not always. The dealership has to keep an "average gross" or profit margin for all vehicles sold. If they really popped someone for a used car say for a $4000 profit, they can afford to really lose money on a new car since they will be recieving some back end incentives from the manufacturer. HOWEVER the CAR DEAL ITSELF still loses money for the dealership. When I bought my 05 Grand Cherokee Limited as a leftover from 05 in 06 the "payable gross" or profit from the transaction was negative $10000! They won't do that always, but if they need to move metal, they will...

 

This is how I worked my 07 I just ordered. Dealer invoice is what they pay. Holdback is definately what they get as a bonus. Dave smith sells over 500 vehicles a month. They get a bigger bonus from dcx. Dealer up here doesnt sell over 500 and gets a smaller bonus. The key is, is that the dealer up here pays the same for the truck as dave smith. Dave smith quoted me 500 under invoice. 250 was the best I could do here. It was worth the 250 to buy here. Dealer told me he made about 700 bucks on the deal. That will be the bonus. Did the dealer make money? Yes. Did he want to make more? YEs. THis was on a vehicle that I ordered. You can not do as well if it is sitting on the lot. They have to pay taxes for the vehicle on the lot. My ordered truck has no taxes and they dont have to sit on it. Best way to do business if you can. Buy invoice, sell outright. Only way to go. Before they went to employee pricing, there were better rebates. When they went to employee pricing, they dropped the rebates. I priced an 06 through dave smith before employee pricing and had a better deal with them before the employee pricing started. I priced after and the price went up 1000 bucks.

 

I paid 36000 for my06 Big horn edition 3500 DRW CTD at Dee motors in Anaconda MT no sales tax

 

At the prices some people expect the dealers to sell the trucks at they can't afford to hire brain surgeons to change oil.


And the other quote about dealers offering huge discounts. When they offer huge "discounts" it almost always is subsidized by the manufacturer via rebates, dealer cash, and other incentives. If you're getting a $10K dollar discount it by no means implies the dealer had $10K worth of markup to work with.

I never said dealers don't make money, but only that they don't make the amount of money on NEW CAR SALES that MOST people think they do.

 

That's true - a lot of their income is from the service department, so why can't they get better quality techs?!

(notice I said CAN'T not WON'T)

 

So let me ask this, on a 06' SLT MegaCab with an MSRP of $46,560, is $42, 099 a fair price for the vehicle (this is of course tahing the 0% for 60 months, it would be $3500 less if I took the rebate)?

Dave

 

What can you get for a rate for 60 months or maybe 48 months elsewhere? You might do better to take the $3500 rebate and get your own financing, especially if you can put some cash down or sell your current vehicle privately and put that cash towards the loan. I'd figure it out both ways

FWIW, my understanding is invoice is ~ 89.5% of MSRP and the employee price is 4% below that.

Don't forget the Farm Bureau Rebate of $500 as long as you're a member for 30 days.

 

Thundercloud Any special pricing is done by the factory, employees/family/friends, matter of fact if a dealer plays with the invoice in this type of purchase he can have problems. If you are able to purchase one under the plan, they will already have a invoice reflecting the amount the factory has already established, it will show all the discounts on the options as well.

Sticker on my 06 Laramie was $46,215 my price was $39,380 plus $2500 rebate, financing via D/C for 3 mo. and then refinaced thru my own Credit Union got me almost another $1000. So somewhere just over $10k saving.

The factory has all kinds of plans going. Had I gotten a G/M product and a number thru a factory offical, they were given another $500 off, over what the normal plan or employee could get. Confusing

 

Ya I been figuring it both ways. I would have to get a loan at 5% or less if I took the $3500 to come out the same as 0%, so its a matter who should get the $3500, dealer or bank. With the bank I get a better credit rating wants it paid off. Who knows where or what I would get with the dealer, maybe a better price and installation on a exhaust brake

 

While we're here...what's the best way to determine what a fair price is to offer on a particular vehicle. Is Edmunds.com accurate...or Kelley Blue Book?? I like the "go in and say what you're willing to pay" method and then either walk out or sign papers, but I've never figured out the best way to come up with a fair offer.

 

I just lease
then figure out the residual and put the extra $$ in a high yield(5+% MM account) every month when I make my lease payment.
but then again Im a buissness owner so it makes more sense for me to do it this way
I got my 06 4x4 Sport SLT QC SB this way
was upside down 3K on my other truck and got this one for 0 down on a 4 year lease for 600$ a month and a 15K residual

works for me

 

Sounds about fair....with employee pricing in combination with the potential for 0%, it may or may not worth refinancing after 90 days if Chrysler Financial is giving you additional discounts by running it through them. A lot depends on if you trade often or pay off vehicles, but use the incentives to your advantage. If the rebates are big, it sometimes is better to take the rebate and your own financing especially if employee pricing is going on. When I sold dodges, there was a $5000 rebate ON TOP OF employee pricing and there was just no way to beat that with a stick. Just do the math and GO SLOW! Don't buy on the first day, no matter what us ruthless salesmen try to do!

 

I'm guessing you're talking about new vehicles. I did alot of research before buying my Cummins last year, alot on DTR. It seemed to me invoice-incentives was a good deal. Add in the $500 Farm bureau rebate and, imo, it's a good deal.

However, if we had some of the dealerships around here that I've heard about in Texas (4 million trucks on the lot) I'd shoot even lower when I found a truck I was interested in. To me, it depends on where, when and what you're buying as well. The ol supply and demand show.

 

By filling the filter with oil you are may be saving a half of second of no oil pressure. It means absolutely nothing. Your turbo will still have a coating of oil on it. Basically it is a waste of time, and if it wasn't, auto manufacturers would not make horizontal mounted oil filters on turbo vehicles like the one found on a Buick Grand National.

As for the original post, dealers make any amount above wholesale, plus around 3% hold back, minus advertising, minus taxes they have to pay, and minus over head. Dealerships make more on parts and service, and ripping you off a percent or 2 on financing.

 

Hmmm - not sure where you got the half-second of oil pressure from, but it doesn't hurt to prefill the filter after changing it... I couldn't agree with it being a waste of time, however - not because of the turbo bearings, though - but because of the wear on the crankshaft main and rod bearings due to the lack of an oil film for the journals to float on.

The sooner oil pressure builds sufficiently to support a layer of oil between all contacting metal surfaces, the better.