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Old 06-26-2013, 12:12 AM   #31
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there has to be some sort of incentive out there on 2013 jk's right now. the offers i got ranged from $100 over invoice to $400 under

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Old 06-26-2013, 12:18 AM   #32
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Originally Posted by HKSkook View Post
The problem is there isn't 3k in mark up in them.
Invoice is about 7-8% and people routinely get 3 or 4% more than that... so there is more room to move on the sticker price when you factor in the 'hold back' and the kickback from the bank if there is financing involved.

This sales tactic is a common practice. I didn't look at the OP's numbers, but the salesperson got a new sale and a premium used Wrangler to make money on. As long as both parties are happy, all is well. It seems the OP is happy with the deal.

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Old 06-26-2013, 11:37 AM   #33
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So no money out of pocket, no higher payment and no extension for months of loan, and a warranty. They would have to give you more for your trade than the new Jeep costs and then charge for the warranty to zero out the trade difference. So the trade difference was truly ZERO?
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Old 06-26-2013, 11:54 AM   #34
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I had the warranty before. Paid more for it the first time (wasn't a forum member then) didn't know any better. So they refunded it and then charged me less so that was positive cash, got high blue book on the trade and that was positive cash. They rolled that back in to offset all the diff and I walked out with maybe a little less value in the jeep. Sticker on my original was just over $37k, this one was just over 36k but I got what I wanted and it didn't cost me the grand I was about to pay to get a soft top which I didn't get on my first one. I know they made money or they wouldn't do the deal and I got what I wanted and erased a years worth of wear and tear.

I had never heard of this approach from a dealer, so I wanted to share my experience. It seems that it is common in some areas and the more informed we all are about these things the better consumers we are...and we can get the best deal possible.
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Old 06-26-2013, 12:53 PM   #35
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Originally Posted by Noble View Post

I agree. If you have a good salesman and he or she gives you Great service and you can buy the car at invoice, the salesman usually earns a $100-$200 commission. Maybe $50.00 for the sales manager. The holdback is maybe $800.00. That means after they pay the comissions it leaves the dealerships with $550.00 profit on a $30,000.00 investment. After a free tank of gas, full detail, paying 3-4% floorplan interest and paying all the overhead, the dealer doesnt make nearly as much as people think.
I would love anybody to tell show me a business transaction that nets a $400 profit on a $30,000 sale.
If you have a great service oriented salesman they need to sell 8 cars a month to meet industry average. Thats $1600.00 a month.
You sure hit the nail right on the head bud. The car sales industry is a tough one to succeed in with today's market being so unbelievably competitive.
For every car sale there are a few people who need to be paid:
The dealership owner
The sales manager
The finance manager
The sales professional
The detailer
When a customer pays under or close to invoice that doesn't leave a whole lot of $$$ to pay all those nice people who are passionate about trying to help nice folks own new vehicles.
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Old 06-26-2013, 01:00 PM   #36
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Originally Posted by Chuckamiller View Post
I had the warranty before. Paid more for it the first time (wasn't a forum member then) didn't know any better. So they refunded it and then charged me less so that was positive cash, got high blue book on the trade and that was positive cash. They rolled that back in to offset all the diff and I walked out with maybe a little less value in the jeep. Sticker on my original was just over $37k, this one was just over 36k but I got what I wanted and it didn't cost me the grand I was about to pay to get a soft top which I didn't get on my first one. I know they made money or they wouldn't do the deal and I got what I wanted and erased a years worth of wear and tear.

I had never heard of this approach from a dealer, so I wanted to share my experience. It seems that it is common in some areas and the more informed we all are about these things the better consumers we are...and we can get the best deal possible.
Something sounds strange, how many months is your new loan? Are you sure that is the number of monthly payments remaining on the old loan?

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