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Discussion Starter · #1 ·
Probably not a big dollar issue, but I have received a couple quotes from the dealer I am working with. However, I have noticed that two items on the most recent quote show a higher "invoice" price from the first quote I received in late February:

JKJM74 (Wrangler Unlimited Sport) jumped from $25,874 to $25,967.
MX5 (Premium Black Sunrider Soft Top) jumped from $356.00 to $445.

Since I am trying to negotiate from "invoice," I am wondering how soft that number really is. Or could it just be a case of a modest price increase in the interim?

Thanks for any thoughts or comments.
 

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Invoice price has padding built into it to start with as the dealer gets hold backs and other promotions from the manufacturer that lower their cost below the invoice price. This can be $1500 to a few thousand dollars less than the invoice price they will show you. The few $$ you are talking about are almost nothing to the dealer.
 

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Discussion Starter · #3 ·
Thanks for the response. Dealer is honoring the original numbers and I will sign for the order tomorrow. I hate buying vehicles, but this has been an easy and transparent process. Wouldn't hesitate to recommend the dealer to others. For curiosity, I wonder if the change in numbers was dealer initiated or mfg initiated? I think the price is fair, so I don't want to be the guy that tries to grind the salesman if the dealership didn't control.
 

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Having worked in management in a dealership, I will say that anything at or above published invoice is extra money in the dealers pocket. The dealer "pack" which is never disclosed, but is built into the invoice covers ALL his operating cost, both fixed and variable. Anyone who pays more than $500 over published invoice is helping send the dealer on his next cruise for top dealer award. The dealer I worked for, averaged over $1000 profit per unit, when sold AT invoice.

Most factory options are marked up 100% and ALL dealer add ons are usually marked up well over 100%, sometimes as much as 500%. For new vehicles, I usually start at 25% off MSRP or $500 below invoice and let the dealer set the tone for negotiations.
 

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As a Jeep salesman of 17 years, I can answer this question.

I have noticed that two items on the most recent quote show a higher "invoice" price from the first quote I received in late February.

Since I am trying to negotiate from "invoice," I am wondering how soft that number really is. Or could it just be a case of a modest price increase in the interim?
Chrysler spreads out a few small price increases through the model year--this way they don't have one large price jump for the new model year. In the case of Jeeps, there was an increase in cost of a few options right around March 1st. I have a friend who was going to buy a new Grand Cherokee in mid February, so we priced out what was available... but then he changed his mind and had me submit a factory order so he could get exactly what he wanted. On his freshly built Jeep, two of the options he selected had gone up in price compared to what was on the lot a month ago. So, yes, this happens.

It sounds like you've found a dealer who is being fair and honest with you and are concerned about your satisfaction. These are all good signs. Best of luck with your purchase.
 
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