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This is not some piece of investigative journalism seeking to trash Koons of VA, which many of you know is currently willing to discount the invoice price of the 2018 JL(U) by 5%.
I realize that threads already exist on dealership availability and pricing, but Koons is unique, in good ways, so I've given this topic its own thread.
Disclaimer: I like Koons. I like the responsive customer service I've received so far, and their honesty. I like that their willing to pick me up from either of two nearby airports or Amtrack DC for free.
So if I have any biases, its pro Koons, but work for them I don't, nor do I bear any fiduciary connection to them. My praising them here earns me no better deal with them than you. I won't fib for them either, and they certainly haven't asked me to. I do not work in the auto industry.
But numbers don't lie, nor does Koons--at least as far as I can so far see.
Specifically, after Koons effects this 5% discount there are certain fees to be paid: fees Koons has been very upfront about mentioning. (OP edit for fairness: fees are charged at all dealers in one way or another. Dealers have a right to make fair money. Dealers have a right to share with you the costs of making a sale, right down to the cost of heating the building.)
Some of these fees, like tax and title Koons merely collects money from you to do on your behalf. They aren't money making on Koons' parts, and they must by law be done by all dealers. Therefore, including them in the calculations would be unfair to Koons, unless Koons were discounting them: which they make no claims to be doing, and I don't blame them for not offering. (E.g. Can you imagine them charging you less to get plates than you can do it for on your own?) These figures are therefore worthless for comparison purposes, but nonetheless additional fees you will pay your government, that Koons collects on your behalf.
And I want to be unfair to nobody here: not you, me, or Koons.
The fee I'm talking about is a $699 charge Koons (up front and honesty and openly) admits to charging on every deal. That's up from $599 when the offer was originally made on JL(U)s.
Call that $699 what you will: dealer processing, documentation, the cost of toilet paper in the dealership's bathrooms, all the above, as if its label in any way affects, for better or worse, its amount to you and me.
"So what am I really saving," you ask.
Well the answer is less than 5%, which still may be an excellent deal on Koons' behalf. "How much less than 5% you ask," okay.
Since this $699 is a flat fee, regardless of whether you buy a stripped 2 door Sport JL, or a tripped out 4 door Ruby, the more you spend on your JL(U), the closer you will get to this 5% off, never completely getting there.
Let's look at the worse case scenario (the one that makes Koons look the "worst" ****), where this flat $699 fee is allocated to the barest bones JL 2 door Sport with soft top and standard transmission, with no options.
*** Note: I did not say the scenario that makes Koons look bad...I said the "worst" i.e. where Koons' discount comes out to the least amount---and few of us will order such a stripped down JL. And this STILL may be the best deal.
According to my calculations, in that worst case, the $699 took about 2% off the 5% discount.
Again, that still may be a good deal--a great deal--and a deal I might add that gets effectively better (closer to 5% off) the more you spend on your JL(U) because, again, the $699 is a fixed charge no matter what JL(U) you buy.
And again, this deal is for orders only, no on lot purchases.
============
Let's look at the math, which if I have wrong, I beg someone, Koons or otherwise, to chime in on.
According to the price tables on this website, (all prices in Invoice), the Sport 2 door, with soft top and manual tranny is $26,590. Add to that, assuming you live in the Continental US, $1,195 in destination fees which are the same whether you live in Toledo (ground zero for transport) or Key West, FL, for a total of $27,785. Then there's a $12 charge for gasoline, which I suspect is fixed across all models, and if not, such a small difference anyway. That gets us to $27,797.
Off that Koons will take 5%, ($1,389.85) leaving us a total of $26,407.15.
But wait, there's more discounts, as they say in the infomercial world.
If you present Koons with a valid Tread Lightly discount code at purchase, they'll take an additional $150 off AFTER (better for you) the 5%.
I know, I know, people will cry that it's $250, but I'm factoring in, somewhat (but only a little) unfairly to Koons that the Tread Lightly membership was $100. I say "unfairly" because the Tread Lightly (TL) membership offers you more than simply this discount, which my math is effectively asking for Koons to pay for in its entirety, even if the fair market value of the TL membership beyond the purchase discount amounts to more than lunch money (which would make Koons even "sweller" in my math, but only by a tad.)
Is Koons taking off the full 1% other dealers honor for Tread Lightly? No. Are they up front about that? Yes.
Should they have to take off the full 1%? I don't think so, unless you can find another dealer that's meeting, let along beating Koons' offer.
So, back to the math, the TL discount and Koons charge adds up to a net $549 ($699-$150) additional outlay for you for a total of $26,956.15.
And $26,956.15 is about a 3.02% reduction off the $27,797 figure quoted above.
I really hope this helps. Note that the only costs I factored in that all dealers charge were, to benefit Koons, and be fair for comparison purposes (like gas money and destination) ones that it's taking 5% off of.
Again, and I cannot emphasize this enough, the more you spend, the closer this 3.02% gets to 5%.
My goal was to be correct and fair. To the extent that I am not, I am sorry and bear responsibility, and beg for others to kindly document with math and/or different logic/approaches, not the least of which Koons.
...which by the way did I say I like
(Op note to fairness. If you think dealers crooked, try some sellers, who make widely false claims on trade ins, waste dealer's time, never intended on buying, etc. It works both ways.)
I realize that threads already exist on dealership availability and pricing, but Koons is unique, in good ways, so I've given this topic its own thread.
Disclaimer: I like Koons. I like the responsive customer service I've received so far, and their honesty. I like that their willing to pick me up from either of two nearby airports or Amtrack DC for free.
So if I have any biases, its pro Koons, but work for them I don't, nor do I bear any fiduciary connection to them. My praising them here earns me no better deal with them than you. I won't fib for them either, and they certainly haven't asked me to. I do not work in the auto industry.
But numbers don't lie, nor does Koons--at least as far as I can so far see.
Specifically, after Koons effects this 5% discount there are certain fees to be paid: fees Koons has been very upfront about mentioning. (OP edit for fairness: fees are charged at all dealers in one way or another. Dealers have a right to make fair money. Dealers have a right to share with you the costs of making a sale, right down to the cost of heating the building.)
Some of these fees, like tax and title Koons merely collects money from you to do on your behalf. They aren't money making on Koons' parts, and they must by law be done by all dealers. Therefore, including them in the calculations would be unfair to Koons, unless Koons were discounting them: which they make no claims to be doing, and I don't blame them for not offering. (E.g. Can you imagine them charging you less to get plates than you can do it for on your own?) These figures are therefore worthless for comparison purposes, but nonetheless additional fees you will pay your government, that Koons collects on your behalf.
And I want to be unfair to nobody here: not you, me, or Koons.
The fee I'm talking about is a $699 charge Koons (up front and honesty and openly) admits to charging on every deal. That's up from $599 when the offer was originally made on JL(U)s.
Call that $699 what you will: dealer processing, documentation, the cost of toilet paper in the dealership's bathrooms, all the above, as if its label in any way affects, for better or worse, its amount to you and me.
"So what am I really saving," you ask.
Well the answer is less than 5%, which still may be an excellent deal on Koons' behalf. "How much less than 5% you ask," okay.
Since this $699 is a flat fee, regardless of whether you buy a stripped 2 door Sport JL, or a tripped out 4 door Ruby, the more you spend on your JL(U), the closer you will get to this 5% off, never completely getting there.
Let's look at the worse case scenario (the one that makes Koons look the "worst" ****), where this flat $699 fee is allocated to the barest bones JL 2 door Sport with soft top and standard transmission, with no options.
*** Note: I did not say the scenario that makes Koons look bad...I said the "worst" i.e. where Koons' discount comes out to the least amount---and few of us will order such a stripped down JL. And this STILL may be the best deal.
According to my calculations, in that worst case, the $699 took about 2% off the 5% discount.
Again, that still may be a good deal--a great deal--and a deal I might add that gets effectively better (closer to 5% off) the more you spend on your JL(U) because, again, the $699 is a fixed charge no matter what JL(U) you buy.
And again, this deal is for orders only, no on lot purchases.
============
Let's look at the math, which if I have wrong, I beg someone, Koons or otherwise, to chime in on.
According to the price tables on this website, (all prices in Invoice), the Sport 2 door, with soft top and manual tranny is $26,590. Add to that, assuming you live in the Continental US, $1,195 in destination fees which are the same whether you live in Toledo (ground zero for transport) or Key West, FL, for a total of $27,785. Then there's a $12 charge for gasoline, which I suspect is fixed across all models, and if not, such a small difference anyway. That gets us to $27,797.
Off that Koons will take 5%, ($1,389.85) leaving us a total of $26,407.15.
But wait, there's more discounts, as they say in the infomercial world.
If you present Koons with a valid Tread Lightly discount code at purchase, they'll take an additional $150 off AFTER (better for you) the 5%.
I know, I know, people will cry that it's $250, but I'm factoring in, somewhat (but only a little) unfairly to Koons that the Tread Lightly membership was $100. I say "unfairly" because the Tread Lightly (TL) membership offers you more than simply this discount, which my math is effectively asking for Koons to pay for in its entirety, even if the fair market value of the TL membership beyond the purchase discount amounts to more than lunch money (which would make Koons even "sweller" in my math, but only by a tad.)
Is Koons taking off the full 1% other dealers honor for Tread Lightly? No. Are they up front about that? Yes.
Should they have to take off the full 1%? I don't think so, unless you can find another dealer that's meeting, let along beating Koons' offer.
So, back to the math, the TL discount and Koons charge adds up to a net $549 ($699-$150) additional outlay for you for a total of $26,956.15.
And $26,956.15 is about a 3.02% reduction off the $27,797 figure quoted above.
I really hope this helps. Note that the only costs I factored in that all dealers charge were, to benefit Koons, and be fair for comparison purposes (like gas money and destination) ones that it's taking 5% off of.
Again, and I cannot emphasize this enough, the more you spend, the closer this 3.02% gets to 5%.
My goal was to be correct and fair. To the extent that I am not, I am sorry and bear responsibility, and beg for others to kindly document with math and/or different logic/approaches, not the least of which Koons.
...which by the way did I say I like
(Op note to fairness. If you think dealers crooked, try some sellers, who make widely false claims on trade ins, waste dealer's time, never intended on buying, etc. It works both ways.)
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