Buying a new Rubicon
#31
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Re: Buying a new Rubicon
cactuscowboy wrote:
> I know nothing about jeep warehouse, but I can guess their modus operandi:
> They low ball price a vehicle, knowing they won't be spending money in their
> facility for PDI, cleaning the vehicle, etc.... Charge the sucker....err
> customer (who erroneously thinks he got the deal of a lifetime) the extra
> money for a courtesy delivery at the local dealer. If the customer is
> really stupid, he'll take two days off work, pay $500 to fly to Indiana to
> take delivery at jeep warehouse, pay for motel rooms & gas and then brag to
> his buddies back home about the "great deal" 800 miles away.
The MSRP on a 5spd manual rubicon with dual top option, CD, floor mats
and no other options is $27,345 dollars, Jeep Warehouse claims the
wholesale (including those options) price is $25,283 including a $400
charge that isn't included in the MSRP price. They deduct the $2000
manufacturers rebate and incentives from that $25,283, and quoted me:
$23,032 Or $4313 dollars off sticker.
In addition their options appear to be around 10% discounted from MSRP
or around a hundred off of anything approaching a thousand dollars.
Almost $200 saved on the dual top option alone ($1560 MSRP vs $1373).
Now on a totally loaded rubicon (Auto, AC, every factory option) the
MSRP comes to $30,535 their price is $25,831 or $4694 off MSRP.
> Buying below invoice is not unheard of. I've sold vehicles below invoice
> (before rebate). The dealer is still making money because of holdback.
> Pricing in the car business is based on supply and demand and your skill in
> negotiating. Sending out mass emails demanding 'bottom dollar' prices is
> not clever buying, skillful negotiating is.
Actually because emailing can't hurt a damn thing, and you're in effect
playing dealers against one another; it is clever shopping. Not only
that but you stand a decent chance of finding a dealer who has that one
vehicle that for any number of reasons, he can't get rid of and
(assuming it's the vehicle you want) is willing to discount deeply.
> I'm guessing that jeep warehouse is a great place to buy - if you live in or
> near Muncie, Indiana. If you don't live there, then why bother? If you
> live in Oklahoma will jeep warehouse be doing the warranty work, loaning you
> a car at no charge, driving you back to work while your jeep is being
> serviced? No way! Nor will the local dealer in Oklahoma bend over
> backwards to provide excellent service to the jerk who bought out of
> town/out of state. Support your local dealer and local economy. Your job
> may one day depend on it. Think about it.
If that Oklahoma dealer doesn't provide adequate warranty service he'll
be fixing more problems or the same problems repeatedly at skimpy
manufacturer reimbursement rates. Pretty impossible to force the
manufacturer to pay a 100% dealer parts markup for their own damn parts ;)
--
Simon
"I may be wrong, but I'm not uncertain." -- Robert A. Heinlein
> I know nothing about jeep warehouse, but I can guess their modus operandi:
> They low ball price a vehicle, knowing they won't be spending money in their
> facility for PDI, cleaning the vehicle, etc.... Charge the sucker....err
> customer (who erroneously thinks he got the deal of a lifetime) the extra
> money for a courtesy delivery at the local dealer. If the customer is
> really stupid, he'll take two days off work, pay $500 to fly to Indiana to
> take delivery at jeep warehouse, pay for motel rooms & gas and then brag to
> his buddies back home about the "great deal" 800 miles away.
The MSRP on a 5spd manual rubicon with dual top option, CD, floor mats
and no other options is $27,345 dollars, Jeep Warehouse claims the
wholesale (including those options) price is $25,283 including a $400
charge that isn't included in the MSRP price. They deduct the $2000
manufacturers rebate and incentives from that $25,283, and quoted me:
$23,032 Or $4313 dollars off sticker.
In addition their options appear to be around 10% discounted from MSRP
or around a hundred off of anything approaching a thousand dollars.
Almost $200 saved on the dual top option alone ($1560 MSRP vs $1373).
Now on a totally loaded rubicon (Auto, AC, every factory option) the
MSRP comes to $30,535 their price is $25,831 or $4694 off MSRP.
> Buying below invoice is not unheard of. I've sold vehicles below invoice
> (before rebate). The dealer is still making money because of holdback.
> Pricing in the car business is based on supply and demand and your skill in
> negotiating. Sending out mass emails demanding 'bottom dollar' prices is
> not clever buying, skillful negotiating is.
Actually because emailing can't hurt a damn thing, and you're in effect
playing dealers against one another; it is clever shopping. Not only
that but you stand a decent chance of finding a dealer who has that one
vehicle that for any number of reasons, he can't get rid of and
(assuming it's the vehicle you want) is willing to discount deeply.
> I'm guessing that jeep warehouse is a great place to buy - if you live in or
> near Muncie, Indiana. If you don't live there, then why bother? If you
> live in Oklahoma will jeep warehouse be doing the warranty work, loaning you
> a car at no charge, driving you back to work while your jeep is being
> serviced? No way! Nor will the local dealer in Oklahoma bend over
> backwards to provide excellent service to the jerk who bought out of
> town/out of state. Support your local dealer and local economy. Your job
> may one day depend on it. Think about it.
If that Oklahoma dealer doesn't provide adequate warranty service he'll
be fixing more problems or the same problems repeatedly at skimpy
manufacturer reimbursement rates. Pretty impossible to force the
manufacturer to pay a 100% dealer parts markup for their own damn parts ;)
--
Simon
"I may be wrong, but I'm not uncertain." -- Robert A. Heinlein
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07-03-2004 10:19 PM
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