and try to make you feel bad. Look at Dave Dennis in Dayton, Koons, Superior and tell me they are losing money, they would be out of business if that were the case.
Also if you join Tread Lightly for $100. It will also save you about $500.00
Some can, they are the larger volume dealers who get kickbacks when they meet targets for monthly sales/
Jeep dealer pays Invoice and get 3% hold back, but out of the 3% he has to pay his overhead, prep, and floorplan interrest.

I guess if you can get 5% under invoice your doing well, but if your driving or flying into a large dealer to pick up your Jeep you have to factor that into the deal, also if your trading something in, they can play funny money on the actual net. I ordered from local dealer, friends with the owner/son/service manager, a couple techs and parts manager. Took the 1% under Invoice and he got me a 500 kicker on the golden ticket.

But they are around the corner from me, I get all parts at dealer cost, free loaner car on any work for any of my cars ( honor system , just put gas in the loaner when you return it) they are 85$ labor rate, and many times the service manger finds a 10% discount for LOL, note I do most of my own work but some stuff I cant do like aligmnets etc They just replaced the leather seat cover on my wifes Overland, didnt have to, but got FCA to agree, was 2K miles over the 36 K but they did good will. So there is more to it than a few bucks in my mind. Plus I would rather give my money to the small local dealer. I know so many folks buy from large local dealers and then hate the service, I am lucky this dealer will throw me the keys and let me test drive anything for a day, great way to see what I like. Couple buddies who are techs set up a customer's Demon for the RG PCM, said the ride was scary but customer very happy :)
 

Wanderingwheelz

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Some can, they are the larger volume dealers who get kickbacks when they meet targets for monthly sales/
Jeep dealer pays Invoice and get 3% hold back, but out of the 3% he has to pay his overhead, prep, and floorplan interrest.

I guess if you can get 5% under invoice your doing well, but if your driving or flying into a large dealer to pick up your Jeep you have to factor that into the deal, also if your trading something in, they can play funny money on the actual net. I ordered from local dealer, friends with the owner/son/service manager, a couple techs and parts manager. Took the 1% under Invoice and he got me a 500 kicker on the golden ticket.

But they are around the corner from me, I get all parts at dealer cost, free loaner car on any work for any of my cars ( honor system , just put gas in the loaner when you return it) they are 85$ labor rate, and many times the service manger finds a 10% discount for LOL, note I do most of my own work but some stuff I cant do like aligmnets etc They just replaced the leather seat cover on my wifes Overland, didnt have to, but got FCA to agree, was 2K miles over the 36 K but they did good will. So there is more to it than a few bucks in my mind. Plus I would rather give my money to the small local dealer. I know so many folks buy from large local dealers and then hate the service, I am lucky this dealer will throw me the keys and let me test drive anything for a day, great way to see what I like. Couple buddies who are techs set up a customer's Demon for the RG PCM, said the ride was scary but customer very happy :)
All of that is true!

I decided to depart from my local dealer/salesperson who I have a close relationship with (GMC dealership that also had a Jeep franchise 30 minutes away) to save an additional $1400 on an identical Wrangler at one or the really big boys in the DC metro area.

In the age of the internet you’re foolish if you’re not going where the rock bottom prices are. The whole point of the internet is to drive the cost of everything down to nothing, sadly. Don’t use it for that reason to your own detriment. It took me about 8 hours round trip and we had to take two cars home, obviously, but for $1400 I’d do it again.

My local salesman and his wife have never supported either of the businesses I own, so what comes around goes around. Oddly.. the salesman 3 hours away has.
 
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