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Prices Paid: Buying & Leasing Experiences Jeep Cherokee (All) Prices Paid and Buying Experience
457 messages, Last post on Aug 19, 2008 at 12:26 AM
You are in the Prices Paid: Buying & Leasing Experiences Forum. Your Hosts are car_man & kyfdx
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...into the parts department of a Jeep dealership in the Sacramento area, where I live, on Sat. to inquire about trailer hitch accessories for the new Laredo I bought in IA two weeks ago (see my post #282). Nice sunny and warm weekend afternoon - the kind that usually brings out buyers. The showroom was empty and there was only one "up" on the lot, so I engaged a salesman killing time and asked about incentives currently available on '05's still in inventory. I asked, "In addition to the direct customer rebates that DC is currently offering customers on '05 models, is the manufacturer providing any incentive to dealers?" He said, "Yes." I then asked if the incentive is a 5% reduction in the invoice cost and he replied that he didn't know, but reiterated that an incentive exists in some form. It's my understanding that most auto manufacturers grant Edmunds access to internal company Web sites where manufacturer-to-dealer incentives are listed. Edmunds then consolidates this information and posts it. However, Edmunds does not list any such incentive (i.e., marketing support) on ’05 JGC's at the present time. But other incentives that not even Edmunds has access to can exist. In fact, before the days of direct customer rebates a 5% (of MSRP) discount by U.S. and most foreign auto makers was common practice at the end of the model year. Dunno for certain, but based on my buying experience and that of a few others on this board since the end of Employee Pricing, I suspect that that is the case today, even with the juicy customer rebates. (That should tell you how slow business really is!) So, when determining the current invoice price of an '05 left in dealer inventory, as well as a reasonable purchase price, I suggest you make the following calculations: adjusted invoice price = Edmunds invoice - 5% of MSRP (with the destination charge included) purchase price = adjusted invoice price x 1.03 – direct manufacturer-to-customer rebates For argument’s sake I assume that a 3% (of invoice) profit, before rebates are applied, is fair and reasonable. Offer 4% if you feel generous, but with a 3% profit your salesman shouldn’t try to work you to death over incidental dealer costs and regional charges, like advertising. (And note that the dealer still gets the usual holdbacks.) Of course, you can try to work deals even closer to invoice. That’s your decision. After all, bus is competitive and slow, and you won’t embarrass yourself in the store if you try. So...what evidence do I have for a 5% end-of-model-year discount on leftover ‘05’s? Only circumstantial and, yes, the discount could - repeat, could - be greater than 5%. A message posted last week on the Lease Questions discussion board in this forum described a deal with a 2.5% profit by my calculations. (See my posts #8 and #10 on that board.) Furthermore, when I bought my Laredo two weeks ago my dealer offered a purchase price, before rebates, nearly $680 below Edmunds' invoice. That left the store with about 3.7% profit, not including holdbacks. I didn't even ask for the discount and, yes, I might have been able to negotiate a slightly better price (by $100-$200, say), rather than accept the offer. (Sigh.) I did insist that the store waive its usual doc fee and it did - reluctantly. Bottom line: just about anyone who can fog a mirror should be able to get a great deal on a leftover ’05 if he or she assumes that, in addition to the direct customer rebates, a manufacturer-to-dealer incentive in the form of an invoice price cut, say 5% of MSRP, also exists. |
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| In my transaction I said the dealer made close to nothing. However I do believe there must be some incentive I don't know about that will gives the dealer back some cash. The 5% off invoice makes sense becuase the deal was pretty easy to strike- so much so that I have to believe they made some money somewhere. Also I see that many dealers around me are now offering 9k off of any 2005 limited in stock. | |
'06 Jeep Grand Cherokee.---------- How far will a dealer go below msrp (sticker)? Do the rebates come off best price? This will be a 3yr lease  12,000 miles per year
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Replying to: btriola (Feb 14, 2006 2:08 pm) |
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I just purchased a 2006 Jeep Grand Cherokee Limited 4x4 at Corson Jeep in Hyannis on Cape Cod. The base price was was 36005. Options 25K………………………………..1,900 Quadra- Drive II 4WD System Power Sunroof Elec LTD Slip Differential Rr Axle Elec LTD Slip Differential Frt Axle Sirius Satellite Radio with 1-year free service Trailer Tow Group IV………………255 7 and 4 pin Wiring Harness 5.7 Hemi Multi Displacement Engine……845 5.7L Badge 6 CD/ Full Map GPS Display Nav Radio……1,200 UConnect Hands-Free Communication….275 17X7.5 Aluminum Chrome Clad Wheels………820 Destination Charge………………………..695 Total Price………41,995 This is what I paid for the Jeep. MSRP PRICE $41,995 DISCOUNT 3,222 NET INVOICE PRICE $38,773 CORSON BONUS CASH -1,000 SALE PRICE $37,773 I had several factory incentive options to choose from. 1.) Take an additional 2,500 cash rebate off sale price. OR 2.) Forgo the $2,500 rebate and take either 0% financing for up to 60 months, or 2.9% financing for 72 months. I took the 0% financing for 60 months. I traded in my 1998-740il w/57000 miles and got 13,000 for my trade. ( Dealers offer was 11,500 for my BMW. I wanted 13,500. We agreed on 13,000.) I was very pleased with the transaction. |
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A friend wants to sell me his Grand Jeep Cherokee 4x4 with 100,000- miles on it for $1,000.00 (one thousand) but it needs a new transmission and rear end. He has two quotes for $4,000.00 to get the work done. So, is this a good deal and are there any problems with the 1994's? Would you purchase a 1994?THANKS FOR THE REVIEWS! Big Drake |
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I received an offer on a new GC Ltd with Hemi, Nav and Uconnect. He offered $500 over invoice but the invoice had $600 additional of regional advertising. Is this normal, or is this something that can be negotiated? Also, the base MSRP was $100 higher than this site and even Jeep's own site. Is this a regional difference perhaps for Illinois, or should I investigate more? They are offering 0% financing through this week and I want to close a deal in the next day or so. Thanks for any help! High Z |
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Hello I live in NJ and was wondering if anyone has purchased an SRT8 jeep and what a good deal would be? Bill |
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We baught a grand cherokee limited almost completely loaded except for the HEMI and four wheel drive. Was supposed to be something like $42K MSRP but we ended up after a nights hasseling we braught them down to 38, then 32, and finally 29,995 out the door. 
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Replying to: Sylvia (Jul 30, 2003 11:34 am) Hemi, K package, uconnect, just about everything. sticker was 41995.00 I paid less than 35500.0 with 0% for 60months. This was at or below what the dealer actually paid for the car. They needed 1 car to make unit bonus and I was that car on the last day of them month 3:30pm Here are some buying tips my father gave me. He and the family have been in the business for 40 years 1) Know what you want. Know the packages and the options, be flexible with the color. Use the internet to shop, save yourself and the dealer the trouble of tying up the sales person. Once you narrow your cars on line, send some emails and get pricing. Online pricing is almost never very good, but its a benchmark. Test drive them all and make your choice. Then start to deal, but not on that day. Don't give the dealer any more info than your contact and licence. Do not let them take up too much of your time. 1) ALWAYS BUY AT THE END ON THE MONTH (This is key) you have to find the dealer that is looking for that 1-3 units to make bonus for the month. If they are a ways off, and you can ask, of bonus they WILL NOT cut to the super deal. Most often the manufacture will have a dealer incentive for a car, or option each month The sales persons bonus does not matter here. Its the dealers unit bonus that counts. BTW Hot cars, new models seldom get a good deal. 2) Look at the Manufacture date of the vehicle. Dealers hate to have cars sit. so better deals are given on 30-60-90 day vehicles 3) Never talk about a trade, you don't have one until you reach your price, then deal the trade. Better yet, never trade at the dealer. Its easy but is it worth the 2k they need to skim off the top? 4) Dealer invoice is BS. There are hold backs, incentives and other monies not shown there. Its not a bad price on a hot car, but if your willing to wait and deal down it may be worth it. 5) Financing rate. These incentives offered by manufactures is what brings me to a car. Reliability is important but I seldom keep a car past 75k. Is very important on cars this expensive. the difference between 4.9 and 0 is huge. I wanted a Lexus RX but the money I would have made back at the time of sale was not even close to what I would have paid in interest. Watch out for dealer financing. The manufacturing specials are controlled, but require very good tier 1 credit (scores around 700-750 depending). But when they get you bank financing they often add a point or so. Then they get some profit from the lender each month. This is why dealers tend to only work with a few banks. As rates rise this become easier to hide. .5% is a good bit of money over 5 years 6) Almost any dealer can get the car you want. But if its not on the lot, they will have to DX and trade for it. This will cost you money. Convenience is worth something and you will pay for it Most importantly do not let the dealer spin you around. They are masters at this. Especially at closing... never buy the add ons (ever): You can get them cheeper somewhere else. An extended warranty is not always bad but you must be very careful. Manufacture extendeds are better than aftermarkets, but always more expensive. If your car is loaded with Nav, DVD's etc... than it may be worth it. Otherwise its not. Especially if your financing it with interest. Your relationship with the dealer really only begins when you go to service. Its very difficult to get good service from a dealer other than the one you have purchased from. They have to do the work, but they don't have to give you any perks. So be careful with the service department and look for 5 star dealers (Chrysler only here). It does mean something. Since most mechanics cannot work correctly on the new high tech cars at least for a couple of years after the model is out and since most after market parts are not very good. You're going to spend some time at the dealer. Jeep does not reimburse the dealer for loaners so 90% of the time you have to rent. If your dealer gives them out, you have found a winner and that is worth a bit extra in the sale price. Sorry for the long message... just hope that helps some people |
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