If calculating the discount, is discounted price BEFORE or AFTER adding the tax/tag and stuff?

[Ram1500OwnerMaybe]

People discuss shooting for 20-25% off.
Is this the percentage between the MSRP and the out the door price
or
the percentage between the MSRP and the price before adding the tax/tag and stuff?

 

[Fatherof3]

People discuss shooting for 20-25% off.
Is this the percentage between the MSRP and the out the door price
or
the percentage between the MSRP and the price before adding the tax/tag and stuff?

You would add the tax on whatever you pay not on MSRP .

 

[AnthonyRI]

Please, in my opinion, Leave all tax, title, license, out of the conversation when discussing online. You've got people from ALL different states. Even within your state, your neighbor may have a trade in that drastically changes their tax amount.

 

[kapinallinen2]

Please, in my opinion, Leave all tax, title, license, out of the conversation when discussing online. You've got people from ALL different states. Even within your state, your neighbor may have a trade in that drastically changes their tax amount.

Did not sound like a question of specific dollar amount, more of when does it apply.

 

[Ram1500OwnerMaybe]

Did not sound like a question of specific dollar amount, more of when does it apply.

Correct.

If MSRP is 75K and Price before Tax/Tag and such is 58K, that is a decent 23% savings.

If MSRP is 75K and Price AFTER Tax/Tag and such is 63K, drops down to 16% savings.

If I am shooting for at least 25%, just want to ensure I am following the general rule of thumb for calculating the percentage.

 

[FNCman]

In my case, discount was applied AFTER.

 

[cpetku]

Correct.

If MSRP is 75K and Price before Tax/Tag and such is 58K, that is a decent 23% savings.

If MSRP is 75K and Price AFTER Tax/Tag and such is 63K, drops down to 16% savings.

If I am shooting for at least 25%, just want to ensure I am following the general rule of thumb for calculating the percentage.

If you are going to use a final price including tax and fees, the same tax rate and fee's should be applied to the MSRP since MSRP is what the manufacturer feels you should pay them for the truck FOB with destination charges being mandatory above that. Title and taxes are to the state and would be applied above the MSRP .

 

[Ram1500OwnerMaybe]

In my case, discount was applied AFTER.

If some are calculating the percentage BEFORE and others AFTER then the data on the board is a bit skewed.
Get 25% off BEFORE and 25% off AFTER is a huge difference.

 

[Ram1500OwnerMaybe]

If you are going to use a final price including tax and fees, the same tax rate and fee's should be applied to the MSRP since MSRP is what the manufacturer feels you should pay them for the truck FOB with destination charges being mandatory above that. Title and taxes are to the state and would be applied above the MSRP .

Thinking about it that way makes sense to calculate BEFORE.
I should have thought of that.

 

[AnthonyRI]

Correct.

If MSRP is 75K and Price before Tax/Tag and such is 58K, that is a decent 23% savings.

If MSRP is 75K and Price AFTER Tax/Tag and such is 63K, drops down to 16% savings.

If I am shooting for at least 25%, just want to ensure I am following the general rule of thumb for calculating the percentage.

I stand by my response - your benchmark should be IGNORING TTL.

 

[Willwork4truck]

Gotta' be before fees and add ons. If you go into Finance and come out with 10K in add ons for insurance, bs treatments etc, it wouldn't make sense to use that ending number, IMHO. You can't do an apples to apples comparison if you include fees as each dealer varies and each customers finance visit is different..

 

[Ram1500OwnerMaybe]

Gotta' be before fees and add ons. If you go into Finance and come out with 10K in add ons for insurance, bs treatments etc, it wouldn't make sense to use that ending number, IMHO. You can't do an apples to apples comparison if you include fees as each dealer varies and each customers finance visit is different..

Makes sense about finances, but if the dealer adds on 10K worth of BS treatment, I would expect that to affect the percentage.

 

[Willwork4truck]

Makes sense about finances, but if the dealer adds on 10K worth of BS treatment, I would expect that to affect the percentage.

I should have been more specific. The F&C charges can include all kinds of treatments, service plans/warranties and various types of "protections" as opposed to the dealer using an add-on sticker beside the msrp.

 

[boogielander]

it's always before. factoring TTL is not accurate way of gauging the discount because every state, county, town, dealer is different.
there's no point trying to figure out the percentage with those variables in, because it is not a fair and accurate way of gauging. However, if you do the math after and it comes out to be 25% with tax included, then you can go about and brag about it because that is impressive. But what are the chances of that happening lol

and if you want to talk discount... there's no one better to talk to than @AnthonyRI at Mark Dodge. Their discounts are good and their customer service is always the best. No bs add on, treatments, protections, or whatever. It's the easiest and painless dealership I've ever had.