Just decide on a price you want to pay, tell them what that is. If they agree to it, you're good to go. If not, then you have to decide if you're going to walk away or not.

 

So your trying to get a deal with the dealer still making money, but you want their holdback as well? Best way to rob a dealer of any kind of money is to fina a desperate dealer, if they need to sell cars really bad, they'll sell them at stupid prices. If your going into a big dealer that sells hundereds of cars a month they wont give away holdback money. Still most desperate dealers will sell at invoice, but not much lower than invoice.

 

If you're $2500 off from making a deal then you probably can't afford it.

I always look at holdback as being their commission and dealer take. if you're expecting $1400 off invoice less the 1% tread lightly program .. plus an additional $1100, then you want them to give it to you on a silver platter.

Perhaps you need to look at a Toyota Prius.

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If you're $2500 off from making a deal then you probably can't afford it.

I always look at holdback as being their commission and dealer take. if you're expecting $1400 off invoice less the 1% tread lightly program .. plus an additional $1100, then you want them to give it to you on a silver platter.

Perhaps you need to look at a Toyota Prius.

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You're jumping to conclusions a little too quickly. If I couldn't afford it I would be looking at a Sport instead. We're $2500 off and he hasn't seen my trade in yet, just given a somewhat low quote on my truck. Not once did I say I needed the entire $1400. If they come up $2k on trade in then I would bring up holdback.

You have no clue what my financial status is. Keep your pants on brother.

 

Just check out Truecar.com. The sweet spot on your Jeep (at least mine was) would be about 10% off msrp. I didn't get quite that, coming closer to 9%, but I also got a reasonable trade. That was good enough for me. I have found that most dealers who "give away" a new one only do so if they can steal the trade. Look at them seperately and if you are around 10% off, you are doing good and the dealer still has fair profit. Not knowing what state you are in, that is the best general advice I can give you. I mention this because some zones, or states, have regional incentives. However, one needs proof of residency to qualify. My .10 also does not factor in specific buyers incentives such as military, golden ticket, etc... Good luck with your purchase.

 

Thank you!

Well said gentlemen...and thank you! I've worked in a GM dealership for 20 years, and the business is more competitive and transparent than ever. But we have to make money, so we just walk away from a ridiculously insulting lowball offer.

 

Well said gentlemen...and thank you! I've worked in a GM dealership for 20 years, and the business is more competitive and transparent than ever. But we have to make money, so we just walk away from a ridiculously insulting lowball offer.

I would expect them to do the same if my offer was that low. I wouldn't expect a dealer to sell something for no profit, I just don't know what other incentives are offered dealers, besides holdback, as I'm sure there are more ways than my trade-in that they make money.

 

Depends where you live. A friend contacted a dealer in Las Vegas and they charge a premium on Rubicons. Not all locations are equal.

 

Depends where you live. A friend contacted a dealer in Las Vegas and they charge a premium on Rubicons. Not all locations are equal.

I'm in Iowa and there is not a premium placed on Rubicons. There are just so many people posting the "deals" they got, sometimes it's hard to know if it's actually true.

 

buying a new jeep

I just ordered a Willy's jeep thru The costco Auto buying program. Dealers will not budge down here on price at all. The costco program worked out to about 9.5% off MSRP. I actually tried to buy the jeep I wanted at another dealer that did not do the costco program and offered them exactly what the costco authorized dealer told me they would sell it for. I had three sales people and the sales manager basically call me a lier and that there was no dealership in town that would sell me the jeep at that price. I shook there hands and walked out. Went back to the Costco dealer and placed my order.

I wished I had found this sooner.

Zdale

 

I dont understand why everyone get their panties in a bunch when a customer is trying to get the best deal they can. Dealers have been making money on non existing packages i.e. "paint protection" or "upholstery and carpet seal and protectant" LOL selling them as add ons to customers who don't educate themselves before buying and tend to trust the dealerships too much.
I've heard many of those lines while trying to or after making a deal on a car. I have also been practically thrown out of dealers and have been told "we don't appreciate ppl like you"
In 2012 I bought a Toyota Tundra Limited left over, they said no way no how, how did you come up with that price? We would be crazy to sell it to you at that price... Two weeks later I got a call from the salesman "If you want the truck you can come and get it..."
We all play the game, the truth is, there are incentives and kickbacks as well as holdback.
If you are able to get your deal at a price you want, even if the dealer makes no money (which is highly unlikely) is not like you are stealing from them, they are not obligated to sell to you, they can simply say no. I bought my Ram last July and I shopped for 2 months and visited numerous dealerships and submitted offers on many trucks, until I found the dealer who was willing to sell at the price I wanted. In my case I'd rather deal with a high volume dealer, as they are more likely to give you a better price. They make their money on volume, not high prices.

And then there are those who like to judge on what you can or can't afford simply because you are frugal or careful on how you spend your money as opposed to being a fool and pulling out the credit card to pay top prices on things just so they can feel like they "CAN afford things" hahaha, That I laugh at because those are the ones who end up pinching pennies at the end of the month to make ends meet
Best of luck with your purchase.

 

Brother your right on, I have never heard of a new car dealership going out of business in fact when one owner retires another investor takes over usually using the same dealership name. Remember you are playing there game, very hard to beat.

 

First go towards the end of the month-when dealer incentives for the sale dept is comming to and end. All dealers ask if you have a trade in. thats # 1. Then they throw out the MSRP $ to see your reaction( remember MSRP is a SUGGESTED price, Thats # 2. They ask if you are going to finance-and they can probably get you a lower % Thats # 3. Now they can lower # 2 price at the risk of stroking you on trade-in (#1). or Financing (#3). Here is what to do. Consumer reports will give you the correct price WITH reasonable profit $ number (cost about $20.00). Then research your trade in (Kelly Blue book or NADA guide, then check financing through your credit union. Now you know the facts/$ numbers as close as possible. Get on the Jeep site(s) to locate (what ever model, accessories, etc). You may have to check several dealers-even in different cities. Usually the dealers that have the largest inventory are more apt to sell at a lower price. I always find the price first (talk trade in later, along with finance). Go from there. Usually 3-5 hrs later you can strike a deal-maybe, If not walk and try another. The dealers finance and sales people know all the tricks. AND FWIW don't fall for the $ 100.00 nitrogen in the tire trick. There is a total of $ 6.00 worth (if they really did put it in). AND at the time of signing-you can usually negotiate something extra, OEM repair manual, Jeep logo tire cover, nice floor mats, something. Be assertive, and know your stuff-least you get poked for more $$$$.

 

Since you asked, in addition to dealer hold back, there are also dealer incentives where the manufacturer might offer the dealership an extra $500 per unit sold on a particular model or trim if they sell 10, 20, or 30 units that month. Also, the dealership may have too much inventory, or too old of an inventory. If the vehicle is sitting for greater than 90 or 120 days, the dealership begins losing money on the vehicle. Selling a particular vehicle might have its own incentive.

Finally, it's possible that a dealership has a certain allotment of vehicles they can get in inventory. If for instance a dealership is only allowed 2 Rubicon's per month, yet they consistently sell both in a two week period, they might charge a premium.

 

One last thing...remember that all of that price shopping and dealer haggling takes time. For most buyers it's a stressful and frustrating process. If you are like me, your time is valuable. Driving from lot to lot costs gas money too. While I fully endorse diligence, I suggest you find a dealer you like and trust and do business with that person exclusively. To me, making a call and telling a dealer I trust what I want and making everything happen on their time makes the car buying experience 100% enjoyable! I get the tread lightly discount. All of my paperwork is ready to go when I walk in. There's no sales pressure, and if I ever want to test drive something on the lot, they hand me the keys and tell me to let them know if I need anything else when I return.

 

I'm about $2500 off from pulling the trigger on this 2016 order. If a golden ticket would ever arrive, thatvwould help even more. Any help would be appreciated.

I don't think OP said anywhere, or made it seem anywhere, that he can not afford the Jeep. Sounds like he is just financially astute and isn't willing to pay too much for something he can have for less.

Your snarky replies don't really add anything to the conversation and really are not necessary.

Whatever you say...

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Whatever you say...

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You provided zero input on my question about dealer holdback. Who wouldn't be helped by a $500 off golden ticket?

I can afford what is being offered to me right now, I'm just deciding to try and find a better deal. I'm not one to take the first offer given to me. In the meantime I'm just trying to find out how a dealership makes money in other ways...which you have not helped one bit with.

 

First off, you have given up the best leverage you could have by ordering. The dealer knows he has a sale if you order, but he won't get that sale this month or next. At this time of year, he won't even get the sale this quarter. Don't think he is not interested, because he is, but his prime focus is to sell what is sitting on his lot as soon as possible. The old adage a bird in hand is worth two in the bush definitely applies here. If you walked in on the last day of the month and he needed one more vehicle sale and you found one that met most of your needs and wasn't a color you hated, then you could get a great deal. You can always get a better deal off the lot on the last day of the month than on the first day of the month.

Of course if you wait it may be sold. I almost lost out on my '03 Rubicon last year. I had seen it on the dealers website, arranged the financing and went to see my friendly salesman who informed me it had been sold two hours earlier. However, he couldn't close the financing (mine was pre-approved) so it fell to me.

The other problem you are going to have in dealing is with the trade. Your trade-in will be worth less in two or three months when your new Jeep comes in. After all it will be one model year older. So keep that in mind. That may be part of the reason you think he is lowballing you on it, you are looking at the July valuation and he is looking at the October valuation.

So you are looking at a 2016 which will cost more than a 2015 and your trade will be worth less. Also if you are using KBB to value your trade in, keep in mind the dealer will be using NADA which is about 10% lower than KBB in most cases.

It is a complex process, primarily because our beloved Jeeps are not a commodity. Most of them are different from the others in some way that makes them more desirable. Color, trim, options, etc.

 

First off, you have given up the best leverage you could have by ordering. The dealer knows he has a sale if you order, but he won't get that sale this month or next. At this time of year, he won't even get the sale this quarter. Don't think he is not interested, because he is, but his prime focus is to sell what is sitting on his lot as soon as possible. The old adage a bird in hand is worth two in the bush definitely applies here. If you walked in on the last day of the month and he needed one more vehicle sale and you found one that met most of your needs and wasn't a color you hated, then you could get a great deal. You can always get a better deal off the lot on the last day of the month than on the first day of the month.

Not exactly. I made the deal before I ordered. No leverage involved or needed after the deal was made.

When someone walks onto the lot and looks at a unit, the first salesman that gets to him gets a commission. And the long BS process starts. Avoid the commission and call ahead. Ask for the Fleet Manager or general manager. Ask what kind of deal he's willing to make. Forget the window sticker or trim level or what is in stock. Simply ask him what is the price compared to dealer invoice. Such as $500. over, or invoice minus 1/2 of holdback, etc. Then you can go in, talk to him and either order or find a good one on the lot.

Nobody can tell you what to offer! Each unit is priced differently and without the invoice you have no idea what the dealer paid.

Or, if you happen to see a unit you like, go in and talk to the Fleet guy without talking to any other salesmen. Make an offer to buy at dealer invoice.

NEVER buy a car when you really need it, and never let on that you really want it. Be ready to walk out and always be polite. You'll get what you want. And don't begrudge the dealer for making a profit! Just try to make it a reasonable profit. We need them to stay in business and nobody needs to act like a jerk to buy a Jeep.

 

I called the dealer I ordered from and told them I wanted to order a jeep at 3% under invoice.
That called beck in 10 minutes and said OK.

While I was waiting for the Jeep to come in I joined "Tread Lightly" at that point the dealer gets 2% back from Chrysler

Point is they had agreed to the 3% holdback before they got the 2% Tread Lightly so they have room to move.

Then there is the Texas Dealer selling at 5.5% off, and somewhere on here isn't there a Dealer at 7% off?

 

I'm also just north of the Quad Cities in Iowa. My '15 Rubicon ended up coming from a dealer in Ankeny. The current Chrysler Corp. uses a monthly volume incentive program for their dealers. As the month progresses they attain new levels that are retroactive to unit one. A dealer that is having a good month will take some apparent losers at the end of the month if they are near the next level as it may pay an additional retroactive $400 per unit and if they already have a hundred out that is some serious money.

I have three 2015 vehicles in my garage, they were all purchased in the last three days of the month. My JKUR was well below invoice. I was also a GSM at a GM/Jeep dual dealership a LONG time ago.

 

Just a general observation: I really can't understand anyone willing to spend weeks trying to extract the last single possible penny out of a dealer, then turn around and blow off thousands of dollars in mods, half of which never get used.

Think about this: are you so bored and is your time really so worthless that you are willing to spend so much of it for an extra $1,000 off?

Can anyone see why dealers don't respond to lowball emails?

Can anyone see why it is pointless to complain what a horrible dealer experience you just had?

Things don't happen in a vacuum. Everything is related.

I am all for learning from each other and sharing information, but I am not into jerking anyone around, even if it is a dealer.

 

Think about this: are you so bored and is your time really so worthless that you are willing to spend so much of it for an extra $1,000 off?

It's all relative isn't it?

My time is worth the $1,000. I'd have to work quite a few overtime days to earn $1,000, or I can haggle and find the dealer that is willing to negotiate down to the lowest acceptable offer. I'd prefer to spend my time talking Jeeps than working, so haggling > overtime.

Either way, I went with a dealer in Houston that offered 5.5% below Invoice. Resulted in no haggling, and about as easy as calling Quadratec to make an order over the phone.
The only hard part will be waiting until the end of the year for Jeep to finally build the sucker and ship it to me.

 

I might be an outlier but as a consumer I want as much as possible for a little cost as possible. Businesses are in the game to make a profit. Haggling isn't wasting time, it's ensuring you get the best deal you can for yourself.

 

100% agreed, I asked for all the holdback money, to which the dealership agreed, ontop of a EP equivalent pricing, turned out to be 12.8% below MSRP, before taxes (6%), title, registration.
And they still make money, this was the second day to last of the month and they needed the sales to meet some quota...

 

After purchasing many, many vehicles through the years for both work and personal use, I have come to one conclusion. About 9 out of 10 dealers will attempt to fleece the crap out of everyone who walks thru their door. Most will lie, cheat, or steal from a person, which is why they get the terrible stereotypes. That makes it very difficult for consumers, and the few decent salespeople out there to do something as simple as buy or sell a car. While I don't need to get a vehicle for the absolute lowest amount possible, my negotiating and shopping around has typically saved me thousands every time by being willing to walk out the door. I can think of 3 instances alone where I saved between 5 and 7 thousand dollars by telling the high priced dealer to take a hike and going elsewhere, even if it did cost me a day to travel a couple hundred miles. And the funny part is...the place that got my business was still happy to have it! People can say dealers and salespeople need to make money too, and they do, or the doors would close. However, I will always do my part to make sure I'm not being screwed by them. The dealers started the game with so many using such unethical and dishonest tactics. We, as the consumers are forced to play into that game and I don't feel a bit sorry by offering them far less than they would ideally want to sell for. Everyone, on both sides, has the ability to decline.

 

Did you ever stop to think that those other three dealers were happy NOT to have to deal with you, and that THEY won because they weren't going to make any money off of you? Maybe you found "the sucker" and screwed them over because they weren't watching their numbers close enough?

Now, that may not be the case, but just because a dealership declined your offer doesn't mean that they were trying to screw you.

 

Personally, I don't care if the dealer makes money or not when it comes to MY purchase. If I leave feeling like I got the deal I wanted, that is all that matters. Because the truth is, they screwed 10 other suckers before me who walked in and paid MSRP/selling price with absolutely no negotiation.

**EDIT** Sorry OP I know that didn't contribute to your question.

 

Personally, I don't care if the dealer makes money or not when it comes to MY purchase. If I leave feeling like I got the deal I wanted, that is all that matters. Because the truth is, they screwed 10 other suckers before me who walked in and paid MSRP/selling price with absolutely no negotiation. **EDIT** Sorry OP I know that didn't contribute to your question.

EXACTLY!!!! Make up money lost on my deal on some other schlub's bad deal!!!

 

A dealer not wasting time on an unreasonable customer hasn't lost anything...

Just sayin..

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Correct. However, the customer probably wouldn't be considered unreasonable if he can go down the street and the next dealer agrees to the same terms.

 

I agree... but you can join a credit union and you'll be welcomed by any fleet manager. There was only one time I didn't deal directly with a fleet manager and that's when I bought a Porsche. The rest.. I've always bypassed the lot salesperson..

Hell.. I got a fleet price on a 2012 Ford Mustang Shelby 500.. $500 over invoice.

I decided not to buy, but the order was ready to be placed.

.

 

Raspy - you are correct in that the first sales person to talk to you can lay claim to the commission, generally by working the deal while other sales members leave the customer alone. UNLESS - you already deal with a sales person and ask for them. Some dealerships the turnover is horrendous and others it is stable. My dealer is relatively stable. The first salesman I dealt with is still there, but as sales manager. His younger half brother is now my salesman.

I know how the process works and they know that I know. They also know that as a retired accountant, I am fully aware of the pricing of vehicles and have a sharp pencil.

 

I actually have to unfollow this thread after reading that a customer isn't supposed to tell a dealer that you're pricing cars at another dealer. Unreal. In fact the best way to get them to move into a good price is to let them know you'll be taking your business elsewhere if need be. What other leverage does a purchaser have?

No tears will be shed by me if a dealer doesn't make money on my deal; apparently plenty of other people feel some kind of guilt about saving money and are willing to pay more than they have to lol!!

 

No, you miss the point. It is fine to talk to Dealer A and then go down the road to Dealer B and let him know you are talking to Dealer A and you can tell Dealer A you are going to Dealer B. What is unethical (and illegal in the business environment) is to tell Dealer B the exact price you were quoted by Dealer A and going back to Dealer A and saying what Dealer B offered. It is fine when dealing with B to ask for freebies such as oil changes, mentioning "such as Dealer A advertises" for that aspect is public knowledge. (Although they are not really "free".) My dealer used to offer lifetime oil changes, but now it is only two years and specified 4 changes. I was surprised when I bought my 2006 Ram 2500 diesel that they offered them on that. I figure that in the 8 years and 64,000 miles that I owned it, I got about $700 in oil changes.

In the business world if you do that with two suppliers, in some states you can be prosecuted for auctioning your business. It is also illegal in the business world in just about every state to demand reciprocity in that you will do business with a supplier if the supplier buy materials he may use from you. The old scratch my back and I'll scratch yours.

Of course one subtle way is to go to Dealer A, get the sales brochure and leave it on the seat of your car when the rep from Dealer B test drives your trade in. You don't have to say a word.

 

I've been working a deal on JKURHR and have used tread lightly and negotiating to try and get the cost down as much as I can. I have seen that some people have been successful with having the dealer throw in the holdback money as well. From what I have read the holdback on a Jeep is 3% of MSRP, which in my case is about $1400. I realize I'm dealing with a business whose job is to make money so I'm not trying to get by with the dealer making no money off a sale, but for those that have been able to negotiate this: how have you done so? I'm about $2500 off from pulling the trigger on this 2016 order. If a golden ticket would ever arrive, thatvwould help even more. Any help would be appreciated.

Holdback is 3% of msrp minus destination, just FYI. In my mind a fair deal on a Wrangler is "net/net". They sell you the Jeep at invoice minus holdback. So as an example, say MSRP is $30,995 - holdback would be $900 ($995 for destination) and let's assume invoice is $29,000. So you could get the Jeep for $28,100. I also always negotiate all or a part of the "dealer prep fee". This fee is a administration fee and pays for things like requesting titles, financing paperwork, washing/detailing car when purchased, and paying state fees (dealer side) - basically it's a margin booster for the dealer and in some states (like VA) can be as high as $595.

Dealers also currently receive $300 or $600 for each wrangler sold (I think it's currently $600), but I don't believe they receive marketing support on Wrangler from FCA currently. Dealers also receive allowance bonuses for each X number of Wranglers sold per month/quarter.


There are plenty of ways dealers make money. The only thing you should really care about is 1) are you comfortable with the deal you're getting and 2) are you happy. If you answer both of those questions with a "yes" than go ahead and purchase. If not, then move on to the next dealer.

Dealers are in the business of making money. You're in the business of saving money. Negotiate what you believe to be a fair deal while understanding that the dealer and employees need to make a little too. The most important thing is you walk away happy - who cares if one person pays $500 more/less for their vehicle than you do. As long as you're happy with the deal - that's all that matters.

 

In regards to some posts above, who gives a crap if the salesperson get's a large commission or not, you are spending a lot of money on your vehicle and deserve to save as much as possible. Chrysler is making quite a good buck off these vehicles let the money come out of their pocket then. It's not the consumers responsibility to care if the employee is paid well, this isn't a tipping industry. Nobody forced any salesperson to do their job.