Interesting call from my dealer...

[briscoelab]

You shouldn't care 1 bit about "same payment and terms". Total garbage way to look at vehicle purchases. They already have you... you're talking about using this as an opportunity to step up to a Rubicon'. Not that wanting a new Jeep is a bad thing! Just go in with your eyes open and focus on the numbers that matter.

You care about: 1. The OTD price on the new Jeep. 2. Your trade value (actual, not allowance). 3. Your APR they are offering (if you don't have it already setup with a credit union).

The rest is simple.

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[Renegade]

An insurance company is more than likely looking to buy a jeep that matches your's description. When you hear ads claim they will replace your vehicle with another of the same options, color and xx amount fewer miles, that's how they locate them. Through dealer data bases. Sometimes it can be a win win for someone looking to sell or trade in.

?? Why would an insurance company want a particular model of used Jeep? That “We need a Jeep like yours” tactic is just salesmanship. They want to sell vehicles, and will say anything to rope you in.

 

[CJtoJL]

?? Why would an insurance company want a particular model of used Jeep? That “We need a Jeep like yours” tactic is just salesmanship. They want to sell vehicles, and will say anything to rope you in.

https://www.libertymutual.com/auto/car-insurance-coverage/better-car-replacement

Tactics for things like this?? Where do you think their inventory comes from?

 

[Renegade]

https://www.libertymutual.com/auto/car-insurance-coverage/better-car-replacement

Tactics for things like this?? Where do you think their inventory comes from?

With that type of coverage, insurance companies pay the cash value of a vehicle one year newer. They don’t GIVE you a vehicle one year newer...

 

[LarryB]

Never sold cars, but I have sold a few billion dollars worth of tech, so I understand the sales world well.

1) Know how a dealer makes money. There is some margin from the OEM, but not enough to even come close to sustain a dealership. The money is made through financing rebates, up sells like extended warranty and from after-sale add-ons rust proofing.

Sure, servicing your vehicle offers a gross profit margin of up to 60%. But, once you are out the door with your unit, they can’t be guaranteed you will come back for service, so this is a way to turn over a customer quickly.

2) I suspect that they know there is a strong market for your trade-in

3) The best kind of customer is one whose main goal is a monthly payment, not an overall purchase price. There are so many tricks to add in high-margin upgrades, keep OEM incentives and other items that make the deal way more profitable.

not saying that this deal would not work out well for you, but it has pitfalls that you need to consider.

 

[jimim]

also 0% apr now for 84 months. that helps keep the payment but doesn't save you the price jump from a sahara to a rubi.

Where r u seeing this? I see the typical 36, 0%. Jeep never does this on wranglers or glats.

 

[4xeJim]

I have a 2019 JLU Sport S 2.0 with eTorque. Dealer called today and offered to put me in a 2021 sport s with the same options minus eTorque of course. Same payments, rate and term. I realize that they are not doing this out of the kindness of their heart. What do you all think? I also could use this opportunity to bump to a rubicon depending on what the additional per month would come out to.

Its not that unusual. A used jeep in terrific shape is always wanted by dealers. I go hear what they had to say.

 

[Beancooker]

There might be some merit to this. I took my wife’s Forester in for an oil change back in 2018. It was a one year old Forester (base model) with around 4k miles.
They said they could upgrade me from it, into the Forester Touring for the same monthly cost, same terms, etc. basically, going back to 60 payments due, instead of the 48 I had left. Difference in vehicle prices was well over 12k, not including depreciation of the one I owned. (One thing to note, both vehicles were purchased with 0 down and interest rate was a promotional rate of 0.9%)

They had to have taken a bath on this deal, because they did it. Same monthly payment. Same interest rate. Zero down. Sixty month term.

It worked out well for us. Best part was when we traded it in a year later, and reaped the rewards of getting the Touring for the cost of a base model.

It’s worth seeing what they have to offer. Worst that can happen is you waste an hour of your time.
Make sure you do not get your hopes up, and are willing to walk away.

 

[Jeeporama]

Yeah I get calls, emails, texts, flyers, etc from the dealer telling me how they need my Rubicon for their used lot with all their customers ready to buy....and they will give me some kind of deal for a 2021, 2022 or whatever.

My view is, I'm good with what I have, it's still new to me, so why do I want to trade in? Which is something I wouldn't ask the dealership because they would give me some bloated answer and waste precious hours of my life.

What would be nice is if they just sent me a t-shirt or a hat or some washer fluid with a note saying thank you for being a customer, come see us if you need anything or looking to buy. That's all.

 

[DadJokes]

There’s more money to be made in used cars. They would make money on the new Jeep sale and especially on the used Jeep sale.

 

[aldo98229]

There’s more money to be made in used cars. They would make money on the new Jeep sale and especially on the used Jeep sale.

This was certainly true when I sold cars 25 years ago. And I believe it is still generally true on cars.

But a young Sales Manager at a local CDJR store tells me he can make a lot more money on a new Ram pickup, JL or JT, that he can on a used vehicle.

 

[dski]

Where r u seeing this? I see the typical 36, 0%. Jeep never does this on wranglers or glats.

jeep.com scroll one main image to the right on the landing page. This could be restricted to regions / zip codes.

 

[jimim]

jeep.com scroll one main image to the right on the landing page. This could be restricted to regions / zip codes.

That would be pretty sweet. Yah we got it here for all models except wranglers. We have it for grand Cherokee, Cherokee, compass. All the other jeeps

 

[roaniecowpony]

You want a bunch of strangers on the internet to give you advice on spending your money?

 

[johnnyj]

If ya want the Rubi, like others have said, go in there and get the best OTD price. Never focus on payments. At the risk of sounding a bit like Dave Ramsey - car payments are second only to car leases when it comes to mathematically dumb money moves. That isn't to say we're not all guilty of some dumb moves from time to time, but the goal should be to know they're dumb and eliminate them as soon as humanly possible. The only way they can give you a better Jeep at the same payment is to extend your term. I'd say find a way to make double or triple payments on the current Jeep for a year or so, get her more than 50% paid off, then do the trade with some fat equity (or better yet, a paid off jeep).

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