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Old 02-06-2014, 11:53 AM   #1
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Negotiate Price or Not?


Koons has heard from our Customers the one thing about Car Shopping they dislike is the Negotiating Process.

Question would it be better to have a set discount price on Wranglers or would you prefer to negotiate your best deal?

Also What offers that are out there that have spiked your interest in possibly getting a New Wrangler? IE: Loyalty Discount, Trade Allowance etc.

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Old 02-06-2014, 12:00 PM   #2
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In my experience, there are to many variables that dictate the price over a 5 year loan. For example, the car is half price but the loan is for 5 years at 50% interest.

I'm cynical but all those "discounts" don't mean much if your financing high. Everyone talks about "price" but the bottom line is the financing. [see housing market ]

The dealers might not have a say in the financing and that can break a deal no mater how "cheap" the Jeep" People focus, to much on the purchase price and forget the financing.

Of course, I love the negotiating process

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Old 02-06-2014, 12:27 PM   #3
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Koons has heard from our Customers the one thing about Car Shopping they dislike is the Negotiating Process.

Question would it be better to have a set discount price on Wranglers or would you prefer to negotiate your best deal?

Also What offers that are out there that have spiked your interest in possibly getting a New Wrangler? IE: Loyalty Discount, Trade Allowance etc.
Honestly, I'd say it falls down to "it depends"
A set discount price is great, unless it's not really that good of a deal. I think the key is to find a discount OUT-THE-DOOR price that is FAIR to both parties, under the idea of "If you bust your hump, yes you can get a little better of a deal, however, this is a pretty good price and all we have to do is find what you want." A lot of even moderately informed consumers will go into an advertised "deal" wondering when the other foot will fall. If you can offer a rate or price that I can walk onto the lot and know that is exactly what I'll need to finance, as a consumer, that can be an attractive alternative to negotiating. Especially if I can do research at home and decide (hopefully in the positive) that it's a pretty fair price.

Another thing I've seen is a local place has what they call "handshaker" deals on certain vehicles. I think it applied to lower trim vehicles that they can't sell. In my case, they were telling me about some baseline Sports that I imagine have been sitting for a while. (The dealership is in a more affluent part of town, so I imagine they get over looked for better equipped Wranglers). The prices were real competitive. And from what I gathered it was a, "This is the price, we both know it's a great deal, take it or leave it." sort of deal. However, I'm looking for more than a base Sport. Also, I don't like red, so I'm not going to stare at a red vehicle for the next decade.

I don't think people get as caught up in offers as they used to. They'll look to it as a number. Problem is, from the factory anyways, those of us looking for new Wranglers don't get much. Generally seems to be the military discount that everyone has, or requires me to have a lease. Otherwise it's supposedly special leasing or financing that is debatable. (0% is a great rate. Paying a vehicle off in 3 years can be pretty brutal.)

As a consumer, I'd say something that would be attractive to me, would be a combination of a fair deal and
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Old 02-06-2014, 12:46 PM   #4
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There are a few places I know that advertise the low price, what they neglect to tell you is that some of the discounts (rebates) you will not be eligible for.

If you are going to do advertised low price no haggle, make sure you list what discounts/rebates are applied on each vehicle and make sure it is in big writing that some people may not qualify for all discount/rebates. Personally if I was you I would offer a low discount price which includes all costs for everyone, including dealer processing fee/freight, and then put in the ad that students/military will receive additional discount.

Example of how I would do an ad.
Jeep 2 door (place model in here)
Window Sticker Price $29,999 ( Price includes $900 freight)
Dealer no haggle price after rebates/discount $26,999 (all Qualify, price includes $469 Processing fee) Tags/Title/taxes extra
*Military and Student Rebates available for those that qualify

Best way to keep happy customers is to make sure they do not feel like they had something put over on them, I can tell you now that dealer processing fee is hard to swallow after you get a deal and then go to sign.
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Old 02-06-2014, 12:52 PM   #5
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Didn't Sauturn try that?

I didn't work for them...but it worked for CarMax. However....used cars are a bit different.

I'm an underwriter...so I like to dig into the numbers....and I spend my entire day fighting with my sales force over the numbers....so I'm used to it. I actually enjoy being on the "other side" for once (as a buyer).
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Old 02-06-2014, 12:58 PM   #6
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Actually it did work for Saturn, what ended up killing them was there lack luster of a car line up, but they were successful for 25 years with that business model.

Some people just do not have the ability to haggle, whether it be because of their IQ or their personality just does not let them be able to haggle, this is where you will get the most customers.


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Didn't Sauturn try that?

I didn't work for them...but it worked for CarMax. However....used cars are a bit different.

I'm an underwriter...so I like to dig into the numbers....and I spend my entire day fighting with my sales force over the numbers....so I'm used to it. I actually enjoy being on the "other side" for once (as a buyer).
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Old 02-06-2014, 01:01 PM   #7
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Originally Posted by Thomas Ames View Post
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Question would it be better to have a set discount price on Wranglers or would you prefer to negotiate your best deal?

Also What offers that are out there that have spiked your interest in possibly getting a New Wrangler? IE: Loyalty Discount, Trade Allowance etc.
Just inform your customers up-font of the Chrysler Affiliates Rewards program, and how they can become eligible by joining Tread Lightly, if not otherwise eligible. Help them through the simple process of obtaining a control number.

No hassle fair deal. Dealer makes money. Customer gets a good deal. Everybody wins!
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Old 02-06-2014, 01:06 PM   #8
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When I shop I shop at out the door price. It will show the customer that there are no hidden fees as they are looking at the vehicle (window sticker). I understand that your prices will look higher than competitors but "On the Rim and Out the Door" works.

I shopped around and around for my wrangler rubicon because I kept hearing lies from dealers saying anything lower than sticker and we are losing money. Don't lie to me! My buddy owns a Ford dealer and has told me what dealers pay for the cars and it is not sticker.

So be very honest and keep all of the sleazy salesman tactics out of it. You will sell things like crazy if you are honest and forthcoming.
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Old 02-06-2014, 02:25 PM   #9
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Just inform your customers up-font of the Chrysler Affiliates Rewards program, and how they can become eligible by joining Tread Lightly, if not otherwise eligible. Help them through the simple process of obtaining a control number.

No hassle fair deal. Dealer makes money. Customer gets a good deal. Everybody wins!
Totally AGREE. Since this pricing is available and just what most are looking for, it would make sense to advertise this, stick to it and sell more Wranglers. You can still sell the warranties (@ $2,000 or so for the $100 ded lifetime is doable), sealant treatments (Mopar has a good package there too), maybe throw in some oil changes and still make enough money on each one to make it worth your while. I would think you could become the volume Wrangler dealer in your area by just being aggressively friendly with your potential (and current) customers. Return business and good references will help a lot too.

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