Budget rental at the Dayton OH airport. They gave me a Nissan altima at first, but it was parked right next to the JKU. I figured it was fate smacking me in the face.

I turned around, walked back to the counter, and got the upgrade. They had a JK too, I don't remember if it was 2010 or 2011.

It had the freedom top, so it was a good trial run to see if I could take off the panels by myself. ( I am female lol but I could do it). The guy who checked me out was a former marine who used to go mudding in jeeps 30 yrs ago!

I also got my first jeep wave when I was cruising around. All in all a very positive experience.

 

I rented a 2011 in Maui back in December. It was a red Unlimited Sport.

 

Wow you sound like every salesman wet dream. You wan't to purchase a brand new JK and not pay any profit and ask for hold back? If you came into my store I would of walked away too.

 

Well I guess lucky for you and me that your in Chicago and I'm in Oregon,, I won't be in your store and lucky for me you won't be in mine,,,,, but from what I've been reading 2% below invoice still lets the dealer make a little money and the buyer gets a good deal. PLus the dealer probably gets repeat biz. But to each his own,,,, hell I just sold a tub at $20 over cost today just to keep a customer from going to Home Depot. I'll peobably get the entire bathroom remodel and still make a buck. Think outside the box and maybe your biz will pick up.

 

What he's asking for is not absurd, and actually many dealers are willing to make the deal he asked for because they still make good money on a deal like that. And actually there is a dealer in your neck of the woods that will give 2% below invoice automatically if you walk in with the TL Discount. I'll use an example to illustrate (you may know all this, but maybe you don't and maybe others don't and this will help them).

Let's say the Jeep you want has an MSRP of $40,000 and Dealer Invoice of $36,000.

If the dealer sells it to you for $36,000, they make no money right?

Wrong, they still get approximately 3% of MSRP, or $1,200 (let's say it's actually $1,100 in this case), from Chrysler. This is called the Holdback.

Now if you come in with any affiliate program, TL or Corporate Discount, etc, then the max they can sell you the car for is 1% below invoice. However, they are getting 2% of Invoice from Chrysler. So for the same car this is the math:

You pay 1% below invoice: $35,640 ($360 below what dealer paid)
Dealer gets 2% of invoice: $720
Dealer paid: $36,000
Dealer still gets Holdback: $1100

So dealer makes $1,100 + $720 - $360 (36,000 - 35, 640) = $1,460

They made more $ and you paid less.

So if they give you the whole 2%, they make they same amount that they make by selling at invoice, but you get an even better discount:

You pay 1% below invoice: $35,280 ($360 below what dealer paid)
Dealer gets 2% of invoice: $720
Dealer paid: $36,000
Dealer still gets Holdback: $1100

This is before they charge you an admin fees of $75 (which they can for the affiliate program) and any doc fees.

So the dealer still makes good money. Of course the $1100 is not pure profit, they are running a business and have costs.

My point is, the OP was not trying to crush the dealer. He was trying to get a good deal and let the dealer make money.

To be above board, I got 2% below invoice with TL from the dealer on my 2012 order, and he said he would check the USAA pricing before I bought it to see if that was better. Why? Because in both cases he makes money and he gets a happy customer. I want him to stay in business if he's willing to work with me like that, and I'll return for service and more cars.

 

I am in sales but don't sell Jeeps. Thinking outside of the box has worked well for me for ten years thank you. I will call you next time I need tub sealer and offer you few dollars less then your cost...
Enjoy your new JK and when I order my new one I will split the mark up with them and all will be happy...

 

Hey thanks Ndrugby for clarifying mark up and hold back and invoice etc etc.. I have been in the business for ten years so I know how it works. Let's not forget about PDI inspection, detailing of the vehicles and advertising. Manufacturers don't help the dealers with any of that.
I am so thankful I work for a German luxury car company and not japanese or domestic. Guys that ask for below invoice get shown the door.

 

Well then hopefully others will learn from this, as I alluded to in my post. I wasn't sure if you were in the business or speaking in sales generalities. I hear you on costs, and I get it. I actually want my dealer to make some money on the purchase to cover those and turn a bit of a profit, or they would cease to exist. I think I mentioned the costs thing above.

BTW, I just asked for below invoice on a German Luxury car recently and got shown the door...the door of what is now my wife's new sedan. OK, so I kind of cheated, I had USAA, but that's the same point. TL will get you below invoice pricing walking in the door, guaranteed. You don't have to fight for it, and the dealer is prohibited from selling it to you for above that if they participate in the program.

But it's all good. Everyone (including the dealers) gets to determine what they think is a fair price and good deal for themselves.

 

No wonder the States is going down the toilet. You have to make a good profit and pay tax on the profit other wise you end up where the States i now, broke and may default on loans next week. Talk about becoming one of the poor nations in the world.

 

Don't cry when the dealership who sells there cars and trucks for little or no profit goes out of business and now you don't have a place to take your car to for service work. I love how clients don't want to pay any profit on a new purchase and then demand all the money for there trades that are supposedly in "Excellent Condition". A " fair profit " isn't where you take some of the dealers hold back money. Don't complain if your used JK drops in value because every dealership is whoring them out.

You are probably the same guy that brags to his friends on how much he beat up his local salesman and got hit Jeep for less then invoice and how much he spent on his home. We all know how that story unfolded didn't we?

This whole world is going to hell in a hand basket.