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Local dealer response to below invoice pricing

steveale

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Wanted to get some of your guys perspective on this. Very established dealer, everyone loves them, service department is top notch. So I used some of the information here to start a conversation about below invoice pricing. This is direct with the President of the dealership, not a salesman. Copy and paste directly, so don't assassinate me for the grammar/typos. LOL.

"We do not price under invoice. We $249 over the original factory invoice, we have no fees. The only thing to be added is tax and $3. Pricing under invoice is for the vast majority a gimmick to get you in the door, so the dealer can price under invoice, charge their doc fee, up sale a warranty, and bump your interest rate 2%. Please let us know if you have any questions. Thank you for your time and consideration."

Thoughts? Saving any money is great. But to me there is value in having a long time, established local dealer with an awesome service department in the equation. If the vehicle invoice is $55k to the dealer (loaded rubi)...then I could be losing a couple thousand dollars from what I figure...
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Flamma

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He sounds reasonable. Since he's local, give him the opportunity to meet or exceed other quotes.

When pricing becomes available, get a few out the door quotes and compare.

If local is close, take it.

This isn't difficult.
 

homerun

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Here is my 2 cents:

"so the dealer can price under invoice, charge their doc fee, up sale a warranty, and bump your interest rate 2%."

The dealer can't force any of these things, except maybe the doc fee. So the conversation goes like this: "how much below invoice are you will to sell for and what is your doc fee." As far as warranty that can be declined and you can't bump a interest rate if you are paying cash or bringing your own financing. Maybe their below invoice price requires their financing, then I would ask how long you have to hold it before you can pay it off, also how much of the vehicle has to be financed?
 
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steveale

steveale

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I guess my situation is a little different because I am ordering one with the options and color i prefer. To play the take it or leave it game I am making the assumption that I would be waiting and dealing with vehicles once they are in inventory? Also, I plan to pay straight cash. I have the money sitting in the bank waiting on this...
 

homerun

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I guess my situation is a little different because I am ordering one with the options and color i prefer. To play the take it or leave it game I am making the assumption that I would be waiting and dealing with vehicles once they are in inventory? Also, I plan to pay straight cash. I have the money sitting in the bank waiting on this...
I actually think you have more negotiating power by ordering from Toledo than buying off the lot. A customer does not effect local dealers inventory (good for the dealer) and a customer order can be placed with any dealer regardless of what they have or don't have on the lot. Even the smallest dealer can place your order the same as a large volume dealer.
 

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biggdave92

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Have your own financing ready to roll at any moment, or pay cash. Don't trade in. After you accomplish those 2, go price shopping and buy from whoever you want. If you walk in without financing lined up or have a trade, bend over.
 

Onebigyoshi

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First time post but long time lurker, finally registered today! Sounds to me your dealership doesn't need to sell below invoice because it has loyal customer base that keeps coming back and bringing their cars for service. Dealership service is great for dealerships due to their higher profit margins. In my opinion, dealers offering certain % under invoice is not gimmicky at all. For example, Tri-City jeep dealer in NC offers at least 5% (up to 7%) under invoice. At a possibly 60k invoice for a fully loaded gladiator, that's $3,600 in savings. As other users have mentioned, don't buy into the warranty and bring in your own financing to make the dealer compete for it to get the lowest possible rate (if you have excellent credit). Now if you value your relationship with the dealership because you want better customer service or more leniency on warranty work, than the aforementioned savings might not be worth it to you.
 

reedred

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Wanted to get some of your guys perspective on this. Very established dealer, everyone loves them, service department is top notch. So I used some of the information here to start a conversation about below invoice pricing. This is direct with the President of the dealership, not a salesman. Copy and paste directly, so don't assassinate me for the grammar/typos. LOL.

"We do not price under invoice. We $249 over the original factory invoice, we have no fees. The only thing to be added is tax and $3. Pricing under invoice is for the vast majority a gimmick to get you in the door, so the dealer can price under invoice, charge their doc fee, up sale a warranty, and bump your interest rate 2%. Please let us know if you have any questions. Thank you for your time and consideration."

Thoughts? Saving any money is great. But to me there is value in having a long time, established local dealer with an awesome service department in the equation. If the vehicle invoice is $55k to the dealer (loaded rubi)...then I could be losing a couple thousand dollars from what I figure...
I would just ask about using affiliate rewards, which would put you at 1% under invoice and include the $75 doc fee. Most dealers do accept it, but it is generally something that you would mention to them, not the other way around.
 

RedTRex

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I have to laugh at this "We $249 over the original factory invoice, we have no fees." because adding $249 over the invoice price is in effect "A Fee"

and as others have pointed out.... they will sell under invoice with Tread lightly or employee pricing, etc
 

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billyjk7

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That dealer doesnt want your business very bad. Let the others willing to believe his line of bs I repay for their new jeep!
 

5JeepsAz

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Have seen many car deals.

The best one? When the customer leaves with what they want at a price they are comfortable paying.

The worst ones? Miserable folks walking in, still miserable when leaving, just in a new car.

Do your thing!
 

Ichthus

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There is nothing that marries you to having maintenance and warranty work done at the dealer you purchase at. If a dealer treats you different because you bought your Jeep somewhere else, they prove themselves fickle and untrustworthy, in my mind. It’s THEIR job to earn your business each and every time you need something, not the other way around.
 

Sgt Beavis

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Here is my 2 cents:

"so the dealer can price under invoice, charge their doc fee, up sale a warranty, and bump your interest rate 2%."

The dealer can't force any of these things, except maybe the doc fee. So the conversation goes like this: "how much below invoice are you will to sell for and what is your doc fee." As far as warranty that can be declined and you can't bump a interest rate if you are paying cash or bringing your own financing. Maybe their below invoice price requires their financing, then I would ask how long you have to hold it before you can pay it off, also how much of the vehicle has to be financed?
This is pretty much spot on. One example is Dennis Dillon Jeep, near Boise. A lot of people on the JL forum have bought from them at 5% below invoice or better. However DD requires you to use FCA financing to get an extra $1000. That is totally fair IMO. However you only have to keep that financing for a payment or two. Then you can refi through someone else. I did that once when I bought an F150. I took Ford financing and got an extra $2000 back. The terms stated that I had to make two payments before refinancing. So I held back two payments from my original down payment. Less than a month after buying, I had made two payments (you can make a payment early). I then went to my CU and financed for less than 1%.
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