Interesting new dealer revenue scheme

txj2go

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Saw a very low advertised price for my JLUR at a localish dealer that had a sticker around 60K for about 52K (this was in March). I contact them about it (and a couple others at similar prices). They informed me that it was that price but would be $1500 more if I didn't finance through them (I was fine with that). I shlepped over there and checked one out. I was running the numbers in my head and the salesman informed me that every Jeep that rolled off the lot had the $1995 "package" added on (tint, wheel locks and LoJack).
A lot of dealers do this but there are some that don't. Some dealers are convinced that they have to do this to attract customers, if they didn't advertise lower prices nobody would come to their business. Doesn't make it acceptable to me though.

I did a lot of shopping 20 months ago. I didn't find many good deals in my city so I was shopping in a 500 mile radius. I did find a few dealers that provided good prices with no BS. When I did find other dealers with good prices I would start reading their reviews and that's where you find out about the tricks like the Nitrogen in the tires and the undisclosed add-on packages. There were a couple of dealers I found that had a lot of cars advertised at low prices. A month later a lot of the cars I was watching at higher prices were sold, but this dealer still had all of their cars in inventory. That tells you there is something deceptive with that dealer's practices or they would be selling more cars. Unfortunately this means a lot more work for the prospective buyer.

Businesses like Carvana are trying to get people to stay away from normal dealers, but they have their own problems. They have big problems with customer service, things like people not getting their titles and registration so they can't drive their cars, cars getting towed for various reasons, things like that. Some states have cancelled their dealer licenses.
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Dkretden

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I have come to really dislike dealerships. All car manufacturers need to figure out a way to kill their relationships with these swarmy businesses (not easy to do — or even impossible — in some states) in favor of “factory direct” stores. Dealers suck. They are slimy. And they impact the manufacturer’s brand. It’s time to kick them to the curb.
 

mwilk012

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I have come to really dislike dealerships. All car manufacturers need to figure out a way to kill their relationships with these swarmy businesses (not easy to do — or even impossible — in some states) in favor of “factory direct” stores. Dealers suck. They are slimy. And they impact the manufacturer’s brand. It’s time to kick them to the curb.
It’s the same thing, just a different name on the building.
 

m3reno

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What do you get? You get a Subaru BRZ right now as opposed to waiting 6+ months.
I can order one and have it in 8 weeks. Wranglers are getting 3-5 thousand over sticker in some areas. You can order a wrangler and get 6% below invoice, that's the smart move! Almost 5,000 less + not paying fair market value saves you 8-10 thousand.
 

txj2go

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I can order one and have it in 8 weeks. Wranglers are getting 3-5 thousand over sticker in some areas. You can order a wrangler and get 6% below invoice, that's the smart move! Almost 5,000 less + not paying fair market value saves you 8-10 thousand.
Does that actually work?
Many years ago I ordered a car that was in high demand, for an agreed upon discount below sticker. We never got the car, the dealer claimed that they never got it. We were suspicious that the dealer got the car then sold it for above market value.
 

Scott.B

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Does that actually work?
Many years ago I ordered a car that was in high demand, for an agreed upon discount below sticker. We never got the car, the dealer claimed that they never got it. We were suspicious that the dealer got the car then sold it for above market value.

Jeep will come down hard on a dealer if the car doesn't go to the one who ordered it. I just went through cancelling an order and got the low down on what happens if this happens more than a couple of times. They lose their ability to put in orders for up to 90 days. I guess some dealers had put in fake orders during the worst of inventory crisis.

According to the dealer 35% of their monthly new sales go to orders not what is on the lot. So it was important to get it all cancelled correctly.
 

Scott.B

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Oh and you can read some of the problems dealers had when they sold someone's order on here. They really take a huge hit to make it right.
 

Fatboy97

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As long as there are enough dumb people in this world willing to pay these bogus upcharges, then dealers will continue to do it. As the old saying goes...there's an ass for every seat.
And as long as people keep buying vehicles based on the monthly payment this will continue to happen.
 

wcjeep

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Bought our JL Last week. Vehicle was sold at Msrp. Finance manager tried to sneak in $250 per payment scotchguard and snake oil add-ons.
 

flintlock

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I’m going to hold off on final judgement until I receive my 2022 JLURXR, but I sent the same build sheet to two dealers in Texas and to Gupton, and here was my experience:

South Point Dodge in Austin: Sales guy said due to chip shortage, they don’t offer the Alpine Premium or Proximity Lock on 2022’s (my build sheet was using the 2021 Build and Price on Jeep.com). I get it that he may not know those are standard features on 2022 Rubicons, but don’t make up a lie to me about the chip shortage.

DeMontrond in Conroe: Talked with Neil and exchanged emails. Nice guy, but never any follow up on quotes or steps to order after multiple exchanges. I got the feeling they’re not actively looking for new business, which is fine.

Gupton in TN: Emailed Daniel, received a quote for my exact build with below MSRP in less than 2 hours. Put down deposit and had VON and VIN within the week. Him or someone there responds within hours if I have follow up questions, every time.

The moral for me is to email a few dealerships and avoid the onground sales people if you don’t need something immediately off the lot. Now I just got to figure out the best trails from Tennessee to Texas for my roadtrip back :)
 
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AlgUSF

AlgUSF

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We have to remember that everything is cyclical. I remember them getting a 5K markup a Toyota Prius, two years later they couldn't give them away.
 

bmwbutch

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Not just dealers. Everyone tries to add prices. Stopped by discount tire looking at larger tires. Talked to the manager. Didn't order them as I was still looking for rims. Checked the price on line, then called to place the order. He wanted over $250 more than their site price. Said it was insurance if something happened to the tires. Did it to all sales. Told him I didn't want it and would go elsewhere. Dropped it to $100. Still not interested so the gave me the net price. Was going to charge $20 a tire to put the take offs on my truck. When I had them installed, they tried to charge $2 a tire to to depose of the tires I had put on the truck, then $2 a tire for the ones off the truck. On top of that they tried to charge $50 a tire for putting them on the truck. Had a round with the sales guy. Told him to call the manger at home and get it straight of just put everything back. He dropped all the extra charges.
 

Metal Dawg

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I’m going to hold off on final judgement until I receive my 2022 JLURXR, but I sent the same build sheet to two dealers in Texas and to Gupton, and here was my experience:

South Point Dodge in Austin: Sales guy said due to chip shortage, they don’t offer the Alpine Premium or Proximity Lock on 2022’s (my build sheet was using the 2021 Build and Price on Jeep.com). I get it that he may not know those are standard features on 2022 Rubicons, but don’t make up a lie to me about the chip shortage.

DeMontrond in Conroe: Talked with Neil and exchanged emails. Nice guy, but never any follow up on quotes or steps to order after multiple exchanges. I got the feeling they’re not actively looking for new business, which is fine.

Gupton in TN: Emailed Daniel, received a quote for my exact build with below MSRP in less than 2 hours. Put down deposit and had VON and VIN within the week. Him or someone there responds within hours if I have follow up questions, every time.

The moral for me is to email a few dealerships and avoid the onground sales people if you don’t need something immediately off the lot. Now I just got to figure out the best trails from Tennessee to Texas for my roadtrip back :)
No one in Austin wants to make a deal. I am talking with Daniel too, and a couple of places up in Idaho.
 
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