Question/Clarification on Pricing Discounts

[vgk_rebel]

Hey everyone, first post but been reading through these forums for a while, looking into a new JL. I've gained a lot of knowledge and insight on here, so thanks everyone!

My question is in regards to pricing discounts. I've seen many people posting about %-off invoice, and comparisons to MSRP. People have stated that 5% off invoice comes out to somewhere around 11% off MSRP. I am just looking for some clarification, or maybe I'm just missing something, I don't know.

For example, my local dealer said I could get 5% under invoice on an order, so I mocked one up like this:
2018 JLU Sport S, automatic, hardtop, technology group, convenience group, safety group, and anti slip. This has an msrp of $40,720 (including destination). The invoice price (including destination) is
$39,248. With the 5% savings under invoice, the total would be $37,286, for a total savings of $3,434 under MSRP. That only comes out to roughly 8.5% discount under MSRP. I have done a few mock builds with differing configurations, and they all come out roughly the same percentage wise.

So is there something I'm missing or I'm doing wrong here? The only way I see a 5% under invoice coming out to over 11% under MSRP is if I add the destination charge on the top end MSRP and compare it to the discounted price without a destination fee, but that doesn't make much sense to me either, as destination must be paid regardless. I know this doesn't amount to a huge amount either way, but the numbers portion of my brain can't figure out what I'm missing here, and it's bugging me lol.

Thanks!

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[GregMG79]

Hey everyone, first post but been reading through these forums for a while, looking into a new JL. I've gained a lot of knowledge and insight on here, so thanks everyone!

My question is in regards to pricing discounts. I've seen many people posting about %-off invoice, and comparisons to MSRP. People have stated that 5% off invoice comes out to somewhere around 11% off MSRP. I am just looking for some clarification, or maybe I'm just missing something, I don't know.

For example, my local dealer said I could get 5% under invoice on an order, so I mocked one up like this:
2018 JLU Sport S, automatic, hardtop, technology group, convenience group, safety group, and anti slip. This has an msrp of $40,720 (including destination). The invoice price (including destination) is
$39,248. With the 5% savings under invoice, the total would be $37,286, for a total savings of $3,434 under MSRP. That only comes out to roughly 8.5% discount under MSRP. I have done a few mock builds with differing configurations, and they all come out roughly the same percentage wise.

So is there something I'm missing or I'm doing wrong here? The only way I see a 5% under invoice coming out to over 11% under MSRP is if I add the destination charge on the top end MSRP and compare it to the discounted price without a destination fee, but that doesn't make much sense to me either, as destination must be paid regardless. I know this doesn't amount to a huge amount either way, but the numbers portion of my brain can't figure out what I'm missing here, and it's bugging me lol.

Thanks!

I believe the 5% under invoice is just that and does not apply to the. Destination charge. Plus some dealers will add a doc or processing fee in addition to TT&L. Depends on the dealer but no discount on destination.

 

[vgk_rebel]

I believe the 5% under invoice is just that and does not apply to the. Destination charge. Plus some dealers will add a doc or processing fee in addition to TT&L. Depends on the dealer but no discount on destination.

That makes sense, and could affect the number a little depending on how the dealer looks at it.

Plus, I've since realized that it makes a BIG difference when comparing invoice pricing vs MSRP on Sport S as opposed Rubicon. The Rubicon invoice vs. MSRP is a much bigger spread than that of the Sport S, which makes a big difference when looking at it as % under invoice.

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