Chicago
Well-Known Member
On the order form you'll see the holdback. On mine it was $1,595 which is about 2.9%. So basically, my dealer offered me the Jeep at invoice, less the holdback, less the 1% affiliate discount, less the $500 military rebate and then added back in their doc fee and protection fee for profit. I got Mopar wheel locks with the protection fee which was $40. The protection fee also included cleaning and prepping the vehicle, which should be a sunk cost anyway. I didn't argue given the fact I was getting a great deal on the Jeep. Profit on the Jeep for them was $579-$40 for the locks plus what they get from FCA for selling a ton of jeeps, etc.
I'm sure there is other hidden profit in the deal because if I had gone to Koons I could've saved an additional $500. So if I had to guess, they made about $1000 on the deal which was a combination of cash and incentives they get back from FCA for very minimal effort as there was little to no back and forth in negotiations eating up time for the salesman or the sales manager. Finance took about 30min and I added in the MaxCare Lifetime warranty for $2665, which gave them an additional $100 profit.
My salesman had over 20 on order, so if they make $1000 on average per order, then in the first quarter of 2018 they made $20,000 in gross profit just from selling Wranglers.
I've seen some others post 7-8% below invoice and I've seen some really low OTD prices. I'd love to see those owners post details. I know some prices are contingent on using dealer financing which the dealer gets a kickback from the bank.
In the end, I'm happy, got a smoking deal, and have a good relationship with my dealer for future service and even purchases.
Given what I've learned from this deal and this forum I'm well prepared to negotiate my next vehicle purchase. I'm just not sure Porsche will be as flexible...ha!
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