Opinions Wanted - Decent Deal?

[JoeBelt]

I currently own a minty clean 2018 JL Unlimited Sahara, 23K miles, almost fully optioned with a current payoff of $39K. Original MSRP $54K.

Dealer is offering $38.5K on trade. KBB value is $36K in VG condition trade or $39.6 private party.

I have my eye on a 2021 Unlimited Rubicon diesel also fully optioned with a MSRP of $64K. They’ve agreed to honor the FCA affiliate program where I can pick it up for 1% under invoice - $59K.

Considering they’re offering more than KBB to meet my payoff does this seem like a respectable deal? (I understand people are getting roughly 5% under invoice in many cases).

With interest rates being what they are now, my monthly payment would be almost identical with same 60 month term. Thoughts?

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[runningshoes]

Based on what others are paying for new, I think you can get a lower price on the new vehicle. I'd go to at least another dealer or two for some comps.

 

[Dkretden]

Looks like the dealer is coming “up” a bit on the trade and not coming “down” much on the new.

you are still coming out of pocket $500 too.

I would pause for a moment.

I would take the Jeep to autonation or carmax or somewhere and see what they offer you. That is your best data point.

I would then see if the trade deal was “fair”. If it was ”fair” then you can focus on the price of the Rubicon.

BTW, are you certain that 1% under invoice is $59k? That‘s nearly 8% off MSRP for 1% off invoice? I would double check that. 10% off invoice always strikes me as a “decent” deal when just considering the new vehicle purchase, not the trade-in shenanigans nor the financing shenanigans nor the “doc fee, marketing fee, allocation fee” crap.

to me, 10% off MSRP and no more than a $250 total cost of fees is a good price for a cash sale. If they are able to pay you “more” for your trade than others, then you could net the two.

 

[PokerMunkee]

See what Carvana will offer you: https://www.carvana.com/sellyourcar

 

[JoeBelt]

Based on what others are paying for new, I think you can get a lower price on the new vehicle. I'd go to at least another dealer or two for some comps.

No doubt I may receive 7% from somewhere like Koons. It’s the trade that complicates things. Several quotes

Looks like the dealer is coming “up” a bit on the trade and not coming “down” much on the new.

you are still coming out of pocket $500 too.

I would pause for a moment.

I would take the Jeep to autonation or carmax or somewhere and see what they offer you. That is your best data point.

I would then see if the trade deal was “fair”. If it was ”fair” then you can focus on the price of the Rubicon.

BTW, are you certain that 1% under invoice is $59k? That‘s nearly 8% off MSRP for 1% of invoice? I would double check that. 10% off invoice always strikes me as a “decent” deal when just considering the new vehicle purchase, not the trade-in shenanigans nor the financing shenanigans nor the “doc fee, marketing fee, allocation fee” crap.

to me, 10% off MSRP and no more than a $250 total cost of fees is a good price for a cash sale. If they are able to pay you “more” for your trade than others, then you could net the two.

The Jeep is in transit so they said they don’t have exact “invoice” numbers on this specific vehicle yet, so they worked up these numbers as a very close estimate. Seems to align with KBB so it’s in the ballpark.


I also felt as if they were coming up on the trade because I refuse to forward negative equity, but it was being offset by the lack of very aggressive discounting on the new vehicle. Not that it wasn’t discounted - they did honor the 1% below invoice affiliate program.

The way I see it, I’m potentially leaving 4% off invoice on the table ($2,400) I may have been able to receive from a more aggressive dealer, but my local dealer is using that to offset the loss on my slightly underwater trade. In the end I think it evens out, but I thought I’d put it out here as a sanity check.

 

[JoeBelt]

See what Carvana will offer you: https://www.carvana.com/sellyourcar

I did.
Carvana - $34K.
KBB instant offer - $33K.
Tesla - $32K (they wholesale)

The reality is a loaded 18’ Sahara retails for about $39-40K. Trade in is usually $4k under that. With that in mind the dealer trade-in offer seems good, although it limits the amount they’re willing to discount a new vehicle. A 21’ JLUR diesel at that - they’re still pretty rare.

 

[Dkretden]

No doubt I may receive 7% from somewhere like Koons. It’s the trade that complicates things. Several quotes


The Jeep is in transit so they said they don’t have exact “invoice” numbers on this specific vehicle yet, so they worked up these numbers as a very close estimate. Seems to align with KBB so it’s in the ballpark.


I also felt as if they were coming up on the trade because I refuse to forward negative equity, but it was being offset by the lack of very aggressive discounting on the new vehicle. Not that it wasn’t discounted - they did honor the 1% below invoice affiliate program.

The way I see it, I’m potentially leaving 4% off invoice on the table ($2,400) I may have been able to receive from a more aggressive dealer, but my local dealer is using that to offset the loss on my slightly underwater trade. In the end I think it evens out, but I thought I’d put it out here as a sanity check.

I think that you should review the invoice Spreadsheets stickied at the top of this forum. You likely know the totality of the options on the Jeep. You can calculate the invoice yourself rather than relying on the salesman who is likely just guessing or making stuff up. Then you can see the numbers with more clarity.

your idea of netting the trade and the new purchase is logical ONLY if the data Is valid. The only way you can test that is to go to autonation or carmax or ”car-zilla“ and get another quote or two.

will you be financing this new vehicle Through the dealer? What are the terms on that?
what fees is the dealer charging? $250 or $500 or $850?

it’s all part of the process to separate you from your money and all of it counts Towards a “good/fair deal” or not.

edit: looks like you have an actual quote or two on your trade. And it looks like the dealer is coming up a bit. So, you can take that issue off the table.

now it’s down to invoice, fees, financing. I think it’s fair to net the $2.5k-ish over and count that as a reduction in price on the new.

 

[AuroraStanley]

As others have said, you should be able to figure out what invoice pricing is pretty easily if you know what options it comes with. If you don’t know, you can probably find out by looking on the Jeep website for wranglers in transit to that location. As for trades, if all other offers have been lower than what they’re offering then you’d probably fine on that end. (Although it is always worth checking NADA, as a lot of dealers have gone to using them for values rather than KBB.) As for pricing on the JLURD, it might still be worth checking with somewhere like Koon’s to see if they could match the trade-in & still get you a percent or two lower.

All that said, if it‘s what you want.. do we really need to convince you? Lol. I’m sure you’ll love the JLURD!

 

[kmmn]

Dkretden is 100% correct about the fees being there to separate you from your money and all of it counts Towards a “good/fair deal” or not. ... find out exactly what those fees are, if you must get financing from them for that deal and what interest rate they'll give you, because that's all dealer profit. And they know exactly what that Rubicon costs, so not getting an actual number would be a concern.

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