Originally Posted by only1tobin
Any idea on why the numbers are different from what Milous reported? I thought invoice numbers were set regardless of region or dealer? To the other point, I'd be fine putting down a small good faith amount or deposit.
Hi all. Been lurking for a while since I'm also in the market but wanted to wait for the '14s to start showing up. When I saw this group created, I started to follow some of the conversation. I'm looking to replace my aging (but still going) '02 GC.
Let me also add that, at one time, I used to be a salesperson for some of the local Jeep area dealers. I haven't been in the business for about 12 years and am not associated with any local dealer. So, some of the following info may be outdated.
While it's been a while since I've been on that side of the desk, I don't believe that some of the basics have changed about what "invoice price" really is.
With that in mind, and as I'm sure has been described in a bunch of other posts here and elsewhere, there are some basic points to consider/remember:
- The prices listed on the first page of the '14 ordering thread only apply towards actual options and base vehicle price.
- Actual dealer invoices include add ons from the manufacturer (like the cost for the gallons of gas that the vehicle gets filled with when it leaves the factory/storage depot).
- It also includes add ons for the region or zone that a dealer belongs to. These are usualy lumped into or often atttributed to Zone Advertising and/or dealer participation fees.
- Each geographical zone or area has a slightly different fee schedule that gets added to the bottom line since it takes into condition local factors and structures based on what dealers commonly participate in or apply for. Therefore, dealers in the Washington Metro area might have a different average line item than, say, dealers in the Tidewater or Richmond area.
- Lastly, when dealing with % or $ under invoice negotiations, you're going after making the dealer give up part or all of their "holdback" amount. This, as of last check for Jeep, was 3% of the total MSRP (I'm not really sure if "total" is meant to include the destination charge in that figure). When I was selling Jeeps, the actual holdback amount was detailed as an un-numbered line item towards the bottom of the actual invoice and labeled as HBXXXXXX (where X = the total dollar HB amount without decimal)
Given the above, you should expect that, when viewing an actual invoice, the total invoice price will be higher than the numbers posted for just the options and base vehicle price simply because there are add-ons that are not normally published because they differ with geographical areas.
I addition to that, the expectation that you could get 5% below invoice would need to be tempered with the fact that there's only so much room the dealer is likely to give up based on the 3% of total MSRP holdback - especially on an expected hot new ticket like the '14 GC.