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re: MSRP vs Dealer Best Offer

Posted on 11/28/17 at 10:25 am to
Posted by HeyHeyHogsAllTheWay
Member since Feb 2017
12458 posts
Posted on 11/28/17 at 10:25 am to
quote:

You really think they are really gonna show you a real invoice?


Of course they will. They will show you the dealer invoice, what they won't show you is the holdbacks and manufacturer to dealer rebates they receive. This isn't that difficult.

There are three figures to consider when buying a new car.

MSRP
Dealer invoice
Dealer true cost which is dealer invoice - holdbacks - manufacturer to dealer rebates.

Holdbacks vary from dealer to dealer and are based on the volume of cars sold by each dealer. Obviously a dealer that sells a thousand F150s a year is going to get a bigger holdout then the dealership that sells 100 a year.

Manufacturer to dealer rebates are pretty standard , but vary as to the time of year. At ehe end of the calendar year bigger rebates are offered on current year models to get them gone so dealers can buy next year models.

MSRP of course is easy to figure out, Just look in the window.

Dealer invoice , the dealers will often show it to you if you ask. Why wouldn't they since MOST customers are not aware that dealer invoice is NOT THE PRICE THE DEALER PAID FOR THE CAR (obviously YOU aren't aware of that)

Holdbacks are a little harder to figure, really all you can do is do a little research on the internet and figure a baseline to build your offer on

Manufacturer to dealer incentives are usually made known to the public, we see them all the time "Save $10K on a 2017 F150 this week" sorta thing. So , a customer usually knows what they are too, and again some of them are not exactly advertised, but a little sleuthing on the Google can figure it out.

SO yes, why wouldn't a dealer show you the dealer invoice when that is NOT what they paid, In most cases they have paid around 10% less than dealer invoice. which means if you pay 3-5% above dealer invoice they are making 13-15% profit on a vehicle, which they would be fine with , any dealer would take a 13% profit on every vehicle on their lot all day long.

This isn't rocket science folks.

Posted by Lickitty Split
Inside
Member since Apr 2017
4199 posts
Posted on 11/28/17 at 11:40 am to
How does this work if you put in an order for a vehicle like a Jeep?

Do they get credit for the sale this year even if the maker doesn’t make until next year?
Posted by HeyHeyHogsAllTheWay
Member since Feb 2017
12458 posts
Posted on 11/28/17 at 11:45 am to
quote:

How does this work if you put in an order for a vehicle like a Jeep?

Do they get credit for the sale this year even if the maker doesn’t make until next year?


I wouldn't have any idea about that. I've just bought a lot of new cars in my life, and seriously anyone can Google and find exactly the information I have presented as to making an offer based on true dealer cost of a vehicle.
Posted by HotKoolaid
Member since Oct 2017
444 posts
Posted on 11/28/17 at 11:56 am to
I would like to sell you a bridge, I will even show you the invoice.
Posted by Titan
Member since Apr 2008
2480 posts
Posted on 11/28/17 at 12:06 pm to
How does this work when buying used?
Posted by AncientTiger
Mississippi- Louisiana - Destin
Member since Sep 2016
2104 posts
Posted on 11/28/17 at 12:46 pm to
Dealer's do not get credit for any sale until the vehicle is reported sold to the customer. The vehicle cannot be " punched " or reported sold until invoiced to the dealership.

Let's say you order a vehicle December 2017, the vehicle takes approximately 90 days to build and arrive at the dealership. So the SOLD credit is the month delivered to buying customer.
Posted by AncientTiger
Mississippi- Louisiana - Destin
Member since Sep 2016
2104 posts
Posted on 11/28/17 at 12:54 pm to
Feel free to ask any questions, as I have been in the car industry for 27 years. Happy to answer any questions accurately.
This post was edited on 11/28/17 at 12:56 pm
Posted by HotKoolaid
Member since Oct 2017
444 posts
Posted on 11/28/17 at 1:15 pm to
quote:

I have been in the car industry for 27 years.


In what capacity?
Posted by kywildcatfanone
Wildcat Country!
Member since Oct 2012
141249 posts
Posted on 11/28/17 at 1:20 pm to
quote:

Holdbacks are a little harder to figure, really all you can do is do a little research on the internet and figure a baseline to build your offer on


Most are between 2-3% last I checked. Your information is accurate.

Dealers will absolutely show you invoice, I've asked for it and received it, and verified it's accuracy. It's the holdbacks and mfg rebates that you have try to figure out online.
Posted by Gaston
Dirty Coast
Member since Aug 2008
41694 posts
Posted on 11/28/17 at 1:27 pm to
People are so strange about buying vehicles, why on earth would it matter what the dealer 'pays' for a vehicle? Are y'all trying to determine how much they should make off of the sale of their product? Is there any other product people to this with?

FWIW, we just bought a car fully online...built it, payed the deposit online...got exactly what we wanted. Sure, I could have gone to a lot and tried to talk them down on what they had, but what good does it do to save $3500 when there are $8k of options I don't want on it to begin with? You're going to pay on this thing for a while, why just take what the manufacturer sends the dealers? 'I got a deal'...on shite you didn't want, great.
This post was edited on 11/28/17 at 1:29 pm
Posted by HotKoolaid
Member since Oct 2017
444 posts
Posted on 11/28/17 at 1:39 pm to
quote:


Dealers will absolutely show you invoice, I've asked for it and received it, and verified it's accuracy.


Lol You verified it? That's a new one

Do you all really believe that you can find out how much dealer cost is associated with a new vehicle? That's the dumbest shite I have heard in my whole life.

Cars are worth what people are willing to pay for them, the end. Some are worth more to some than others. Sales people are so stupid they have to carry a cheat sheet in their pocket at all times. No way in hell is a dealership going to disclose their cost to some grimy sales person. That's insane.
Posted by AncientTiger
Mississippi- Louisiana - Destin
Member since Sep 2016
2104 posts
Posted on 11/28/17 at 2:07 pm to
New car sales , new car manager , General sales manager -

Most of my experience is with dealerships selling over 500 vehicles monthly - new and used
Posted by Lickitty Split
Inside
Member since Apr 2017
4199 posts
Posted on 11/28/17 at 2:37 pm to
Would like to order a 2017 Jeep that I build on the website. I should shop the dealers to get the best price. I know how much the MSRP is after I’ve built it. I know that’s too much. I’m guessing I can get it for 10-15% off of MSRP. How do I get the best deal.
Posted by HeyHeyHogsAllTheWay
Member since Feb 2017
12458 posts
Posted on 11/28/17 at 2:46 pm to
quote:

Lol You verified it? That's a new one

Do you all really believe that you can find out how much dealer cost is associated with a new vehicle? That's the dumbest shite I have heard in my whole life.

Cars are worth what people are willing to pay for them, the end. Some are worth more to some than others. Sales people are so stupid they have to carry a cheat sheet in their pocket at all times. No way in hell is a dealership going to disclose their cost to some grimy sales person. That's insane.



You're a fricking idiot. This has been spelled out for you over and over and over.

Dealer invoice is NOT dealer cost. Moron
Posted by AncientTiger
Mississippi- Louisiana - Destin
Member since Sep 2016
2104 posts
Posted on 11/28/17 at 2:51 pm to
Let’s 1st talk dealer margins, they are not even 10% above invoice, especially on Jeeps. Dealers typically have 7% margin over invoice plus 5% advertising & holdback incentives.
My suggestion is to place a $1000 deposit on the order knowing the incentive’s available today, with a open ended discussion on negotiations if incentives change once the vehicle arrives. Good luck
Posted by Lickitty Split
Inside
Member since Apr 2017
4199 posts
Posted on 11/28/17 at 2:55 pm to
Does this mean the 10-15% from MSRP would not be feasible by a dealer?
Posted by HeyHeyHogsAllTheWay
Member since Feb 2017
12458 posts
Posted on 11/28/17 at 2:57 pm to
quote:

Would like to order a 2017 Jeep that I build on the website. I should shop the dealers to get the best price. I know how much the MSRP is after I’ve built it. I know that’s too much. I’m guessing I can get it for 10-15% off of MSRP. How do I get the best deal.


Print out your build, email it to a half dozen different Jeep dealers and ask for their best prices........


Or do you the "let us search for you" then find the one that is closest to what you want and go and ask them for the dealer invoice and go from there.
Posted by AncientTiger
Mississippi- Louisiana - Destin
Member since Sep 2016
2104 posts
Posted on 11/28/17 at 3:05 pm to
MSRP to invoice on a Jeep is about 7%. Now throw in DEALER REBATES that margin could increase. Remember to keep dealer profit & rebates TOTALLY separate- rebates are from the manufacturer, MSRP to Invoice is between you and the dealer.

For example:
$40K MSRP
$2K - dealer discount
$1K - manufacturer rebate
$37K sales price

Here me out - dealers make very little on new car sales- they want your FINANCE, SERVICE, PARTS, & used car trades - PERIOD
Posted by HeyHeyHogsAllTheWay
Member since Feb 2017
12458 posts
Posted on 11/28/17 at 3:08 pm to
quote:

MSRP to invoice on a Jeep is about 7%. Now throw in DEALER REBATES that margin could increase. Remember to keep dealer profit & rebates TOTALLY separate- rebates are from the manufacturer, MSRP to Invoice is between you and the dealer.

For example:
$40K MSRP
$2K - dealer discount
$1K - manufacturer rebate
$37K sales price

Here me out - dealers make very little on new car sales- they want your FINANCE, SERVICE, PARTS, & used car trades - PERIOD


Some don't seem to get that. Dealers would be happy to make 3-5% over dealer invoice of a vehicle all day every day.
This post was edited on 11/28/17 at 3:09 pm
Posted by HotKoolaid
Member since Oct 2017
444 posts
Posted on 11/28/17 at 3:44 pm to
Never mind. Not worth it.

Brb, going to run this past my sales manager to make sure everyone is getting a good deal.
This post was edited on 11/28/17 at 3:48 pm
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