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today is the day...price negotiation day

8K views 50 replies 22 participants last post by  vdobb8249 
#1 · (Edited)
so i'm sitting down today to make a deal. looking at a 2017 limited. on my trade, i'm getting $20,000, after payoff of $12,000 I have $8,000 towards the new jeep. after doing some homework and reading posts on here, i'm looking to get the total down to $42,000. out the door. that's approx. $3000 less than their original offer after options. I live in New York. taxes are 8.875%

on a limited my first quote is:
FWP- $38,686.
5.7- $2,933.00
9 speaker amp-$530.00
uconnect 8.4 nav- $1,153.00
20x8 satin silver wheels- $1,420.00
7.5 gallons gas- $17.00
destination- $995.00
----------------------------------------
total- $45,734.00
family discount- $ 400?
$45,352.00

on the purchase info screen it has:
cash price- $45,352
trade- $8,000
rebate- $2,000
total down- $10,000
filing fee- $299.50
doc fee- $75.00
insp fee- $10.00
plate fee- $85.00 (just switching plates)
tire fee- $12.50
gap ins. - $232.00
total tax amount- $2,195.80
sale subtotal- $35,352.00
finance charge- $3,981.00
total financed- $38,261.00
total of payments- $42,243.00
deferred price- $52,243.00
unpaid balance- $38,261.00

i understand everyone has to make a living, but I just don't want to be taken advantage of, are these legit numbers? because I don't understand half the crap the salesman throws at me as I realize they try to confuse you with all their fancy numbers. what is deferred price?
if I tell them I want to spend $42,000 is that reasonable?
 
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#2 · (Edited)
Go to wk2jeeps.com and use the invoice prices as your starting point. Deduct any rebates and then see how much the dealer will go down from there.

Gap insurance should be optional on a purchase. With $10,000 down payment it is unnecessary. It's not a bad thing for folks who put nothing down. Your putting down better than 20%.

I just checked, they are working with invoice price.
Deferred price includes interest you'll pay.
It looks to me like they miscalculated the sales tax. I think at near 9% you are looking at over $3,000
You are paying a lot of interest. The rate should be negotiable if they check several banks.
I don't think you are ready to sign until you get everything explained and take a day to digest it.
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#3 · (Edited)
Go to wk2jeeps.com and use the invoice prices as your starting point. Deduct any rebates and then see how much the dealer will go down from there.

Gap insurance should be optional on a purchase. With $10,000 down payment it is unnecessary. It's not a bad thing for folks who put nothing down. Your putting down better than 20%.

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ok, thank you...
so I did that. the numbers on wk2 are all relatively close to what I figured from other pricing sites.
I understand the finance rate is higher than I want on paper right now, I think that's their 4.4% figured in.that will be lowered. the sales tax I think is based on the trade difference.
 
#5 ·
It's a good idea but if Carmax did purchase his Jeep then he'll have to pay tax on the full price of new vehicle. On a trade it's just the difference.
 
#6 ·
Carmax is a great negotiating tool. You dont necessarily have to sell to them, but if you walk into the dealership with a Carmax quote you feel comfortable with it gives extra ammunition to your argument.

The dealership offered him 20k. If carmax quotes him at 23k he can take that quote straight to the dealership and tell them to meet it.
 
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#7 ·
You also have the option to talk to Craig at Koons and perhaps take advantage of the Jeep Garage "group buy" pricing which is well below invoice. There's a dedicated forum area and contract information listed there. Many folks from your area have taken advantage of that.

Nobody should be paying invoice or above invoice...even the most basic "affiliate" discount will get you 1% below and competitive offers are well below that. Never negotiate off MSRP...ALWAY negotiate off of invoice.
 
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#33 ·
I'm so glad the we have USAA bank, and we don't have to deal with all this bs.
Please explain --- lower interest rate or do they have car buying service??? I'm curious. Thanks!
 
#11 · (Edited)
Not sure who you're financing with but there are tons of credit unions in the NYC area who will give you sub 2.0 interest on a 5 year loan. Also, like others have said, Koons will give you 6% under invoice (more like 5% after factoring $599 doc). Use this as your negotiating tool. Personally, I bought mine from a dealer in PA and paid 7% under invoice though I did have an affiliate code and I like to negotiate and worked hard for my numbers.

BTW, looks like the filing fee is pure profit so you may be able to negotiate that, depending on the dealer.
 
#16 ·
ive had 10 people tell me to wait until the end of the month for a better price. sounds believable, but stupid.

so since my salesperson wasn't in today, I have to wait until sunday to negotiate.
i'm thinking I want to pay 5% under invoice. $22,000 on my trade, 2 more than they offered and under 2% on my loan. that's my story.
 
#18 ·
ive had 10 people tell me to wait until the end of the month for a better price. sounds believable, but stupid.
Dealers have quotas which if met make a lot of money for them. So, if they were close to meeting a quota they may want to really deal on a couple of cars. If they already met their quota they may not. With Chrysler, it isn't necessarily the end of the month as they have two "Quota" dates per month.

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#17 ·
My advice is negotiate trade-in separately from the price of vehicle purchase. I purchased my '16 from Koon's for 7% below invoice. I could never find a dealership which could match that pricing.

I sold my trade to Carmax which gave me $1000 more than the dealership.

It really helps to use the internet and shop around.

I would be absolutely sure you want something other than the 3.6. Be sure you test drive all options before you commit. As said earlier, unless you tow, have mountains to climb, or just have to have a V8 you are wasting money. I know this is just a personal preference.
 
#19 ·
I sold my trade to Carmax which gave me $1000 more than the dealership.

It really helps to use the internet and shop around.
I'm curious, what was the total you got for the car and what is your sales tax?
The amount I was offered to sell mine was more than I got as a trade by exactly the additional sales tax I would have paid.
 
#20 · (Edited)
When I researched for my 2014, a "good" price was 4-7% below invoice. I would venture to guess that's still true, so that's what I would shoot for. If they are not willing, then walk away and contact another dealer.

I actually contacted all of my local dealers and surrounding states via email, and told them how much I wanted to pay. I had ONE dealer actually contact me, and that's who I bought from. It was a nice time saver for me because it weeded out a bunch of BS salesman and got me into contact with a dealer who was straight-up. I believe I ended up paying 4% off invoice.

I also would not discuss trade-in until you have a final price for the new vehicle. Check your trade-in value through Black Book, KBB, True Car, CarMax, etc.
 
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#26 ·
so I got the price and walked...
the invoice was 46,754. I told him it was too much, he did the famous talk to my boss, and came back with the jeep advertised $2000 rebate. I wasn't impressed, since it's not like he did me a favor, i'm already entitled to it. I told him I need it lower. to call me wed.
 
#28 ·
Paying invoice is a joke, glad you walked. Be prepared to never hear back though. You may have to broaden your search. I had a couple dealers who didn't even bother to negotiate with me (Westbury/Major) and went to PA instead. Even local dealers to me came back at invoice despite me telling them I have already been quoted lower.
 
#35 · (Edited)
so invoice has been at $47k, and i'm at $43,200. shooting for $42k, been to 4 dealers. going to 2 more today
each one has a different approach. after all the fast numbers talk, and the "what do you want to pay" line, ive answered with...I don't care what I pay a month, I want to pay $42,000 for the truck. then they get annoyed lol
one guy told me if I got the 5.7 motor, It's "required" that I get the upgrade luxury package for $4300. I told him it was a deal breaker since I didn't want anything in the package. did the famous " talk to my boss" walk, and came back literally saying "whew" "thank god" that I didn't have to take the package now because the sunroof isn't available. lol I laughed right in his face.
 
#46 ·
PenFed offers similar via the TrueCar system. I got a better price from the local dealer on my spouse's 2016 Outback, but still took advantage of some of the TrueCar perks that came with having that certificate.
 
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#48 · (Edited)
I know there are actual people that for a fee take all the hassle out of the car buying experience but good to know some banks/credit unions offer comparable services.

Used be I didn't mind car buying but now a days I just don't have time for the "What do you want your monthly payment to be" "You need the laser window VIN etching service" "Well you see your getting such a good deal on the new car that your trade isn't worth" and etc. I just want to be shown a straight forward deal that we can begin negotiating from and I like dealers that start out that way without being pushy.

Next to researching before going to the dealership the best thing you can have is the ability to walk away.
 
#49 ·
Used be I didn't mind car buying but now a days I just don't have time for the "What do you want your monthly payment to be" "You need the laser window VIN etching service" "Well you see your getting such a good deal on the new car that your trade isn't worth" and etc. I just want to be shown a straight forward deal that we can begin negotiating from and I like dealers that start out that way without being pushy.
...and "we put nitrogen in the tires", "already installed pinstripes", etc.
 
#50 · (Edited)
I purchased my wife's 2015 loaded Limited through the USAA service, sort of. There was one prebuilt car we wanted on a local lot, not a USAA dealer, so I took the cert, and just said "this price or I go to the dealership on this certificate". It took some time and I walked out twice, but we did get the car at that price, that day. I knew I had them when they chased me escape #1. If you buy from a USAA dealership and use their financing, your get 0.49% lower rate than those shown above (I think). Haven't shopped rates but that may be the deal still. The caveat with USAA, the car needs to be in stock.

BTW, once approved by USAA, they send you a blank "check" to walk in with. You can use it anywhere.
 
#51 ·
I bought a Limited 2015 as well. But I did not have to use my USAA certificate, and I didn't have to waste my time negotiating. I paid a reasonable price and they gave me exactly how much I owed in my 2013. The only thing is that I had to wait a few days because they had to bring it from NC to SC my dealership didn't have the car with all the extras and interior color that I wanted . But it was worth the wait I love my Jeep!


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