[Ned97sahara]

Today I went and test drove the new dodge power wagon. this is a sweet truck. I was talking to the salesman about my trade in and I mentioned that my dad has the family and friends discount and that I would get 1% below dealer invoice plus all incentives. He told me that the employee pricing is 3% below dealer invoice and that I would save money with that instead. He then showed me the "original dealer invoice for the truck" according to this the dealership paid just over 40,000 for the truck was selling it for 45,345 and that the employee pricing would take it down to 38,000 minus another 2,000 in incentives and if I were to finance threw chrysler they would take another 1,000 off. So they would sell me a truck for 35,000 that they paid 40,000 for. There is just something that I don't understand with this deal. How would the dealership make any money on this deal and every other deal that they have been making with the employee pricing? So my question is what do they actually pay for the vehicle? I can't see them selling all these cars and trucks for less than they pay for them. I may be stupid and don't understand this whole buying cars thing so if any one has any ideas and can educate me I would appreciate it.

[mhmmofr0]

edmounds should have the answers that you are looking for

[TJ-n-Oregon]

Originally Posted by Ned97sahara

There is just something that I don't understand with this deal. How would the dealership make any money on this deal and every other deal that they have been making with the employee pricing? So my question is what do they actually pay for the vehicle? I can't see them selling all these cars and trucks for less than they pay for them. I might be stupid and don't understand this whole thing so if any one has any ideas and can educate me I would appreciate it.

Went through the same thing when I bought both my Dodge HO-CTD's. It's likely they are telling you the truth. When I bought mine I asked the New Car Manager where there money is made? He told me DC has dealership bonus dollars. When I bought my '03, it was just over $800. Don't know where it is now, but that is likely what is happening. It's money not available to you...but to the dealership.

Also, keep in mind the financing with Chrysler you'll have to make at least 6 payments. So if you plan on cashing out of it sooner, you'll end up paying the $1k back. Just a heads up.

[bobhaverford]

Originally Posted by Ned97sahara

Today I went and test drove the new dodge power wagon. this is a sweet truck. I was talking to the salesman about my trade in and I mentioned that my dad has the family and friends discount and that I would get 1% below dealer invoice plus all incentives. He told me that the employee pricing is 3% below dealer invoice and that I would save money with that instead. He then showed me the "original dealer invoice for the truck" according to this the dealership paid just over 40,000 for the truck was selling it for 45,345 and that the employee pricing would take it down to 38,000 minus another 2,000 in incentives and if I were to finance threw chrysler they would take another 1,000 off. So they would sell me a truck for 35,000 that they paid 40,000 for. There is just something that I don't understand with this deal. How would the dealership make any money on this deal and every other deal that they have been making with the employee pricing? So my question is what do they actually pay for the vehicle? I can't see them selling all these cars and trucks for less than they pay for them. I may be stupid and don't understand this whole buying cars thing so if any one has any ideas and can educate me I would appreciate it.

The EP program is a factory program reducing the cost to the dealer BELOW invoice. The $2000 is an additional factory incentive. The financing incentive is also from the factory. The dealer purchases the automobile for LESS than the EP. How much less is the question.

On top of ALL factory incentives I got the dealer (unrelated to me) to discount an additional $1000 from his profit. So, for a TJ bought in August you know his cost was more than a $1000 below EP for him to be able to discount this additional amount.

The dealer cost was lower than EP AND the dealer has additional hold backs from the factory. The size of the holdback is dependent on a variety of factors. Figuring out what a dealer actually pays for a car these days is VERY difficult.

The "invoice price" is no longer a reliable benchmark for what the dealer has in a car. They play loosey goosey with the invoice price. My dad, grandfather, uncles and cousins are all dealers. And they make a load of money (grandfather now deceased and dad retired). They don't make that money giving cars away below their cost.

Good luck.

[jeepsgotnutz]

The truth of the matter is this. If he told you the dealer cost is $40k for the truck. He is feeding you a line of Car Salesman 101 BS. The Dealer most likely gave between 20-30k for that truck from DC. New Car Dealerships couldnt even start to pay their own bills if they survived off incentives and ect... We were close to a Ford Dealer a few years ago. He showed us his "cost". For a 1/2 ton Truck he had on the lot with a list sales price between $18-20k, he said he at most, had approx. $7-8k invested in it. This isnt something dealers will ever let the buyer see.
Dont fall for their scam. No dealer will ever sell you anything for his TRUE cost. Just the Invoice price they have set for sales. BIG 3 Dealerships spend thousand on thousands of dollars a month on advertising and overhead alone. Not to mention their expense to cover payroll, insurance, benefits, ect.... They would never be able to do this if they just made a couple thousand dollars per car.

[starheimberger]

if a dealer is advertizing a invoice price he legally must have paid that amount,however he will get holdback money 3-4% of retail,after selling, plus prep fees plus document fees. so a 50,000 sticker invoiced at 40k minus incentives of 2000 or so sells for 38k with the dealer making zip. BUT after the sale he gets 2000 holdback bucks, another grand for preping, and another commision for financing,extended warantee,aftermarket products plus doc.fees AND he got your trade at wholesale and sells it at retail. i think that leaves plenty of oppurtunitys for the dealer to survive

[jeepsgotnutz]

Keep telling yourself that.

[TJVigilante]

holdback is stated on the invoice, by law. And the 1000 through chrysler financial and having to pay 6 months before paying it off is bogus, once the deal is on the table it's cut and dry. Nothing in the loan info says you must pay that 1000 back if you pay it off early, no matter HOW early.

Ask for the invoice again, and look for something that says holdback and has a number by it. It won't have a dollar sign next to it.

[bmcdade]

From dealers I have had relationships with in the past by working for DMV, I was also informed that each dealership makes its own contract with the corp regarding incentives. For example, a "Five Star" DC dealer near me sells so many cars that it cut a special side deal with DC during certain slow sales months...if the dealer as a whole sold more than "X amount" of vehicles during the calendar month, they would be reimbursed an additional $800 by DC on every vehicle sold that month. Thus, it was always better to buy a vehicle there on the last business day of the month in a month that they were trying to reach quota...best deals were to be had. Previous poster had it right...it's very difficult to ascertain true dealer cost if, for no other reason, not every dealer is treated equally or given same incentives.

[IndyXJ]

What year is this PW? I THOUGHT they only came out in for the 06 model year and not the 05, I may be wrong. If it's an 06, the popular employee pricing won't even apply. Personlly, with gas like this, I wish I could get rid of my Ram. I love it, but the 4.7 gets 14-17 MPG. Gas was only $1.50 on down when I bought in Spring of 03. Good luck with whatever happens!

[TXJeep]

Originally Posted by TJVigilante

holdback is stated on the invoice, by law. And the 1000 through chrysler financial and having to pay 6 months before paying it off is bogus, once the deal is on the table it's cut and dry. Nothing in the loan info says you must pay that 1000 back if you pay it off early, no matter HOW early.

Ask for the invoice again, and look for something that says holdback and has a number by it. It won't have a dollar sign next to it.

Ding Ding, we have a winner!!! I don't know how to read a Jeep invoice but I can tell you a Chevy invoice has The actual dealer cost (holdback), vehicle invoice, and msrp. Also you do not have to make 6 payments with Chrysler I refinanced in 3. You sign a Finance Contract, if it is not written in it, it doesn't happen.

[Ned97sahara]

The power wagon's first year is 05. It is a rare find now. I have about 10 dodge dealerships with in a 50 mile radius of me and only 3 have power wagons in stock the dealership I went to has two quad cabs witch is what I want and the other to are regular cabs.