up to 7% off invoice in NC

[kayakmike]

This begs the question.....if a dealer can do 7% off of invoice........why cant any dealer do it? Is it just because you are selling volume and making your profits off of sales goal bonuses or are the "rest" just greedy-ish?

There are other dealers doing 7%. If I was on the east coast, it sure sounds like Travis would be the guy!

Being on the west coast, I'll be buying from one of the Boise, Idaho dealers doing 7% (assuming if/when pricing hits they still honor that). I've been talking with Kent @ Peterson and probably who I'd work with (also based on positive JL forum feedback).

https://sites.google.com/view/wranglerdeals/home

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[Flamma]

The rest aren't being greedy...they're actually "smart" if you will...we lose money selling these Jeeps this way (yes...we lose money )

You lose out on money that could be made, or you literally make less than you pay FCA for overpriced Jeeps? Nobody is in the business of losing money.

 

[Leah@TriCityJeep]

You lose out on money that could be made, or you literally make less than you pay FCA for overpriced Jeeps? Nobody is in the business of losing money.

Invoice is what we pay FCA for the Jeep. There is holdback that gets paid to the dealer; however, holdback on a $50,000 Jeep is roughly $1500. Now let's say invoice on that $50,000 Jeep is $47,000. 7% below that is $43,710. We get paid $45,500 from FCA. In the case of the Gladiator, I expect they will mirror the same model they did with the JL Wrangler when it was released & there will be no "VGP" money aka money paid for hitting your monthly goal for FCA.

Using this example, we lose $1790 by selling that Jeep that way. Now granted, we do have a dealer fee of $349 that is applied to the gross & when you finance, we typically get ~1% reserve from the finance institution for using their money. Let's say you finance $40,000...we get paid $400. Using that example, we lost $1,041 selling you that Gladiator that way.

WE are the crazy ones! We know that...but you know what...we sell the unit, we get referrals & repeat business. We may get a trade that we can make a little money on. In the long run, we are here to do one thing...do what others aren't doing & be good at it. Rome wasn't built in a day...neither is a customer base. If we're honest, straight shooters offering you the best deal there is out there, we'll earn your business & hopefully have you as a customer for life. Hey, we sell more than Jeeps here after all

Travis@TriCityJeep

 

[Flamma]

Travis,

If what you say is true, then you guys are really planning on going bankrupt, or knowing that you're selling Jeeps, you'll make it up in maintenance/service costs...

Also, what would you say is the % of sheep that pays full MSRP (off the street sales) vs what you are offering on these forums (sold orders)? 90/10?

 

[Leah@TriCityJeep]

I'll put it this way...we are profitable every month with very little overhead

I can't tell you all our secrets

 

[starrsRN]

I'll put it this way...we are profitable every month with very little overhead

I can't tell you all our secrets

Has to be some, because losing money on ordered units isn’t in anybody’s business plan lol. Whatever works I guess!

 

[starrsRN]

Travis,

If what you say is true, then you guys are really planning on going bankrupt, or knowing that you're selling Jeeps, you'll make it up in maintenance/service costs...

Also, what would you say is the % of sheep that pays full MSRP (off the street sales) vs what you are offering on these forums (sold orders)? 90/10?

That’s what I’m wondering also. Hoping for referrals is one thing, but selling at a loss over and over has to be bad financially. Maybe not tho haha

 

[Leah@TriCityJeep]

To think 5-10 Sold Orders are the only vehicles we're selling in a month would be a little crazy...am I right?

 

[Jake]

Don’t forget that Travis will make some money on the resale of the vehicle he buys from you on the trade in.

 

[smlobx]

Did you ever go to a new car dealership and see a dirt parking lot or dingy showroom?

Of course not.

They make a lot more on the sale of a vehicle than they’ll tell you. Please don’t fall for the salesman telling you that they aren’t making any money.
Also, the service department is where the real money comes from.

Some dealerships like TriCity make up in volume what they would make selling fewer vehicles. There are also additional incentives from the manufacturer that are volume based...

 

[Jake]

I traded my 2012 RAM BigHorn in April of 2017 on a left over 2016 Challenger R/T Plus. They gave me $12,000 for the RAM. It had 120,000 miles on it. It was paid off. They turned around and sold it the next week for $19,500 to a Well Digger/Pipeline Welder. I felt I got a fair trade. I would have liked to have $15,000 but they also knocked $5,000 off the Challenger.

The above post shows one other way that dealerships can rake in huge profits so they can then afford to sell cars and trucks at what appears to be a loss. And sure they also make money in their service department, in their parts department, on extended warranties, on financing etc.

 

[5JeepsAz]

You ain't even halfway up the hill. 2697 miles.

 

[chrcal14]

Isn't 1% of the 7% an organizational incentive? I assume that's reimbursed by someone.

Regardless.. 6-7% below invoice without a battle is a great deal. I just wish they were closer, the distance down and back burns up the discount a bit for me, probably about 1%. I don't and won't have a control number, so I'm probably a 6%er. Less 1% for distance I'd be the same as about 5% locally.

But, if my local dealers aren't in the game... 5% might be ok. Throw in some floor mats (or a 2" Mopar lift) to make it worth my 15 hour drive. ;-)

 

[Troybilt]

Throw in some floor mats (or a 2" Mopar lift) to make it worth my 15 hour drive. ;-)

If you can turn free floor mats into a free lift kit Ill pay you good money to negotiate for me.

 

[FunWagon]

I may be interested. Coming from NJ. Questions:

- Once orders open, how do I know what the invoice price is for my configuration? Typically it’s posted online (kbb.com) and I ask to see the invoice from the dealer for a particular unit on the lot, and compare the numbers to make sure we’re really talking about invoice. I imagine kbb.com wouldn’t have this info yet when orders open, and you wouldn’t have actual invoices since they wouldn’t be in stock. So what can you do as proof of actual invoice of vehicle and all options/accessories?

- What/where is the nearest significant airport?

Respectfully

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