Price negotiated from MSRP

[Silent Bob]

1st post here. Have spent some time going through this, but over 600 pages! Wow, that is fantastic, but time consuming. So I think I need to tell my local dealer to take a hike, but he is asking what price I am after. Looks like I need to go through the steps listed here on contacting a bunch of dealers, etc.
Anyway: 21 Big Horn with MRSP of 53,105
Their price: 50,010, which is only 5.83% off, plus rebates of 5,250 for total savings of 8345 (total of 15.7%) to get 44,760. So what price should I be shooting for before rebates? 15% would be 7966 off MSRP, then rebates should stay the same (right?) for a total of $39889, which is 24.9% off MSRP. Is that attainable?

Here is a sample email. You can change the wording to apply to your situation.

Sample Email

Hello,

My name is [name] and I am looking to factory order a new truck this month. I know I can get 1% below factory invoice from any dealership with my affiliate number. I am really looking to get 5 to 8% off plus any available incentives or rebates. I will be ordering from the dealership that provides me the lowest price. What is the best you can do for me?

Please provide me with your best detailed out the door price including all fees and please be competitive as I am contacting several dealers.

Thanks so much and I look forward to hearing back from you.

All the best,

 

[AdamChandler]

If I did this, what % under MSRP, would you recommend I ask for?

I didn't want to leave you hanging but I'm too new here to really have an answer. It seems some people have directly asked for 15% under MSRP before incentives and just keep it up until they find a dealer that agrees. I have all of the time in the world. When I sell cars or motorcycles, I put up the price, say it's firm and I bump that price for 6 months every week until someone finally buys it for that. Some people message "you've had this bike for sale for 6 months, would you take xxxxx" nope, I'm gonna hold out for what I want. I think it's in the first post here by SilentBob but you can save a lot on these trucks. How patient are you and how far are you willing to drive? I'll go anywhere east of the Mississippi for the truck I want and don't mind if I don't take delivery until August.

When I wanted to buy the VW Golf R in 2015 when it was 'rare' and hard to find, I put a $500 deposit down at 4 dealerships who would sell it to me at sticker. The first dealer that got the car in, I pulled my deposits elsewhere and drove to get it. I didn't want to pay dealer markup or wait 6 months so a wide net worked. Even in a seller's market, you have the cash and they want your cash. It's all about patience. Actually, I got my Golf R at Invoice because the dealer screwed up in their email. They quoted me invoice amount and then later quoted sticker and I pulled up the email from my deposit agreement on the rice we agreed on and he was like "crap, I could have gotten over sticker if I didn't work with you" YEP

 

[LeadWolf]

I'm one of them. Aaron is a great guy. Super pleased so far. Getting what I consider to be a great deal. I'll give everyone the final numbers once I pick it up, hopefully by the end of March.

Same here. I'm another Mark Dodge customer. Ordered my truck in Dec. I'm driving down from Dallas tomorrow morning to pick up my truck. Can't wait. Shawn (salesman) and Aaron (sales manager) have been great to work with. They have great communication.

 

[LeadWolf]

Is it weird for a dealer to not want to talk numbers on an in-transit truck? He mentioned the incentives changing before it arrives in the next 2 weeks, sure, but can't he craft a deal and leave that portion blank for now? I just don't get dealers these days, I have had so much trouble getting one to sell me a dang truck. I would be tempted to go order a truck through Aaron and be done with it if blind spot monitoring was an available option, but it appears you can't get it now.

Depends on the trim level you want. Limits and TRX still get blind side monitoring.

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[Silent Bob]

Is it weird for a dealer to not want to talk numbers on an in-transit truck? He mentioned the incentives changing before it arrives in the next 2 weeks, sure, but can't he craft a deal and leave that portion blank for now? I just don't get dealers these days, I have had so much trouble getting one to sell me a dang truck. I would be tempted to go order a truck through Aaron and be done with it if blind spot monitoring was an available option, but it appears you can't get it now.

Yes on dealer discount. No on the incentives. The part you are negotiating is the dealer discount and any dealer fees and add-ons. Factory incentives are what they are.

 

[Borsig]

is BLIS available on rebels and big horns now or no?

I won't own a truck without it. The wife is utterly incompetent and WILL hit someone without it

 

[db252]

Unless you are first taking off a down payment before you figure what you'd save in interest, you are saving quite a bit more than $3920!
Your 17.14% is accurate.

Tax is figured on sale price BEFORE rebates.

California is 7.25% sales tax according to Google. That's $4800 on the sale price of $66,208. So if you were financing 100%, then your finance amount would be $68,508.

Total interest on that amount on a 6 year loan at 2.9% would be $6,228!

To end up with the same savings with a 2.9/72mo loan, they'd need to give you another $5300 in dealer discount. So your total discount would be 24%.

But whatever...22 or 24% is excellent. I fully support the inclusion of 0% as part of the price negotiated from MSRP, although some may disagree because loan rates vary or any other reason.

EDIT: I see that you say they included rebates for the sales tax calculation? This surprises me, but I'm no no position to dispute that. 7.25% on $2500 is $181.25.

Thanks for double checking my stuff. I went over their math to make sure I said the right things. Our tax where we are located in CA is a total of 8.25% (state sales tax 7.25% + county tax of 1%). Based on their numbers, the rebates of $2500 were NOT removed before tax like you and Bob pointed out but it looks that way in how the paperwork is lined so the tax amount included sale price before rebates were removed. The extended warranty, that I removed from the purchase price for the benefit of this post, was definitely not taxed so I’m thankful for that.
I agree that the 0% should be included as well as a factor for savings as that’s one of the reasons to choose that path. You would be correct in that if I put nothing down we’d save an even greater number but we did put $28500 and I factored the balance from 0% and the 2.9% both at 6 years to give the comparison post down payment. Regardless of whatever the down payment is, we all save finance charges the same in a way; ours was solely for a preferred monthly payment.
And yet another savings I forgot to add was the Allstate bonus drive of a check for $250 which is already approved and in process. I know the percentage we saved is great….others have had better but not looking to be number one on that. This site rocks!

 

[TravisJ]

Yes on dealer discount. No on the incentives. The part you are negotiating is the dealer discount and any dealer fees and add-ons. Factory incentives are what they are.

That is what I figured...not sure what the issue is. It is so close to the end of the month I am just going to wait till Monday and hound the dealer for a detailed price then, kind of annoying. If I wanted to go play games I would go to a casino.

 

[slatersan]

I agree that the 0% should be included as well as a factor for savings as that’s one of the reasons to choose that path. You would be correct in that if I put nothing down we’d save an even greater number but we did put $28500 and I factored the balance from 0% and the 2.9% both at 6 years to give the comparison post down payment. Regardless of whatever the down payment is, we all save finance charges the same in a way; ours was solely for a preferred monthly payment.

If you're going to include money saved on interest charges as savings off MSRP, are you going to also consider/add to MSRP the opportunity cost of missed income/returns you could have made investing $28.5k instead of putting it into a down payment on a depreciating asset? Putting 28.5 into the right investment over the life of your loan could have made you 100k or more. See the point?
I'm in no way saying that 0% isnt a great perk in a deal, but to include it in a % off MSRP calc muddies everything. Just food for thought.

 

[Chuck19]

1st post here. Have spent some time going through this, but over 600 pages! Wow, that is fantastic, but time consuming. So I think I need to tell my local dealer to take a hike, but he is asking what price I am after. Looks like I need to go through the steps listed here on contacting a bunch of dealers, etc.
Anyway: 21 Big Horn with MRSP of 53,105
Their price: 50,010, which is only 5.83% off, plus rebates of 5,250 for total savings of 8345 (total of 15.7%) to get 44,760. So what price should I be shooting for before rebates? 15% would be 7966 off MSRP, then rebates should stay the same (right?) for a total of $39889, which is 24.9% off MSRP. Is that attainable?

I got 20.3% off a similarly priced Longhorn (just placed my order with Aaron this morning, Might be more depending on the rebates available when the truck arrives but he said we can either use February rebates or the rebates available when it is delivered. Whichever is better) with very little effort. I would say if you are patient enough that is doable. Especially if you are willing to take current inventory.

 

[Vinnie.]

big thank you to @Silent Bob

I was previously unaware of the "sold order consumer incentive protection program." I ordered on 1/9 and my dealer said the rebates/incentive at time of delivery only would be applied. I just talked to them today and within two hours of emailing them, I got this back. VERY EXCITED


"Hi Vinnie,

Sorry for the late response but I was in research mode on the sold order protection program. I was in contact with our Mfr rep and yes that program is available and I have the steps needed to file it if needed when your truck arrives. Like I had mentioned to you before I don't believe we will need to but in case, I do have the process on how we can claim that for you. Hope this answers your concerns."

 

[db252]

If you're going to include money saved on interest charges as savings off MSRP, are you going to also consider/add to MSRP the opportunity cost of missed income/returns you could have made investing $28.5k instead of putting it into a down payment on a depreciating asset? Putting 28.5 into the right investment over the life of your loan could have made you 100k or more. See the point?
I'm in no way saying that 0% isnt a great perk in a deal, but to include it in a % off MSRP calc muddies everything. Just food for thought.

Everything has to be considered and I’m right along with you on your point and all versions were evaluated. There’d be no conversation if I bought GameStop stock at the right moment. It all came down to what we personally wanted to do is all. One way or another we all pay for what we want to buy.

 

[Silent Bob]

I checked my paper work and the warranty was not taxed.

Glad to hear it. Here is what I believe to be the correct information. If you buy the extended warranty out of state you generally will not be charged sales tax. If you buy the warranty in your state you will generally be charged local sales tax. Sorry for the confusion. If anyone knows different please inform us.

 

[slatersan]

Everything has to be considered and I’m right along with you on your point and all versions were evaluated. There’d be no conversation if I bought GameStop stock at the right moment. It all came down to what we personally wanted to do is all. One way or another we all pay for what we want to buy.

I wasn't criticizing the deal at all, simply pointing out that including interest saved in a % off MSRP calc isn't common or clear.
Enoy the new ride!

 

[Chuck19]

1st post here. Have spent some time going through this, but over 600 pages! Wow, that is fantastic, but time consuming. So I think I need to tell my local dealer to take a hike, but he is asking what price I am after. Looks like I need to go through the steps listed here on contacting a bunch of dealers, etc.
Anyway: 21 Big Horn with MRSP of 53,105
Their price: 50,010, which is only 5.83% off, plus rebates of 5,250 for total savings of 8345 (total of 15.7%) to get 44,760. So what price should I be shooting for before rebates? 15% would be 7966 off MSRP, then rebates should stay the same (right?) for a total of $39889, which is 24.9% off MSRP. Is that attainable?

I also meant to ask where did you come up with the $5250 rebate total?

 

[scottmoyer]

I saw it mentioned earlier that you don't tax rebates when calculating your costs. My response is...that depends. Many states require that taxes be paid on rebates. Florida is one of those states. Louisiana isn't. I like the way Mark Dodge filled out the paperwork because Florida DMV couldn't figure out the discount vs rebate costs, so they charged taxes based on sale price. That's all they had.

It's been mentioned many times that you don't include taxes on your discount percentage, but when verifying a price offer from the dealer, you might find a discrepancy in pricing if you do/don't tax rebates. That could be a couple hundred dollars.

 

[Jako]

I saw it mentioned earlier that you don't tax rebates when calculating your costs. My response is...that depends. Many states require that taxes be paid on rebates. Florida is one of those states. Louisiana isn't. I like the way Mark Dodge filled out the paperwork because Florida DMV couldn't figure out the discount vs rebate costs, so they charged taxes based on sale price. That's all they had.

It's been mentioned many times that you don't include taxes on your discount percentage, but when verifying a price offer from the dealer, you might find a discrepancy in pricing if you do/don't tax rebates. That could be a couple hundred dollars.

New York taxes rebates.

 

[chuck01835]

heres where im at boys. on my bh build i reached out to kristian henriksen from johnson dodge? in nj. i told her id like 7% below invoice in which she replied she couldnt do 7% at this time. i appreciate her being straight forward and honest and not trying to sway me into anything. being that shes local and not to far from me i asked what could she do and it was 2.87% under invoice. i then got in contact with aaron from mark dodge told him what i wanted and also couldnt do 7% but came back with 6.05%. but he could also lock in the rebates that i want(3k and that 0% apr).
build msrp = 57330
invoice = 53900
6.05 below invoice = 50639.05
after 3k rebate(-2500 on bh and -500 when financed through chrysler) = 47639.05 with 0% apr.
while its not a steal like ive seen people getting 20%-25% below msrp mine is 17%. its the 0% apr that i like. maths not exactly my thing but i think i got the numbers right and i think aaron might be my guy.

Kristian is a guy by the way. When I sent a request to him for a quote and mentioned 14% off MSRP was offered to me by another dealer that was further away, he refused to send me a quote and then would not respond to my follow up emails. Oh well.

 

[Silent Bob]

Kristian is a guy by the way. When I sent a request to him for a quote and mentioned 14% off MSRP was offered to me by another dealer that was further away, he refused to send me a quote and then would not respond to my follow up emails. Oh well.

Kristian Henriksen at Johnson Dodge may not have realized how many people would be contacting him and wanting low prices. I have reached out to see if he is still willing to give forum members at least 5% off invoice or EP pricing. Waiting to hear back.

UPDATE: They are no longer willing to offer discounts.

 

[AK103]

For those from Florida, I still highly recommend Lakeland Ram -
Couldn't be happier with my Ram Limited (Just had my first road trip to St Pete in it)
They're still doing 7% off invoice plus rebates/incentives on delivery. One of the best, if not the best promo in the country.
I'll be more than glad to share who I worked with if anyone's interested, shoot me a PM.