How do they do it? - Jeep Wrangler Forum

Go Back   Jeep Wrangler Forum > General Jeep Discussions > General Jeep Discussion

Join Wrangler Forum Today


Reply
 
Thread Tools

Please support our sponsors and let them know you heard about them on WranglerForum.com
Old 12-30-2011, 07:42 PM   #1
Jeeper
 
Join Date: Nov 2011
Location: New Jersey
Posts: 223
How do they do it?

Can anyone tell me how the Jeep dealer makes money when they sell the jeep at invoice?

I feel like I got a great price, at the end of the negotiation paid $250.00 under invoice. Love our 2012 Sahara Unlimited!!!

majorjtb is offline   Quote
Old 12-30-2011, 08:37 PM   #2
Jeeper
 
Join Date: Dec 2011
Posts: 52
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.

Unlimited-Akita is offline   Quote
Old 12-30-2011, 09:39 PM   #3
Jeeper
 
Shelby427's Avatar
 
Join Date: May 2011
Location: Lakeland FL and Hooversville PA
Posts: 2,198
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.
Shelby427 is offline   Quote
Old 12-30-2011, 09:41 PM   #4
mallcrawler

WF Supporting Member
::WF Moderator::
 
kjeeper10's Avatar
 
Join Date: Feb 2011
Location: Connecticut
Posts: 44,370
They make more on used vehicles
Quantity/accessories and all the other crap they sell you after.
__________________
37x12.5x17 MTR's - Rock Krawler 3.5"
Coils - custom length X-Factor arms - Synergy steering -Rancho 5000X shocks - Adams front driveshaft - Ether LED headlights.

My 2007 2 Door Build

General lift discussion thread. Have a question, need help, issues, selecting a kit, ask here

Click HERE to become a WranglerForum Supporting Member!
kjeeper10 is online now   Quote
Old 12-30-2011, 09:51 PM   #5
Jeeper
 
Join Date: Dec 2011
Location: Under my Jeep in beautiful upstate N.Y.
Posts: 3,474
Once a salesman told my Uncle he was selling the car soo cheap he wasent making any commission.yeah,ok
1jeeplvr is online now   Quote
Old 12-31-2011, 09:22 AM   #6
Jeeper
 
Join Date: Jun 2011
Location: Northern NJ
Posts: 264
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.
PeteH is offline   Quote
Old 01-03-2012, 10:10 AM   #7
Jeeper
 
Ichabod's Avatar
 
Join Date: Oct 2011
Location: Between light and shadow
Posts: 306
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"

Felder, 1981
Ichabod is offline   Quote
Old 01-04-2012, 10:09 AM   #8
Jeeper
 
derfC's Avatar
 
Join Date: Sep 2010
Location: Space Coast, FL
Posts: 488
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.

__________________

derfC is offline   Quote
Reply

Thread Tools

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off




Download our Mobile App

» Featured Product

All times are GMT -5. The time now is 09:06 AM.


User Alert System provided by Advanced User Tagging v3.1.0 (Pro) - vBulletin Mods & Addons Copyright © 2015 DragonByte Technologies Ltd.

Jeep®, Wrangler, Liberty, Wagoneer, Cherokee, and Grand Cherokee are copyrighted and trademarked to Chrysler Motors LLC.
Wranglerforum.com is not in any way associated with the Chrysler Motors LLC