Help deciphering this offer.

LawrenceR

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To all of us "Hopeful" Jeep buyers out here. A few threads ago, I forget who it was, but the thread did a very good job of outlining the buying process and more importantly what the percentages are (roughly) of profit (and negotiating room) there is.

To bottom line it, one can reasonably expect to take a certain percentage off the MSRP and take a certain percentage off the options - not forgetting to carefully review the contract for "dealer additions" witch can be eliminated or downsized.

Over the last few months, we have seen first "Friends and Family" pricing which offered savings, then we saw "Employee Pricing for All" which offered additional savings.

I have been told, we buyers can expect very soon (I assume when the Employee Pricing ends) we buyers can expect Jeep to offer "Employee Pricing and Rebates".

The factory in Ohio is scheduled to reopen May 04th, hopefully working on building our orders.


My observation and question is, between taking a percentage off the MSRP and taking a percentage off the optional equipment, it seem as if we buyers take a total of 10 to 11 percent off the MSRP with options, we are in the ball park of what we can expect to pay for a new Jeep.

Do I have this right ?


Additionally, I have a question for all of us Jeep buyers.

With this quarantine in place, I have had plenty of time to do my homework. I have found that the Jeep's with Automatic Transmissions, the 850 RE, as listed on the MONRONEY STICKERS will list a price anywhere from $2,750.00 to $1,500.00 as an additional added option.

As for my understanding, Jeep only offers one automatic transmission for the Wrangler (keeping in mind that I am only looking at the two door with V6 - trying to keep apples with apples).

Why the price difference for the same product ?





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gortiz74

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... you just know the final price should be 6% under invoice...
First off, reading this makes me want to run through a brick wall! awesome inspiring advice and tips.

That "final price" or 6% under should include includes taxes, titles, plates, and doc fees?

Here are real world numbers for jeep i'm considering

34,116 is whole sale price with the customer preferred package included per the 2020 April Order Guide. The dealer has directly quoted a price via email of $31,292, but that is not the out the door.

Here is what I think is the 6% under that price after I add all the taxes, titles, plates, and doc fees

My starting price - $30,302.90 before fees/taxes (dealer current offer is $31,292)
Taxes $1,257.57
Title/E-Filing $32.00
Plates $45.75
Doc Fee $400.00
My final 6% "final price" under the Whole Sale Price including the above fees/taxes - $32,038.22
 

LawrenceR

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Well friend, welcome to the snake pit. What I have found is, even with the "Employee Pricing" dealers are adding about 5% to the price. When I "Build and Price" the same vehicle using the dealers Monroney Sticker I find that the dealers are claiming the MSRP is about 5% above what I can build and price the vehicle at.

In other news, I have a contact person at Chrysler Corp. According to him, the Ohio Factory is planned to start up again on May 18th. My contact confirmed that when the factory line does start up on the 18th, they will be building product with MANUAL TRANSMISSIONS. With this in mind, I was also in contact with a dealer in Nebraska, they confirmed their service manager got the word, parts to fix the clutch due to the recall are available and being shipped to dealers this week.

Now, if all of this is true, those of us with outstanding orders should see our builds actually being built this month.
 

EZMFE

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First off, reading this makes me want to run through a brick wall! awesome inspiring advice and tips.

That "final price" or 6% under should include includes taxes, titles, plates, and doc fees?

Here are real world numbers for jeep i'm considering

34,116 is whole sale price with the customer preferred package included per the 2020 April Order Guide. The dealer has directly quoted a price via email of $31,292, but that is not the out the door.

Here is what I think is the 6% under that price after I add all the taxes, titles, plates, and doc fees

My starting price - $30,302.90 before fees/taxes (dealer current offer is $31,292)
Taxes $1,257.57
Title/E-Filing $32.00
Plates $45.75
Doc Fee $400.00
My final 6% "final price" under the Whole Sale Price including the above fees/taxes - $32,038.22
Your post brought up a really good point but first to answer your question... no, those numbers would not normally include taxes, title, plates, or any negotiated doc fees. It is just the other items that they like to add that might add up to some substantial cash. They may even say it is already on the vehicle, etc (theft stickers). Those types of items are not required to purchase but they will attempt to add them. Just get all charges itemized so you know what they are for.

One could negotiate an out the door price as long as they have considered the cost before and after taxes, fees, etc.

What you want to do is take right around 12% off of MSRP but with today's situation, there might be more % to be had so 13-14% under might be the sweet spot.

I mean, if you walk in the dealer chin up, confident, and lay down the price you want to pay right at 12%... and they say yes right off the bat... you just left money on the table. They might of been willing to go lower but 12% is where you are at now. Many would actually be happy at that price... but times are rough and some might be able to get a better deal now... than in times past.

The item that your post reminded me about was the interest when trading in a vehicle. Depending on your state, interest can play in your favor if trading in a vehicle that has quite a bit still owed on it.

Basically you would pay the taxes on the value of the vehicle you are buying minus the value of the trade. So lets say the vehicle you are buying is 49k and you are trading in a vehicle that they are giving you 35.5k for. You would only pay the taxes on the difference between the 49k and the 35.5k. So taxes would be based on 13.5k. Knowing about these saving might mean you are now able to buy one step higher model or something with additional features.

It also means you want to get the most for your trade as possible. If they under value the trade they are also under cutting the taxes that would be taken off based on that value.

The issue is that the salesman already knows this and will use it as a tool but the counter to that is just to tell them you are already aware of the tax savings and have included it in your offered price. Not everyone is aware of how taxes work in their state so you will want to take a look... just so you know what to expect if/when trading in a vehicle.
 

EZMFE

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Over the last few months, we have seen first "Friends and Family" pricing which offered savings, then we saw "Employee Pricing for All" which offered additional savings.

I have been told, we buyers can expect very soon (I assume when the Employee Pricing ends) we buyers can expect Jeep to offer "Employee Pricing and Rebates".
Here is a little friends and family story for some to ponder.

There's a young girl that has been looking at cars for about a year now and has finally decided on a make/model. Her boyfriend just bought a newer car a couple of months prior from a friend of the family. Since that friend worked at a dealer that offered the make that the girl wanted, they took a trip down to the car lot to take a look. The salesman has been a close friend of the family for years and years and had told them that he would get the best deal he could for them.

She was attempting to stay in a specific price range to keep her payments to a minimum. She was already qualified so knew what she could afford based on the interest she would be paying.

So at this dealership she was looking at a specific vehicle that was pretty much bare bones. Like the base model so to speak without any additional add-ons. She had went through the initial paperwork at the dealer and once she had a final price she needed to make a phone call.

You see, she knew she could not buy a vehicle without calling her father first and getting his approval. They have been going back and forth for the last year and her father had been doing what he can to try and make sure she doesn't just jump into something that would be a bad deal. Needless to say she told him about the vehicle, the options or lack of, and the price. She even text him a pic of the sales document with the price.

Now, this girl is with her boyfriend, who introduced her to a car salesman that is a close friend of his family, right...

The girls father opens the dealerships website and looks up the exact vehicle... confirmed by VIN. The price on the website is $2000 less than what they have written down on that paper. The supposedly "friends and family" deal is more than what the dealerships website is advertising the vehicle for.

The girls father asks her to look at the website to confirm and ask them why they did not offer it to her for that price. The salesman, the friend of the family, now says he can offer it to her for that price... He says something like he was not aware they were offering it for that low... The father tells the girl to get up and walk out. Do not say anything to anyone but leave the dealer now... Luckily the girl listens and left immediately.

There is no such thing as friends or family when it comes to car sales... there are only customers and in many cases... fish.

In the end the girl was able to buy a vehicle from the same dealership (different location) for the price that was far under MSRP and would depreciate at about the same rate as her loan. That way she would never be upside down as far as what the vehicle is worth and what is owed on the loan.

Also, she made out with a better model that had more features and will be worth more when it comes time to sell it. All for less than what she would of paid for the vehicle she was looking at when this story all started.
 

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