Debating on a new Gladiator and have some questions

[dcmdon]

If you can find exactly what you want sitting on the lot, typically they are way more willing to deal from inventory vs a special order. Also I would think they will have discounts soon on 2022 models as the 2023 start showing up.

This has traditionally been true. But you may not have been paying attention here, there are dealers who offer forum members no haggle 8% off invoice. Much cheaper than any local dealer I could find.

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[onewhippedpuppy]

This has traditionally been true. But you may not have been paying attention here, there are dealers who offer forum members no haggle 8% off invoice. Much cheaper than any local dealer I could find.

I’m aware, but I suspect the same truck sitting in inventory for a few months is even cheaper. Bonus points if it’s end of the month or quarter.

 

[dcmdon]

I’m aware, but I suspect the same truck sitting in inventory for a few months is even cheaper. Bonus points if it’s end of the month or quarter.

You can suspect all you want, but that hasn't proven to be the case per most people on this forum. My dealer would rather sit on a truck forever than sell it for $6000 under MSRP.

It does make some sense. At some point there will be incentives on them, then he can discount without it coming out of his margin. The gamble is whether the dealer cash will be greater than what he's paid to floorplan it for the months its on the lot.

 

[onewhippedpuppy]

You can suspect all you want, but that hasn't proven to be the case per most people on this forum. My dealer would rather sit on a truck forever than sell it for $6000 under MSRP.

It does make some sense. At some point there will be incentives on them, then he can discount without it coming out of his margin. The gamble is whether the dealer cash will be greater than what he's paid to floorplan it for the months its on the lot.

I used to own a used car dealership, thanks. I’ll take real world experience over a few anecdotal posts on an Internet forum. The reality is that every day a vehicle sits in inventory it costs a dealership money, except for the rare few that self finance inventory (mostly specialty used dealers). Even then you could argue opportunity cost because the cash is tied up and not being turned. Not to mention the variety of manufacturer incentives they receive for sales volume and sales by month and quarter. There is a lot of motivation for a dealer to sell a car that’s sitting on the lot, though you are correct that some are more motivated than others. It’s also how I bought my JT for 10% off of MSRP in the blazing hot car market of April 2021, they had a slow selling 6MT that had been on their lot for nearly 2 months and wanted it gone.

 

[Blitzinger]

If you can find exactly what you want sitting on the lot, typically they are way more willing to deal from inventory vs a special order. Also I would think they will have discounts soon on 2022 models as the 2023 start showing up.

I’m hoping the latter part is true because here in Westchester county, NY, they’re telling me the “deal” is MSRP because “we’re selling these 3k over MSRP”

meanwhile, the same 11 gladiators have been there the past month…

Fortunately I’m not in a rush and will extend my search in the coming month. Gives me more time to put some money down because I also didn’t realize the tax is 8%. 4% state, 1.5% county 2.5% city. NY sucks

 

[onewhippedpuppy]

I’m hoping the latter part is true because here in Westchester county, NY, they’re telling me the “deal” is MSRP because “we’re selling these 3k over MSRP”

meanwhile, the same 11 gladiators have been there the past month…

Fortunately I’m not in a rush and will extend my search in the coming month. Gives me more time to put some money down because I also didn’t realize the tax is 8%. 4% state, 1.5% county 2.5% city. NY sucks

Hence my comment about being willing to travel. That’s the single biggest secret to finding a good deal.

 

[dcmdon]

I used to own a used car dealership, thanks. I’ll take real world experience over a few anecdotal posts on an Internet forum. The reality is that every day a vehicle sits in inventory it costs a dealership money, except for the rare few that self finance inventory (mostly specialty used dealers). Even then you could argue opportunity cost because the cash is tied up and not being turned. Not to mention the variety of manufacturer incentives they receive for sales volume and sales by month and quarter. There is a lot of motivation for a dealer to sell a car that’s sitting on the lot, though you are correct that some are more motivated than others. It’s also how I bought my JT for 10% off of MSRP in the blazing hot car market of April 2021, they had a slow selling 6MT that had been on their lot for nearly 2 months and wanted it gone.

I didn't own a dealership. But I started as a parts driver at one and worked my way though service writer, technician, salesman and finally F&I. So I too understand how things work.

I understand the incentive to move the iron.

But for some reason,, these specific dealers sell ordered trucks for less. I dont' know why. But they do.

 

[dcmdon]

So lets step away form our dick measuring contest for a moment. Maybe you can answer a question for me.

When I did F&I our holdback was 3% or 4% depending on the manufacturer.

The finance rate that I got was within 1/2% of Gupton's buy rate based on friends I still have in the industry.

So if he's only making 1/2 % on financing, and maybe a spiff for writing the loan and giving people back 7% with no tread lightly, how do they make money??

Based on my research there wasn't any dealer cash coming back other than the hold back. Have holdbacks gone up??

 

[Hootbro]

But for some reason,, these specific dealers sell ordered trucks for less. I dont' know why. But they do.

It is because the dealership normally would not carry a customer ordered vehicle on their "floor plan" finance loan they use for keeping lot stock vehicle. Depending on location, they also do not have to count a customer order on their inventory tax and there is also some insurance saving implications.

Dealerships have less cost into a customer order and hence have more flexibility to discount below invoice more deeply.

 

[ZoMojave]

I believe that dealer hold-back is still around 2%. It is entirely up to the dealer if they want to dip into it to provide dealer cash back for a purchase or lease. And it all depends on the deal (repeat buyer, vehicle purchased, vehicle traded in, financing, accessories, etc.)

They will always make it up in the end.

 

[onewhippedpuppy]

Hootbro is 100% correct, a special order is almost a pass through for a dealership and very low risk. They make some money off of the top to do paperwork.

I assume Gupton is a pretty high volume dealership? I don’t know about Jeep but I did have that conversation with the sales manager at a local high volume Ford dealership, it sounds like the Ford incentives for hitting their monthly, quarterly, and yearly sales volume numbers are substantial. His comment was that even if they don’t make a dollar on the car, what they make in Ford incentives and service more than make up for it. Plus there’s always extra tacked on charges for doc fees and other services that are just extra income for the dealer.

 

[John Lenheiser]

After reading all the post I will say that everyone has there model that works for them, or should I say what they think would work for someone else. Yes the Rubicon will do the job, but for 95% of the buyers will never use it to there fullest off roading needs. Most of us purchase a Jeep as a daily driver and this should be your #1 thought when purchasing a Jeep. Many of the models will do very well off road without any modifications needed, I would say that tires will do more for the general off roader then probably any other feature your Jeep would need. For myself and others the Willys edition is very well equipped to do the job, it comes with mud terrain tires, up graded suspension, and anti slip rear axle. After owing a Willy 2017 model with these same options that are offered today I'm now looking at a another Willys, just because I like the way it is optioned from the factory, but I may takeoff the mud terrain tires and switch them to a all terrain tire which will drive better on the road and be quieter and should effect my off roading very little, if any. You have to remember here that many Jeep owners way over build their Jeeps just to keep up with what others have and a lifted Rubicon $70,000 vehicle at the mall really looks good in the parking lot and probably went down an unpaved road once in it's life. The most value you can have in a Jeep is keep it in it's stock condition, addons bring very little to the resale value, only in the owners mind is there value.

 

[Blitzinger]

Alright, probably final update.

Jeep Rubicon Sting Gray
Cold weather
Tow package
Hard top
Gloss wheels

$52,000 + 600 fees

after tax, around $57

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