The dealer holdback is 3% of the total MSRP price (excluding destination). They also get an $1,100 SRT advertising allowance and a $545 Delivery Allowance.
So, if MSRP is say, $65,000, they will make $1925.25 (65,000-825 destination * 0.03) + $1,100 + $545 for a grand total of $3,570? Is the math right?
$3,500 is not bad considering all they had to get my car was type an order into the computer and I will pick it up the day they get it in, so its not like it'll be sitting around on the lot wasting space and money.
That's why I'm going for invoice. They'll still make some dough.
Edit: Not to mention that my USAA car buying service prices out at invoice. So I will expect them to get it to me at LEAST invoice.
I just did some more research, and I think Milous is right: it's 3% of total MSRP. Either way, when you special order a vehicle and it doesn't even spend a night on the lot, they really should give you a decent price.
And, as impossibly hard as it will be, if they don't honor price protection or if they try and jack me to MSRP, I am 100% prepared to walk. I'm already not happy spending over 60K for this truck (as awesome as it seems to be), and I refuse to get bent over more than Jeep already has gotten me.
Seriously, what would you do if your name was on the sign? Here is a vehicle that no one can get- even the ones that ordered them. Then some schmuck comes in and offers 3% over tissue and claims the advertising and transportation fees are "allowances".
I buy and sell more cars and trucks in a year than some small dealers do. The entire process is retard economics...simple supply and demand. If they dont have it, why should they give it to you? If they are choking on ten, why even offer them 3%?
Because 1 out of the 50 dealers in 100 miles would like to make $3,500 more than they currently have.
A good dealer will also realize that it is a Jeep and it will be in the shop several times during it's warranty period, which will bring them more income. It is "retard economics". A happy repeat customer and $3,500 in margin with low risk. :thumbsup:
This was bound to happen. The hayseed Jeep dealers out there are not accustomed to floorplanning $50k vehicles, let alone $62k vehicles.
I actually kicked around the idea of going to a local store on release day back in May or June and trying to order one at or close just to see if I can catch them with thier pants down. At the end of the day, the sales contract has a non-performance clause that actually protects both parties. If the dealer is not able to perform due to circumstaances beyond their control (production delays, availability etc) in an allotted period of time, the agreed to price, t&C are null and void, and the deposit will be returned to the buyer. No harm, no foul.
Been down this road, not worth the frustration.
As I have stated a hundred times, until there is one more SRT-8 on the ground than there is a buyer for it, no deals.
That is true, as I also sell Jeep. Our SRT-8 Grand Cheroke was just delivered to the customer 2 days ago. We sold that one at MSRP which was $66,170. He was happy that we didn't charge a market adjustment fee (even though our GM had a passing thought on that). But as tyres said as long there are none sitting on lots there will be no deals.
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