23 Mojave $70K MSRP for $52K - Deal?

[BourbonRunner]

All the ones I have talked to say they expect a "gentleman's agreement" that you won't pay off or change financing for something like 3 or 6 months. There's nothing they can do when you go straight to your credit union after the dealer to get a better rate. Just need to make sure there's no prepayment penalty, and the law says they can't do a prepayment penalty on auto loans longer than 61 months.

Throwing this out there: one of the main reasons why I didn't pull the trigger on a Mojave this time last year, aside from shitty interest rates ($10K down, 800 FICO and 7.26% was the best you could give me?) was buried in the dealer's finance contract was a hard clause requiring that I not refi it or pay it off before 6 months lapsed. My credit union at the time was 3.99%. My plan was to buy it, get all the discounts I could financing through the dealer then immediately refi at the lower rate.

The reason they had this-- if you don't hold the loan for 6 months, the financing company can and will charge back to the dealer the commission they received in the first place. Dealers get paid the way other loan officers do- they get a piece of the total amortized value of the loan as a commission.

Shitty practice but I wasn't having any of it.

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[Deleted member 57233]

Throwing this out there: one of the main reasons why I didn't pull the trigger on a Mojave this time last year, aside from shitty interest rates ($10K down, 800 FICO and 7.26% was the best you could give me?) was buried in the dealer's finance contract was a hard clause requiring that I not refi it or pay it off before 6 months lapsed. My credit union at the time was 3.99%. My plan was to buy it, get all the discounts I could financing through the dealer then immediately refi at the lower rate.

The reason they had this-- if you don't hold the loan for 6 months, the financing company can and will charge back to the dealer the commission they received in the first place. Dealers get paid the way other loan officers do- they get a piece of the total amortized value of the loan as a commission.

Shitty practice but I wasn't having any of it.

How much was the penalty? A lot of times it's less than what you'll save by switching.

 

[BourbonRunner]

I honestly don't recall but the principle of it along with the other shenanigans the dealer was trying to pull caused me to 86 the whole thing.

That same truck sat on their lot until this past summer. At the time they had reduced the price down to around what I had told them I'd pay... but their loss because at that point their finance charges on it sitting on the lot likely cost them more.

 

[Freems]

Well, Im back. Ended up not pulling the trigger 2 years ago but intend to now. Maybe.

There is a local dealer offering a $70K Mojave for $54,151. After a quick call, I said Id like to get it to $50K w/ my FCA discount included and he countered at $52K... but the APR even on my excellent credit is over 8%! He said if I come visit he'll "guarantee" his manager put together a good deal. I mentioned wiggle room on free oil changes, parts, etc but he ignored this. If I don't finance through them, he said the deal won't be as good

Ive seen some dealer ads in other states knocking off $20K, and given the fact that all 5 Jeep dealers within spitting distance have their lots jammed full of 2023's of everything, especially Gladiators, I feel like I should be able to get it for $50K. Honestly because of

• the high APR,
• the fact that in 2023 the damn thing doesn't even have automatic/sonar cruise control and side airbags,
• two Gladiators I went to test drive had dead batteries,
• these things have been sitting on lots

That I should be able to get less than $50K even. Im also feeling that the dealerships had their time making hand-over-fist with markups; now it's our turn.

Think I can get them lower than $50K? What are folks seeing locally?

”days on car lot” is the definitive piece of a dealer’s business model. That will steer most things in the sale price. below cost of goods transactions with this many zeros is highly unlikely unless the business is falling into a BK.

 

[Freems]

Same dealer you bought the 2020 from?

 

[Aj58]

Throwing this out there: one of the main reasons why I didn't pull the trigger on a Mojave this time last year, aside from shitty interest rates ($10K down, 800 FICO and 7.26% was the best you could give me?) was buried in the dealer's finance contract was a hard clause requiring that I not refi it or pay it off before 6 months lapsed. My credit union at the time was 3.99%. My plan was to buy it, get all the discounts I could financing through the dealer then immediately refi at the lower rate.

The reason they had this-- if you don't hold the loan for 6 months, the financing company can and will charge back to the dealer the commission they received in the first place. Dealers get paid the way other loan officers do- they get a piece of the total amortized value of the loan as a commission.

Shitty practice but I wasn't having any of it.

Good find, yes the dealers are afraid of clawback. Some of them will make a gentlemen’s agreement that you won’t do it for 3 months or something like that. A loan amortization calculator is your friend here. Yes it’s added cost but it depends on how long and sometimes the deal may be worth it. Last I checked over a 3 month period the interest was somewhere around 700. If they give you X amount more for financing you just have to see if it’s worth it.

 

[Wetzie]

I am watching from the sidelines but getting more curious. How can do some searching on a possible deal without getting involved with a lot guy? I have a 2021 Sport S 36K miles and would like to upgrade to a Rubicon.

 

[Freems]

By me in NY they aren’t doing much on the 2023. $2,500 off sticker. They may come down a bit in person but not advertised.

Sarah move I can’t see the pricing…haha

 

[B-RAD]

Sarah move I can’t see the pricing…haha

Sarah move I can’t see the pricing…haha

$57,630

 

[BourbonRunner]

Exactly right, @Aj58. I could have abided by a gentleman's agreement as it were if the discount they were giving me was worth it but a hard and fast clause was off the table.

Ultimately it is all about due diligence at all levels. A buyer is at a distinct disadvantage in many ways in the car buying process. You have to read everything carefully and know where your rights begin and end and use that in negotiations.

For example: on the Bronco Sport we bought in July, the dealer claimed the extended warranty we were soldwas administered through Ford. Couple weeks after we closed the deal the warranty paperwork from FoMoCredit came over and it clearly was not.

I contacted that dealer immediately and had them reverse the charge. As an FYI: those aftermarket warranties are full of loopholes, and a FoMoCo warranty would require any Ford dealer to honor it in spite of what the dealer may say.

 

[KevinC]

I am watching from the sidelines but getting more curious. How can do some searching on a possible deal without getting involved with a lot guy? I have a 2021 Sport S 36K miles and would like to upgrade to a Rubicon.

It's not rocket science. I just bought a 2023 Mojave and traded in my 2020 Rubicon.

Go online and price your JT on Carvana or Carmax, etc. This price is your negotiating tool at the dealer. If you find a JT you are interested in, you now have a cash price to compare to what the dealer is offering on trade in. Keep in mind a trade in at the dealer will lower your tax compared to bringing in cash.

KevinC

 

[JTGuy]

With all this,, I see the used market going in the tank. I paid just under MSRP for my '22 and some were paying over. Looks like there are some good deals ahead.

 

[protons]

So what do yall think? Take it for $52K or walk?
I just checked and I’d have to commit to that crap APR for 3 months.

 

[Erievon]

18k off is nothing to sneeze at. You can offer 50, but 52 is a good deal. I just paid 51 for my 65k JTR, and thought it was a great deal at the time, so this seems even better coming off 70.

2 points of interest for 3 months isnt bad. What is their price if you self finance?

 

[BourbonRunner]

With all this,, I see the used market going in the tank. I paid just under MSRP for my '22 and some were paying over. Looks like there are some good deals ahead.

I can't imagine what used rates are now when new car interest rates are ranging from 7-9% for 800+ FICO. Toyota is 9.86% for "excellent credit." That's batshit crazy as is and used is always higher than new...

Sidebar: Have a client who owns a contracted detailing operation for dozens of dealers. (his employees work at each dealer) His business is down 30-40% right now. That's a strong indication of the health of the dealerships and auto industry at the moment.

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