Car Buying Program? Tread Lightly, NFCU, USAA, etc? - Page 2 - Jeep Wrangler Forum
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Old 08-14-2012, 11:19 PM   #31
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Location: Alexandria, VA
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As someone else mentioned, USAA pricing hasn't been avail on the Wrangler since Jan 2012. If you use their service they give you the ZAG "Target" price which is about invoice.

Looking around here last month, in the DC area. Costco pricing was $500 off invoice for in-stock vehicles ONLY. USAA pricing was just invoice. TL is set to 1% below invoice.

What I've learned from researching on here and other resources on the web...
All Jeeps and perhaps other Chrysler vehicles have a 3% dealer Hold Back (HB) amount factored into the invoice price. This is 100% profit for the dealership.
So lets say the invoice price is 30K, the HB will be $900. Dealers also receive possible hidden kick backs such as bonuses for meeting sales numbers, goals, etc.. That the average customer won't be able to find out about.

In reality, if you are getting 1-2% off invoice, that's really crap. If you want to push the envelope, start by finding the invoice price then asking for at least 3% off. Then add any incentives.. Anything less than that is not a good deal.

For the buyers who have gotten several thousands off the MSRP.. Refer to the "other" hidden kick backs that dealers get. If someone knows how to find out what that amount is, please let us know!

Bottom line:
Use ZAG to find out the average selling price.
Start haggling at 3% under invoice minimum.
Look for extra dealer fees: Freight, processing fees, etc.
Get a sale price in writing.
Add incentives if you qualify.

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Old 08-15-2012, 01:49 PM   #32
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My deal isn't complete yet, but I did have a vehicle shipped from another dealer to my dealer. So, I've commited to purchase the vehicle at 1% below invocie. I'm going to have to be ok with that, if I can't get something more out of him.

Once I make a commitment to somebody, and they begin doing work for me, I don't have much choice but to follow through. It's a personal thing.

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Old 08-15-2012, 02:20 PM   #33
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You Rock, meneedjeep!

So glad to hear that ethics still exist. I do wonder sometimes.

Quote:
Originally Posted by meneedjeep View Post
My deal isn't complete yet, but I did have a vehicle shipped from another dealer to my dealer. So, I've commited to purchase the vehicle at 1% below invocie. I'm going to have to be ok with that, if I can't get something more out of him.

Once I make a commitment to somebody, and they begin doing work for me, I don't have much choice but to follow through. It's a personal thing.
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Old 08-15-2012, 02:25 PM   #34
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One other thing to consider -- the dealer also makes money at least five other ways:
  1. Dealer-added options
  2. Service plans
  3. Your trade-in
  4. Dealer financing
  5. Dealer fees


If they don't have dealer-added options, you have no trade-in, finance elsewhere, and they have reasonably small standard fees, then yes, I agree with this thread.


That said, some fraction of folks stating that they got a significant percentage under invoice are likely to have not noticed that their dealer shifted the profit to one of these other areas. For example, they may have traded in a vehicle at far less than they could have gotten elsewhere. Even if you sell at wholesale (the max of what the dealer should normally be willing to pay...but often they offer less), they may be able to flip your trade for a 1 or 2k profit. I have a friend who sold cars for years who stated that this is where his dealership made most of their profit.


Furthermore, many folks who look at their paperwork carefully notice that the dealer financing paperwork doesn't always agree with the deal that they thought that they negotiated.


My advice:
  • Negotiate each aspect of the deal separately
  • Never pay for dealer-added options. Tell them they have no value to you. If they resist, tell them they can remove them. They won't.
  • Consider selling your trade to a private party instead. You will get closer to the retail blue book value...and craigslist is free. An extra 1 or 2k here is worth a heck of a lot more than an extra 1% under invoice.
  • Don't finance - buy a car that you can afford to pay for with cash on hand. It is a depreciating asset...and financing depreciating assets is usually a bad idea.
  • If you do need to finance, shop around. You can usually do better than the dealer...unless there is a special manufacturer promotional rate. Also, if you need to finance for more than 48 months, you are probably buying too much car for your current financial situation.
  • Check your paperwork carefully...and ensure that it agrees with the deal that you negotiated.
$0.02
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Old 08-15-2012, 02:28 PM   #35
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Quote:
Originally Posted by Zinc View Post
So glad to hear that ethics still exist. I do wonder sometimes.

I agree.

Frankly, I'd rather take 1% below invoice with a local, convenient reputable dealer than drive two hours for another 1% off and then have to deal with any issues after the fact by driving back there...perhaps more than once.
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Old 08-15-2012, 02:44 PM   #36
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Quote:
Originally Posted by scuba_steve

I agree.

Frankly, I'd rather take 1% below invoice with a local, convenient reputable dealer than drive two hours for another 1% off and then have to deal with any issues after the fact by driving back there...perhaps more than once.
+1. I think some people forget that 1% of 30K is $300. Sometimes it's not worth the extra aggravation.

With that said, I'll still be trying to get below 1%. LOL!
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Old 08-15-2012, 03:33 PM   #37
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Yep, 1% is really not that much. I'm happy with what I'm getting. I don't even have the jeep yet. I've never owned a jeep, so I'm pretty excited about this. I'll really enjoy making it the way I want it.

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