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Old 10-04-2011, 07:22 AM   #1
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Dealer Discounts

To make sure I understand, is the following correct?
There is a suggested retail which almost no one pays.
There is a lower invoice price to the dealer.
If the buyer has Tread Lightly, there is a 1 % discount from invoice.
However, the dealer gets 2 %, not 1 %, back from Jeep. Some dealers (but not all) are willing to pass the entire 2 % from invoice savings to buyer.
Is Friends and Family Discount the same?
Is Employee Discount the same?
Is Affiliate Pricing the same?
Have been told there are other discount programs. Some have a limit on how many times a dealer can use. What are these and what are the details?
In addition a dealer gets 3 % hold back (or additional gross profit). The 3 % is in addition to Thread Lightly and other similar programs. Is the 3 % calculated from Suggested Retail, Invoice, or Actual Price paid? I would assume Invoice but not for sure.
Many times the dealer also has End of Month and End of Quarter Incentives.
There are also prep fees billed to Jeep, etc.
What other monies does the dealer get and what are the details?
Do I understand correctly ???
Thanks.

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Old 10-04-2011, 11:06 AM   #2
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Top 8 lines are correct.
Friend and family discount is the same thing different name as the affiliate price and is the 1% under invoice.
Employee price is even lower
There are other discounts sometimes like rebates and stuff search jeep site for the current incentives
The 3% holdback is the money the dealer gets after the sale..not usually passed on to you.

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Old 10-19-2011, 12:44 PM   #3
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Ok here is my Question, I do get the Affiliate price from my work. This sales Tool that im working with on a new jeep is telling me over and over again that its not the same as the friends and family discount. Im at a loss for what the truth is and how do I make sure that I get the best discount?
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Old 10-19-2011, 12:55 PM   #4
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Yes, it's the same and what I used when I purchased mine.
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Old 10-19-2011, 01:07 PM   #5
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Friends and Family is the same discount as Affiliate Rewards. When you join Tread Lightly you get access to the Affiliate Rewards program(1% of invoice under invoice).

These programs can not be used together, if you have it thru your work use it.

Employee price is different pricing, you either have to be the employee or immediate family member to get that deal.

There is 3% of invoice built in as holdback. Normally under Friends/TL/Affiliate deal the customer gets 1% under invoice, dealer gets back 2% of invoice so the dealer keeps all 3% holdback plus 1% over invoice. The 1% over is supposed to pay the salesman his mini comission, pay for a full tank of gas and detail. That way the dealer nets right about invoice and keeps his 3% holdback.

I started doing the full 2% the dealer gets back and I do not charge the $75 chrysler doc fee. We end up $75 below invoice. From there I get paid $100, we pay $50 for new car detail and about $50 to $60 for a full tank of gas. So let's say holdback equaled $900, subtract the $75 chrysler fee, comission, detail and full tank of gas the dealer nets about a $620 profit.

Now for prep fees, the dealer gets paid about $100 for doing the PDI(predelivery inspection). This is when a tech pops in some fuses, tops off fluids, drives the vehicle to make sure everything is operating correctly. So out of the $100 the tech needs to be paid. Chrysler allows the dealer an hour book time to do this. So out of the $100 or so per hour you have to then pay the tech. I know some of our top techs are in the $30 per hour range. And yes we are a union shop so wages are probably higher.

Now for monthly and quarterly incentives back to the dealer. Each month is different. Not all vehicles pay every month. Let's say a dealer has a quota of 100 new. If they hit that number or exceed it the dealer gets money back. However as stated above not all vehicles pay. All new vehicles count toward the 100, but not all of them pay. 2012 Wranglers count toward the overall number but we do not get any money back on them right now. It is still advantageous for the dealer to go after that objective on a monthy basis. The money back per month differs as well. It could be $300 a car all the way up to $500 per car for qualifying cars. The dealer also has the opportunity to make the quarter wrap. Let's say a dealer needs to sell 300 new vehicles for the quarter(100 per month), month 1 he sells 105, month 2 he sells 80, month 3 he sells 115. The dealer hit the quarterly objective and still gets paid for all 3 months.

The short answer, you cannot use TL with friends or another affiliate program. Employee pricing is for employees and immediate family members. You do get all other incentives you qualify for(military, returning lessee, etc)

When all is said and done each unit at 2% under invoice doesn't pay the bills, hitting the objective does.
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Old 10-19-2011, 02:45 PM   #6
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Pat, thank you for the very informative post.
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Old 10-19-2011, 04:03 PM   #7
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I for one very much appreciate you clearing up this confusing issue. Someday you and I may well be doing business together because of your service to this Forum.
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Old 10-19-2011, 04:07 PM   #8
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Somebody sticky Pat's post!
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Old 10-19-2011, 05:04 PM   #9
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Thank you Pat !!!
I, for one, appreciate it.
Like being fair. It is easier to be fair if one has accurate information !!!!!
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Old 10-19-2011, 06:09 PM   #10
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Old 10-19-2011, 09:41 PM   #11
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Wow Pat! Don't do that again. I don't want to change my opinion about scumbag dealerships... Seriously, thanks very much. You have given me faith.
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Old 10-20-2011, 07:55 PM   #12
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Quote:
Originally Posted by TXJKU-Rubi View Post
Wow Pat! Don't do that again. I don't want to change my opinion about scumbag dealerships... Seriously, thanks very much. You have given me faith.
It's a win win. Customers are informed, good salespeople will make a quick deal and Jeep sells another new Wrangler.
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Old 10-20-2011, 11:14 PM   #13
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I was told by my girlfriends dad (who works at Chryslers) that he gets something called an "Employees Choice" where he can use it once a year, does anyone have information on that ? I assume its at least what the friends and family is, but maybe not the same as employee pricing..
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Old 10-21-2011, 11:34 AM   #14
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Originally Posted by recreate.me View Post
I was told by my girlfriends dad (who works at Chryslers) that he gets something called an "Employees Choice" where he can use it once a year, does anyone have information on that ? I assume its at least what the friends and family is, but maybe not the same as employee pricing..
Employee choice is gone. It was a program where an employee of Chrysler could give anyone an employee price control number. The recipient did not need to be a family member.

The only other program is CDI(certain designated individual). This program entitles the recipient to employee price plus $200. Basically a higher up exec at Chrysler could give this control number to a business owner in their community or to someone who gives back to the community. It allowed the exec to pass along great pricing to someone who deserved it by being an active member of the community.
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Old 10-21-2011, 02:37 PM   #15
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Oh thats strange, is it gone in Canada as well? I asked a few days ago and was told i could use that number.. This is dissapointing haha
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Old 10-21-2011, 03:06 PM   #16
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Originally Posted by recreate.me View Post
Oh thats strange, is it gone in Canada as well? I asked a few days ago and was told i could use that number.. This is dissapointing haha
Didn't see you are in Canada, it could be different there. Sorry for the bad info
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Old 12-07-2011, 02:28 PM   #17
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Is Employee pricing 5% under invoice?
I tried to Google it, but the best I could find was 4% to 6%...but usually 5%, along with a $200 fee.
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Old 12-07-2011, 05:28 PM   #18
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4.79% on my priced order confirmation
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Old 12-07-2011, 06:07 PM   #19
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4.79% on my priced order confirmation
Thanks...
Was there also a $200 fee?
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Old 12-07-2011, 08:28 PM   #20
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I paid 2% under invoice with a $165 dollor fee.

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