How to negotiate?

[ZEN357]

They are gonna want top dollar cause it's a new product that everyone will be after or wanting..... be prepared to walk away. I did that with a 2005 Ford F15-FX4 I wanted and they came back with the price and payment I wanted without any bull crap. The sales guy followed me out into the parking lot and we were yelling at each other because I told him he was gonna stick my trade-in on the lot and ask 16,000 for it. I told him I'm not stupid. Either make me the deal I want or I walk. I drove home in the new truck!!!!

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[Roddy13]

I doubt you will get below invoice until the dealer lots are flooded, or you can wait for a slow month like December 2019 when a dealer wants to clear his inventory... but the trucks will still be 2020 model years at that point so the incentive to move them will be lower.

 

[eternus]

I (and everyone in this thread, I believe) am basing the "below invoice" pricing on the current options for Wrangler JLs. Folks have been getting them below invoice since last spring at certain dealers... and this is all happening while the Wrangler remains one the top selling vehicles in the US.

On a different note than that, the US interest rate keeps going up. Many believe we're moving into (or have moved into) a bear market with a recession looming. If Jeep wants to move these potentially expensive vehicles in numbers akin to the Wrangler... they'll need to be willing to let people by them in whatever way gets them out the door. Their pricing will not be determined in a vacuum... 2019 is not going to be handing people extra money at the level that will justify a $40k+ vehicle.

 

[JJStasen]

My biggest worry.

a bear market with a recession looming,

I have never bought a new vehicle, I have never financed a vehicle, and I'm in the O&G industry,...

 

[eternus]

My biggest worry.
I have never bought a new vehicle, I have never financed a vehicle, and I'm in the O&G industry,...

Well if you can pay cash, up front... that'd be ideal. But, this being America... most will NOT be able to do that. If people are being responsible then they'll not be taking out a 50k loan (omg that sounds horrible) to buy a truck. And maybe FCA will be content to do the 100k units at 60-70k after all. I bet they'd rather sell 200k units at 35-45k.

I'm not in finance at a huge international car company, so I'm sure there are things I am not looking at... but I guarantee THEY will be looking at anything I can think of and then some. They may do like they did with the JL... list it, then increase the cost a little each month as they see how well it does. (They bumped the cost by $750 in March, then another $500 in July.) Alternatively, if they go too high, and units don't move, they'll be pushing the cost down.

I hate how easy it is to get a huge loan like that, people don't think about the actual cost... just the monthly cost, and they get in over their head and support an already overpriced car market.

 

[misanthrope]

Is it best to ask for a certain % off of MSRP or invoice?

Does invoice include holdback and shipping?

Should I ask for 6-8% under invoice and then add shipping and holdback?

Confused!

Like most here have written, do all "negotiations" via email first, and get deals in writing before you commit.
As far as those 2 other numbers you are wondering about: holdback is never figured into the vehicle price, but a really motivated dealer might be willing to dip into that to offer you a better deal (unlikely). The destination charge (currently $1495 for the JL, but we'll see...) is part of the invoice (FWP) price, and is often discounted when a dealer offer a below-invoice percentage, but many dealers do not. At 5% below invoice, This would be about $75 off of the destination charge.

So, long and short, when you get the POC, you'll see the HB # which isn't factored into the vehicle price, and the destination charge, which is included in the total invoice price, but may or may not be further discounted below invoice, depending on the dealer.

 

[ZEN357]

Well if you can pay cash, up front... that'd be ideal. But, this being America... most will NOT be able to do that. If people are being responsible then they'll not be taking out a 50k loan (omg that sounds horrible) to buy a truck. And maybe FCA will be content to do the 100k units at 60-70k after all. I bet they'd rather sell 200k units at 35-45k.

I'm not in finance at a huge international car company, so I'm sure there are things I am not looking at... but I guarantee THEY will be looking at anything I can think of and then some. They may do like they did with the JL... list it, then increase the cost a little each month as they see how well it does. (They bumped the cost by $750 in March, then another $500 in July.) Alternatively, if they go too high, and units don't move, they'll be pushing the cost down.

I hate how easy it is to get a huge loan like that, people don't think about the actual cost... just the monthly cost, and they get in over their head and support an already overpriced car market.

Yes, $50,000 for any vehicl, especially a daily driver does sound extremely horrible. Remember when you could buy a house for $50,000?

 

[DMoney]

Yes, $50,000 for any vehicl, especially a daily driver does sound extremely horrible. Remember when you could buy a house for $50,000?

LOL! You can still buy a decent 1-2 bedroom house in my area for around $100,000. It will be older and small but it would be an actual house that is decent.

 

[ZEN357]

LOL! You can still buy a decent 1-2 bedroom house in my area for around $100,000. It will be older and small but it would be an actual house that is decent.

Unfortunately, not where I live. All the gas/well drilling/digging has driven the prices clear out of the market. A one bedroom apartment will run you up to $1500 and that's for a crappy place. We locked in our last two year lease for our townhouse and hope to be out of this area as soon as my step-son graduates from college as long as I can find a decent job in Tennessee.

 

[DMoney]

Unfortunately, not where I live. All the gas/well drilling/digging has driven the prices clear out of the market. A one bedroom apartment will run you up to $1500 and that's for a crappy place. We locked in our last two year lease for our townhouse and hope to be out of this area as soon as my step-son graduates from college as long as I can find a decent job in Tennessee.

Yeah, I know how you feel. I used to live in Boise and with all the Californians moving on the housing market couldn't keep up. So housing was fairly expensive compared to the rest of the state.

 

[KirkG]

Honestly if you want the best price on a Gladiator call Kent at Peterson in ID, we are buying a JLUR from him and I talked to him about the Gladiator and he told me the Gladiator will be the same program as the JL, which is 13% roughly off MSRP and 8% below invoice.
Super super great guy to deal with too no b.s.
Kent's price beat all of my local dealers by 5-6k and it will be a great adventure going out to pick it up

 

[IDjeep]

Honestly if you want the best price on a Gladiator call Kent at Peterson in ID, we are buying a JLUR from him and I talked to him about the Gladiator and he told me the Gladiator will be the same program as the JL, which is 13% roughly off MSRP and 8% below invoice.
Super super great guy to deal with too no b.s.
Kent's price beat all of my local dealers by 5-6k and it will be a great adventure going out to pick it up

Agreed! I went out to Nampa and met with Kent and test drive the JLU. We are waiting on pricing to decide between the JLU vs Gladiator. Kent did call me before the holidays and checked in, he did let me know he will be doing his standard 8% under invoice when the Gladiator is released. He is expected pricing in Jan/Feb with order banks opening soon after pricing (I think this is based on an educated guess not some insider info) Agree 100% with the quote above on him being a super super great guy. And no b.s.

 

[DMoney]

Honestly if you want the best price on a Gladiator call Kent at Peterson in ID, we are buying a JLUR from him and I talked to him about the Gladiator and he told me the Gladiator will be the same program as the JL, which is 13% roughly off MSRP and 8% below invoice.
Super super great guy to deal with too no b.s.
Kent's price beat all of my local dealers by 5-6k and it will be a great adventure going out to pick it up

Agreed! I went out to Nampa and met with Kent and test drive the JLU. We are waiting on pricing to decide between the JLU vs Gladiator. Kent did call me before the holidays and checked in, he did let me know he will be doing his standard 8% under invoice when the Gladiator is released. He is expected pricing in Jan/Feb with order banks opening soon after pricing (I think this is based on an educated guess not some insider info) Agree 100% with the quote above on him being a super super great guy. And no b.s.

That's sweet, maybe I will drive up to Nampa sometime and check it out.

 

[BlackDog]

I'm a fan of the "don't negotiate" philosophy. When I bought my 2005 Grand Cherokee, I knew exactly what I wanted and what I wanted to pay. I worked with an auto broker who did the leg work to find the jeep I wanted and ship it to my city. Best buying experience I ever had.

 

[Joihan777]

I'll be preparing to drive my butt to ID if my local dealer won't do 8%... though I'll be watching eagerly for your confirmation of that price. (c:

I'd fly to Idaho in a heartbeat to get a good deal - AND I'd enjoy the drive back!

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