Dealership experience...?
JK Enthusiast
Joined: Jan 2013
Posts: 159
Likes: 1
From: Murrieta, CA
As a former dealership employee (not Jeep), with positions that included fleet/internet manager and Finance manager, desk manager (person in the tower), I will pass on how I purchase vehicles.
Look up MSRP, invoice, and true market value on edmunds. This is a great source for information. Remember that the invoice price may vary slightly, due to local fees, such as advertising fees charged to all dealerships in a specific local. This is paid by the dealership, therefore part of the cost of the vehicle. Edmunds does state these fees may be added to invoice and are a true cost to the dealership. Edmunds also lists incentives to customers and to dealerships. Some vehicles have what is called "dealer cash" which is a rebate to the dealership to sell a particular vehicle. this can add up to thousands in savings.
If you are an AAA member, costco, sams club member, look at their buying service for their preferred dealership. The way these programs work are there is a fixed amount over invoice, or below invoice depending on vehicle that you can purchase a vehicle w/ no haggling, plus you get any rebates and other incentives.
DO NOT USE A CREDIT UNION BUYING SERVICE. These guys charge for their service in a way you will not see. The way it worked when I was fleet manager is that the credit union would call me and ask what my fleet price was on vehicle x. I would give them the number over invoice, average was $500 over invoice, they would tell me that I was to sell the car to their customer for $1500 over invoice, and cut a check back to credit union for the $1000. This was done at many credit unions, and other car buying services. not AAA not costco, they did not charge for their customers for the services, the dealerships paid, and respected the price, as it brought many customers to turnover the inventory.
I do recommend getting credit union preapproval bank draft to take with you to buy. Right now credit unions have financing in the 2-3% range. You do not have to use the draft if the dealership gives you better financing, but you have the draft to write for the full amount financed and don't have to deal with going back and forth to the desk to get the best rate.
Always, always, always deal with the internet and/or fleet manager. You can usually find out who works for these departments on the dealership website. The contact dealership usually puts you with the internet manager not a normal front line sales person. This is how you get to the bottom line fast, no hassle.
Things that can be added in finance very in how much they are worth to you. Extended service contract (warranty) depends on the miles you drive, if you are going to mod, etc. Sometimes I buy them, on the JK I did not. paint and fabric protection is never worth the money charged. LoJack, I personally like, but anything over $5-600 is profit. I once had a BMW finance manager try to tell me that the lojack cost for a BMW was $1300 after I told her the exact cost of install of loJack. I even asked her if LoJack was still giving the $50 per unit spiff (incentive) to the finance manager. I ended up going to my old dealership paying cost and getting it installed at my home.
Once you have your bank draft, contact person, invoice costs, decide on the exact vehicle. If you are dealing w/ the fleet manager, it is supposed to work that " here is the invoice, your price is X above or below this price" here are your financing options. Done. Look on the dealership website for specials. I purchased my JKUR at what was 1100 below invoice, because it was advertised on their website at that price.
Is this the be all end all on how to purchase a car...no. Can you possibly get a better deal by haggling for hours and getting a few more hundred dollars off...possibly. Is there a better chance that the people who work deals everyday, for years, have better negotiating skills than the person that buys a vehicle every few years... you bet. There are different ways to hide profit during the overall deal (finance rate, trade in value, accessories, warranty, etc) . That is why I always get a bank draft ahead of time. Remember a dealership is a business not a charitable organization. They are there to make money. The way the desk manager, the person who makes the ultimate yes or no decision on a deal, looks at is the overall profit to sell this vehicle. There is always the super rare chance that making your deal, near the end of the month, will allow the dealership to get a large bonus, and they will lose money on the deal. I have seen it happen, and have approved the deal myself. This is an extremely rare situation, as most manufacturers do not have that kind of bonus set up unless it is for a vehicle that cannot be sold and noone should really want.
Remember that some vehicles do sell for sticker when they are released. not many, but some. I worked at a VW dealership when the beetles first came out in 1998, they went over sticker, and we sold every one of them that way for 2 years.
Always remember that the neighbor who bought the same vehicle as you for thousands less than you did, is usually not telling the truth. Have them show you the contract that shows what they paid, if you really want to call them out on it. It happens to me to this day. My neighbor has bought 4 vehicles in the last 2 years. His latest is a Raptor, which he got "$20,000 off, got all of what he owed on the 1 year old F150 he bought paid off, etc, etc." His payments reflect he paid full price plus his negative equity in his old F150. (hello, finance person who can calculate in my head).
Easy calculation is purchase price times 10% for tax, lic. minus down payment/tradein value. Financing for 60 months is roughly $20 for every 1000 financed. a $40,000 financed JKUR is roughly $800 per month. I know at 2% its less, but are your really going to calculate $18.65 per 1000 financed.
I used this to purchase my JKUR, several BMWs, including my wife's current one which was a 535i fully loaded and 1 of only 2 in southern california which I would not compromise on equipment, and various other new vehicles I have purchased over the last 20 years.
Hope this helps everyone purchasing new vehicles. Used vehicles are different animals.
Look up MSRP, invoice, and true market value on edmunds. This is a great source for information. Remember that the invoice price may vary slightly, due to local fees, such as advertising fees charged to all dealerships in a specific local. This is paid by the dealership, therefore part of the cost of the vehicle. Edmunds does state these fees may be added to invoice and are a true cost to the dealership. Edmunds also lists incentives to customers and to dealerships. Some vehicles have what is called "dealer cash" which is a rebate to the dealership to sell a particular vehicle. this can add up to thousands in savings.
If you are an AAA member, costco, sams club member, look at their buying service for their preferred dealership. The way these programs work are there is a fixed amount over invoice, or below invoice depending on vehicle that you can purchase a vehicle w/ no haggling, plus you get any rebates and other incentives.
DO NOT USE A CREDIT UNION BUYING SERVICE. These guys charge for their service in a way you will not see. The way it worked when I was fleet manager is that the credit union would call me and ask what my fleet price was on vehicle x. I would give them the number over invoice, average was $500 over invoice, they would tell me that I was to sell the car to their customer for $1500 over invoice, and cut a check back to credit union for the $1000. This was done at many credit unions, and other car buying services. not AAA not costco, they did not charge for their customers for the services, the dealerships paid, and respected the price, as it brought many customers to turnover the inventory.
I do recommend getting credit union preapproval bank draft to take with you to buy. Right now credit unions have financing in the 2-3% range. You do not have to use the draft if the dealership gives you better financing, but you have the draft to write for the full amount financed and don't have to deal with going back and forth to the desk to get the best rate.
Always, always, always deal with the internet and/or fleet manager. You can usually find out who works for these departments on the dealership website. The contact dealership usually puts you with the internet manager not a normal front line sales person. This is how you get to the bottom line fast, no hassle.
Things that can be added in finance very in how much they are worth to you. Extended service contract (warranty) depends on the miles you drive, if you are going to mod, etc. Sometimes I buy them, on the JK I did not. paint and fabric protection is never worth the money charged. LoJack, I personally like, but anything over $5-600 is profit. I once had a BMW finance manager try to tell me that the lojack cost for a BMW was $1300 after I told her the exact cost of install of loJack. I even asked her if LoJack was still giving the $50 per unit spiff (incentive) to the finance manager. I ended up going to my old dealership paying cost and getting it installed at my home.
Once you have your bank draft, contact person, invoice costs, decide on the exact vehicle. If you are dealing w/ the fleet manager, it is supposed to work that " here is the invoice, your price is X above or below this price" here are your financing options. Done. Look on the dealership website for specials. I purchased my JKUR at what was 1100 below invoice, because it was advertised on their website at that price.
Is this the be all end all on how to purchase a car...no. Can you possibly get a better deal by haggling for hours and getting a few more hundred dollars off...possibly. Is there a better chance that the people who work deals everyday, for years, have better negotiating skills than the person that buys a vehicle every few years... you bet. There are different ways to hide profit during the overall deal (finance rate, trade in value, accessories, warranty, etc) . That is why I always get a bank draft ahead of time. Remember a dealership is a business not a charitable organization. They are there to make money. The way the desk manager, the person who makes the ultimate yes or no decision on a deal, looks at is the overall profit to sell this vehicle. There is always the super rare chance that making your deal, near the end of the month, will allow the dealership to get a large bonus, and they will lose money on the deal. I have seen it happen, and have approved the deal myself. This is an extremely rare situation, as most manufacturers do not have that kind of bonus set up unless it is for a vehicle that cannot be sold and noone should really want.
Remember that some vehicles do sell for sticker when they are released. not many, but some. I worked at a VW dealership when the beetles first came out in 1998, they went over sticker, and we sold every one of them that way for 2 years.
Always remember that the neighbor who bought the same vehicle as you for thousands less than you did, is usually not telling the truth. Have them show you the contract that shows what they paid, if you really want to call them out on it. It happens to me to this day. My neighbor has bought 4 vehicles in the last 2 years. His latest is a Raptor, which he got "$20,000 off, got all of what he owed on the 1 year old F150 he bought paid off, etc, etc." His payments reflect he paid full price plus his negative equity in his old F150. (hello, finance person who can calculate in my head).
Easy calculation is purchase price times 10% for tax, lic. minus down payment/tradein value. Financing for 60 months is roughly $20 for every 1000 financed. a $40,000 financed JKUR is roughly $800 per month. I know at 2% its less, but are your really going to calculate $18.65 per 1000 financed.
I used this to purchase my JKUR, several BMWs, including my wife's current one which was a 535i fully loaded and 1 of only 2 in southern california which I would not compromise on equipment, and various other new vehicles I have purchased over the last 20 years.
Hope this helps everyone purchasing new vehicles. Used vehicles are different animals.
JK Enthusiast
Joined: Aug 2013
Posts: 248
Likes: 0
From: Orange, CA. United States
JK Newbie
Joined: May 2013
Posts: 11
Likes: 0
From: So Cal
You got owned on your lowjack. BMWs have telephone modules that do SOS and stolen vehicle recovery, u just pay the subscription. Most dealers install lowjack in every car because they make so much $$$ in finance selling it.
JK Enthusiast
Joined: Feb 2013
Posts: 122
Likes: 0
From: SoCal
Hi all.
Jim here @ Poway Jeep.
+1 Just_Q.
I have only heard good things about HB. They are the guys we are trying to beat.
HB has good prices and the people I have talked to seem all right. They are bigger than us.
We are in the San Diego area. About 45 min from Riverside.
Our version of a fleet manager is Mike Lacoumb he is the internet manager. If you tell him you are a JK-Forum member you should get better pricing than the "costco deal"
Poway Jeep has Special Pricing for JK Forum members.
I'm the official Jeep rep from Poway.
We are obviously in the business to make money. However with the factory to dealer relationship we can do it like HB by selling volume.(lots of Jeeps) one of the ways we can do that is to take care of people here on the forum and do our best to be the go to Jeep store. We are the new guys trying to get a start. 10 months old. I have the backing of the Owner and the General Manager. let me know what you need.
Jim here @ Poway Jeep.
+1 Just_Q.
I have only heard good things about HB. They are the guys we are trying to beat.
HB has good prices and the people I have talked to seem all right. They are bigger than us.
We are in the San Diego area. About 45 min from Riverside.
Our version of a fleet manager is Mike Lacoumb he is the internet manager. If you tell him you are a JK-Forum member you should get better pricing than the "costco deal"
Poway Jeep has Special Pricing for JK Forum members.
I'm the official Jeep rep from Poway.
We are obviously in the business to make money. However with the factory to dealer relationship we can do it like HB by selling volume.(lots of Jeeps) one of the ways we can do that is to take care of people here on the forum and do our best to be the go to Jeep store. We are the new guys trying to get a start. 10 months old. I have the backing of the Owner and the General Manager. let me know what you need.
JK Freak
Joined: Apr 2013
Posts: 896
Likes: 5
From: Ventura, CA
I highly recommend securing your own financing BEFORE going to the dealer. It makes the purchase process so much easier and faster. You essentially walk in, say "I want that one" and drive out. It took us 90 minutes to buy our Jeep from walking in the door, taking a test drive, doing the normal paperwork, and then driving away with a full tank of gas.
JK Super Freak
Joined: Mar 2010
Posts: 1,006
Likes: 0
From: San Marcos, CA
I highly recommend securing your own financing BEFORE going to the dealer. It makes the purchase process so much easier and faster. You essentially walk in, say "I want that one" and drive out. It took us 90 minutes to buy our Jeep from walking in the door, taking a test drive, doing the normal paperwork, and then driving away with a full tank of gas.