Questions regarding below invoice pricing

[Puch]

Just curious. Not being a sales person, and someone who hates the whole sales process, why do a few dealers offer below invoice pricing while all others look at you like you just pissed In their cornflakes when you mention it?
Are the dealerships offering below invoice just hoping to sell “quantity” at lower prices versus a few at higher prices? Are some dealers getting better prices from the manufacturer? Are they just playing games with the numbers?
Also, for those that take advantage of out of state dealers offering below invoice pricing, did you find issues with paying sales taxes and getting it registered in your home state. For example, I live at in CT, but I purchased my JT in MA. Because they are a neighboring state, it was easy for the dealership to take care of all the registration and sales tax differences. How does that work when you travel to a different state to pick up your vehicle? Did you really save anything after traveling, taxes, fees, etc?

Thanks for the response.

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[Hootbro]

The majority of the difference between invoice price dealership and MSRP+ ones has to do with the holdback the manufacturers give dealerships to move vehicles. That holdback is meant for dealerships to use for local advertising, showroom displays and other marketing to move a vehicle.

Below Invoice pricing dealers are using that holdback money to offer the below invoice pricing rather than spend it elsewhere and can offer the higher percentages off. MSRP+ dealerships are wanting the whole pig of keeping the holdback and selling at above invoice or somewhat of a combination of spending the holdback money to certain percentage to advertise and move the vehicle.

Boils down basically to two models, high volume with below invoice (sometimes called "dealer discount) or lower volume but higher MSRP or near MSRP pricing.

The two examples are not absolutes as many dealerships will use a variation of the two models and will ebb and flow in and out of each as their local market may dictate.

As to travel cost and expenses to go far out of state, that is subjective and has to be weighed on the savings of the deal. When I bought my 2020 at launch, it saved me close to $5K to drive to NC from DE and was worth the travel cost. Most dealerships that deal with large volume of out of state customers usually have a third party they contract to handle the home tags and registrations for their customers or they will give you a packet with exact details of how to do it yourself when you get back home.

 

[Gatorized]

.As to travel cost and expenses to go far out of state, that is subjective and has to be weight on the savings of the deal.

any money spent on travel to pick up your JT should not be considered against the deal you made. It’s the same money you would spend if you went on a vacation/ trip. So take a vacation / trip and pick up a new Jeep. You still got a great deal and had a nice vacation!

 

[Jefe1018]

any money spent on travel to pick up your JT should not be considered against the deal you made. It’s the same money you would spend if you went on a vacation/ trip. So take a vacation / trip and pick up a new Jeep. You still got a great deal and had a nice vacation!

I mean yes... but even if you did factor it, you likely come out on top.

A flight from Vegas to Boise, ID for me was $60. A night of hotel was $110, 1.4 tanks of fuel were around $100 if I recall correctly. Food for me and a friend was maybe another $100?

That's total trip cost of $370 to save like $3,000 on the closest local offer. It was worth it (that is including the finance charge for the first 6 months too).

 

[Hootbro]

any money spent on travel to pick up your JT should not be considered against the deal you made. It’s the same money you would spend if you went on a vacation/ trip. So take a vacation / trip and pick up a new Jeep. You still got a great deal and had a nice vacation!

That is not how I define a "vacation", but if that works for others, so be it.

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