Is it normal to receive two OTD quotes (Loan/Cash) for 2023 Gladiator order?

[setujaq]

Hi All,

First time posting here and hopefully will be a first time Jeep owner if everything goes as plan haha.

I am just wondering if it is a normal practice from the dealership to provide two different OTD price quotes if I use my own bank or pay cash versus using their financial service. I understand that dealers get commission if I go with their bank but the OTD price should be the same regardless on how I want to pay for it right? At least that's how I did it with my current car (VW GTI, which needs to be replaced since our stuff doesn't fit anymore when we go camping haha). We first negotiate the OTD price then later decide on how to pay for it.

Is there something that I am missing or is that how it works now from the past 6 years since I purchased a car.

Any tips, help, guidance and any other words of wisdom that you may provide regarding this is greatly appreciated and sorry for being a newbie with the Jeep stuff. I guess we gotta start somewhere.

Thank you in advance to all.

Sponsored

 

[ShadowsPapa]

Yes - I saved 2 grand by using Chrysler financial. Basically, it's a rebate you get by financing through Chrysler - the dealer will take that 2 grand and knock it off your price.
So there's a cash price, and - anyway, look at the incentives - that's the difference.
It's not the dealer doing it, it's JEEP.

It has changed again since I bought - that 3 grand incentive (2 grand for financing) is gone.
Here's a similar deal for a Cherokee - finance and save 500 bucks. So if I bought a new Cherokee and asked the dealer to shoot me prices, there'd be two - one with 500 off for financing, another for cash price or using my own bank.

So in short, yes - but it VARIES by location and month. I'm in the midwest so my deals may be different.

Or check jeep dot com - here's a Compass "incentive" - (use your own zip code) You'd save 1,000 by financing a Compass through Chrysler if you were in the midwest -

 

[A 2]

If you have the means to do it, finance the minimum they allow and make one payment then pay it off. Sounds like you have the cash to do it. we did this through Ford Fianacial on an F250. We got a loan for about $5,000. Ended up saving $1,500 in the end.

 

[ShadowsPapa]

If you have the means to do it, finance the minimum they allow and make one payment then pay it off. Sounds like you have the cash to do it. we did this through Ford Fianacial on an F250. We got a loan for about $5,000. Ended up saving $1,500 in the end.

My sales guy knew we liked to pay or use our own credit union.
I didn't even have to ask him - He flat out said "there's no pay ahead or pay off penalty" and said "wait until you get the coupon book and then do what you want". He's the one that suggested I could save 2 grand by financing and then pay it off later.
They know most people will not do that, most will ride it out, so they (Chrysler financial) still makes their money.

 

[JayJay]

I am just wondering if it is a normal practice from the dealership to provide two different OTD price quotes if I use my own bank or pay cash versus using their financial service. I understand that dealers get commission if I go with their bank but the OTD price should be the same regardless on how I want to pay for it right?

You are correct about the dealer getting a commission from the lending institution. Some dealers will share a portion of that commission as an incentive for the purchaser to use the dealer financing. There will normally be a requirement (probably only verbal) for a minimum number of payments before paying the loan off.

 

[ZoMojave]

Be sure to look into if you qualify for Chrysler Affiliate pricing through your employer. That alone starts off with a 1% below invoice price and you also qualify for all other incentives (with the exception of military/first responders/USAA rebates) unless you do. Then there are the Chrysler Capital financing incentives. I was able to take advantage of most to wind up with a very attractive deal in the end and savings along the way with the lower rate. Don't always allow your dealer to "steer" you toward the deal without some homework. Regional limitations of course apply as I am in the midwest like Papa. Jeep.com/Chrysleraffiliates.com/Chryslercapital.com. Worth it for a wonderful vehicle experience! Good luck and welcome to the club in advance!

 

[doc-ketamine]

Take advantage of every discount they give you, even if you finance through their credit company. Then pay it off with your own loan (make sure there are no early payoff penalties). The dealer swore up and down that 3.9% was the best APR he could get me "even checking your bank, doc!". Bullshit. I paid it off with a loan from my bank at 1.79%, two months after I bought it.

Some dealer finance managers will lie to your face. Do what's best for you as a consumer.

 

[ShadowsPapa]

Be sure to look into if you qualify for Chrysler Affiliate pricing through your employer. That alone starts off with a 1% below invoice price and you also qualify for all other incentives (with the exception of military/first responders/USAA rebates) unless you do. Then there are the Chrysler Capital financing incentives. I was able to take advantage of most to wind up with a very attractive deal in the end and savings along the way with the lower rate. Don't always allow your dealer to "steer" you toward the deal without some homework. Regional limitations of course apply as I am in the midwest like Papa. Jeep.com/Chrysleraffiliates.com/Chryslercapital.com. Worth it for a wonderful vehicle experience! Good luck and welcome to the club in advance!

Pay $100, join treadlightly and get 1% below invoice. That saved me over 4 grand all by itself.
Then I got another 3 grand off - 2 for financing through Chrysler Financial and another 1,000 just as an incentive.
I saved roughly 7-8 grand off MSRP

That 3 grand incentive and finance thing was gone as of a few day ago, though.
But TreadLightly will still get you 1% under invoice.

 

[kevman65]

Biggest thing, dealers don't want you paying cash or bringing your own financing.

You're costing them money if you purchase that way.

So, as was said, finance their way, make the required payments to not get penalized, then pay it off and save yourself extra money.

 

[ShadowsPapa]

Biggest thing, dealers don't want you paying cash or bringing your own financing.

You're costing them money if you purchase that way.

It sort of depends............. two different times, two different dealers, one Chevy, the other Jeep -
No mention was ever made of how we were paying. We had trades, decent ones, and we'd agreed on the final prices in both cases. We went back to the "finance guy" where they try to sell you other things, and got to the money part - "how are you paying" - we told them our trade, xx along with it, finance the rest. And both times they brought up screens showing the different lenders they worked with and the rates. We told them the name of our credit union - fine, they looked them up and made arrangements then and there and our loans were through our own credit union.
I've never seen a time in our area, in our dealings, where it made any difference.
Usually they seem to assume you are financing, but not always.
When I bought my Ford F250, I made the deal, agreed on a price and trade, and they asked how I was paying - I told them a check from my credit union (a loan from the CU) and they didn't care.

Maybe it's different in some areas, but here, they don't give a rip. Same price no matter what.
The only time I have ever seen a difference is when Chrysler or GM or whoever jumps in with incentives - like 0% for 60 or 72 months, or something like I got this time - $2,000 off if you finance with Chrysler Finance.

I know it's said over and over here about it making a difference, but I have never personally seen it, nor have I been asked up front. I've only ever been asked once the deal was set, the number etched in stone.

Must be an Iowa thing - could be because the doc fee here is set in stone - ALL Iowa dealers must charge the exact same fees. So maybe Iowa doesn't allow discrimination based on financing?

 

[FLGladiator]

He flat out said "there's no pay ahead or pay off penalty" and said "wait until you get the coupon book and then do what you want". He's the one that suggested I could save 2 grand by financing and then pay it off later.

My dealer was a 6 month pay off penalty with a 20k min loan for a an extra 1k back during peak covid.

 

[ShadowsPapa]

My dealer was a 6 month pay off penalty with a 20k min loan for a an extra 1k back during peak covid.

Wow, we've never had any penalties. Of course - are you talking Chrysler financing, or other banks or institutions?
Chrysler financial sets their own rules.
And during covid, all bets were off - even today it ain't over in that respect.
But we've just never seen some of the stuff others seem to see or deal with on a regular basis.
Every time we financed, we have a bad habit of reading the papers and asking about penalties, and have never had any.
There are quite often minimum finance amounts - that's not uncommon.
Even if we had to wait 6 months - that ain't bad to get $2,000 off. These aren't like your home mortgage where the first months are almost all interest.

 

[Hootbro]

So, as was said, finance their way, make the required payments to not get penalized, then pay it off and save yourself extra money.

There really should not be any penalties to the buyer if a buyer pays off dealer arranged or Chrysler Credit financing loan quickly. It is the dealer that will loose out any points on the loan they may be getting.

A good dealer will be upfront about any finance rebates and points they are taking on the loan. On a past purchase, I maybe paid less than $100 interest but saved $1500 on a finance rebate just waiting one payment before paying it off. I get the rebate and the dealer got the finance kickback.

 

[FLGladiator]

Wow, we've never had any penalties. Of course - are you talking Chrysler financing, or other banks or institutions?

It was an outside bank they used. I took the deal as the interest rate was 2.9% so even at holding the loan 6 months I still came out ahead by 800 I believe. I got such a good deal with the employee pricing they were giving during peak covid that I was fine with the short term loan.

 

[Minty JL]

Pay $100, join treadlightly and get 1% below invoice. That saved me over 4 grand all by itself.
Then I got another 3 grand off - 2 for financing through Chrysler Financial and another 1,000 just as an incentive.
I saved roughly 7-8 grand off MSRP

That 3 grand incentive and finance thing was gone as of a few day ago, though.
But TreadLightly will still get you 1% under invoice.

What was the sticker MSRP?

I'm working on doing a build now and the MSRP is roughly 57K with destination. 7-8k off that would be nice. My TL membership is good til September (need to renew).

Sponsored