Understanding Invoice pricing.

[JTRUBI]

Hey all. So I had two dealerships call me today saying they have Canadian pricing and for me to come in to order. I’m going to go in to haggle pricing but I told them both that I’ll be ordering a late availability colour so it will be in a month or two.

My concern is invoice pricing. One of the dealerships advised me they can’t do below invoice pricing because invoice is what the dealership pays for it. And they loose money. Any way you guys can help me with the facts behind that ? They also mentioned that they don’t want to factory order because it doesn’t go towards sales targets and as a result they can’t discount them. I know that’s full of shit, but anything you guys can help me out on ?

Anyone know what invoice prices are in the Gladiator yet ?

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[Blisskiss]

Look at them in the eyes until they get it. Ask for their boss. They're required by FCA to let you order one. But they're not required to sell below MSRP.

 

[Troybilt]

So just find another dealer. Why wast your time with a bad dealer? Life is short.

 

[CaliJK]

Hey JTRUBI, which dealers you dealing with? I called Grimsby on Monday, still hadn't heard anything, but will be talking to him again soon about a JL.

I've never understood below Invoicing as well. I own a business, and I could never sell below invoice. I'm assuming the dealer doesn't actually pay the invoice price either, if they're able to go below invoice according to many posters, so I am curious how it works in vehicle world that dealers can go below "their cost" to make a sale. Are that many people paying over the invoice to make up the difference? I've had a dealer tell me he's happy to lose a bit on trade in to sell new, but that's about it .

 

[Tortooga Custom Works]

There is a post where someone did explain this... I'm trying to find it...

I don't think invoice is actually what the dealer pays. In this case, invoice is what you the customer is being invoiced, which is, effectively, less than the MSRP. So invoiced to you, not invoiced to the dealer... But let me see if I find that post.

I beez wrong... here is the correct explanation:

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

From @Travis@TriCityJeep

Source: https://www.jeepgladiatorforum.com/forum/threads/up-to-7-off-invoice-in-nc.14418/page-4#post-198505

 

[JTRUBI]

Hey man, I’m dealing with Woodbine Chrysler and Stoufville Chrysler. I’m gonna start calling a few other dealerships and see what they say. If I can get invoice pricing I’m good with that honestly. My goal was to get a Rubicon with all the upgrades I needed for $55k. If I can get it under that I’d be happier. If I can’t I’ll go with a Sport S.

Hey JTRUBI, which dealers you dealing with? I called Grimsby on Monday, still hadn't heard anything, but will be talking to him again soon about a JL.

I've never understood below Invoicing as well. I own a business, and I could never sell below invoice. I'm assuming the dealer doesn't actually pay the invoice price either, if they're able to go below invoice according to many posters, so I am curious how it works in vehicle world that dealers can go below "their cost" to make a sale. Are that many people paying over the invoice to make up the difference? I've had a dealer tell me he's happy to lose a bit on trade in to sell new, but that's about it .

 

[JTRUBI]

Ah ok. That makes sense. So basically they make the money on financing, holdback, dealer fee, and then all the extras they add in afterwards.

Out of curiosity is invoice pricing less than employee pricing or is it the same ?

There is a post where someone did explain this... I'm trying to find it...

I don't think invoice is actually what the dealer pays. In this case, invoice is what you the customer is being invoiced, which is, effectively, less than the MSRP. So invoiced to you, not invoiced to the dealer... But let me see if I find that post.

I beez wrong... here is the correct explanation:



From @Travis@TriCityJeep

Source: https://www.jeepgladiatorforum.com/forum/threads/up-to-7-off-invoice-in-nc.14418/page-4#post-198505

 

[Tortooga Custom Works]

Ah ok. That makes sense. So basically they make the money on financing, holdback, dealer fee, and then all the extras they add in afterwards.

Out of curiosity is invoice pricing less than employee pricing or is it the same ?

Looking at my order confirmation... I think Employee Pricing is EP and it is lower than invoice... like $3k lower...

 

[CaliJK]

Hey man, I’m dealing with Woodbine Chrysler and Stoufville Chrysler. I’m gonna start calling a few other dealerships and see what they say. If I can get invoice pricing I’m good with that honestly. My goal was to get a Rubicon with all the upgrades I needed for $55k. If I can get it under that I’d be happier. If I can’t I’ll go with a Sport S.

Cool, keep my posted. I've read that invoiced is roughly 6-8 percent below msrp, if that's the case, I'll be happy with 8-10 percent below msrp.

I'll let you know if Grimsby gets back to any time soon, see what they say compared to others.

 

[JTRUBI]

Damn. So dealerships take a loss when employees buy their cars ?

To get employee pricing is there a length of time that you need to be employeed by FCA?

Looking at my order confirmation... I think Employee Pricing is EP and it is lower than invoice... like $3k lower...

 

[ThirtyOne]

Damn. So dealerships take a loss when employees buy their cars ?

To get employee pricing is there a length of time that you need to be employeed by FCA?

Employee pricing is 5% below invoice.

And no dealers don't take a loss. They get a credit back from the factory.

 

[Blown7]

One thing,,,there only Two (2) people in the whole dealership that know what a vehicle is purchased from FCA costs is ....and what the bottom line is....

The owner of the dealership and the General Manager.... everyone else just guesses...

Every dealership makes money on a vehicle sale. They never loose a penny.

I work on lots of dealers personal Jets.....

 

[ThirtyOne]

There is a post where someone did explain this... I'm trying to find it...

I don't think invoice is actually what the dealer pays. In this case, invoice is what you the customer is being invoiced, which is, effectively, less than the MSRP. So invoiced to you, not invoiced to the dealer... But let me see if I find that post.

I beez wrong... here is the correct explanation:



From @Travis@TriCityJeep

Source: https://www.jeepgladiatorforum.com/forum/threads/up-to-7-off-invoice-in-nc.14418/page-4#post-198505

I was the first to buy from Travis. When I showed them the forums they understood that the game was changing and they did the math and decided to get with the future. They are a small dealer so the economics are different for them than some of the volume dealers.

I spoke with the GM and the right way to think about it is if they look at that one vehicle than yes they lose money. But if they look at their overall costs and revenue there is a little money there. If they sold 100% of their vehicles this way they couldn't do it. But I'm guessing it's about 10%.

 

[lilloco]

so has anyone in Canada (ontario) managed to get below MSRP or even below invoice yet? Anyone able to use FCA discounts?

 

[CaliJK]

so has anyone in Canada (ontario) managed to get below MSRP or even below invoice yet? Anyone able to use FCA discounts?

So far no dealer has given me a number since they aren't on lot yet. I have found in my experience, they seem to give you a better price if you're there to sign and close the deal. Dewildt Chrysler in Hamilton seems to be at msrp, and until now hasn't offered anything less. I'll pass along if they do.

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