Price Negotiation

[canadianhillbilly]

Who can fill me in on pricing and negotiating? How do discounts work? Right now there is -$8500 program. Does the dealer lose this cash in the deal or are they reimbursed from headquarters? Reason I'm wondering is... Due to my job I get invoice pricing on RAM, so lets assume around another -$4000. So on paper the dealer makes $25 on my deal before the -8500. I am trying to figure out how much negotiating room there is for me. If the dealer is reimbursed the discounts I should have the same wiggle room as someone without the invoice pricing. If not the price they come up with is period end of story sign here? Ya I'm cheap I want to get the best deal possible.

 

[mangus2k13ram]

Who can fill me in on pricing and negotiating? How do discounts work? Right now there is -$8500 program. Does the dealer lose this cash in the deal or are they reimbursed from headquarters? Reason I'm wondering is... Due to my job I get invoice pricing on RAM, so lets assume around another -$4000. So on paper the dealer makes $25 on my deal before the -8500. I am trying to figure out how much negotiating room there is for me. If the dealer is reimbursed the discounts I should have the same wiggle room as someone without the invoice pricing. If not the price they come up with is period end of story sign here? Ya I'm cheap I want to get the best deal possible.

I had a discount through work too. The special pricing is non negotiable because it is a set price. It acts as an rebate so the dealer gets reimbursed from Chrysler. You will then get all available rebates to you.
Example sticker is 40,000
Invoice is 37,000
Special price is 37,000 based on what you said.
Rebates could be 4,500
So final price is 32,500 before taxes and tags.

Do not pay attention any sale tags in the windows because dealers like to add rebates that not necessarily pally to you.

I use to sell cars at dealer for 5 years, I know there tricks.

 

[canadianhillbilly]

So lets assume final price dealer gives me is $32,500 after all discounts. There's no negotiating after that down to say 31,000 since I have invoice pricing?

 

[RANJR]

There are several ways to negotiate.

- Hold backs (money the manufacture pays dealer to sell certain vehicle)
- Buy Rate for financing (lowest rate bank will finance you at, dealer marks up for profit)
- "extras" at cost (GAP, Extended warranties, tire protection, etc.)
- add-ons at cost (from dealer parts department)
- service (oil changes, scheduled maintenance)
- standard rebates
- the biggest one is trade in (dealerships make money off service and used cars, not much on new cars)

My dad sold Fords for 20 years and these are the terms he used. Chrysler/your dealer may vary.

 

[RANJR]

So lets assume final price dealer gives me is $32,500 after all discounts. There's no negotiating after that down to say 31,000 since I have invoice pricing?

Most companies have what's called 'Affiliate Pricing' which is 1% below Invoice. BUT Invoice IS NOT what the dealership paid for the vehicle.

 

[mangus2k13ram]

So lets assume final price dealer gives me is $32,500 after all discounts. There's no negotiating after that down to say 31,000 since I have invoice pricing?

Correct, if you have a set price through work.

 

[mangus2k13ram]

Most companies have what's called 'Affiliate Pricing' which is 1% below Invoice. BUT Invoice IS NOT what the dealership paid for the vehicle.

I couldn't remember what it was called, thanks. I had to use chryslers website to get my discount code. This saved me the hassle of negotiating.

 

[mangus2k13ram]

There are several ways to negotiate.

- Hold backs (money the manufacture pays dealer to sell certain vehicle)
- Buy Rate for financing (lowest rate bank will finance you at, dealer marks up for profit)
- "extras" at cost (GAP, Extended warranties, tire protection, etc.)
- add-ons at cost (from dealer parts department)
- service (oil changes, scheduled maintenance)
- standard rebates
- the biggest one is trade in (dealerships make money off service and used cars, not much on new cars)

My dad sold Fords for 20 years and these are the terms he used. Chrysler/your dealer may vary.

Couldn't have said it better.

 

[baum]

Negotiate your trade before you tell them that you get the employee program. that way you will get the most out of your trade.

my outdoorsman stickered for about 42k after i got the employee program with rebates i got it for a shy over 30k back in august.

 

[Adept]

No price is set in stone. Hone your haggling skills, lol.

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[canadianhillbilly]

Negotiate your trade before you tell them that you get the employee program. that way you will get the most out of your trade.

my outdoorsman stickered for about 42k after i got the employee program with rebates i got it for a shy over 30k back in august.

No trade on my deal

 

[baum]

No trade on my deal

i believe you can give a vin to the people on the phone that you get the control number from and they can tell you the price you pay. before rebates

take that price minus all rebates and there you go. know that price before you go to the dealer. see what they will do with their pricing first. and if your price is lower, then be like bam.. oh by the way...

purchasing with the control number is easy i have done it for 2 chrysler cars now.

 

[canadian_bacon]

With "preferred customer" discounts, there is no negotiation, the price is fixed and it is actually on the invoice. Once you have your control number, the dealer must show you the factory invoice. It is printed on the lower left side. The dealer makes $25 over the factory price and they get $200 from the factory.
I love this as there is no dealing with any pushy sales people. Once they hear about the control number they settle down immediately.
My 12 Sport was ~$51k on the sticker, went home with ~$35k+tax.
Just be warned, they will try to upsell you all the warranties in the world, financing protection, accessories, you name it.

 

[canadianhillbilly]

Ok so someone answer me this. I have priced the exact same truck at 2 dealerships. One is $1200 lower than the other one. Should they not be the same price as its the same truck with same options? The bigger dealer of the 2 was the more expensive one. Or are they guessing the actual invoice cost will be as it has to be ordered/built?

 

[Nubster]

Just because the one is smaller, maybe they move more vehicles. There's a bike shop in my town. They sell motorcycles and ATVs. Kawasaki, Suzuki, Yamaha. Anyways, there are other shops in the area that sell the same stuff. People drive from as far away as 3 or 4 states away to buy bikes here. Because they sell for so much less than anyone else. They're idea is that the next shop over might make $2k on a bike and this place only $500 but they'll sell 6-8 bikes for every one the other shop sells. It works too because this place is one of the biggest dealers in the country...as far as how much stuff they move. Not the actual store.

 

[canadianhillbilly]

Just because the one is smaller, maybe they move more vehicles. There's a bike shop in my town. They sell motorcycles and ATVs. Kawasaki, Suzuki, Yamaha. Anyways, there are other shops in the area that sell the same stuff. People drive from as far away as 3 or 4 states away to buy bikes here. Because they sell for so much less than anyone else. They're idea is that the next shop over might make $2k on a bike and this place only $500 but they'll sell 6-8 bikes for every one the other shop sells. It works too because this place is one of the biggest dealers in the country...as far as how much stuff they move. Not the actual store.

Yes but they are not selling at invoice pricing. Invoice for both trucks should be the same at both dealers should it not? If I am ordering a truck at invoice and that is their actual invoice it should be the exact same price no matter where I go, should it not? Or can some dealers get better invoice pricing than others due to volume ordering?

 

[Etroze86]

That could be exactly right, I mean Chrysler still has to make money off the dealer. I would go to which ever dealer you feel comfortable and play the **** out of them with those numbers.

 

[SJC]

Ok so someone answer me this. I have priced the exact same truck at 2 dealerships. One is $1200 lower than the other one. Should they not be the same price as its the same truck with same options? The bigger dealer of the 2 was the more expensive one. Or are they guessing the actual invoice cost will be as it has to be ordered/built?

I think even though you get a set price on the vehicle they can get you for dealer fees and destination charges. When I was looking around the dealer fees ranged from $490-$899.


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[jbr]

Some information I found with dealerships (USA). Don't know if it is all true or not. Hold back on each vehicle sold is about 3%. The dealer gets this money from Chrysler headquarters a few times a year.

Invoice price is base price X . 926 + option package price X . 85 + destination charge.

Trucar. com seems like a decent website to use to get a ok price. I read you should start at $1000 below this price with a salesperson.

Any sale above invoice is salesperson profit. I read to deal with Internet salesperson to get better deal.

Negotiate price of truck first, then take rebates off of that price. Rebates are dealer incentives that don't hurt the dealership because they get that money from Chrysler headquarters.

Truck sales in the last days of the month usually net the best deals because dealerships are trying to reach their quota.

All information I stated above I read from different forums. I don't know how much of it is all true.

If anyone wants to chime in to correct me, that would be great. Trying to be more of an educated consumer when my wife needs a new car

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