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Old 09-02-2011, 12:59 PM   #1
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Is 2% above dealer cost a good deal?

Well I finally went into the local dealership and got a price on a 2012 Bright White JKU Sahara. Auto, 3.73's, MAX TOW, leather, dual trim (black/saddle), 730N Nav, Dual top group, connectivity group, remote start, anti-spin diff.

Now these are Canadian prices. MSRP is $40, 310. Dealer wants $37,870.56 + tax. Is that a good deal? It is 2% above DLRP of $37,128. So according to him he will only be making $742.56. He will not go any lower than that. So I just want to make sure that I am not being fed a line of bull (which I don't think I am). Also wondering if I should wait and see if there are any incentives (rebates) in Sept.

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Old 09-02-2011, 01:04 PM   #2
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No.

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Old 09-02-2011, 01:07 PM   #3
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Heck no. Check tread lightly
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Old 09-02-2011, 01:07 PM   #4
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Since I've heard Canada doesn't count for the TL discount...then I'd say that is a ok deal...of course depending on negotiating it could be better.
The dealer is getting more than the 2% over that you are paying....he still has his hold back money after he sells it as well.... technically you could get it for a little under invoice(i assume this is what you mean by dealer cost) and they would still get some money back from their hold back..though usually ,unless you have great skills or they are really trying to move the vehicle, you won't get that low without some sort of incentive or company code....in which the dealer gets that money back in the end anyway

If I'm mistaken and TL will work for Canadians then that right there will give you AT LEAST 1% under invoice right off the bat ...though many here are getting 2% without much hassle
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Old 09-02-2011, 01:13 PM   #5
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Considering that you live in Canada, Yes; its a fair price.
Considering its a '12 MY Wrangler, Yes; its a good/fair price.
Could you do better, Yes.

If I were you, I'd go back to the dealer the end of the/a month and see what incentives loom ahead.

Other option, let the internet be your friend and contact other dealers to see if they can beat the price. If you can get a few hundred more off, then its worth it...

Make sure the dealer shows you the invoice price of the vehicle, but be aware that some dealers do the swith a roo and provide you a fake invoice. Do your homework b/4 you go in. Check various car sites for invoice pricing, i.e., KBB and Edmunds, etc.... That way you know if their invoice price is similar to the price you get off the internet....

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Old 09-02-2011, 01:18 PM   #6
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Thanks all but I don't think Tread Lightly works for us Canadian folk. I'll go and see what another dealer can do and then compare the two. I am not going to worry about a few hundred dollars on a $40,000 vehicle but if I can save closer to a grand then yes, that has caught my interest.
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Old 09-02-2011, 01:54 PM   #7
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Originally Posted by ShaneDiddy View Post
The dealer is getting more than the 2% over that you are paying....he still has his hold back money after he sells it as well.... technically you could get it for a little under invoice(i assume this is what you mean by dealer cost)
Well this is where things for me get a little confusing. He printed off what shows on his screen. A list of MSRP charges and DLRP charges (i.e.: MSRP base price $31,495 vs DLRP price $29,047). According to the salesman if he were to sell if to me for less than the DLRP it would mean not only do they not make a profit but they would be out of pocket. Again, I don't know if DLRP is invoice or MSRP is invoice. I get conflicting answers everywhere I look.
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Old 09-02-2011, 01:58 PM   #8
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Depends if you want the dealer to be there in another year or so. They need to make something by selling cars(& Jeeps). Granted the majority of their income is from used car sales but come on.

I happily bought mine for the 1% under invoice using something similar to TL through my company. Could I have gotten a better deal? Yes! But the difference between 1% off and 2% off is $350 or so. They'll remember you if you try and screw them out of every last cent!
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Old 09-02-2011, 02:02 PM   #9
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Depends if you want the dealer to be there in another year or so. They need to make something by selling cars(& Jeeps). Granted the majority of their income is from used car sales but come on.

I happily bought mine for the 1% under invoice using something similar to TL through my company. Could I have gotten a better deal? Yes! But the difference between 1% off and 2% off is $350 or so. They'll remember you if you try and screw them out of every last cent!
I completely agree so perhaps my approach is not very clear. What is invoice? Is it MSRP or DLRP? I'm certainly not going to walk away from a difference of a few hundred bucks.
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Old 09-02-2011, 02:12 PM   #10
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Its amazing the way people think:

$750 for a higher quality OME lift
$250 for a lower quality budget boost

They'll lift their Jeep for as little money as possible, yet throw away a few hundred bucks during negotiation that would have allowed a higher quality kit...same applies for so very many mods we see on this forum...

Every cent counts. Its much easier to save money on big deals like this than buying store brand cereals...

You'll NEVER convince a dealer to sell you a vehicle if they don't make money on it. If they agree to a price, they're profiting. So there is no reason to feel guilty about pushing for a lower price.

As for them "remembering you"...BS. They'll try to make a profit on EVERYTHING they do...EVERY time you come in. Its business. If you roll over on a deal for them, they'll expect you to do it again next time you come in...they aren't going to cut you a break because you didn't stand up for yourself.

Go for the best deal you can...it all adds up in the end.
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Old 09-02-2011, 02:18 PM   #11
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As for them "remembering you"...BS.\

Not necessarily true. The deal I walked into today I had not stepped foot in since 2003 when I bought a Jeep liberty. The guy that sold it to me was in the office and said Hi to me (by name) so after not seeing him in 8 years I'd say that yes, they do remember.
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Old 09-02-2011, 02:19 PM   #12
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Quote:
Originally Posted by Bubba68CS
Its amazing the way people think:

$750 for a higher quality OME lift
$250 for a lower quality budget boost

They'll lift their Jeep for as little money as possible, yet throw away a few hundred bucks during negotiation that would have allowed a higher quality kit...same applies for so very many mods we see on this forum...

Every cent counts. Its much easier to save money on big deals like this than buying store brand cereals...

You'll NEVER convince a dealer to sell you a vehicle if they don't make money on it. If they agree to a price, they're profiting. So there is no reason to feel guilty about pushing for a lower price.

As for them "remembering you"...BS. They'll try to make a profit on EVERYTHING they do...EVERY time you come in. Its business. If you roll over on a deal for them, they'll expect you to do it again next time you come in...they aren't going to cut you a break because you didn't stand up for yourself.

Go for the best deal you can...it all adds up in the end.
And we wonder why all the jobs are leaving the country for "cheaper" wages. There wouldn't be all these 'dealer cost', 'invoice', 'MSRP', 'holdbacks', and so on if everyone didn't try to nickel and dime them to death. My father was a car salesman most of my 36 years I've been alive. I know how the process works and am happy to keep the companies that build the products I enjoy in business.
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Old 09-02-2011, 02:39 PM   #13
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Originally Posted by adrenalin View Post
Not necessarily true. The deal I walked into today I had not stepped foot in since 2003 when I bought a Jeep liberty. The guy that sold it to me was in the office and said Hi to me (by name) so after not seeing him in 8 years I'd say that yes, they do remember.
You misunderstand - of course a good salesman will remember a former customer. But the dealership will not cut you a deal because you rolled over for them. They may cut you a deal if you buy a new vehicle from them on a regular basis...but otherwise, no.

Quote:
Originally Posted by ranjr View Post
And we wonder why all the jobs are leaving the country for "cheaper" wages. There wouldn't be all these 'dealer cost', 'invoice', 'MSRP', 'holdbacks', and so on if everyone didn't try to nickel and dime them to death. My father was a car salesman most of my 36 years I've been alive. I know how the process works and am happy to keep the companies that build the products I enjoy in business.
No, the reason jobs are leaving is because 1) as a developed society cost of living is high, therefore wages are high and it is not profitable to manufacture most things here and 2) people will accept cheap crap instead of paying for quality. It has nothing to do with purchasing a vehicle at the best possible price. Anything over invoice gives the dealer a profit...invoice gives Chrysler corp a profit. However throwing a couple hundred bucks at the dealer "just because" and then turning around and buying the cheapest possible wheels, tires, and lift does more harm to the economy than good.

If you can afford to do both, good for you, but your money would benefit the economy by being spent smarter...not being thrown around like it doesn't matter.
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Old 09-02-2011, 02:49 PM   #14
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Originally Posted by Bubba68CS View Post
You'll NEVER convince a dealer to sell you a vehicle if they don't make money on it. If they agree to a price, they're profiting. So there is no reason to feel guilty about pushing for a lower price.

As for them "remembering you"...BS. They'll try to make a profit on EVERYTHING they do...EVERY time you come in. Its business. If you roll over on a deal for them, they'll expect you to do it again next time you come in...they aren't going to cut you a break because you didn't stand up for yourself.

Go for the best deal you can...it all adds up in the end.
You've got it! Give a dealer a chance and they'll be happy to pick your pockets clean. If they don't like a deal they won't take it. I tell people, when the salesman stops chasing you out the door, you got the best price.
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Old 09-02-2011, 04:34 PM   #15
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I just went to another dealer. For the exact same build they wanted $1,400.00 more than the first dealer and would not budge even after I told them what I could get one for. I might just go back to the other dealer next week with a figure and say it is that or nothing. After all, it is not like I need to really order one anytime soon.
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Old 09-02-2011, 08:03 PM   #16
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Originally Posted by adrenalin View Post
I completely agree so perhaps my approach is not very clear. What is invoice? Is it MSRP or DLRP? I'm certainly not going to walk away from a difference of a few hundred bucks.
MSRP is the sticker price...Invoice is the Price the dealer paid for the vehicle.....however after the vehicle is sold the dealer gets their "holdback" from the manufacturer which is usually a certain percentage of MSRP depending on the company.
For example the 2012 I ordered: All these were listed on the orer sheet when built.
MSRP: 27,755
Invoice: 26,632
HB: 809 (Holdback)
FFP: 26,366 (Friends and Family Price...about 1% below)
EP: 25,375 (Employee Price)

Like I said you got a pretty good deal in my opinion due to the fact that you cant get TL price......and usually they wont like to get into their holdback ...but they can depending on motivation or incentives etc.
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Old 09-02-2011, 09:53 PM   #17
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Go here http://www.wranglerforum.com/f33/201...ad-101089.html scroll to the second post, it lists all the Canadian pricing. You'll know from this how he's pricing.
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Old 09-03-2011, 02:19 AM   #18
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+1 about Tread Lightly.
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Old 09-03-2011, 02:41 AM   #19
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Thanks all but I don't think Tread Lightly works for us Canadian folk.
I went through the Costco automotive buyer's service and landed at 1% below invoice (basically Friends and Family Pricing). Maybe Costco.ca has a similar thing?
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Old 09-03-2011, 03:06 AM   #20
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I found two dealerships that offered me the F&F discount by only mentioning Tread Lightly. At both dealerships I have gone to I was offered $4K off of MSRP right off the bat. Got my 12 Rubi for $36,400 with the F&F discount. It was the same as the TL discount. You can always start off with the TL discount and see where the conversation leads you. I had no probs with the dealerships I went to here in the States.
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Old 09-03-2011, 08:15 PM   #21
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Also in Canada, got a ' cannot turn down' deal on my '11 Rubicon last week. Took a long time to filter through the sales pitch drivel, coupled with what I have spent in the past on service with the dealer, got the thing at their cost ++. Could flip it in a year and actually make some coin. Starting to thing about swapping out for a 2012 when something becomes available. Ridiculously lacking in stock at the moment. All being warehoused on the East Coast till they get permission to release.

Bottom line. Vehicles are (or should) be like computer printers. They throw those things to you for 50 dollars or 60 dollars or even give them away. Why. Because they make money on the ink cartridge. Like wise as I pointed out to my dealer, give me your car at cost and I'll get it serviced at you: service markup is 200%. Ample profit for them. ZERO bones about getting the vehicle for "nothing", their entire operations run on service and parts.

Big "things" (vehicles) and small things (printers), service and consumables, is where they make their money. No difference.

Never ever feel sorry for the dealer or the sales man.

p.s. if anyone in TO, needs a workable dealership for deals, PM me. No 2012, they're (according to me and from recent experience) flogging off their 2011 stock.
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Old 09-07-2011, 06:33 PM   #22
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Well I just got good news this week. Ends up that the company my wife works for is listed as an affiliate thus I can get dealer price on a 2012. No more worrying about bargaining.
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Old 09-07-2011, 06:40 PM   #23
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Like wise as I pointed out to my dealer, give me your car at cost and I'll get it serviced at you: service markup is 200%. Ample profit for them. ZERO bones about getting the vehicle for "nothing", their entire operations run on service and parts.
Hmm, wonder if I should mention that when I go shopping for my jeep next weekend because you're right. The dealer may make 3-4k off me if I buy close to sticker price, but they would make more than that over it's lifetime on service, and there's no haggling about that crap (unless you DIY).

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