They have so much profit built into the sticker it is rediculas. That and they get discounts fro selling/ordering X amounts of them. Not to mention your trade in if applicable. If you finance through them they make money off the loans also.
It is why they call it a stealership, literally. I wont buy new anymore.
Yep built right into the price is a dealer profit, right from the factory. If memory serves me it's somewhere around 3% of the sticker.
And all those little add on items when you are signing your life away, are mostly pure profit.
Heck they tried charging us an $80.00 prep fee on our 97 when we bought it used.
I asked what was the prep fee? Told it's the 2 zillion point inspection so the vehicle is perfect and a full detail. Yeah right!
Pointed out the worn out wipers, missing wheel cap, no jack, dirty interior, and told em they could either remove the prep fee or keep the jeep.
$80.00 I saved, the wife spent on the jeep for goodies.
97 Sahara, 74 Renegade, 72 CJ5, 55 Willy's (the Beast) Boss 302, 6:34 gearing, Bose 901 speakers.
God I miss that Jeep. Forgot the kinda Jeep, 80 SX4.
Invoice price is pretty much meaningless. There are built-in profit margins, for the maker and the dealer; dealer incentive rewards, other "trade jargon" terms, all ensure that the dealer makes money.
Check out Consumer Reports' Auto Price Service when you're shopping for a new car. Small fee, big savings, because you KNOW what the actual dealer-cost is.
One time, we walked into a showroom with CR paper in our hands; the salesman's smile dropped like a shot duck, and he said "OK, you win, let's do this quickly". SO quickly that he forgot to include a legitimate charge for upgraded floormats.
I gotta say, one of my favorite things about owning a Wrangler is the simplicity of it. Very few buttons and whistles, no electronic spaghetti, plain jane seats and interior, very basic design that hasn't changed very much since the 70s etc.
That being said, how much do you think it actually costs the manufacturer to build one?
If you compare a new Wrangler (MSRP of $22,045 for a base model) to, say a 2012 Base Camaro ($23,000) or a 2012 Ford Escape AWD for ($21,440), then compare the standard equipment, modern electronic extras, design costs, labor costs etc etc, I think they have a healthy profit margin built in anyway.
"Fire it on up and let's cruise a while, leave your troubles far behind"
Advertised 'invoice' price usually includes a certain percentage for dealer overhead. Once you remove that, it still doesn't account for 'hold-back' - the $$$ paid to the dealer by the manufacturer simply for selling a particular vehicle (anywhere from 1 to 3%).
Even if a dealer were to sell you something at the ACTUAL invoice price (the amount that they paid for it), they'd have to inflate your purchase through accessories, extended warranties, and/or financing. Otherwise, they wouldn't make any money.