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How did you negotiate your purchase?

Phidelt83

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I haven’t seen any threads discussing the actual process of anyone’s negotiations and figured I’d start one.
Today I visited my local central Florida Jeep dealer to take a test drive of my future Gladiator (hopefully). Other members here have had luck with this dealership in getting their Jeep’s well below invoice and I was wondering how exactly they went about it. For some people that haven’t purchased a new car before it can be a daunting task and a little insight into this process could be a welcomed relief and the education from it may empower them to not fall victim to shady dealers. Hope to hear many stories of success!
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KDR83

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Well if you have a tread lightly membership that should automatically get you to 1% under invoice. Id just mention you heard about the dealership per the forum and that they offer xxx.
 

Gobi Wan K

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I haven’t seen any threads discussing the actual process of anyone’s negotiations and figured I’d start one.
Today I visited my local central Florida Jeep dealer to take a test drive of my future Gladiator (hopefully). Other members here have had luck with this dealership in getting their Jeep’s well below invoice and I was wondering how exactly they went about it. For some people that haven’t purchased a new car before it can be a daunting task and a little insight into this process could be a welcomed relief and the education from it may empower them to not fall victim to shady dealers. Hope to hear many stories of success!
There may not be a specific thread but there are many stories on here about how people made their deals. I went in knowing I would go to one of the dealers on here offering good deals. The came back to me first with $1000 off MSRP. I told them sorry but not enough, they told me that was just to show they would deal. I told them I would go elsewhere for 5% under invoice. Piece of advice, if you are going to do this have specific dealer names to dish out because that will add credibility to your position. The general manager walked by and hearing this he said they would do it for 6% under invoice. I have been buying parts and getting service from this dealer for years and they at least know I do so I figure that played into my deal. Biggest thing is don't sign anything that doesn't have the numbers you want. Dealers will play with the amount of trade, financing options and dealer fees to muddy the waters of what your deal is. My dealer charges a hefty dealer fee but I figure the extra 1% and no travel expenses makes it worth it to me.
 

futzin'

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Personally, I'll prolly join Tread Lightly. But mostly I plan on deciding ahead of time what I'm willing to pay and offer that (for an ordered well optioned Rubicon). They can take or leave as they wish, with the understanding to call me if they change their mind. How they get to my number is up to them. No trade.
 

smlobx

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In general terms there are 3 components to buying a new vehicle and dealers will give you what you think is a good deal on one but you’ll probably pay for it on the other two.

The three components are:

1. The actual sales price of the vehicle
2. The trade in value if you have one
3. The financing terms

Each of these should be done separately.

Specifically you should sell your trade in privately if possible because you will probably get several thousand dollars more for it.

You should research your financing terms with a local bank or credit union. As an example I am getting 2.49% with the length I want.

Thirdly, by doing research on the vehicle you want by reading info on forums like this you will know where to go (and who to speak to) to get the best deal. Joining an affiliate like Tread Lightly will also reduce your final costs..

Also, try and do as much “negotiating” with your chosen dealer online. Once your in the dealership you’re playing in their ballpark. Keep the negotiating on a level playing field.
 

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bhbdvm

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There are two dealers that have been spoken about on the forums that I have contacted personally that offer significant discounts. Peterson Dodge/Chyrsler/Jeep in Idaho (Kent) and TriCity in Eden, NC. Both of these dealers offer Invoice pricing minus holdback BUT you have to finance with them in order the the deal to work for them. They get a kick back after you finance. After a few months you can refinance to a lender of your liking with no penalty to either party. They will quote you another price without the financing but it is generally 1-2% higher. You can drive to these dealers and pick up your Gladiator when it arrives or you can have it shipped to your home town. These deals work out to be 10-14% below MSRP (ex $59,500 Jeep costs ~$52,300 + tax/title/document fee). Don't get screwed on the document fee. You can also use these dealers as leverage locally to see if your home town dealer will match or come close enough to make it work. In the past I have called the high volume low cost dealers and have them send me build sheets/order sheets so I have it on paper as i negotiate. Hope this helps.
 
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Phidelt83

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Are any of these deals done on dealer stock or are these numbers coming primarily from customer orders? Meaning to get several % off invoice is the best bet to custom order? Just curious to plan my timeline.
 

Ole Cowboy

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Since 1978 when I ordered my first car almost all I have owned have been ordered, rarely do I buy off lot. I buy a lot of cars on average I buy a new car every 2-3 years. I am on my 6th F 350/450 Super duty since 2010.

I do my best to buy hometown or the nearest dealer to unless I feel like taking a vacation to someplace then I call up dealers and make an offer then fly and drive.

Here is my walk in the door offer:

I want to order a ________, I will pay Invoice - any incentives I am eligible for + TT&L, I will consider you financing if it is better than mine, that is my deal and do NOT try to sell me on LIFETIME: Wax jobs, steering wheel grease, chrome muffler bearings, window tint or air in my tires, I am here to order and buy a car.

At that point in time, if the comeback is not sure we can do that or yes or the guy goes into a huma huma, we can make you a good deal or anything else I head out the door.

Just that simple! Does that make is easy, quick and assure you of a deal at any dealership...no and HELL NO! My local, hometown dealer, where I have all my trucks serviced, I have stopped there FIRST for every truck I have ordered since 2010, 6 trucks worth. I have NEVER made a deal there yet and they are my first stop.

So I just placed an order for a 2020 F 450 King Ranch. I went to my hometown dealer first. Sales guy looked at me and said we have a F 450 on the lot, let me show it to you. OK! We walk out and he shows me a 2016 F 450, after me telling him I want to order a 2020. This truck had been rode HARD and put away wet, had I had my carry gun with me, I would have done the dealer and the truck a favor when I put a bullet in it! Not only that they wanted $60,000 for it, for a truck that sold in '16 for less than $65k if they got every option.

I went home, called McLane Ford in Fredricksburg Tx and told the sales guy Matt I wanted to come in and order a 2020 F 450. He said why come in, I do it over the fone. We did, he told me it was Invoice less any incentives, plus TT&L only and no he did not need a downpayment or anything else...that is how you do business.

We were on the fone for maybe 20 min getting all the options sorted out, he said order placed and 15 min later he sent me confirmation from Ford, so I have an order in my name with confirmation from Ford. He also wrote my price down and was not afraid to show me all Ford pricing.

If you place an order, you should leave the dealer, any dealer, with a piece of paper showing a confirmed order, if not you don't have it!

Some dealer will give you a confirmation number and make, model and option on their own paperwork because they do not want you to see Invoice and plan pricing.

Nelow is an actual screen shot of a bonafide Ford order. I have some incentives that will knock off another $1500 off my X Plan price.

Screen Shot 2019-08-16 at 10.15.54.jpg
 

spazzyfry123

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Are any of these deals done on dealer stock or are these numbers coming primarily from customer orders? Meaning to get several % off invoice is the best bet to custom order? Just curious to plan my timeline.
So far, I've only seen the real deals populate as custom orders. They have additional costs associated to existing vehicles on the lot and don't offer the same level of discounts.

With that said, I have also been completely unsuccessful on finding a JT on the lot that has the options I want regardless of my first choice body color, Sting Grey.
 

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emailed Kent @ Stampede in Nampa. Saved 14% off MSRP on our JLR and JT LE.

Here:

And here:
 

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Mkcagle

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I ask for -5% invoice. Was told no discount by the salesman. No argument just got up and went straight to his boss, same request. Was told -1%. Not good enough, went to her boss the general manager. He said -3% minus another $500 military discount. We shook hands and placed my order after getting it all in writing. I saved money, they made money, every one happy. Process took several hours, Time well spent. Found out later that my JT was the third sold by them. One sold off the lot for full MSRP. Other was off the lot for Invoice. GM told me their policy is to only offer official Chrysler authorized discounts. Any thing else the customer is expected to ask.
 

Ole Cowboy

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So far, I've only seen the real deals populate as custom orders. They have additional costs associated to existing vehicles on the lot and don't offer the same level of discounts.

With that said, I have also been completely unsuccessful on finding a JT on the lot that has the options I want regardless of my first choice body color, Sting Grey.
The longer these threads go one, be it on this forum or my Ford truck forum or the Corvette forum, the greater the discounts off-invoice will grow. Somebody will claim they got (most I have ever seen) 25% off invoice. And of course the old: My dealer gives me "holdback".

Holdback and 'Unit sales'* is the dealer true profit, without, they would not be in business. Getting holdback is not easy and next to impossible to get on ordered or new cars. Where you get it is on cars that have been sitting on the lot for some time. Holdback on Jeeps for 2019-2020 is currently 3% of total MSRP. This is paid IIRC quarterly and is the operating capital to support day to day business.

Unit Sales: ANother bonus based upon volume and dollar amount, this is the gravy.

Dealers generally make money 1 of 2 ways: Volume sales or customers. Over the years I have got to know and be friends with folks who owned dealerships and or were in the upper end of the car sales business and I have garnered a lot of info from them. The folks I know that have done exceptionally well all seem to have come from the school of volume sales, low overhead. They have a singular goal and that is to sell you a car and they depend upon volume so they sell cheaper. The less time that car sets on the lot the more money the dealer makes, not from you, but from the mfg, thru Holdback and Unit Sales.

Other dealers make the money off individual sales this is where you get into lifetime Steering wheel grease and air in the tires. The places that you drive in a 1 in the afternoon and don't get out till 9 that night or later. They often use the old trick of ALL kinds of add ons on the paperwork and it now 10 at night and the Finance guy says he cannot remove it the chrome muffler bearings at $500 and you sales guy and sales office is closed, you will have to come back tomorrow or another day. Then you sign anything just to get the hell out! This dealer is going to make his money off YOU and steering wheel grease!
 

rafaelsmith

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I plan to do everything except signing the final papers and picking up the JT thru email and perhaps if absolutely needed phone. I will probably do like we did with my wifes Renegade. Decide what options we want....using data/spreadsheets similar to what is on these JT forums...pick a below invoice %....then mass email several dealers with my otd offer (no mention of trade or down payment or anything) . Weed out the ones that never respond....the ones that demand I come into the show room....the ones that only want to talk on the phone....or the ones that clearly used a auto-reply (stuff like....we have many vehicles which you might be interested in). With very very very few exceptions, I hate car dealers with a passion so the less I have to deal with them the better.

This time....I will most likely be dealing out of state....but its worth a round or two of emails to see if any locals can match. Doubt it...but never know.
 

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There are two dealers that have been spoken about on the forums that I have contacted personally that offer significant discounts. Peterson Dodge/Chyrsler/Jeep in Idaho (Kent) and TriCity in Eden, NC. Both of these dealers offer Invoice pricing minus holdback BUT you have to finance with them in order the the deal to work for them. They get a kick back after you finance. After a few months you can refinance to a lender of your liking with no penalty to either party. They will quote you another price without the financing but it is generally 1-2% higher. You can drive to these dealers and pick up your Gladiator when it arrives or you can have it shipped to your home town. These deals work out to be 10-14% below MSRP (ex $59,500 Jeep costs ~$52,300 + tax/title/document fee). Don't get screwed on the document fee. You can also use these dealers as leverage locally to see if your home town dealer will match or come close enough to make it work. In the past I have called the high volume low cost dealers and have them send me build sheets/order sheets so I have it on paper as i negotiate. Hope this helps.
The part I bolded is a great negotiating tactic. Perterson and Dennis Dillon willl send you a purchase order with the discounts applied. Take that to a local dealer. They may not give you 5-6% below invoice but they may do 3-4%. You need to get a good estimate of your costs in both travel and time to make the trip to those Idaho dealers. A couple percentage points difference is likely to make buying local worth it.

I was able to get 3% below invoice on my JLU that was sitting on the lot. No ordering, no waiting. It was an $800 difference between the price I got from Faricy in Colorado Springs and the quote I got from Dennis Dillon. When you figure in the cost of flying up to Idaho, the drive back to Colorado, the time spent (I make A LOT in an hour), the fact that I have to give up an entire weekend to make it happen, etc., etc. the $800 difference was VERY worth it to me. I was also able to arrange my own financing which was far superior to anything Peterson or Dennis Dillon would have done. Handling my trade in was easier as well.

Oh, on the trade in part. I had a Jag F-Pace at the time. I put it up on Auto Trader to get quotes from several dealers in my area. I got an offer from a local Audi dealer that left me with $3000 positive equity. I gave Faricy a chance to beat it but they admitted on the phone that I had a better deal with the Audi guys. So I went that way and had an extra $3000 to put down on my Jeep. So ALWAYS shop your trade around before taking it in to do the deal.
 
 



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