[zumajoe]

I noticed on another thread that Custom Orders are now available. That whole thing worries me as it seems we have zero leverage with this method in terms of price. (eg: dealership has you in the bag).

However, I've seen posts that there isn't much dealer markup on these things currently. I'm not well versed in negotiating with car dealerships, although the consensus generally seems to pound them so hard that they don't make any money off of you and just want you out the door haha. The whole purchasing process / customer relationship of buying a car is so odd to me - they need to make money somehow right?

For a fully loaded Trailhawk 4x4 configured at $33,105 on the website- what's a fair demand? Will they even budge on price at this point to make a custom order? Should you put money down on the order? Could you ask for a free lifetime warranty if not?

 

[PAK325]

I noticed on another thread that Custom Orders are now available. That whole thing worries me as it seems we have zero leverage with this method in terms of price. (eg: dealership has you in the bag).

However, I've seen posts that there isn't much dealer markup on these things currently. I'm not well versed in negotiating with car dealerships, although the consensus generally seems to pound them so hard that they don't make any money off of you and just want you out the door haha.

For a fully loaded Trailhawk 4x4 configured at $33,105 on the website- what's a fair demand? Will they even budge on price at this point to make a custom order? Should you put money down on the order? Could you ask for a free lifetime warranty if not?

3% below invoice is typical if you shop around for the dealer willing to help you. It's not uncommon to get discounts even higher than that with other models though...

Orders actually cost dealers less money and less hassle (in terms of creating online listings, advertising, etc) and they can dip deep into their holdback in order to make you happy. Let them tell you no and walk until you run out of dealerships. Somebody will be eager to make a couple hundred bucks for themselves just for paperwork.

Then try again at 2% below invoice. That should be a lock.

I got mine at 1.5% below invoice off-the-lot.

 

[Foobar]

I think a new model that is in demand and doesn't have any factory to dealer incentives going on will result in sales at or slightly above dealer invoice.


The first few sales for a dealer are likely to be good deals as they want some initial movement, but as people start putting the demand up, they'll be able to command more. At that point, a few hundred over dealer invoice (minus any factory to dealer incentives) is a good deal.


From the dealer's perspective, a custom order is still pretty easy money, so for a few minutes of paperwork, they bag a sale. Sure, they'd rather sell you a car on their lot since it's just eating space, but a sale is a sale.

 

[Jessica08]

Invoice price isn't the same as sticker price, correct? Sorry I've never dealt with a dealership directly so I'm new to this.

What happens if the dealership that gives you the best deal doesn't have what you want? Can they get it from a dealer that does or how does that work?

 

[PAK325]

Invoice price isn't the same as sticker price, correct? Sorry I've never dealt with a dealership directly so I'm new to this.

What happens if the dealership that gives you the best deal doesn't have what you want? Can they get it from a dealer that does or how does that work?

Invoice is what the dealer is billed for by the manufacturer.

They can sell below that price because they also get a hold back bonus or sorts from FCA to help cover some of the costs of selling a vehicle.

The situation of dealers trading for a vehicle gets hairy because the dealer that was initially allocated the vehicle is the one that gets the holdback from FCA, not necessarily the one that sold it to the customer. The dealer you would by from would typically trade rather than buy outright in order to have an avenue for one of there allocated vehicles to be sold--and therefore earn a holdback payment.

Hope that makes sense. At this point negotiating with a dealer on a car that isn't in their possession would not likely yield the best results.

 

[BurningGirl]

Anyone know how the Costco buying program works? If I end up ordering, I might try that, but details are a little blurry when I look online.

 

[Foobar]

Anyone know how the Costco buying program works? If I end up ordering, I might try that, but details are a little blurry when I look online.

Dealer has a pre-defined price for Costco members that is non-negotiable. I'll find out what it is tonight and let you know. Not sure if it's the same deal for all dealerships though, so YMMV.

 

[Keeper]

Didn't know about Costco. Looking forward to the info, thanks.

 

[Foobar]

Didn't know about Costco. Looking forward to the info, thanks.

Completed my order last night here in NY. Costco pricing was $500 below invoice. Worked out to almost $1600 below MSRP with the options I selected.

 

[BurningGirl]

We have an appt to put in our order on Sunday - using the Costco dealer - exactly what I want, respectful interaction, a guaranteed deal, and no deposit required - why not?! I already bought a Liberty for a good price from a private party on Craigslist to get me through the long wait - should fe able to get what I paid back out of it for trade in. Will report back!

 

[Foobar]

We have an appt to put in our order on Sunday - using the Costco dealer - exactly what I want, respectful interaction, a guaranteed deal, and no deposit required - why not?! I already bought a Liberty for a good price from a private party on Craigslist to get me through the long wait - should fe able to get what I paid back out of it for trade in. Will report back!

Awesome, good luck! Did they give you a price yet or will that be determined on Sunday?

 

[scooterCT]

About the invoice price - it gets really tricky, and we never really have a clue what's actually going on. As somebody mentioned, there are all sorts of hidden dealer incentives to meet sales targets, and they vary from week to week. And dealers 30 miles apart who do very different volumes - their incentives might be vastly different.

I'm not even sure the salesman always knows what's happening. I had a few friends in the business over the years, and they tell me the sales manager often keeps his secrets close to the vest.

We all love the scene in Fargo where the sales guys sweat the customer, and I've seen that. But I've also been told sometimes the sales guy really doesn't know what price the sales manager will accept. Weird but true.

One thing I do know - the manufacturer and sales people always have more knowledge than we do. I've been buying for 40+ years, and I know a bit, but I always walk in knowing that I'm negotiating with a built-in disadvantage, even after all my Web research. I can have invoice figures. I can have buying club figures. I can have quotes from internet sales teams. I'm still starting out my drive at the one yard line...

 

[Foobar]

I'm still starting out my drive at the one yard line...

Truer words have not been said, but also keep in mind that we, as consumers, do have a significant advantage - we don't *have* to buy said vehicle or even brand. We only have to pay what we're comfortable paying.


I've bought many cars over the past few decades and some I've gotten at awesome deals where the dealer barely made much of a profit, and some where they laughed all the way to the bank, but in every single one of them, I always got to a dollar amount that I was personally comfortable with and had no regrets, even if someone else was able to snag a deal lower. That's where everyone needs to be. And don't be afraid to walk out without a sale - if you're not comfortable with the deal, don't force it, walk. There will always be another car available.